Financial Aid: Completing the FAFSA, Navigating the Process

Bandys High School

2023

North Carolina Residency Determination

• Centralized residency determination (RDS)
• Determines your status for tuition (state and community colleges) and state grants (all NC colleges/universities)
• Must be completed and RCN obtained prior to application submission to state and community colleges
• NCResidency.org
• Use your CFNC account

Financial Aid

• Funds provided to students and families to help pay for college expenses
• Offered as gift aid or self help
• Gift aid, generally scholarships and grants, does not need to be repaid
• Self help could be in the form of loans or work study
• Free Application for Federal Student Aid
• Must be completed each year
• Studentaid.gov

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FAFSA with PPY (Prior-Prior Year)

• You will complete the FAFSA for the 2025-25 year (the academic year you will be enrolling in)
• As early as December 31^st of 2023
• Using 2022 tax data

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• Schools will not be able to access your FAFSA results until late January

What You’ll Need When Filing

The Process of Filing

• Fill out the FAFSA, save, invite Contributors, sign, and submit
• Student and Contributors must provide consent and approval for the IRS to populate tax information in the FAFSA
• Federal Tax Information Transfer
• Contributors’ and student’s 2022 income tax return.
• Contributors’ and student’s 2022 W-2 forms.
• FAFSA results are sent to schools of choice AND your State Education Association
• Schools process and create a Financial Aid Offer Letter
• Communicate any changes with the School

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Example 1: Student lives with both biological parents

• Student lives in the household with both biological parents, and a younger sibling
• Student did not file taxes
• Parents filed taxes as married filing jointly

• Student would provide consent and approval for FTI and invite parents as contributors to do the same
• Parents provide consent and approval for FTI
• Based on FTI, the household size would include anyone claimed as exemptions on Parents taxes

Example 2: Student lives with one biological parent, but custody is shared

• Student lives in the household with one biological parent and a younger sibling
• Custody is shared (regardless of whether the student spends more of the year with one parent than the other or truly split 50/50)
• Student filed taxes
• Parents filed taxes as married filing separate or single/head of household

• Student would provide consent and approval for FTI and invite parents as contributors to do the same
• Student would invite the parent that provides the greater portion of financial support for the student to consent and approval for FTI
• Student may report a Family size that is different from data collected in FTI

Example 3: Student lives with grandparents or other family member

• How you complete this depends on the circumstance
• Student lives with Grandparents because parents relocated, let student stay behind to complete school
• Student lives with Grandparents because parents are out of the picture
• Student lives with grandparents because of guardianship agreement

• Based on the circumstance…
• The lack of legal documentation in this scenario means the student would complete the FAFSA as if they live with their parents
• If the parents are unable to provide a home for the student and there is no legal documentation granting guardianship to grandparents, this will likely be an unusual circumstance for the school to review
• Student would indicate they are under guardianship in dependency questions and would not need to provide parent/grandparent info, but may need to provide guardianship documentation to the school

Considerations During Covid-19

• If your household income has been impacted by the pandemic, and your tax information from 2022 no longer represents your current situation, please contact your college/university’s Financial Aid Office
• Financial Aid has the ability to review documentation from you that demonstrates a change in household circumstances and make adjustments to your FAFSA on your behalf
• This may generate additional aid, and you may need to go through this process each year until the FAFSA “catches up” to your current situation
• Aid Officers have the discretion to make these changes but are not required to do so. Be mindful that reactions may vary at each school

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Speaking the Same Language

• SAR/ISIR- Student Aid Report/Institutional Student Information Record
• The processed output from the FAFSA sent to you (SAR) and the schools you listed (ISIR); you should receive this by email within 3-5 days of completing the FAFSA
• COA- Cost of attendance
• Direct Costs- costs directly related to enrollment (tuition, fees, on campus housing, etc.)
• Indirect Costs- costs not charged by the institution, but generally necessary for your enrollment (books and supplies, transportation, personal expenses, etc.)
• SAI- Student Aid Index
• a number that’s used to determine eligibility for need-based aid. It is calculated using information that the student (and contributors, if required) provides on the FAFSA form

Show Me the Money!

• Federal Aid (Pell and TEACH grants)
• State Grants (for NC residents and schools only)
• Institutional Scholarships and Grants
• Academic
• Need Based
• Talent Scholarships

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The L Word: LOAN

• Federal Direct Loans
• Fixed interest rates, standard 10-year repayment plan, deferred while you are in school, no credit approval required
• Subsidized- interest is subsidized by the government while you are in school (at least half time)
• Unsubsidized- interest begins accruing as soon as the loan is disbursed
• PLUS- Taken by Parent, requires credit approval
• Other options

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Outside Scholarships

• Institution-Specific Search Engines
• www.brokescholar.com
• www.fastweb.com
• Guidance Counselors
• Friends and Family

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Thank you for joining us!

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Nick Jenkins

nick@apple314.com

Consultant, Apple Pi Consulting, Limited

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