The Financial Aid Process
Dec 21, 2015
Common FAFSA Questions If we don’t think we qualify for financial
aid, do we still file the FAFSA? Yes! Don’t assume you don’t qualify Many colleges require FAFSA to confirm
merit awards
Common FAFSA Questions Does the student provide parents’ financial
information? Yes, unless “Independent” Independent: Yes to at least one Q below
24 or older Have a bachelor’s degree Active duty or Vet Married Support children Emancipated, Orphan, Ward of Court Unaccompanied and homeless youth
Common FAFSA Questions If a student’s parents are no longer
married to each other, whose info is provided? Custodial parent If unsure: the parent who provided most of
student’s financial support during the last 12 months
Common FAFSA Questions If a custodial parent is remarried, does
student include stepparent’s income? Yes, information about both parent and step-
parent is required
Common FAFSA Questions
If a student’s parents live together but are not married, whose info is provided? Follow the same criteria as divorced
parents
Frequent FAFSA Errors Social Security Number Divorced/remarried parent information Parents/ stepparents earned income Untaxed income U.S. income taxes paid Household size Number in postsecondary education Real estate and investment net worth
IRS Retrieval Tool
Connects to IRS for tax data from completed returns
Electronic filers – about 2 weeks after submitted
Use for original FAFSA and corrections
IRS Retrieval Tool Tax data
transferred to the FAFSA
May avoid having to submit copies of their tax transcript
CAUTION!
Avoid FAFSA scams! Submitting the FAFSA and NYS TAP
application is FREE Many high school guidance offices,
college financial aid offices, and non-profit organizations provide FREE help with completing the FAFSA
NYS Student Aid
Major Programs Tuition Assistance Program (TAP) Aid for Part-Time Study NYS Scholarships for Academic
Excellence NYS Math & Science Teaching Incentive
Program Veterans Tuition Award
Common TAP Questions How do I apply for TAP if I missed the
direct link from the FAFSA form
After 3-4 days, apply through HESC.ny.gov
Common TAP Questions What are the residency requirements for
TAP? Legal resident of New York State
What should the student send to HESC when questioned? New York State Residency Questionnaire Student can appeal residency if denied Student must provide documentation
Leases, utility bills, tax documents
Common TAP Questions If a student does not reside with his/her
parents and they are not helping pay for college, does parental information need to be included? Dependent vs. Independent
For students 22 to 35, depends on responses to financial independence questions
Applicants under 22 are considered dependent unless they meet both the financial independence questions and special conditions
Common TAP Questions What are special conditions and what
proof needs to be sent to HESC? Ward of the court Public assistance under own budget Involuntary dissolution of family Honorably discharged veteran Parents are deceased, certified as having a
total and permanent disability, or declared incompetent
Institutional Aid Depends on funding at each college College determines eligibility criteria for
need-based and non-need-based programs
Academic, athletic, and other talent-based scholarships and grants
May require additional applications
CSS Profile The PROFILE is a form used by certain
colleges - in addition to the FAFSA - to award the schools own grants, loans or scholarships -(Institutional Funds)
Collects more detailed information – e.g. home ownership
Check with the college to see if they require the PROFILE
After applications are filed… Each school listed on the FAFSA will
receive an electronic record Student will receive notification that their
Student Aid Report (SAR) is available
Schools use this information to develop an award letter sent to each student Schools may request additional information
Next Steps: Award Letter
College award letters contain: Federal aid eligibility
May include federal student loan options
State aid eligibility Institutional aid eligibility
Award Letter Evaluation
Reviewing award letters involves:
Reviewing the cost of attendance of the college and the EFC of the applicant
Award Letter Evaluation
Reviewing award letters involves:
Distinguishing the aid programs offered in the package; gift vs. self-help aid
Projecting annual and long-term indebtedness
Award Letter Evaluation
Reviewing award letters involves:
Obtaining the Net cost; subtracting gift aid from cost of attendance
Comparing to identify best choice (lowest net cost, total indebtedness, etc.)
Federal Verification Requirements
IRS Tax Transcript for Federal Tax Return data AGI, Taxes Paid, Untaxed Income, Education
Credits
Verification worksheet and/or written statement for other data Number in household/college, child support
paid/received, SNAP, other untaxed income Declaration that taxes were not filed or required
to be filed
Federal Verification Requirements Identity/Statement of Educational
Purpose Appear in-person with government-issued ID Sign the Statement of Educational Purpose
High School Completion Status High school diploma GED Home school diploma
Federal Verification: New Requirement For 2014-15:
Other Untaxed Income Question 45: Student’s Other Untaxed Income Question 94: Parent’s Other Untaxed Income
Financial aid administrator determination that income does not appear to provide sufficient financial support for household Student/Parent must explain how the family was
financially supported during 2013.
Common Question What if the student misses a college
deadline? Notify the college Monitor the process Respond immediate to additional information
requests
Common Question Can students appeal or ask for
reconsideration of their aid package? Depends on college; some may not accept
appeals Follow their institutional policy/procedure May require the student/parent to submit
documentation for verification No guarantees of aid increase
Net Price Calculators Precollege planning tool available on
college and university websites Helps provide estimates of cost of
attendance and total grant aid to reveal the expected “net cost”
May also provide estimates of total aid package, average indebtedness
Calculators and estimates will vary from college to college
Benefits of the FAFSA4caster
Estimates Expected Family Contribution (EFC)
Estimates eligibility for federal student aid, including grants
Helps students, parents with pre-college planning
FAFSA4caster is free