Transcript Slide 1

2010 Counselor
Workshop
OASFAA Disclaimer
▼ The Ohio Association of Student Financial Aid
Administrators (OASFAA) is a non-profit organization
and provides the following information as a free service
to access staff and high school counselors. Access staff
and high school counselors have permission to copy and
distribute these materials to their students and families.
Charges may not be assessed for the material or for the
information presented. Permission must be granted for
other use of this information or these materials. Contact
the Outreach Chairperson listed on the OASFAA web
site or e-mail:
[email protected]
Agenda
▼ Federal Update
▼ Changes to FAFSA
▼ State Update
▼ Review of Resources Available
▼ What is Professional Judgment?
▼ Question and Answers
FEDERAL UPDATE
Direct Loan Transition
▼ Legislation: Health Care and Education
Reconciliation Act of 2010
▼ Federal Loans 100% Direct July 1, 2010
and forward
Direct Loan Transition
▼ Hired 4 additional servicers
– ACS (current servicer)
– Nelnet
– Sallie Mae
– Great Lakes Educational Loan Services
– AES/PHEAA
▼ Will provide repayment services for
borrowers….no origination responsibility
Pell Updates
▼ Pell Grant—this is a federal grant, need
based as determined by the Free
Application for Federal Student Aid
(FAFSA)
▼ Maximum award for 2010-11 is $5550.
Pell Updates
▼ Allows students to receive two Pell Grants
during a single academic year
– Pell max = $3,000
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Summer =
Fall =
Spring =
Summer =
$1,000
$1,000
$1,000
$1,000
▼ Must be enrolled at least half time each
term for 2nd Pell Grant in same year
Pell Updates
▼ Sets time limit of up to 18 semesters or
equivalent for those who receive first Pell
Grant on/after 7/1/08.
▼ No Pell for those who were incarcerated for
sexual offense.
▼ Auto Zero EFC for Pell eligible students
whose parents or guardian was a member
of Armed Forces and died in Iraq or
Afghanistan after 9/11/01.
Department of Defense Match
▼ Designed to identify students who are
either:
– Eligible for a maximum Pell Grant, or
– An award under the Iraq and Afghanistan
Service Grant Program.
Department of Defense Match
▼ In May 2010, began matching applicant
records in CPS against DoD file
– 2010 – 11 applicants –
• New DoD flag set on ISIRs
• Letters to students
▼ To ensure all eligible students are
awarded aid appropriately, FAA’s must
pay attention to new ISIR flag
TEACH Service Obligation
▼ Full-time teacher in high need field
▼ Must teach in low-income school for four years
within 8 years of completion of program
▼ No credit for part-time teaching
▼ No partial fulfillment of service
▼ Failure to complete service obligation causes
grant to convert to Direct Unsubsidized Stafford
Loan and interest is charged back to the date of
grant disbursement
TEACH - Future update
▼ Effective 7/1/10:
– If recipient is teaching in academic field
designated as high-need by the state at the
time grant was received, recipient may fulfill
teaching obligation in that field even if that
field is no longer considered high need when
they begin teaching.
Federal Program Changes
▼ ACG/Smart award is eliminated
▼ Income threshold for the Automatic Zero
EFC will increase to $31,000
▼ Beginning 2011-2012 family must file
FAFSA for Parent PLUS Loan
– 98% already file
CHANGES TO FAFSA
FAFSA Changes for 2011-12:
▼ Question changes
▼ FOTW homepage improved
▼ Options presented will be customized to
applicant
▼ FAFSA Corrections re-designed
▼ Expanded IRS Data Retrieval tool
New Question
▼ Name and location of high school
from which student received
diploma
Modified Questions
▼ Loan/work study preferences
▼ New language references food stamps
by federal program’s new name (SNAP)
▼ New language adds American
Opportunity Credit to references of
education tax credits
Deleted Questions
▼ Anticipated enrollment status
▼ TEACH Grant
▼ Academic Competitiveness Grant (ACG)
eligibility
New FAFSA Homepage
Students will be
accessing a simplified
homepage.
Single Log in Function
All application options will
be accessible with one
log in:
– Starting a FAFSA
– Continue a FAFSA
– Corrections
– Adding a School Code
– Signing the FAFSA
– Status Check
– View SAR
Home Contact Us Browse Help
Search
Help & Hints
Login
Student Information
Social Security Number
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Last Name
First Name
Date of Birth
By clicking Next, you agree to the terms and conditions of the US
Government System Warning.
NEED HELP?
FOOTER
My FAFSA Page
Customized
information will be
presented to a
student depending on
their current FAFSA
status.
My FAFSA Page
Customized
information will be
presented to a
student depending on
their current FAFSA
status.
My FAFSA Page
Corrections Redesign
Enhancements
Include:
– New Layout
– Improved page
navigation and
edits
– Help and Hints
IRS Data Retrieval Tool
▼ Students completing a 2011-12 FAFSA
will be able to utilize IRS data retrieval
beginning January 30, 2011
▼ Data available in English and Spanish
▼ IRS information available within several
days for electronic filers or several weeks
for paper tax filers
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How IRS Retrieval Work
How IRS Retrieval Works
How IRS Retrieval Works
How IRS Retrieval Works
How IRS Retrieval Works
How IRS Retrieval Works
IRS Data Retrieval
Authentication
IRS Data Retrieval Tax Data
Successful Transfer of IRS
Data
FAFSA Processing Results
▼ CPS notifies student of FAFSA processing
results by:
– Email notification containing a direct link to
student’s electronic SAR if student’s email
was provided on paper or electronic FAFSA
▼ Student with FSA PIN can view SAR on
line at www.fafsa.gov
Frequent FAFSA Errors
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Parent and student Social Security Numbers
Divorced/remarried parental information
Income earned by parents/stepparents
Untaxed Income
U.S. income taxes paid
Household size
Number of household members in college
Real estate and investment net worth
Verification
▼ Selected by CPS or the institution
▼ Applicant & parent: Keep copies of 2010
Tax documents
▼ If selected, completion is required before
aid can be disbursed
▼ Verification materials are sent to the
financial aid office, not federal processor
Completion of FAFSA
without Parental
Information
Parental Information
▼ FOTW asks whether student will provide
parental data
▼ If no, student indicates he or she meets
special circumstances criteria
▼ Student can submit FAFSA without parent
information
▼ FAFSA will have reject code
– Student needs to work with school to
complete application
Parents Refuse to Provide
Information
▼ Student indicates situation on FOTW,
choosing option that he or she is applying
only for an unsubsidized loan
▼ Student submits FAFSA without parental
information
▼ EFC not calculated
▼ Student must contact school regarding
documentation and decision
FAFSA
▼ 4Federal Student Aid Information
Center:
1-800-433-3243
1-800-4FEDAID
▼ www.federalstudentaid.ed.gov
▼ www.fsa4counselors.ed.gov
FSA Publications
▼ Paper FAFSA’s will not be available for
order in bulk
▼ FAFSA on the Web Worksheet will still be
available for bulk order by schools
▼ Students can obtain 3 paper FAFSA’s by
calling the Federal Student Aid Information
Center at 1-800-4- FED-AID (800-4333243) or by visiting
www.edpubs.org
FSA Pubs Ordering Website
www.FSAPubs.gov
– Use your OPEID to
order supplies
FAFSA4caster
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Developed to:
Foster early awareness with the financial aid
application process and form
Serve as an early analysis tool informing
college affordability
Reduce the time required to submit the
"official" financial aid application in the
student's senior year of high school
New change: No longer calculates an
estimated EFC
FAFSA4caster
Homepage Makeover
▼ Early estimate of
student’s federal aid
eligibility
▼ Improvements for 201112
– Integrated with FAFSA site
– Simplified with fewer
questions and more
assumptions
▼ No longer save results or
pre-populate FAFSA
STATE UPDATE
State Financial Aid Overview
Ohio College Opportunity Grant (OCOG),
http://regents.ohio.gov/sgs/ocog/
Ohio War Orphans Scholarship,
http://regents.ohio.gov/sgs/war_orphans/
Ohio Safety Officers Memorial,
http://regents.ohio.gov/sgs/oso/
Nurse Education Assistance Loan Program,
http://regents.ohio.gov/sgs/nealp/
National Guard Scholarship,
http://www.ongsp.org
Choose Ohio First Scholarship,
http://uso.edu/opportunities/partnership/chooseohio1st/index.php
Ohio College Opportunity Grant
OCOG
OCOG is a $76 million program - Student’s Pell grant
and EFC must be applied toward tuition/general fees
before the OCOG award can be determined.
Community colleges -- Pell/EFC combination should
cover tuition and general fees at all community colleges
and regional campuses. No OCOG awards will be
available to students attending these institutions and
Central State. Shawnee students limited $480to $480.
State Financial Aid News
For OCOG eligible students enrolled at private, nonprofit institutions, the maximum award is $1,848—at
public main campuses, the maximum award is $888.
Students at private, for-profit institutions not OCOG
eligible
War Orphans Scholarship covers 80% of tuition and
fees at public universities and community colleges
$4,650 annual award at independent and proprietary
Ohio Academic Scholarship is $2,000 at all
institutions
Help for Students
Speak with an Information
Specialist
Call 1-877-I-ATTAIN (428-8246)
Mon. – Fri. 10am – 6pm
College Goal Sunday
Sunday, February 13, 2011 2:00 PM
▼ Locations throughout Ohio
▼ College Goal Sunday offers the opportunity to have
expert help completing the Free Application for Federal
Student Aid (FAFSA).
▼ Financial aid professionals from Ohio colleges &
universities will be available walk you and your family
through the financial aid process.
▼ College Goal Sunday is brought to you by the Ohio
Association of Student Financial Aid Administrators
(OASFAA).
▼ Need Information for College Goal Sunday?
Call Ohio’s College Access Information Hotline
1-877-428-8246
Ohio College Goal Sunday
▼ Volunteer registration
is open
▼ Student/Family
registration is open
www.ohiocollegegoalsunday.org
RESOURCES
www.fsa4counselors.ed.gov
www.oasfaa.org
OASFAA for Counselors
Are You Getting the Message?
www.ohiocap.org
college.gov
studentaid.ed.gov
Student Aid on Web
MyFSA Tools:
– Interactive tools that help
students plan for college
– Scholarship and college
searches
– Financial aid wizard tool:
estimate college cost,
estimate EFC, and
track/compare award
letters
– Transfer data to FAFSA
– and college applications
– (no longer transfer data
to FAFSA4caster)
Questions?
What is Professional
Judgment?
Professional Judgment
 Professional Judgment allows the school's
Financial Aid Administrator to make
adjustments to the data elements on the
FAFSA and to override a student's
dependency status.
 Professional judgment is driven by written
documentation.
Professional Judgment
 Case-by-case
 Unusual circumstances
Per Webster: rare, extraordinary,
uncommon, unexpected, distinctive
 Documented!
Supporting Written documentation
Professional Judgment
 School must first resolve any conflicting
information before making an adjustment
 School must verify base year data if
selected for verification
 Adjustment is only valid at the school
making it
 Must use resulting EFC consistently for
all FSA funds
Professional Judgment
Special Circumstances
 Items that can’t be included on FAFSA
 Contact each college student has applied to
Do Not send a letter with the FAFSA to the Federal
Processor, it will be discarded.
 Each college will:
Request documentation
Review situation on case by case basis
Decisions final and cannot be appealed
to U.S. Department of Education
Professional Judgment
 Examples of Special Circumstances
• Parent loss of income
• Marital Status changing from married/remarried to
one parent
• Medical not covered by insurance
• Property loss not covered by insurance
• Unusual debt or one-time income
• Tuition expenses at an elementary or secondary
school
• Parent in college
Professional Judgment
 Special Circumstances are NOT;
• Vacation expenses
• Tithing expenses
• Standard living expenses such as
utilities, cable bills, credit card
payments, children’s allowances
• Standard maintenance items such as
lawn care and home repair
Professional Judgment
 To adjust for Special Circumstances
the FA Administrator
• Must adjust a data element in the formula
(example; AGI, taxes paid etc.)
• May NOT:
• Change the formula itself (e.g. asset
conversion rate) or the tables
• Make an adjustment to the PC, SC, or EFC
• Make the adjustment on the INITIAL
FAFSA
Professional Judgment
Student Dependency
Status
What Makes a Student Independent?
-Born before 1/1/88 (for 2011-12 year)
-Married
-Graduate or professional student
-Active duty military for purposes other than training
-Veteran
-Children
-Dependents other than children or spouse
-Orphan, foster care, dependent/ward of the court
-Emancipated minor
-Legal guardianship
-Homeless or at risk of being homeless
Professional Judgment
Dependency Overrides
 Conditions that do NOT qualify as “unusual
circumstances” individually or in combination
• Parents refuse to contribute
• Parents are unwilling to provide information
• Parents do not claim the student as an
income tax dependent
• Student demonstrates totally self-sufficiency
Professional Judgment
 Possible Dependency Override:
• Student’s voluntary or involuntary removal from
parents’ home due to an abusive situation that
threatened the student’s safety and/or health
• Incapacity of parents such as incarceration or a
disability or mental or physical illness
• Inability of the student to locate the parent(s) after
making reasonable efforts
• Other extenuating circumstances sufficiently
documented by a signed letter from a third party
Professional Judgment
 Dependency Override Documentation
• Must document the reason for the
determination and maintain
documentation supporting the decision
• Supporting documentation from a third
party with knowledge of the unusual
circumstances
Professional Judgment
 Dependency Overrides Documentation
cont’d
• Third party includes—
◦ Counselors or teachers
◦ Clergy
◦ Community groups
◦ Government agencies
◦ Medical personnel
◦ Courts
◦ Prison administrators
Professional Judgment
Documentation!
Documentation!
Documentation!