Summary of Changes 2009-2010 Free Application for Federal Student Aid (FAFSA)

Colors - The 2009-2010 FAFSA colors are green for student information and purple for parent information.

Year References - All year references have been incremented by one year.

Design - The design and layout of the FAFSA have changed. The application pages are numbered five through ten. The Notes pages are numbered one through three. The ‘What is the FAFSA?’ (Frequently asked questions) information is incorporated into the booklet as page four. As in previous years, a return envelope is included.

Worksheets incorporated into the application — The Worksheets page has been eliminated (page 5 of the 2008-2009 FAFSA) and the majority of the Worksheets data elements have been incorporated into the application (page 7 of the 2009-2010 FAFSA). The data elements are incorporated as follows:

Worksheet A – Deleted (See ‘Data Elements Deleted’ below)
Worksheet B – Becomes question 47 (student) and question 95 (parents)
Worksheet C – Becomes question 46 (student) and question 94 (parents)

Data Elements added - The most significant changes include the expansion of the dependency criteria (page 7) to designate individuals who were in foster care (question 55); emancipated minors (question 56) or minors in legal guardianship (question 57); and individuals that have been verified as an unaccompanied youth who are homeless children or youth or are at risk of homelessness (question 58-60) as independent students for FAFSA/Title IV, HEA program assistance purposes.

Other changes include:

Adding the TEACH Grant question to the paper FAFSA (question 32);
Reformatting the veterans education benefit questions to ask whether the applicant received benefits (question 44) and to indicate what type of benefits were received (question 45)
Adding a field to allow parents to provide an email address (question 71);
Adding ‘dislocated worker’ to the list of criteria that could qualify an applicant for the Simplified Needs Test and or Automatic Zero EFC (question 85);
Increasing the time period for measuring Federal means-tested benefits from 12 months to 24 months (Steps Four & Five of the FAFSA).

Data Elements deleted –

Two data elements have been deleted from question 47 (formerly Worksheet B). They are ‘Foreign income exclusion…” and “Credit for federal tax on special fuels…”.

Worksheet A is deleted, including the following four data elements:
Earned income credit from IRS Form 1040;
Additional child tax credit from IRS Form 1040;
Welfare benefits, including TANF;
Social Security benefits received, that were not taxed (such as SSI)

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• Federal Pell Grant

• Federal Supplemental Educational Opportunity Grant (FSEOG)

• Academic Competitiveness Grant (ACG)

• National Science & Mathematics Access to Retain Talent Grant (national SMART Grant)

With the Pell Grant any other financial aid you receive (such as a scholarship) does not affect the amount of your Pell Grant which is great.  If you’re eligible you’ll receive the full amount you qualify for.  The maximum allotment for 2008-2009 is $4731.

The FSEOG takes into consideration other need which you are receiving.  Basically other aid might reduce the amount of your FSEOG award.  Due to limited funds, it’s important to apply early to be considered for these funds.  Not everyone who qualifies for an FSEOG will get one.

ACG began in 2006-2007 for full-time undergrad students.  First year students can get up to $750 while second year students can qualify for up to $1,300.  Some requirements include; a student receiving a Pell Grant, being a first or second year full-time undergraduate student in a degree program, and maintaining a 3.0 GPA.

The SMART grant program is for full-time undergraduate students who are enrolled in the third or fourth academic years of undergrad study.  The award is for up to $4,000 for each academic year.  Some requirements include; a student receiving a Pell Grant, having a major in physical, life, compute sciences,  mathematics, technology, engineering, or  a critical foreign language , and maintaining a 3.0 GPA.

I just love Grants! Whether it be on a $50 dollar bill or in the form of federal grants!  As Britney Spears would say, “Gimme gimme more gimmie more, gimme gimme more.”

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Students who are not high school graduates (or who have not earned a General Educational Development Certificate) can demonstrate that they have the “ability to benefit” from the education or training being offered by passing an approved ability-to-benefit (ATB) test.

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To register for the Selective Service, visit www.SSS.gov.

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Let’s say that your rent for $450 is due on the 20th. Ask your landlord if you can make a payment on the 14th for the month instead of the 20th. If they agree, you can legally declare on the 15th that you only have $50 in your checking account, even if the check hasn’t cleared yet, because that money is no longer yours.

Got a pile of cash from a break or vacation of hard work? Take care of as many expenses as you can for the year ahead before you file your FAFSA. Make an extra payment or two on your rent, buy necessarily supplies, etc. Doing so will improve your eligibility for financial aid (and probably reduce some stress, too).

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I saw this post on Twitter:

if I dont get net access to complete my FAFSA I may not be going to school this year. #iaflood

You do NOT need Internet access to complete your FAFSA. If you’re stuck in the Iowa floods or some situation where Internet access just isn’t available, you can call the US Department of Education at 1-800-4-FED-AID (1-800-433-3243) to speak to someone about alternative options, and even filing by phone.

You can also still download and mail a printed copy, or pick up a paper copy of the FAFSA at a local college or university. Check to see if there’s a college, especially a community college, near you.

The online FAFSA remains the best choice for students, as it is the fastest and typically the most accurate, but in cases where natural disasters preclude that option, the US Department of Education does indeed still accept other options.

One cautionary note: do NOT call other companies for FAFSA by phone options - they WILL try to sell you their paid FAFSA services, which are unnecessary. Only call the US Department of Education.

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JanetIs: Glad the FAFSA isn’t due until the 30th.

@Janetis: Actually, the sooner you can file it, the better. There’s a limited amount of “free money” available each year, and once it’s gone, it’s gone. It’s allocated on a first come, first served basis.

andyduss: FAFSA can suck it!

dUbiAsIti: uuuuuuuuuuuuuuuuuuuuugh, i hate filling out the FAFSA! even when the gov’t has prefilled my answers and it’s easy as pie, i still HATE IT…

donkeypoof: importing music/FAFSA/nebraska driver’slicense?!

unsympathetic: finally filling out my FAFSA

bvaughn: Just finished my FAFSA for next semester… let’s see if the gov’t will give me any money to go to school!

@bvaughn: Don’t just wait on the government. Go find some money yourself - check out our free scholarship search book!

brandanger: wednesday got up cameto class had class til 11:35 work on FAFSA work on homework go out to eat with a friend

twistedmentat: Did my FAFSA. Sorry, Financial Institution, there ain’t no WAY yer squeezin’ eight large outta me.

mmemaledicta: Ok, so here’s what pisses me off about the FAFSA: They ask you for the totals of all accounts. What if rent hasn’t cleared? BS.

@mmemaledicta: They do ask you for the totals of all accounts, but that’s as of the day you file. If you know your rent will clear in a day or two, you can hold off filing the FAFSA until your rent has cleared and your checking account is back to normal.

craftyminx: FAFSA… Knew i forgot something

jeffmckown: Filling out the FAFSA sucks.

hyakurin: Watching CNN. Bored. Worried about FAFSA ******* me on my loans.

@hyakurin: There are a couple of loans, such as the PLUS loan, and private student loans, which do not require the FAFSA at all. If your award letter and student aid report come back with meager results, look into these loans, too.

merrickmonroe: @valor26: maybe not the school (yet), but FAFSA hq should watch out!

If you’ve got questions about the FAFSA, please ask! We’re here to help.

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The answer? None of them will get you where you want to go. I’ve been studying how people are finding FAFSAonline.com, and in many cases, they’re finding us through URLs like these. None of these will help you, and at least one will cost you money unnecessarily.

So here’s the correct address you’re looking for to file your FAFSA:

http://www.FAFSA.ed.gov

You can also get there by clicking the big red button on the left. Before you go, be sure to check out our tutorials and guides:

• FAFSA Step by Step Guide
• FAFSA Secrets Guide

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For new Stafford loans:

• Subsidized: 6.0%
• Unsubsidized: 6.8%

For Stafford loans older than July 1, 2006:

• In grace period: 3.61%
• In repayment: 4.21%

For PLUS loans older than July 1, 2006:

• All older PLUS loans: 5.01%

If you’re just filing your FAFSA now, be aware that loan limits have increased as well; you’ll receive additional details from your school’s financial aid office in your award letter and financial aid package.

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I did some research on this, and it appears that as long as you have completed an “acceptable drug rehab program”, you can still receive federal aid. There are no time constraints on this, either. You could be convicted of selling/possessing drugs, enter a rehab program, complete it, and still get federal financial aid right away

An acceptable drug rehabilitation program must include two random drug tests.

The program must also:

• Be qualified to receive funds from federal, state, or local governments

OR

• Be qualified to receive funds from a federal or state licensed insurance company

OR

• Be administered or recognized by a federal, state, or local government agency or court

OR

• Be administered or recognized by a federal or state licensed hospital, health clinic, or medical doctor

I also found that if this drug conviction (for selling or possessing) was 2 or more years ago, then a drug rehab program is NOT required, and you should still be able to get federal aid. If you have more than 1 drug conviction in the past 2 years, then your eligibility is suspended for longer.

If you have more than 1 drug conviction in the past 2 years, you have to wait longer in order to be eligible for Federal aid. (it appears that each drug conviction you have = 1 year of lost eligibility). If you have 3 or more drug convictions in the past, then you are ineligible for Federal aid indefinitely.

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The income tax paid line on the FAFSA is the one most often done wrong, and when done wrong, it costs students and families money.

Most people put down their withholding amounts on the FAFSA, not the actual income tax paid.

Depending on how you have federal tax withholding set up, this could cost you financial aid!

So we’re going to change our advice here - instead of recommending that you do your taxes before filing your FAFSA, we’re now going to suggest that you MUST file your taxes first, to ensure as correct a FAFSA (and subsequent EFC) as possible.

Consult a qualified tax professional or a financial planner/CPA to have your taxes done (or redone) - and if you have already filed your FAFSA, do the EFC formula by hand or use the FAFSA Forecaster to see if filing a correction makes sense.

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As amended by the Senate, HR 5175 makes the following changes::

* Directs all savings generated by the bill into the ACG and SMART Grant programs

* Adds a fifth year to SMART Grant eligibility for programs that require five years

* Allows students attending at least half time to qualify for ACG and SMART Grants and requires proration based on Pell Grant methodology for less than full-time attendance

* Allows eligible non-citizens (e.g. permanent residents) to qualify for ACG and SMART Grants

* Changes “academic year” to simply “year” for purposes of progression through grant levels, but did not include companion amendment recommended by NASFAA that would have allowed students who are classified as second year based solely on AP or IB coursework to be considered to have met the second year 3.0 GPA requirement

* Allows students who are enrolled in an institution that offers a single baccalaureate-level liberal arts curriculum that permits no subject area major, but who are taking coursework in an area equivalent to a SMART-eligible major at other bachelor degree-granting institutions, to qualify for SMART Grant eligibility

* Extends first-year ACG eligibility to students enrolled in at least a one-year certificate program and extends second-year ACG to students enrolled in at least a two-year certificate program. In both cases the certificate must be offered by a degree-granting institution

* Appears to remove some of the Secretary’s authority to define “rigorous secondary school program of study,” permitting only states to designate such programs. This amendment may further restrict what is currently considered a rigorous program

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How to get a Scholarship (Associated Content article)

If anyone knows of some interesting scholarships, tell us about it!

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1. If you want loans that are all deferred until after graduation, then the parent plus is not for you…those payments begin when the loan is disbursed to the school

2. If you want the child to bear some responsibility for these loans in the future, the parent plus loan is not for you….this loan will ALWAYS remain under the parent’s name until it is paid in full. However, most parents borrow these loans, and then require their child to make the payments once they are out of school.

3. If you want to help the child get through school, but you want them to be on their own when they finish, then an alternative loan might work best. You will be the cosigner, but most alternative loans have co-signer release programs after a certain number of on time payments are made.

***something important to remember: federal loans are forgiven/cancelled if the borrower of the loan becomes deceased…for parent plus loans, this holds true for the parent and for the child it was borrowed for. The same cannot be said for alternative loans. It’s hard to think about, but it’s an important factor in making your decision about what type of loan to borrow.

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After the paper version of the FAFSA was published by the Department of Education (ED) and the FAFSA on the Web site went live on January 1, 2008, IRS changed the Form 4136 line item for reporting the credit for tax on special fuels from line 17 to line 18.

IRS Form 4136, line 18, is the correct line item to use for reporting the credit for tax on special fuels on Worksheet B for the 2008-09 award year.

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The state of legal residence has nothing to do with immigration status or anything else - it’s the state in which you, the student, reside permanently. Many students have a school-based mailing address, but they are legally still living at home, at least for tax purposes.

Two easy ways to determine your state of legal residence - it’s whatever is on your driver’s license (if you have one) or whatever address you list on your IRS federal tax return (if you file one).

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File today!

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Tune into the February 19, 2008 episode of the Financial Aid Podcast to hear how to understand your FAFSA EFC results!

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This provision would be a huge advantage to families in terms of saving time on FAFSA preparation. By porting over the data, it will also ensure greater accuracy. Let’s hope the provision remains a part of the legislation and becomes law!

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If you are a current student looking for the 2008-2009 renewal FAFSA, be warned: there isn’t one anywhere on the FAFSA site or in the initial application. Thankfully, Carla Berg of Bentley College mentioned that the FAFSA renewal option was gone. Apparently, when you go to file a FAFSA as a returning student, the application pre-populates with last year’s data, but that’s not obvious anywhere on the site.

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and then start participating in Scholarship Points.

Who can win?

Any college student or graduate student attending school in 2008. Money will be paid directly to the financial aid office, and the contest ends on Leap Day, February 29, 2008.

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It’s now 2008, and that means it’s time to file your FAFSA as soon as possible!

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The FAFSA4Caster is the Department of Education’s financial aid estimation calculator, and the one thing that sets it apart from every other calculator online is that the results from your estimate can be fed directly into a FAFSA application, reducing the time it takes to file a FAFSA. However, the output of the FAFSA4Caster isn’t always clear. Here’s a line by line analysis of the various numbers it returns.

First, the FAFSA4Caster tells you what you’re qualified for and the average or maximum amount of aid available. Here’s a recent report:

• Federal Pell Grant $4,310 / $4,310
• Academic Competitiveness Grant (ACG)* $750 /$750
• Federal Stafford Loan (Subsidized) $3,500 / $3,500
• Below you will see other sources of federal aid that you may receive. These amounts are based on the average award amount that other students have received.
• Federal Supplemental Educational Opportunity Grant (FSEOG) $765 / $765
• Federal Work-Study $1,200 / $1,455
• Federal Perkins Loan $0 / $2,185
• Average Cost of Attendance $10,525 / $18,875
• Total Estimated Aid Eligibility $10,525 / $12,965
• Estimated Need $0 / $5,910

Let’s examine this report line by line.

The Federal Pell Grant is a need-based grant from the government. In the example above, the student has qualified for the maximum amount of Pell Grant aid available and it will be awarded automatically in the student’s financial aid package.

The Academic Competitiveness Grant is a partial merit, partial need-based grant for students. In order to receive it, the student must meet academic qualifications and be eligible for the Pell Grant.

The Federal Stafford Loan, subsidized, is a student loan backed by the federal government with interest that is paid for by the government while you’re in school.

The Federal Supplemental Educational Opportunity Grant (FSEOG) is another need-based grant that supplements the Pell Grant for the neediest students.

Federal Work Study is employment in which the pay you earn goes to pay your tuition. Federal work study was designed to create jobs, even where jobs might not have existed, for the sole purpose of helping students earn money.

The Federal Perkins Loan is school-based student loan available at a fixed interest rate.

The most important thing about this award letter is that the last line is actually a misnomer. Estimated need in this case isn’t how much you need, but rather how much out of pocket money you’ll need to pay for school. This is otherwise known as the EFC, or Expected Family Contribution, and in the example above is the best case scenario: nothing.

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Here’s an overall FAFSA strategy to help you maximize your federal financial aid.

First, gather up all your paperwork and do an IRS 1040 form. Unless you’re in a situation where you’re expecting a massive year-end bonus or a huge chunk of overtime, chances are your tax year 2007 is coming to a close with relative predictability, allowing you to get a reasonably accurate picture of your taxes.

Next, see a financial planner about making any last minute, year-end adjustments to your taxes, such as additional contributions to retirement funds to maximize the deductions you can take. Most community banks and credit unions offer free or very low cost access to financial planners.

Download a copy of the FAFSA from our help guide and do a practice run.

If you run into trouble or there are questions that are confusing, contact us, ask a financial aid administrator at your school, or attend a College Goal Sunday event for free help.

Make careful note about when the FAFSA deadlines for your state are! If you miss a deadline, you will very likely miss out on some financial aid.

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From NASFAA:

Beginning January 1, 2008, students and parents will be able to apply for and receive a “real-time” PIN when completing a FAFSA on the Web (www.fafsa.ed.gov) or when applying for a PIN on the Department’s PIN Web site (www.pin.ed.gov).

After determining that 97 percent of PIN applicants provide correct information (i.e. social security number), the Department decided to make this real-time PIN available not only for first-time PIN applicants but also for those who have lost or forgotten a previous PIN. After receiving the real-time PIN, applicants will be able to change the PIN to a number that is meaningful to them.

First-time PIN applicants will instantly receive a conditional PIN that will allow them to electronically sign their FAFSA on the Web. The conditional PIN can only be used to sign the original application that students and/or parents are completing at the time they applied for the PIN. The data supplied by the PIN applicant will then be verified with the Social Security Administration (SSA). If the applicants’ PIN information is accurate, the conditional PIN will then be good for all processes that require a PIN in the future. If the applicants’ data does NOT pass the SSA match, they will receive a SAR with a rejected signature comment and the school will receive a rejected ISIR. The students and/or parents will then need to provide the required FAFSA signatures. Students and parents will need to correct PIN data to receive their PINs.

The 2008-09 Process Guide for Student Web Application Products provides more guidance about how the real-time PIN process will work. The following is taken from that guide.

* Real-time PIN - When applying for a PIN, requesting a duplicate PIN, or changing a PIN, applicants can receive their PIN in real-time. Whether system-generated or user-selected, if the applicant chooses to display or personalize the PIN or receive the PIN via e-mail, he or she can use the PIN immediately to sign the application.

* SSA Match - The Social Security Number (SSN), name, and date of birth information submitted by the applicant and parent is transmitted for a match with the Social Security Administration (SSA). If the SSN, name, and date of birth are successfully matched, the PIN remains valid and becomes a permanent PIN. 98% of student records and 97% of parent records are successfully matched with the SSA, so this change will positively impact the application process for the vast majority of students and parents.

* PIN Status Information - Using the PIN Web site, the applicant can check the status of a PIN application and learn the results of the data match with the SSA.

* Successful SSA Match - After receiving a successful SSN match from SSA, the PIN can be used to access SAR information on the Web, make corrections using Corrections on the Web, and access personal information on other Federal Student Aid Web sites.

* Unsuccessful SSA Match - If the match with the SSA is not successful (does not result in a match flag of “4″), we alert the student. We ask the student to apply for a new PIN using the correct information if the information provided on the PIN Application is not correct, or to contact the SSA if the information is correct. The student is unable to use the PIN until the SSA match is successful.

By Susan Luhman

NASFAA Assistant Director for Professional Assessment, Training, and Regulatory Assistance

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A quick FAFSA update…for the firs