2012-2013 FAFSA Enhancement Available Now – IRS Data Retrieval Tool

1. If you have not already filed your 2012-2013 FAFSA, you should do so now at www.fafsa.ed.gov.
2.  Appalachian’s priority processing date for filing the 2012-2013 FAFSA is March 1, 2012, so be sure to file your FAFSA before then.  
3.  When filing your 2012-2013 FAFSA, you should take advantage of the IRS Data Retrieval Tool which allows you to link to the IRS from the FAFSA and retrieve tax information directly from the IRS to populate the FAFSA tax return questions.  You should file your 2011 tax return early so that you can use the IRS Data Retrieval Tool as soon as possible.
4.  If you have already filed your 2012-2013 FAFSA and you have already filed your 2011 tax return, you should correct your FAFSA now to use the IRS Data Retrieval Tool.  The IRS Data Retrieval Tool is available 2 weeks after you electronically filed your 2011 tax return.  Log into your FAFSA at www.fafsa.ed.gov and make a correction to use the IRS Data Retrieval Tool to update your tax information.
5.  If you have not yet filed your taxes with the IRS, go ahead and file your 2012-2013 FAFSA now so that you can meet the March 1 priority date (see #2) and use estimated tax information.  Once you have filed your 2011 tax return, wait 2 weeks and then log into your FAFSA at www.fafsa.ed.gov and make a correction to use the IRS Data Retrieval Tool to update your tax information.  
6.  If you are selected for verification, you are not alone.  About 30% of all FAFSA filers are selected for the verification process, which requires schools to collect documentation to check the accuracy of the FAFSA information.  The documents that we can now accept to verify your tax information have changed based on policy changes from the U.S. Department of Education.  Please note that either a tax transcript from the IRS or an updated FAFSA using the IRS Data Retrieval Tool are the only two ways to verify tax data starting with the 2012-13 academic year.  If you do not, or cannot, use the IRS Data Retrieval Tool, you will be required to obtain a tax transcript from the IRS.  Using the IRS Data Retrieval Tool to populate your FAFSA tax information will make the verification process more efficient because the tax information will be verified by the IRS Data Retrieval. 

Welcome Back Students!

We hope that you have had a wonderful holiday break and are eager to get off to a strong start this spring semester.  The Office of Student Financial Aid would like to take this opportunity to update you on recent changes to regulations affecting federal student financial aid.  Below is a list of changes made by the Budget Control Act of 2011, the Consolidated Appropriations Act, 2012 and other regulatory enactments.  Please read this information carefully as you prepare for the 2012-13 academic year. 

Pell Grant Changes

The maximum number of equivalent full-time semesters a student is eligible to receive a Pell Grant is now 12 semesters for all students. 

The maximum Expected Family Contribution (EFC) for which a student is eligible to receive a Pell Grant will decrease from 5273 to 4995.  Students with an EFC of 4996 or higher will not be eligible for a Pell Grant for the 2012-13 academic year. 

Changes Affecting Loans

• The in-school loan interest subsidy for graduate and professional students has been eliminated for all new loans as of July 1, 2012.  This means graduate and professional students will be eligible for unsubsidized loans only after July 1, 2012. 
• Many Direct Loan repayment incentives are now prohibited, including the up-front interest rebate, effective with new loans disbursed on or after July 1, 2012.
• The interest subsidy offered during the six-month grace period on subsidized loans is eliminated for new loans made between July 1, 2012 and July 1, 2014.  Loan repayment still begins six months after the student is no longer enrolled at least half-time, but interest that accrues during those six months will no longer be subsidized by the federal government.  It will be the responsibility of the student to pay the interest during the grace period. 
• For loans created on or after July 1, 2012, the interest rate will increase to 6.8% on subsidized loans and will remain at 6.8% on unsubsidized loans.

Auto Zero Calculation

• The income threshold for calculating the Auto Zero Expected Family Contribution (EFC) will decrease from $31,000 to $23,000.  This will result in fewer families automatically qualifying for a zero EFC.

  Please remember to file your 2012-13 FAFSA as early as possible and before the priority date of March 1. We wish you much success for a happy, healthy new year and a productive spring semester.

As the spring 2012 semester approaches, the Office of Student Financial Aid would like to remind students of key federal regulations affecting financial aid policies. 

1.       Student enrollment status is established as of the end of the drop/add period which for the spring semester is January 23, 2012.  The hours for which you are enrolled at the end of drop/add will be the hours on which financial aid is based.  Students must be enrolled at least half time to receive Federal student loans and most other Federal aid.

Your financial aid will not be adjusted for hours added or dropped (unless you drop all hours, which is withdrawal from the University) after the drop/add period has ended. If you stop attending a class, you are required to officially drop the class. If you stop attending all of your classes, you are required to officially withdraw from the University.

Audit (AU) hours are not acceptable for determining your enrollment status to receive financial aid.

2.       Only courses that meet your degree requirements are counted in your enrollment status for purposes of calculating financial aid. Courses that do not meet your degree requirements are not allowed for financial aid purposes.  If you have met your degree requirements, you are ineligible to receive financial aid until you are accepted into a new degree program. It is your responsibility to ensure that all courses you are enrolled in are required for your degree program as listed on the appropriate degree check sheet. Courses not required for your degree program may not be counted in the enrollment status for financial aid eligibility. If you are registered for courses that do not meet your degree requirements, your financial aid will be adjusted or canceled accordingly.

If you have questions regarding your enrollment and financial aid eligibility, please contact or visit the Office of Student Financial Aid.  We wish you all the best for a successful semester.

IT’S NOT TOO LATE TO APPLY FOR 2011-2012 FINANCIAL AID

Students may still apply for Financial Aid for 2011-12, by completing the 2011-2012 Free Application for Federal Student Aid (FAFSA) on line at www.FAFSA.gov.  Students who are selected for verification must complete all requirements before aid can be awarded. 

EMAIL BILLS

Students who are pre-registering for Spring 2012 classes (11/07/11 through 11/18/11) will receive email bills from the Office of Student Accounts on 11/22/11 and payment is due on 12/16/11. Financial aid that has been finalized will be reflected on the bill as a credit.  The actual monies will not be disbursed to students’ accounts until ten days prior to the start of classes on January 17, 2012.  Refunds will be available after classes begin.

SPRING/SUMMER STUDY ABROAD

Students who are planning to study abroad during spring 2012 or summer 2012 should visit the International Fair on November 16, 2011, and stop by the Financial Aid office to discuss financial aid eligibility.  Usually only student and/or parent loans are available for study abroad education 

2012-2013 FASFA FILING

The FAFSA must be completed each year as soon after January 1, 2012 as possible. Appalachian State University’s priority filing date is March 1, 2012.

With continued debate about deficit reduction, in August, both chambers of Congress passed and President Obama signed into law the Budget Control Act of 2011.  This new law contains three main topics related to student aid:

• Additional mandatory funding for the Pell Grant program - For fiscal years 2012 and 2013 the Pell grant maximum award of $5,550 will be maintained. 
• Elimination of the in-school loan interest subsidy for graduate and professional students -   This means graduate and professional students will be eligible for unsubsidized loans only after July 1, 2012. 
• Elimination of Direct Loan repayment incentives – This eliminates incentives for using automatic debit repayment, and the new law prohibits the Department or Education from providing repayment incentives or up-front interest rebate incentives for new loans disbursed on or after July 1, 2012.

The new law package represents a bipartisan compromise between congressional leaders that will allow funds to be redirected into the Pell Grant Program and toward deficit reduction.