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Financial Aid 201: Navigating FAFSA Simplification

February 21st, 2024 - Green River College, Kent Campus

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Agenda

FAFSA Simplification Act

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FSA ID & 24-25 Application Changes

Submission Summary Changes

FAFSA Line by Line (Highlights)

WASFA Guide

Financial Aid Appeals

Common Errors & How to Fix Them

Common Scenarios + Group Discussion + Resources

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Puget Sound College & Career Network

Puget Sound College & Career Network (PSCCN) builds regional capacity to increase postsecondary readiness.

  • Professional learning and resources;
  • Coaching and technical assistance;
  • Pilot support and innovation;
  • Systems alignment, coordination and partnership development; &
  • Systemic barrier identification and removal.

We are committed to removing barriers so first generation, low income, and students of color have the opportunity to access and obtain postsecondary credentials.

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Washington Student Achievement Council

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Setting The Context

We recognize that:

Issues with the 2024-25 FAFSA are greatly impacting our mixed status families.

The current process of creating an FSA ID for parents without an SSN is not working.

Parents/Spouse without an SSN cannot contribute to an application at this time.

There is no ETA on when FSA will resolve these issues.

We know that the concerns, heightened anxiety, and strain that mixed-status families are currently experiencing due to nearly a month of limbo are real and valid.

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Mixed Status Family Data

Mixed-Status Family: A family where one or more member is undocumented

81% of all children of undocumented immigrants are US born

600,000 students with undocumented parents, age 17-21 are applying for FAFSA

3,900,000 K-12 students live with a parent that is undocumented

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FAFSA Simplification Act

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FAFSA Simplification Act

The FAFSA Simplification Act represents a significant overhaul of federal student aid, including the Free Application for Federal Student Aid form, need analysis, and many policies and procedures for schools that participate in federal student aid programs.

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FAFSA Simplification Act

Two pieces of federal legislation were passed that enabled the coming changes:

  1. Future Act: Expands access to federal student aid, and mandates Federal Student Aid to use data directly from the IRS-Passed December 2019

  1. FAFSA Simplification Act included with the Consolidated Appropriations Act – Passed December 2020 Was to have started this year but an amendment moved to next FAFSA cycle

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Better FAFSA Better Future

Better FAFSA Better Future is the communication campaign to increase knowledge about the changes to the FAFSA enacted by the FAFSA Simplification Act.

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FSA ID Changes

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FSA ID Changes

  1. Two-Step Verification
  2. Back-Up Codes
  3. Required FSA ID
  4. FSA ID for Those Without SSN

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FSA ID Changes

FSA ID Now Required

  • Everyone will need an FSA ID in order to log into the studentaid.gov website to access the FAFSA.
  • FSA ID’s must be verified before starting the FAFSA and this can take 1-3 days. Reports that are coming in that it could take longer.
  • Students and contributors (parents) will not be able to access the FAFSA using personally identifying information.
  • The 24-25 FAFSA will no longer have a signature page.

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Who Needs to Create an FSA ID

Students

    • All students who are filing the FAFSA

Married Students

    • Student Spouse, only if the student and their spouse do not file taxes together

Parents of Dependent Students

    • For parents and/or stepparents who are required to be listed on the FAFSA.
      • If they file taxes together, only one parent/stepparent needs an FSA ID
      • If they do not file taxes together (including if they are non-filers) both parent/stepparents need an FSA ID

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Every person who has an FSA ID and attempts to log into studentaid.gov for any reason will be subjected to the MFA process each time.

FSA ID Changes - Multi-Factor Authentication (MFA)

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FSA ID Changes - Back-Up Codes

A two-step verification backup code lets a student or parent access their account if their unable to complete two-step verification using one of their other verified methods.

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FSA ID Changes - FSA ID for Those Without SSN

  • Knowledge-based identity verification process when possible
  • Identity match required for each contributor to verify FSA ID. Even if a paper application is used.
  • Conducted on students who are from the Freely Associated States and have a pseudo-SSN

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FSA ID Changes – Verification Questions

These are examples of the questions asked in the knowledge-based identity verification

This process is generated by a credit bureau, but no credit check is completed.

If no questions can be generated, it will skip to ID proofing.

There is only one opportunity to answer these questions correctly.

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FSA ID Identity Verification Process for those Without an SSN

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Identity Verification Required Documents

Proof of Identity

One of the following forms of ID

    • Driver’s License
    • State or City Identification Card
    • Foreign Passport

A Utility Bill & ID

The utility bill must have the address that matches their account and their name on the bill.

  • One of the Following forms of ID will meet this requirement
    • Municipal identification card
    • Community ID
    • Consular identification card

Everyone must provide a completed attestation form and provide required documents. Forms of ID must be unexpired

or

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2024-25 FAFSA

Application Changes

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Changes to the 24 - 25 FAFSA

  • Who is the Parent
  • Role Based Information Entry
  • Contributor (Parents) Information
  • Income Information Exchange
  • Student Aid Index
  • Family Size
  • Number in College
  • Assets

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FAFSA Form Changes -Who is the Parent

Parent info to be provided on the FAFSA will no longer be defined as primary custodial parent. New definition is “parent which provided the greater portion of the student’s financial support”

For dependent students-income reported and family size may be for a household that they do not reside in.

FSA has created a parent wizard that will help the student understand whose information should be provided.

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Which Parent(s) Needs to Provide Information

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Role Based Information Entry

  • This new form design allows users to fill out only the portion of the form pertinent to them.
  • Each role (student, parent, other parent, and student spouse) identified as required on a particular FAFSA form completes their own section.
  • Role based information entry will eliminate the use of the save key.

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FAFSA Form Changes – Contributor (Parents) Information

The student is asked to enter personal information about their parents in order to send them an invite to their FAFSA form. This information includes Name, DOB, SSN (if applicable) and email address. The email does not have to match their FSA ID email address. They have 45 days to access the application.

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FAFSA Form Changes – Contributor (Parents) Information

  • Parents will now be listed as contributors to their student's application
  • Parent will need to log into the application with their FSA ID to enter information.

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FAFSA Form Changes - Income Information Exchange

  • FSA will now directly transfer federal tax information (FTI) from the IRS into the FAFSA form as long as the user has provided FSA with the consent to do so.
  • There are very limited paths for people to manually enter their financial data, separated couples, non-US tax filers, undocumented parents.
  • The IRS Data Retrieval Tool (DRT) will be replaced with this process.

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FAFSA Form Changes – Providing Consent

  • All students, parents, and spouses, regardless of whether they file a US tax return, will be required to provide consent for the IRS to transfer any data they have directly into the FAFSA form.
  • If no information is on file with the IRS, specific codes will be sent indicating that person’s status with the IRS.

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FAFSA Form Changes - Student Aid Index (SAI)

The Expected Family Contribution (EFC) will be replaced with the Student Aid Index (SAI)

  1. Different measure of their ability to pay for college and a change in the methodology used to determine aid
  2. The new formula will be cost of attendance (COA) – SAI = financial need.
  3. Allows a minimum SAI to be as low as negative $1,500 to give financial aid administrators more insight when making determinations for students

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FAFSA Form Changes – Family Size

  • The new name for household size is family size and will be determined by the number of exemptions claimed on the federal tax returns.
  • Because family situations can change, there will be a question that allows the student to modify the family size to reflect the current number.

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FAFSA Form Changes – Number in College

  • SAI will no longer be divided by number in college.
  • With number in college removed from the formula-many students may have SAI double or triple with no change in family income
  • Current students may see reduction or loss of Pell Grant 

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FAFSA Form Changes – Assets

  • Families with an adjusted gross income of greater than $60,000 (up from $50,000) or those who filed certain schedules will be required to submit assets.
  • If contributors complete their section first and are not required to provide asset information, the student will not be asked asset questions.

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FAFSA Form Changes – Assets

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FAFSA Form Changes – Reporting Farms & Small Businesses

If required to report assets, the family would have to report the net value of any business or family farm –no more exemptions for number of business employees or farms on which the family residence is located.

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FAFSA Application Issues

https://fsapartners.ed.gov/knowledge-center/topics/fafsa-simplification-information/2024-25-fafsa-issue-alerts

The FSA FAFSA Issue Alerts does not include FSA ID issues

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FAFSA Application Issues

Description: If a student or parent signs the student’s or parent’s respective section of a 2024-25 FAFSA form that includes other contributors and returns to the form before the other contributors have signed and submitted the form and selects “Save” from the FAFSA menu without making any changes, the signature of that student or parent is removed from the application.

Workaround: The student or parent should re-sign the FAFSA form upon returning to the application, even if the student or parent is not making any changes to the form.

ISSUE: Signature removed for student/Parent who returns to saved FAFSA

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FAFSA Application Issues

Description: If a parent with no SSN starts the 2024-25 FAFSA form for a student, the parent will receive an error message on the “Student Information” page. This incorrect error message states that the user is “unauthorized to act on behalf of the student since they already have a 24-25 FAFSA form” even if the student has not started an application. A parent with no SSN also is not able to contribute to the form, even if the student starts the application and invites the parent to contribute.

Workaround: There is currently no workaround for a parent without an SSN. A student may start the application, but the parent will not be able to contribute the parent information until resolved.

ISSUE: Parent with No SSN unable to start FAFSA Form for student or contribute to an existing form

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Paper Application

Processing of paper applications will not begin until after online applications are processed

The date the application is received by FSA is the submission date regardless of when it is processed

Can take up to two stamps to send. Best practice is to print labels with the address

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FAFSA Submission Summary

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FAFSA Submission Summary

  • Students will start receiving their Submission Summary in Mid-March

  • The Student Aid Report (SAR) will be referred to as the FAFSA Submission Summary
  • Reminds students to request an adjustment for special circumstances

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FAFSA Submission Summary

On the FAFSA Form Answers tab, the student sees the answers that they and, if applicable, their contributor(s) provided on their FAFSA form. If any of the provided answers are incorrect, the student can choose to start a correction. 

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FAFSA Line by Line

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FAFSA Landing Page

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FAFSA Login Page

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Student Onboarding

When the student starts the 2024–25 FAFSA form for the first time, they are taken through the FAFSA onboarding process. The first onboarding page provides an overview of the FAFSA form and an accompanying video.

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45 Day Rule

If you do not log into your application for 45 days all the data will be deleted.

Provide additional supports to ensure students are progressing through the FAFSA.

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Student Identity Information

To update any of the personal information, the student must access their Account Settings on StudentAid.gov.

High School students should not use their HS email address. As they will not typically have access after they graduate.

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Student Identity Information

For fields related to the student’s mailing address, the student can edit them directly on this page.

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Student State of Legal Residence

The student is asked about their state of legal residence. The student selects the state from a dropdown box and provides the month and year when they became a legal resident. 

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Student Provides Consent

This page informs the student about consent and their federal tax information. By providing consent, the student’s federal tax information is transferred directly into the FAFSA form from the IRS to help complete the Student Financials section.

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Student Personal Circumstances

12th Year Campaign Workbook

College Knowledge

College and Career Pathway One-Pagers 

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Financial Aid Dependency Status

Dependent

    • Under the age of 24 with no special or unusual circumstances. If a student is dependent, they will report their own and their parent’s will contribute information.

Independent

    • Independent students will report their own (and their spouse if they are married) income.

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Dependency Override

Though the following reasons may be relevant when combined with other circumstances, these situations do not on their own qualify as reasons for students to request a dependency override.

  • The student demonstrates total financial independence or self-sufficiency.
  • The student’s parents are unwilling to provide information on the application or for verification.
  • The student does not live with their parents.
  • The student’s parents do not claim the student on their federal or state tax forms.

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Student Marital Status

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Student Personal Circumstances

The student is asked if any of the listed personal circumstances apply to them.

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Student Other Circumstances

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Student Unusual Circumstances

The student is asked if unusual circumstances prevent them from contacting their parent(s).

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Dependency Status: �Provisionally Independent Status

If the student answers yes to the questions in the “Other Student Circumstances” section, they will be considered Provisionally Independent and will need to connect with their college’s financial aid office.

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Dependency Status: Dependent Student

The student is asked if they want a financial aid administrator to determine their eligibility for a Direct Unsubsidized Loan only.

Please have the student read the help text. Select yes if the student only wants to be considered for a unsubsidized loan.

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Dependency Status: Independent Student

Independent Students will not be required to have their parents provide information

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Dependent Student: Tell Us About Your Parents

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Dependent Student Invites Parents to FAFSA Form

Dependent Students will need to know their parent(s) name, social security number (if applicable) and DOB as listed on their FSA ID if they created one

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Student Financials

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Student Tax Return Information

The student is asked questions about their 2022 tax return. The student enters a response in each entry field. 

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Student Assets

Families that meet all three following criteria will not have to report assets.

Have a total AGI of less than $60,000

Do not file a Schedule A, B, D, E, F, or H (or equivalent successor schedules) on their federal tax return

and either do not file a Schedule C or file that form with a net business gain or loss of $10,000 or less

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College Selection

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College Selection

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Student Selected Colleges

The student can view which colleges and/or career schools they have selected.

If the student has not selected 20 schools, they have the option to search and select more schools.

When the student selects "Continue," they will have completed entering the required student information for their section and can proceed to review and sign their form.

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Student Review Page

The review page displays the responses that the student has provided in the FAFSA form.

To edit a response, the student can select the questions hyperlink and will be taken to the corresponding page

Dependent student can see the parent contributor section and the status of their parent’s invite. 

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Student Review Page (Continued)

Dependent student can see the parent contributor section and the status of their parent’s invite. 

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Student Signature

After agreeing and signing, the student is able to submit their section of the FAFSA form.

Since parent information has not been provided, the FAFSA form is not considered complete and can’t be processed yet.

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Student Signature (Continued)

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Dependent Student Section Complete

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FAFSA Parent Process

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Dependent Student’s Parent Contributing to the FAFSA

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Parent Identity Information

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Dependent Student’s Parent Consent

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Dependent Student’s Parent Questions

Demographics

Current Marital Status

State of Legal Residence

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Parent Financials

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Parent Federal Benefits Received

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Parent Tax Filing Status

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Parent Tax Return Information

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Parent Assets

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Parent Review Page

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Parent Signature

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Student FAFSA Confirmation

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WASFA Line by Line

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WASFA General Tips

Your job is to assist, not prepare a WASFA for someone else.

Be mindful of sensitive information.

Assesses state financial aid eligibility.

If you need help:

    • https://wsac.wa.gov/wasfa
    • WASFA application guide
    • Questions? Contact the Washington Student Achievement Council by email at wasfa@wsac.wa.gov, or call 888-535-0747 and select option 2.

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Washington State Residency

The Washington residence must be for purposes other than college

Earn a high school diploma, GED, or diploma equivalent before their first term at the college determining residency. 

Maintain a primary residence in Washington for at least 12 consecutive months immediately before their first term at the college determining residency. 

They will file an application to become a permanent resident of the United States (green card) as soon as they are eligible to apply or they are a U.S. citizen, U.S. national, or U.S. permanent resident. 

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State Financial Aid for Undocumented Students and Other Select Applicants

Your parents are undocumented, or your family members do not wish to file a FAFSA.

You or your parent(s) do not and will not file federal income taxes.

You have federal loans that are in default.

You owe a repayment on federal grants.

If a student is eligible for federal aid, they should complete the FAFSA in order to maximize financial aid awards. There are limited circumstances, beyond the applicant's immigration status, in which a person may choose to complete a WASFA instead of a FAFSA, including:

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Start on WSAC.WA.GOV

wsac.wa.gov/WASFAelig  

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2024-25 WASFA

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2024-25 WASFA

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2024-25 WASFA

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2024-25 WASFA

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Financial Aid Appeals

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Financial Aid Appeals

Many applicants have experienced recent financial changes.

Students need to apply for aid and then contact the financial aid department of the college.

SwiftStudent is a free tool that helps students understand appeals and provides templates for writing a financial aid appeal letter.

This tool does not share user data with third parties.

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Financial Aid Appeals Resource: SwiftStudent

Ask the financial aid office to exclude parental information when they calculate my financial aid

Ask for financial aid to cover my childcare costs

Ask for financial aid to cover expenses associated with my disability

Ask for more financial aid if FAFSA does not capture a financial difficulty I am currently facing

Ask for financial aid to help with a car repair

Ask for additional help if I have a financial emergency

Ask for more financial aid if my financial situation changes after I fill out the FAFSA

Ask for financial aid to cover my dependent care costs

Ask for my financial aid to be reinstated if I miss Satisfactory Academic Progress (SAP) requirements

Ask for financial aid to cover a computer or other supplies that I need for school

Ask for financial aid to help with food or housing

Ask for an extension if I miss a financial aid deadline

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Financial Aid Appeals Resource: SwiftStudent

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Common Errors

& How to Fix Them

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Common Mistakes and How to Fix Them

Incorrect Financial Aid Year

Students going to college next year will complete the 2024-2025 application.

Have the student verify which year they completed by asking them to look at their student summary.

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Common Mistakes and How to Fix Them

Incorrect Parent Listed for Financial Aid

Have the student use the Student Aid parent wizard to determine who their parent is.

The student may also be independent and not need parental information.

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Common Mistakes and How to Fix Them

Financial aid application not submitted

This can happen when the student’s parent has not completed their section of the application.

The student should receive an email confirming the submission of the FAFSA. If they do not receive one, have them log back into their account to see if their parents completed their section.

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Better FAFSA Training Scenarios

Let’s review FAFSA training Scenarios

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Training Scenarios

Disclaimer: The potential solutions offered here may not be the only path for completing a FAFSA depending on the answers to questions about which parent(s) provide the most financial support for the student.

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Scenario A - Jose

Jose is ready to file his FAFSA.

Jose is a US citizen, but his parents are undocumented.

His parents do not have ITINs.

Each parent has attempted to set up an FSA ID via the new system for those without SSNs. His father was successful, but his mother could not establish an FSA ID with the online process.

Jose has a FAFSA priority deadline in three days.

What steps should Jose and his parents take to get the FAFSA submitted by the deadline? What is the rationale?

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Scenario A - Potential Solution

The family may wish to download a paper version of the FAFSA in which they can answer all sections of the form, sign it and mail it in to meet the deadline.

The family could also choose to reach out to the federal information center and seek advice for finalizing the mother’s FSA ID.

If no solution can be reached prior to the deadline, the paper form may be the option to use.

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FSA ID Changes - ID Match & Verification Flow

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Scenario B - Takisha

Takisha is in the process of filling out her FAFSA.

She is a dependent student, and her parents filed a joint tax return for 2022.

The form requires her to fill in parent information to invite them to contribute to her FAFSA form. The fields required are her parent's legal name, social security number, date of birth, and email address.

She fills in the information for her mother, but her mother does not receive an invitation to provide information in Takisha's FAFSA.

What could be the reasons that her mother did not receive the invitation? How could Takisha fix the situation so that her mother gets the invitation?

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Scenario B - Potential Solution

One possible idea is that Takisha could have entered an incorrect email address and the invitation was never received.

The email address that the contributor invitation is sent to does not need to be the one used to establish her mother’s FSA ID. However, when the mother does receive the invitation and attempts to log in, her name, DOB and social security number will need to match what Takisha entered in the form.

Takisha also has the option to go back into her FAFSA and invite the father who could then log in and complete the form.

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FAFSA Form Changes – Contributor (Parents) Information

The student is asked to enter their parents Name, DOB, SSN �(if applicable) and email address. They have 45 days to access the application.

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Scenario C - Maria

Student Maria has continual spats with her parents about household rules. She remains living at home as the disagreements are not putting her in harm’s way. Their most recent spat was yesterday, and Maria begins to fill out her FAFSA today.

Because Maria is mad at her parents right now, she indicates that she has “unusual” circumstances and will not provide her parents’ financial information. Maria’s college receives her “provisional independent student” FAFSA and sends a request for follow up information.

Maria realizes that she does not really qualify for unusual circumstances and her parents agree to completing their portion of the FAFSA. What steps should Maria take to update her FAFSA and provide parental information?

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Scenario C - Potential Solution

In order to collect her parents’ information on the FAFSA, Maria will need to log back in and update the answer to the question about unusual circumstances.

She should then invite her parents as contributors to the form. The tax filing status of the parents will determine whether Maria needs to invite one or both of her parents to be contributors.

Once the parent(s) receive the invitation, they can log in and complete the parent section of the FAFSA.

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Breakout Discussions

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Small Group Discussion

Instructions: Gather in a small group, 3-4 people, or with your team/organization. We will have 3 rounds of discussion.

Round 1 Prompt:

What are the biggest challenges you are currently facing in supporting students and families in completing the FAFSA/WASFA? What have been the ways you've been able to support students through these challenges?

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Small Group Discussion

Instructions: Gather in a small group, 3-4 people, or with your team/organization. We will have 3 rounds of discussion.

Round 2 Prompt:

How can collaboration between different departments within the educational institution (e.g., guidance counselors, financial aid offices, academic advisors) help streamline the FAFSA application process for students?

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Small Group Discussion

Instructions: Gather in a small group, 3-4 people, or with your team/organization. We will have 3 rounds of discussion.

Round 3 Prompt:

What support measures or systems can you take action on to assist students who may encounter difficulties with the new FAFSA application?

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FAFSA Simplification Act Resources

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Resources: FAFSA Prototype

The FAFSA prototype is a web-based design tool that allows users to navigate specific scenarios that many 2024–25 applicants will encounter on the live website.

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FAFSA Simplification Act Trainings

https://wsac.wa.gov/aim-higher-training

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FAFSA Simplification Federal Student Aid Resources

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FSA Webinar – Better FAFSA Better Future Q&A

Feb. 22, 2024

10-11 a.m. PST

These sessions will focus on answering your questions about the 2024–25 FAFSA form.

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Supporting Mixed Status Families

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National College Attainment Network (NCAN) Trainings and Resources

https://www.ncan.org/page/better-FAFSA-webinar-series

https://www.ncan.org/page/better-FAFSA

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NASFAA FAFSA Simplification Web Center

This web center was created to keep NASFAA members and the financial aid community updated on pertinent news related to FAFSA Simplification updates. Check back often as this page is updated regularly.

https://www.nasfaa.org/fafsa_simplification

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Resource: The 12th Year Campaign

The 12th Year Campaign boosts college and financial aid application rates in Washington by helping those working with high school seniors and their families complete applications for college admissions and financial aid. 

  • Free training
  • Printed and digital resources
  • Online financial aid completion events

https://wsac.wa.gov/12th-year-campaign

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Resource: Financial Aid Padlet For Students

https://padlet.com/christinaw12/t6jfitu7m8in10xc

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Resource: Financial Aid Padlet For Practitioners

https://padlet.com/christinaw12/12th-year-campaign-key-to-success-financial-aid-resources-cxbz1z64bch5jbsf

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Questions

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We value your feedback

https://www.surveymonkey.com/r/TRD5DVJ

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We Are Here to Help!

Online:

    • www.thewashboard.org
    • www.get.wa.gov

On Twitter:

    • @WSACouncil

On Facebook:

    • www.facebook.com/WSACouncil
    • www.facebook.com/ReadySetGrad

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Thank you!

Contacts:

Christina Winstead, �Associate Director, WSAC �christinaw@wsac.wa.gov

Christian Granlund, �Interim Director, Postsecondary Programs, PSCCN - PSESD,

cgranlund@psesd.org

Dinda Davis,

Program Coordinator,

PSCCN - PSESD,

ddavis@psesd.org