SDU Workshop Georgia High School Counselors

1. SDU WorkshopGeorgia High School Counselors Financial Aid Update FAFSA Changes and Tutorial

2. FAFSA Changes IRS Data Retrieval Tool Allows students/parents to retrieve data directly from the IRS database – entered directly into the FAFSA. For 2012-2013 – the IRS Data Retrieval process will be implemented on February 1, 2012.

3. FAFSA Changes IRS Data Retrieval – cont., New Filtering questions – basically asks the applicant when and how s/he filed a tax return – thus determining if s/he should transfer tax information from IRS into the FAFSA. Once answered – new Dynamically Displayed Messaging will appear – which will recommend or prohibit the use of the ISR Retrieval tool.

4. FAFSA Changes New Notifications – Tax Estimators – in mid March 2012 – the Dept. will send email notifications to students/parents who submitted a FAFSA before filing taxes and have not updated their status. A 2nd notification will be sent in early-May 2012. Tax Filers – from early April 2012 through the end of the processing year – the Dept. will send out an email to students/parents who submitted a FAFSA that indicated a tax filing status of “already filed” – and who did not transfer IRS data.

5. FAFSA Changes Financial Aid Administrators – MAY ask the applicant to update marital status information after the FAFSA has been submitted. This is used when the FAA determines the update is necessary to address an inequity or to more accurately reflect the applicant’s ability to pay.

6. FAFSA Changes Gender Question – The Dept. is trying to get more students to answer the “Are you male or female” question. New language has been added to the FAFSA on the Web. This question checks against the Selective Service Database to determine if a male student has registered as required by law. If blank – it defaults to yes. If a female leaves it blank – the FAFSA will reject.

7. FAFSA Changes Need Analysis Income The recently enacted Consolidated Appropriations Act of 2012 – made a change from what is posted on FAFSA information (after the FAFSA was published). The Act reduced the income level from $32,000 to $23,000 to determine an automatic zero EFC. Many individuals last year received maximum Pell – and with this change – may not receive the maximum Pell although income remains the same from year to year.

8. FAFSA Changes Homeless Definition Clarified “Homeless” means lacking fixed, regular and adequate housing. A student may be homeless if living in shelters, parks, motels or cars, or temporarily living with other people because s/he has nowhere else to go. If escaping an abusive parent – the student may be considered homeless even if the parent would provide support and a place to live.

9. FAFSA Changes Assets The FAFSA automatically includes or skips the need for asset inclusion based on threshold filtering questions. This is primarily based on whether the student’s eligibility is affected or not by providing the asset information.

10. FAFSA Changes Parental Data The student is asked to input parental data if they cannot answer “yes” to one of the dependency questions. However – this also appears – “If you believe that you are unable to provide parental information – see page 9.” (hardcopy FAFSA).

11. FAFSA Changes The reasons given to excluding parental data include (on the FAFSA instructions) – you left home due to an abusive family environment, you do not know where your parents are and are unable to contact them. If the student cannot answer “yes” to one of the dependency questions – AND they mark the FAFSA as “Parent Refusal.” – they will only receive Unsub Stafford Loans – no grants or work.

12. Changes to Federal Programs • Federal Pell Grant Changes • In addition to the automatic zero changes referenced earlier, recipients will now be limited to 12 full time semesters to receive Federal Pell Grant. • The maximum Expected Family Contribution (EFC) to receive a Federal Pell Grant for the 2012-2013 award year is 4995.

13. Changes to Federal Programs • Federal Direct Loans • For all loans disbursed on or after July 1, 2012, the upfront interest rebate will no longer be offered. • For Subsidized loans first disbursed on or after July 1, 2012, students will no longer have the interest paid for them during their six month grace period following graduation or ceasing to be enrolled at least half time.

14. Financial Aid Process Students need to file the FAFSA as soon as possible. Students should check with the school(s) they are considering attending regarding any priority filing deadlines (For KSU, the priority deadline date is April 1, 2012). Students need to respond to requests from the school as quickly as possible to ensure they receive the maximum amount of financial aid possible (tax returns, verification worksheet, etc.).

15. Financial Aid Process • The Financial Aid Office will take the information from the FAFSA and package the student with various types of financial aid based on what they qualify for: • Federal Pell Grant (Gift Aid) • HOPE Scholarship/Zell Miller Scholarship/HOPE Grant (Gift Aid) • Federal Direct Loans (Self-Help) • Federal Work Study (Self-Help) • Other programs as available

16. Questions?