UNDERSTANDING THE FAFSA Fall 2016

Transcription

1 UNDERSTANDING THE FAFSA Fall 2016 MASSACHUSETTS EDUCATIONAL FINANCING AUTHORITY About MEFA Not-for-profit state authority created in 1982 Helping families plan, save, and pay for college Keeping you on track with college planning: mefa.org: tools & resources s: Info catered to you: sign up on mefa.org Facebook, Twitter, & LinkedIn Webinars: live and recorded YourPlanForTheFuture About the FAFSA Free Application for Federal Student Aid FAFSA.gov FREE form (NEVER pay to submit the FAFSA) Required by all colleges/universities for federal & state aid Opens October 1, 2016 Complete and submit before the earliest college deadline (!!) Often Feb or March Complete online, but can find a full FAFSA PDF on fafsa.gov Must be completed each year (one for every child) Tip: If an answer is zero or the question does not apply, enter 0 Note: you may have other financial aid applications required Application may ask you to check for errors on a question. Type the answer again if correct. 1

2 Documents Needed to Complete the FAFSA Student and parent Social Security numbers Student s drivers license Student and parent: 2015 W-2 forms (or pay stub) 2015 federal income tax return 2015 untaxed income records Current bank statements Current business and investment records FAFSA Customer Service Phone: Fed-Aid ( ) Form: Located at StudentAidHelp.ed.gov Chat: Located at StudentAidHelp.ed.gov (Chat option disappears if chat is not available) Hours: Monday-Friday: 8 a.m. 11 p.m. ET Saturday & Sunday: 11 a.m. 5 p.m. ET Help icon at the top of each page leads to: FAQs Search (also available throughout the site) Contact Information FAFSA on the Web: FAFSA.gov Start here 2

3 Login FSA ID FSA ID A Log-in: Username & Password Needed to complete the FAFSA Both the student and one parent will need one Replaces the now-retired Federal PIN Provide personal information and answer challenge questions FSAID.ed.gov Webinar recording on mefa.org/events 9 3

4 Entering Student Information Get Started Reminder to create an FSA ID For high school seniors Save Key The Save Key allows you to save your application and return to it later 4

5 Further Help and Instruction Search Tips for each question Further instructions Introduction Page Section tabs Student Demographic Information Save as you go Use an address that you check often View your answers anytime 5

6 Student Eligibility Who is Eligible for Federal Financial Aid? U.S. citizens Eligible non-citizens, including: U.S. Nationals Permanent Residents Carriers of Arrival-Departure Records (I-94) Holders (student or parent) of a T-visa Battered immigrant-qualified aliens Citizens of the Federated States of Micronesia, the Republic of the Marshall Islands, or the Republic of Palau. Citizenship status will be verified by: the Social Security Administration (citizens) the Department of Homeland Security (eligible non-citizens) Further Eligibility Details Males 18 and older must register for Selective Service (Male is defined as male at birth) Current high school students should select: Never before attended college Do not have a bachelor s degree Interested in work-study? Answering yes does not: Obligate the student to work Guarantee a job Cause the student to lose grants and scholarships 6

7 Student Eligibility Continued If high school diploma is selected, the student will have to list a high school School Selection List up to 10 colleges/universities Wait 3-5 days to add additional schools Compare schools side by side Housing Select the housing plan for each school Housing selection affects the college total cost and may affect financial aid 7

8 Dependency Determination Application automatically saves throughout Independent students do not have to report parent data Providing Parent Data Parent Demographics Information Household size worksheet 8

9 Who is Considered a Parent? Biological or adoptive parent(s), and certain step-parents Include both parents if parents are married or are not married but live together Married parents include same-sex couples If separated but living together, select Married In the case of divorce or separation, provide information only about the parent the student lived with more in the last 12 months, and stepparent if that parent is remarried. Included in the Household Size Student Parent(s) Parents other dependent children, if parents provide more than half their support or the children are federally dependent Other people who live with the parents, parents provide more than half of their support, and parents will continue to provide more than half their support from 7/1/17 through 6/30/18 College Students in the Household Always include the student, even if he/she will attend college less than half time in Include other household members only if they will attend at least half time in in a program that leads to a college degree or certificate Do not include the parents Some financial aid offices will require proof that other family members are attending college 9

10 Parent Tax Information Option to Use the IRS Data Retrieval Tool IRS Data Retrieval Tool Upload federal tax return data directly to the FAFSA 2015 federal tax return must be submitted to the IRS Certain individuals cannot use the tool Married individuals who file married filing separately or head of household tax returns Change in the marital status after the end of tax year Amended Tax Returns Foreign Tax Returns (even if U.S. return is also filed) Filers with Tax ID Number (TIN) FAFSA and tax return address do not match 10

11 Parent Financial Information Income earned from working: salary, self-employed income, and farm income This information will feed in automatically if using the IRS Data Retrieval Tool Parent Financial Information Continued Parents Income Tax: Found on the federal income tax return (not the amount withheld from parents paychecks) Parent Assets To Be Reported Current balance of cash, savings, and checking accounts Net value of investments Real estate Rental properties Money market and mutual funds Stocks & bonds 529 college savings for all children (reported as a parent asset) Net value of some businesses and investment farms Do not include your primary residence, life insurance, value of retirement accounts, and value of small family businesses or farms 11

12 Student Tax Information Student will be asked same income and asset questions as parents Student should report all income earned in 2015 even if he/she did not file taxes Student will also be offered the option to use the IRS DRT if he/she filed taxes in 2015 Sign & Submit Other option to sign and submit: Print a signature page Submit without a signature Confirmation Page Transfer parent information to a sibling s FAFSA College information Expected Family Contribution (EFC) 12

13 Special Circumstances Contact the Financial Aid Office if there are circumstances which affect your ability to pay for college such as: Loss or reduction in parent/student income or assets Death or serious illness Natural disasters affecting parent income or assets Medical or dental expenses not covered by insurance Financial responsibility for elderly grandparents What Happens After You Apply Colleges and your state receive data electronically You will receive a Student Aid Report (SAR) (electronically or by mail) in a few days Colleges may request additional documentation or information, such as tax data, through a process called Verification Colleges send out financial aid award letters (typically Mar-April) National and Community Resources FAFSA Day Free assistance completing the FAFSA November 6, 2016 and January 29, 2017 FAFSADay.org for additional dates and times First Lady s Up Next Mobile Messaging Tool Text COLLEGE to for tips on all things college Educational Opportunity Centers Free financial aid help MassEdCo.org 39 13

14 MEFA Webinars All webinars begin at 12pm. Register online at mefa.org/events. CSS/Financial Aid PROFILE: Friday, 9/30/16 Monday, 1/9/17 Paying the College Bill: Friday, 3/3/17 Tuesday, 4/11/17 Comparing College Loan Options: Wednesday, 6/7/17 Tuesday, 7/11/17 Other recorded webinars posted at mefa.org/events 40 MEFA Paying the College Bill Seminars Provide assistance and clarity on: Financial aid awards College bill Payment plans College loans What to ask the Financial Aid Office Locations across MA in March and April MEFA s will provide details What You Can Do Now Sign up for MEFA s Get an FSA ID for the student and parent Research deadlines and required applications Schools may require applications in addition to the FAFSA Start completing applications 42 14

15 Thank You Questions? Comments? Meredith Barnhart Director of Integrated Communications (800) 449-MEFA (6332) mefa.org 15