FAFSA Line-by-Line Presented by College Access Fairfax What is the - PowerPoint PPT Presentation

FAFSA Line-by-Line Presented by College Access Fairfax

What is the FAFSA? ➢ The Free Application for Federal Student Aid (FAFSA)is an online form that should be prepared annually by current and prospective college students in the United States to determine their eligibility for student financial aid. ➢ The first “F” in the name stands for FREE. Students should never pay to file their FAFSA.

Why is filing the FAFSA important? ➢ The FAFSA is the gateway form for almost all student aid including: ➢ Federal grants ➢ State grants ➢ Institutional Aid ➢ Need-based scholarships ➢ Some merit-based scholarships ➢ Student and Parent loans ➢ Change in circumstances

Ways to file the FAFSA ➢ FAFSA on the Web (FOTW) ➢ myStudentAid mobile app ➢ Paper or PDF FAFSA ➢ FAFSA on the Phone (FOTP)

Securing an FSA ID ➢ In order to use the Data Retrieval Tool (DRT) and to file the FAFSA electronically, the student and one parent need to have an FSA ID ➢ To create an FSA ID ➢ https://fsaid.ed.gov/npas/index.htm ➢ Create a user name and password and enter your email address (student and parent must have separate email addresses) ➢ Enter your name, birthdate, Social Security Number (not TIN), contact information (separate phone numbers for students and parents), challenge questions and answers ➢ Confirm your e-mail address using the secure code, which will be sent to the email address you entered when you created your FSA ID. Once you verify your email address, you can use it instead of your username to long in to the website. ➢ Keep the ID’s in a secure location as the student and the parent will use the same ID’s for each year the student submits the FAFSA (each year the student is attending a post-secondary institution and applying for financial aid).

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Fast Facts re: Dependency Status ➢ If you are considered a dependent student for FAFSA purposes, you will need to provide information about your legal parent(s) on the application. ➢ A legal parent is your biological or adoptive parent, or your legal parent as determined by the state (for example, if the parent is listed on your birth certificate). ➢ If you have a step-parent, currently married to your legal parent, you generally also must provide information about him or her. ➢ The following people are not your parents unless they have legally adopted you: ➢ Widowed step-parent ➢ Grandparents ➢ Foster parents ➢ Legal guardians ➢ Older brothers or sisters ➢ Aunts or uncles

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How to File the FAFSA with a Change in Filing Status 2018 Filing Status Current Filing Status How to file FAFSA Married Divorced Custodial parent files only 2018 custodial parent information Married Widowed Surviving parent files only 2018 surviving parent information Married Single Custodial parent files only 2018 custodial parent information Married Married (but to a different Custodial parent files 2018 information with new step-parent spouse) 2018 information Single or Divorced Married Custodial parent files 2018 information with new step-parent 2018 information Head of Household Married Custodial parent files 2018 information with new step-parent 2018 information

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Fast Facts re: Data Retrieval Tool (DRT) ➢ The FAFSA form asks for financial information, including information from tax forms and balances of savings and checking accounts. The 2020-21 FAFSA form, which became available on October 1, 2019, will ask for 2018 tax information. ➢ The IRS Data Retrieval Tool (IRS DRT) automatically transfers tax information into the FAFSA form. Be sure to consider this option if it’s offered to you. ➢ There are a few scenarios in which students and parents are ineligible to use the IRS DRT: ➢ The student/parent is married, and either the student/parent and his/her spouse filed as Married Filing Separately. ➢ The student/parent is married, and either the student/parent and his/her spouse filed as Head of Household. ➢ The parents’ marital status is “Unmarried and both legal parents living together.” ➢ The student/parent filed a Puerto Rican or foreign tax return.

Tax Filer who CANNOT use the Data Retrieval Tool (DRT) ➢ Did not indicate on the FAFSA that a tax return was completed ➢ Marriage date is January 2018 or later ➢ Married and filed as Head of Household or filed separate returns ➢ Neither married parent entered a valid Social Security Number ➢ Non-married parent or both married parents entered all zeroes (000) for Social Security Number ➢ First three digits of Social Securing Number are 666

If the Date Retrieval Tool (DRT) is not used ➢ It is recommended that, if the Data Retrieval Tool (DRT) is not used when completing the FAFSA, the student immediately request a tax transcript in case the student is selected for verification ➢ To get a transcript, people can: ➢ Order online – Use the “Get Transcript” tool available on IRS.gov. There is a link to it under the red TOOLS bar on the front page. Those who use it must authenticate their identity using the Secure Access process. ➢ Order by phone – The number to call is 800-908-9946 ➢ Order by mail – Complete and send Form 4506-T to the IRS to get one by mail.

Financial Aid Verification ➢ Verification is a federal financial aid requirement in which the Department of Education or the awarding institution selects applicants for a review process of comparing information reported on the FAFSA to specified documents.

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Reporting Assets on the FAFSA INCLUDE DO NOT INCLUDE Cash, checking, savings, certificates of Equity in your personal residence deposit, stocks, bonds, mutual funds Value of life insurance Real estate (equity) other than the home you Value of retirement plans (401K, IRAs, live in Keoghs, UGMA and UTMA accounts for which your are the custodian, not owner) All 529 plans (other than those owned by people other than parents), Coverdell savings accounts, other qualified education savings plans (Use refund value of 529 prepaid tuition plans) UGMA and UTMA accounts (for which you are the owner) Stock options Installment and land sale contracts

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