Driving Uncertainty into Opportunity

Family DynamicsWhat defines a family-

Presented by:Nathan R. Basford, Jr.

Florida State University

Driving Uncertainty into Opportunity

OBJECTIVES:

• How does society look at the family?• How do states look at the family today?• How does the Federal Government look at the family?• How does the Dept. of Ed. Define family/household members?• What is ahead for 2014-15?• How do we as financial aid professionals work with students and parents

when talking about the modern family?

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Driving Uncertainty into Opportunity

The Family

What defines a “family” today?

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Driving Uncertainty into Opportunity

Types of Families

• Traditional

• Single

• Other

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The Modern Family

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Driving Uncertainty into Opportunity

How do states look at the family today?State Laws:

– Civil Unions – Civil unions provide legal recognition to the couples relationship, provides legal rights similar to those accorded to spouses

– Domestic Partnerships – grant some or all state level spousal rights to unmarried couples

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Driving Uncertainty into Opportunity

How do states look at the family today?

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Driving Uncertainty into Opportunity

How do states look at the family today?

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Driving Uncertainty into Opportunity

How does the Federal government look at the family today?

• The Defense Of Marriage Act (DOMA)

• Supreme Court Decisions* United States v. Windsor

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Driving Uncertainty into Opportunity

How does the Department of Education define family – household members?

• A student/parent is considered “married” if the student/parent was legally married in any domestic or foreign jurisdiction that recognizes that relationship as a legal marriage, regardless of where the couple resides

• This determination applies to same sex or opposite sex couples. This determination does not apply to domestic partnership, civil unions, or similar formal relationships recognized under state law

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Driving Uncertainty into Opportunity

How does the Department of Education define family – household members?

• If student marital status on the date the FAFSA was completed was “married” they will need to provide spouse’s information regardless of gender

• If student is dependent and both biological and/or adoptive parents reside in the same household, both parents’ information must be provided regardless of their marital status or gender

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Driving Uncertainty into Opportunity

So what’s ahead for 2014-2015?• FAFSA updated to accommodate same-sex parental data for dependent students

• FAFSA updated to allow a new marital status of “unmarried” - this allows the data for legal parents living in the same household to be collected, even if unmarried

• Will lead to changes in how the family is viewed throughout the entire financial aid system

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Driving Uncertainty into Opportunity

So what’s ahead for 2014-2015?

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Driving Uncertainty into Opportunity

So what’s ahead for 2014-2015?

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Driving Uncertainty into Opportunity

IRS Update

• Treasury and IRS Announce that all Legal Same-Sex marriages will be recognized for federal tax purposes; Ruling provides certainty, benefits and protections under the Federal Tax Law for Same-Sex Married Couples

• Revenue Ruling 2013-17 along with updated Frequently Asked Questions for same-sex couples and updated FAQs for registered domestic partners and individuals in civil unions are available on IRS.gov

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Driving Uncertainty into Opportunity

Financial Aid ProfessionalsKey to application of the new rules:

• Education

• Awareness

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Working with Families

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You may see various family types other than those you are familiar with:

• Be sensitive• You may have to ask for additional documentation in some cases to be able

to determine what the student/parent should be reporting• You are not required to collect marital status documentation, however you

may if clarification is needed

Driving Uncertainty into Opportunity

Working with Families

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• Be sure to update your policies and procedures to take into account the “modern family”

• Ensure frontline staff is adequately trained and is able to disseminate accurate information

• Remember Marriage is not the same as domestic partnerships or civil unions

Driving Uncertainty into Opportunity

Working with Families

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• What have you seen?

• What do you think you will see?

• What have you done in preparation to deal with the changing landscape of the family and in turn the definition of household members?

Driving Uncertainty into Opportunity

Questions