steps to renewing your fafsa (jan 2016)
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Changes for 2016
• FSA ID required to complete FAFSA:
• Create a FSA ID at fsaid.ed.gov
• Perkins Loan expired on September 30, 2015
• Students who received at least one
disbursement prior to Sep 30, 2015, may
continue to receive Perkins Loans
• Schools will not award Perkins Loans to new
borrowers
• Illinois MAP Grant
• MAP grant awards are made until funds are
depleted. Suspense date has moved up each
year as more students complete FAFSA.
• This year’s suspense date likely earlier than
February 22, 2015
FAFSA
Year
MAP Suspense
Date
FY2006-
2007
8/26/2006
FY2008-
2009
7/26/2008
FY2010-
2011
4/19/2010
FY2012-
2013
3/20/2012
FY2014-
2015
2/28/2014
FY2015-
2016
2/22/2015
FY2016-
2017
Likely earlier than
2/22/2015
FAFSA Renewal
Timely Completion: Deadlines
• Complete FAFSA renewal with estimated financial informationJan 1st-Feb 1st
• MAP GRANT DEADLINE: to remain eligible you must have submitted and SIGNED your FAFSA with at least estimated financial
February
• UPDATE FAFSA with parents & student 2015 tax information
• Complete CSS profile(if necessary)
February-March
• Submit verification documentation to school
• Docs include: W2, Independent or Dependent Verification Form, Tax Return Transcript 2015(if Data Retrieval did not work)
March- May
Terms to know….• AGI
Adjusted gross income
• COA
Cost of Attendance
• EFC
Expected Family Contribution
• Financial Need
COA minus EFC
• Merit Based Funding
Scholarship
• Need Based Funding
Grants
Glossary https://studentaid.ed.gov/sa/glossary
Getting started: What documents do I need
• 2014 Federal Income Tax Return(Parent & Student)
• -IRS 1040, 1040A, 1040EZ
• 2014 W2s
Alternative to above: 2015-2016 SAR
• Social Security Number(student & documented Parents)
• Parent birthdates
• FSA ID(for yourself & 1 parent)
• If parents are divorced or separated (month and year of divorce)
• Estimated amount in Parent’s savings account
• Estimate of business or rental income investment
Student Demographic Information
• Check SSN. Inaccuracy here can delay aid
• Update demographic information.
Such as your email or home address
• When you begin college in 2016-2017
what will your grade level be?
"Grade level" does not mean the number of
years you have attended college, but refers to
your grade level in regard to completing your
degree or certificate.
• 0-30 credits 1st year
• 30-60 credits 2nd year
• 60-90 credits 3rd year
• 90-120 credits 4th year
• Are you interested in work-study? • YES
• All Men should select “YES” for Selective Service
School Selection
Make sure to add your
• Current school
• School you may attend during the summer
• School you may transfer to
You can add up to 10 schools
Dependency Status
Most of these questions will stay the same unless:
1. You are now married
2. You became a parent & provide support for your child
3. You are currently serving on active duty
5. On or after July 1st you were homeless or at risk of being homeless?
• If you answered yes…your dependency status will change to independent.
Dependency Status
If selected as a DEPENDENT student choose “I will provide parental
information” unless either of these apply to your biological/adopted parents
-your parent/s are deceased
-your parent/s are incarcerated
-you have had no contact and can not reach them.
Please contact your Alumni Counselor if you have any further questions
Parent Demographic Information
Parent Social Security number should already be entered from last year. It will appear as “XXX-XX-7890” below text. Last 4 digits will vary.
What is your parents’ state of legal residence?
Select “Illinois” even if undocumented
Household size should include all people living in the home even if
not claimed on federal taxes. Make sure to include yourself.
Did your parents become legal residents of Illinois before
Jan 1, 2011?
Select YES, even if undocumented
Update with current parent and
household information
Parent Financial Information
• Select WILL File if your parents file taxes
• Filing status can be found on the first page of your parent’s federal taxes here
Parent Financial Information
“type of income tax return” can
be found the first page of your
parent’s federal taxes
Parent Financial Information: continued
Adjusted gross income can be found at the bottom
of the first page of your parent’s federal taxes
Dislocated worker:
• A dislocated worker is someone who meets ONE or more of the following:
• Lost their job or been laid off
• Is receiving unemployment benefits and is unlikely to return to a previous occupation. (like a telephone switchboard operator, for example)
• Is self employed but is unemployed due to economic conditions or natural disaster
• Is a displaced homemaker - someone who previously provided unpaid services to the family, like a stay at home parent, is no longer supported by a partner, and is having trouble finding a job
• A dislocated worker is NOT:
• Someone who quit
• Someone who got fired for cause
• Someone who just doesn’t want to work
Calculating net worth of real estate
Net Worth Formula for real estate investment.
(Market Value – Amount Owed)
Example: Your parents own an investment property valued at $100,000; however,
$75,000 in debt is owed on the property. The net worth of the investment is $25,000
($100,000-$75,000 = $25,000).
Include rental units
Do not include the home
you live in.
Student financial InformationCommon question:
1. Should I file taxes? See next slide
2. If I “will file” taxes for the first time
what should I include on FAFSA
today?
For now do the following.
Select IRS 1040
Estimate your income
Put 0 for income TAX paid
Put 0 for exemptionsYou can update your responses once you file your
taxes
2. If I worked but “will not file” taxes do I
need to put how much I made? Yes.
Common mistakes:
1. Adding parent income twice. Make sure
you did not put your parent’s income in the
student section.
2. Claiming yourself as an exemption on the
student section when your parent’s claimed
you on theirs.
Do I have to file taxes? These are general guidelines. Officially check if you are required to file here
• Did you work in 2015?
• Select “Will not file”
• Enter 0 for income
questions
Did you make more than $6,300 in 2015?
Yes, I worked in 2015No, I did NOT work in 2015
You are required to file
taxes.
• Select “Will file”
• Enter estimated amount
you earned
You can choose to file your
taxes.
• Select either “Will file” or
“Will not file”
• Enter estimated amount you
earned.
Yes, I made
more than
$6,300 in 2015
No, I made less
than $6,300 in
2015
Student Financial
Information
Exemptions:
If someone else will
claim you like your
parents and you have no
dependents enter 0
COMMON MISTAKE
Students often enter 1
even though parents
claim them on their
taxes
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