Financial Aid Application Process
2016-17 Academic Year
This presentation covers the basics of the financial aid application
process, frequent errors made on the Free Application for Federal
Student Aid (FAFSA) application, creating a Federal Student Aid
ID (FSA ID), and completing the IRS Data Retrieval tool .
If you are not eligible to compete the FAFSA due to citizenship
status and are a Washington resident, please speak with a high
school counselor or college financial aid office for instructions on
completing the Washington Application for State Financial Aid
(WASFA) . More information is available at
www.readysetgrad.org/WASFA.
What is Financial Aid?
• Funds awarded to students to help pay for their educational expenses
including tuition and fees, books and supplies, room and board, and
transportation costs.
• Aid funds come from the Federal Government, State Government,
institution, private and/or public foundations, and agencies
• An Aid package may include one or more of the following award types:
▫ Federal Grant Aid
▫ Federal Student Loans
▫ State Grant Aid
▫ Institutional Aid
▫ Work-study (federal and state)
▫ Scholarships
The Application Process
• The financial aid application process starts with filling out the Free
Application for Federal Student Aid (www.FAFSA.gov)
▫ FAFSA completed for students who are US Citizens or eligible
non-citizens
• Verify Application Process for each University or College
▫ Additional institutional application or paperwork might be
needed
Free Application for Federal Student
Aid (FAFSA)
▫ Federal Student Aid – US Department of Education
▫ Required for federal and state aid in Washington
▫ Used by public and private colleges
FAFSA is a snapshot of student and family
income, investments, and financial
information for the date the FAFSA is filed.
For the 2016-17 school year, you and
your parent(s) will need:
• FSA ID for student and one parent
NEW
• Social Security Numbers
• 2015 Federal Income Tax Returns **
▫ You may submit a FAFSA with estimated income information to
meet college deadlines, just remember to go back and correct!
• Bank Statements
• Brokerage Statements
• Business or Farm Financial Statements
Creating FSA ID
Create Your FSA ID (Username and password)
E-mail:
• Optional but strongly
recommended
• Each FSA ID must have
a unique e-mail address
(you and your parent
cannot use the same email address)
• You must have access to
this e-mail account
Username:
You can select
“Show Text” to
see what you’re
typing
8
• Don’t include personal
info such as date of birth
or name
• If you see a message
“Username taken, create
a different username”
then someone has
already used that
username
Provide Personal Information
• Make sure your Social Security number, date of birth, and name match what’s
on your Social Security card
• You must have a Social Security number to create an FSA ID.
9
Link Your PIN (if you have one)
• If you applied for federal student aid before May 2015, then you most likely had
a 4-digit PIN—the FSA ID replaces the PIN; you can link your PIN to your FSA
ID on this screen
• If you can’t remember your PIN, you can select “Forgot My PIN” and answer a
challenge question or you can continue without linking your PIN
• If you didn’t have a PIN, then you won’t see this screen
10
Provide Profile Information
• Confirm information
you entered
previously and
provide additional
information
• Make sure your
information is
correct; any errors
could result in a
delay or problem in
your receiving
financial aid (or the
repayment of your
federal student loans)
11
Select/Create Challenge Questions and Answers
Answering your challenge
questions is one way to unlock
your account or reset your
username and password
Questions 1 and 2:
• Select a question from the
dropdown menu and then enter
your answer
You can select
“Show Text” to
see what you’re
typing
Questions 3 and 4:
• Make up your own question and
enter your answer
• Make sure the answers will be
easy to remember
• Examples of questions:
• What’s your favorite color?
• What’s your favorite food?
Question 5:
• Enter a significant date
• It can’t be your date of birth
• Examples of dates:
• Favorite holiday
• Sibling or parent date of
birth
12
Review Info and Agree to Terms
• Review and confirm your
information
• If you need to make a
correction, use the
“Previous” button
• Review and agree to the
terms and conditions for
using your FSA ID
13
Verify Your E-mail
E-mail Verification Page
E-mail With Your Secure Code
14
• If you provided an e-mail address,
then you will be taken to the E-mail
Verification page
• Once you verify your e-mail, you can
use your e-mail address as your
username when logging in to
Department of Education websites
• You can also continue without
verifying
How to Verify Your E-mail
• Do not close the E-mail Verification
page
• We’ll send you an e-mail with a secure
code
• Log in to your e-mail account using a
different tab or browser window or
another device
• Look for an e-mail with the subject
line, “Important: Your FSA ID E-mail
Validation - Action Required”
• The e-mail will include a six-digit,
numeric code that you will enter in the
“Secure Code” data field
Your FSA ID is created!
• Your FSA ID was created
• If you provided an e-mail
address, then you will receive a
confirmation e-mail
Using Your FSA ID
• You can log in to fafsa.gov and
complete, sign, and submit a new
(original) FAFSA
• If you didn’t provide or link to a
PIN, then your info will be sent
to the Social Security
Administration for confirmation
• SSA review will take 1-3 days
• Until your info is verified, you
won’t be able to take certain
actions, such as correct your
FAFSA, submit a renewal
FAFSA, or sign a Master
Promissory Note.
15
Completing the FAFSA
Application
www.FAFSA.gov
Frequent FAFSA Errors
•
•
•
•
•
•
•
•
•
•
Social Security Numbers
Citizenship status of student
Indicating Bachelor’s degree earned
Parental Information – Divorced / Remarried
Income earned by parent(s) / step-parent(s)
Untaxed Income
U.S. income taxes paid
Household size
Number of household members in college
Real estate and investment net worth
Student Demographics
Section 1 – Common Errors
School Selection
Section 2 - Helpful Hints
Dependency Status
Section 3 – Common Errors
Dependency Determination
•Born before Jan. 1, 1993
•Married
•Working on Masters or Doctorate Degree
•Have children or other dependents that you financially support
•Veteran or Currently serving in the US Armed Services
•Since the age of 13, both parents were deceased, you were/are in foster care or ward
of the court
•Emancipated Minor
•Have a legal Guardian
•On or after July 1, 2015, were homeless or at risk of being homeless
Parent Demographics
Section 5 – Common Errors
Which Parent Should Provide Info?
IF
AND
THEN
Parents are living and
married..
…
Answer questions about
both parents
Parents are divorced or
separated..
Have NOT remarried….
It depends..
(who did the student
receive majority of
support?)
Parents are divorced..
Now remarried…
Answer questions about
custodial parent and
their spouse
Parents are not married,
but they live together..
…
Answer questions about
both parents
Parent is widowed or
single..
…
Answer questions about
that parent
Parent is widowed..
Now remarried…
Answer the questions
about that parent and
the stepparent
Parent Financial Information
Section 6 – Common Errors
Important Line Items
• Adjusted Gross Income (AGI)
▫ 1040 – line 37; 1040A - line 21; 1040EZ - line 4
• Wages
▫ 1040 – line 7, 12, 18; 1040A - line 7; 1040EZ - line 1
• Income Tax
▫ 1040 – lines 56 minus 46; 1040A - lines 38 minus 28;
1040EZ - line 10
Untaxed Income – Parent
Sign and Submit
Section 7
Using the IRS Data Retrieval Tool
IRS Data Retrieval
• Allows an applicant who has already filed their
federal tax return with IRS to electronically
transfer data from the tax return to FAFSA
• Participation is strongly encouraged to reduce
documents requested by financial aid office
• Not available to applicants with a recent change
in marital status
Next Steps after FAFSA submission
Next Steps
• Once your FAFSA is processed will receive an email
from the Department of Education verifying that
your FAFSA is complete.
• Remember to make corrections to your FAFSA
after you complete your 2015 taxes.
• Verification: If you have a received an email or
letter from the colleges you’ve listed for
verification, be sure to submit copies of your
current tax forms to receive financial aid.
Making Corrections
If necessary, corrections to FAFSA data may be
made by:
• Using FAFSA on the web and sign with PIN
• If estimated taxes are used, correct FAFSA with
real tax information or use IRS Data Retrieval
• Submitting documentation to college’s financial
aid office
www.FAFSA.gov
Special Circumstances
• Cannot report on FAFSA
• Send explanation to financial aid office at each
college
• Colleges will review special circumstances
▫ Request additional documentation
▫ Decisions are final and cannot be appealed to
U.S. Department of Education
Special Circumstances
• Change in employment status
• Medical expenses not covered by insurance
• Change in parent marital status
• Unusual dependent care expenses
• Students cannot obtain parent information
Financial Aid Award Letter
How much aid can I receive?
Terms to understand
Cost of Attendance
▫
▫
▫
▫
Varies at each school
Posted on school website
Available from financial aid or admissions office
Includes tuition and fees, textbooks, room and board,
transportation, and personal expenses
Unmet Need
▫ Maximum amount of aid student allowed to receive
from all sources
How much aid can I receive?
Simple equation: COA – EFC = Need
Cost of Attendance (COA)
- Estimated Expected Family Contribution (EFC) FAFSA
Financial Need
How much aid can I receive?
Simple equation: COA – EFC = Need
COA: 21,450
- EFC: 3525
Need: $17,925
Award Notification
• Each University or College will tell you how
much aid you will receive at that school
• Some financial aid offices require that you
accept your aid package by a certain date – Be
sure to respond in time!
Resources
Financial Aid Shopping Sheet
Stay Informed: Social Media
https://www.facebook.com/
FederalStudentAid
https://twitter.com/fafsa
https://www.youtube.com/
user/FereralStudentAid
Federal Financial Literacy Information
http://www.fdic.gov/consumers/consumer/moneysmart/
http://www.mymoney.gov/Pages/default.aspx
http://www.consumer.gov
http://www.federalreserveeducation.org
http://www.treasury.gov/Pages/default.aspx
Questions ?