The Application Process

National Association of Student Financial Aid Administrators Presents…

© NASFAA 2008

The Application ProcessThe Application Process

Module 2Module 2

Slide 2 - 2 © NASFAA 2008

• Free Application for Federal Student Aid (FAFSA) is central element of federal student aid application process

• FAFSA data are used to:

– Compute the expected family contribution (EFC)

– Confirm certain student eligibility criteria via database matches with federal agencies

Free Application for Federal Student Aid


Supplemental Forms and Applications

• Required by some states and institutions to determine eligibility for state and institutional aid programs

• Cannot be required to determine Title IV eligibility, except when:– Awarding Leveraging Educational Assistance

Partnership (LEAP) Program funds

– Verifying FAFSA data

– Resolving conflicting information


Free Application for Federal Student Aid

There are multiple versions of the FAFSA:

• The paper FAFSA

• FAFSA on the Web (FOTW)

• FAA Access to the CPS Online


Obtaining the Paper FAFSA

Students and parents can obtain paper FAFSA by:

• Calling Federal Student Aid Information Center at 1-800-4-FED-AID (or 1-800-

433-3243)

• A maximum of three paper FAFSAs may be requested


Paper FAFSA

• General information (unnumbered page 1)

• Instructions for certain questions (pages 2 and 3)

• “Tips” information about the process (page 4)

• 109 questions in 7 steps, with certifications and signature spaces (pages 5 to 10)

• Pre-addressed envelope


Electronic FAFSAs

FAFSA may be filed electronically via:

• FAFSA on the Web (FOTW)

• FAA Access to CPS Online


FAFSA on the Web

• FOTW—www.fafsa.ed.gov• Available in English and Spanish• Real-time FAFSA submission and updates• Ability to electronically sign FOTW using a Federal

Student Aid (FSA) Personal Identification Number (PIN)

• Nine-step organization• Instructions and “help” for certain questions• Skip-logic allowing student and/or parent to skip

unnecessary questions


FAFSA on the Web

• Built-in edits check for errors prior to submission

• Ability to check application status on-line

• Printable FOTW Worksheet assists in collecting necessary application information


FAA Access to CPS Online

• Web site: www.fafsa.ed.gov/FOTWWebApp/faa/faa.jsp

• To use:

– School must register with ED

– Financial aid administrator must have a FSA PIN



Allows school to:

• Enter and transmit applicant data to CPS

• Correct applicant data

• Submit student and parent signatures

• Override dependency status

• Calculate estimated EFC


Personal Identification Number (PIN)

Both parent and student may apply for FSA PIN which can be used as:

• Personal identifier code to access personal information on various FSA electronic systems

• Electronic signature to sign FOTW

• May obtain FSA PIN before or after completing FOTW


Personal Identification Number

Effective January 1, 2008, students and parents are able to apply for and receive a “real-time” PIN when completing a FAFSA on the Web or when applying for a PIN on the PIN Web site


Dependency Status

• If dependent, student’s and parents’ financial information is collected and assessed

• If independent, only student’s (and, if applicable, spouse’s) financial information is collected and assessed


Dependency Status

Dependency status questions

• Student who answers “Yes” to any of the questions is considered independent

• Student who answers “No” to all dependency status questions is dependent


Student Status

• Information regarding receipt of benefits from federal means-tested benefit programs.

• Determines whether student qualifies for:

– Automatic Zero EFC; or

– Simplified Needs Test (SNT)


Signing the FAFSA on the Web

Three methods to sign application:

• Electronically using FSA PIN;

• Sign printed copy of signature page; or

• Sign rejected Student Aid Report (SAR)


Application Signatures

• Application must be dated and signed by:– Student and at least one parent if student is

dependent– Student if the student is independent

• Signing application: Verifies accuracy of data and acknowledges ED authority to verify information reported with other federal agencies

• By signing, student agrees to certifications


Signing Electronically

If the student and/or parent has a FSA PIN, he or she may sign the application electronically before completing the application or after submitting it for processing


Signatures

Student and parent (if dependent) may also sign application by:

• Printing, signing, and mailing FOTW signature page to CPS; or

• Signing rejected SAR and returning it to CPS address on SAR



• Student and parent, if applicable, must sign before school transmits

• Signature page must be maintained in accordance with record retention requirements


CPS Database Matches

• Social Security Administration (SSA):– SSN

– Master Death File

– U.S. citizenship

• Department of Homeland Security (DHS): – Eligible noncitizen status

• Selective Service System: – Registration with Selective Service


CPS Database Matches

• National Student Loan Data System (NSLDS): Loan defaults, overborrowing, Title IV overpayments, and any unpaid fraudulently obtained Title IV funds

• Department of Veterans Affairs (VA): Verification of veteran status

• Department of Justice Hold File: Title IV suspension or termination due to drug conviction


EFC Calculations

• Official EFC: Calculated using CPS edits and database matches

• If eligible for SNT, CPS calculates primary and secondary EFCs if asset data provided

– Primary EFC - assets excluded

– Secondary EFC - assets included


Application Output

Processed application output sent to:

• Student in form of Student Aid Report (SAR) [paper or electronic]

• School in form of Institutional Student Information Record (ISIR)

• Student’s state agency in form of ISIR


Student Aid Report

• Summarizes information reported on application (paper or electronic)

• Provides processing results including:

– EFC

– Messages related to database matches

– Verification selection

– Eligibility for Title IV aid


Institutional Student Information Record

Used to:

• Document Title IV eligibility

• Correct or update applicant data

• Perform PJ adjustments, including dependency overrides


Changing Applicant Data

• Corrections: Changes to incorrect data

• Updates: Changes required for some data items that change after FAFSA was filed

• Adjustments: Changes to applicant data by financial aid administrator using PJ– Dependency override: Adjustment of student’s

status from dependent to independent by FAA using PJ


Adding Schools

• Adding a school to CPS record is considered a correction

• Student can add schools by:

– Using Corrections on the Web and FSA PIN

– Calling Federal Student Aid Information Center at 1-800-433-3243 and providing Data Release Number (DRN)

– Submitting correction on paper SAR


Adding Schools

School can add Federal School Code to CPS record:

• Using FAA Access to CPS Online and student’s DRN

• No later than 30 days after school receives SAR on which it is not listed


Electronic Corrections

• Students use Corrections on the Web

– http://www.fafsa.ed.gov/FOTWWebApp/complete014.jsp

• Students with a FSA PIN can electronically make and sign corrections

• FSA PIN or signature of dependent’s parent required only if change is made to parental data



• Schools may make corrections to application data using FAA Access to CPS Online at:

www.fafsa.ed.gov/FOTWWebApp/faa/faa.jsp

• Schools identify necessary changes or corrections through verification process or resolution of conflicting information



• Must collect documentation signed by student and/or parent (if dependent) before making corrections

• All corrections made are in “real-time”


Updates

• Three items must be updated:– Household size, if selected for verification

– Number in college, if selected for verification

– Dependency status, whenever change occurs, whether or not selected for verification

• Updating not permitted for:– Change in student’s marital status

– Previously certified or originated Stafford Loan


Dependency Status Override

• Student may be considered independent if unusual circumstances exist

• Decision must be made and documented on case-by-case basis

• Can override dependency status on initial paper application, or after initial application is filed


Documents

The Application Process