Financing Your College Education

Presented by Katy Fitzgerald Mission College Financial Aid Student Enrollment & Financial Services Recruitment Supervisor Foster Youth Liaison 408.855.8070 Katy.Fitzgerald@missioncollege.edu

What You’ll Learn Today Planning for college (or lack thereof) Types of financial aid

Gift aid Self-help aid

Application process FAFSA California Dream Act CSS Financial Aid PROFILE

Calculating your eligibility Cost of attendance Awarding & packaging What’s next?

What we should have done!

$50 per month to each child’s college savings account AT BIRTH!

In some cases, we should have started before birth!

Don’t “should” on yourself!

Life happens and we don’t always get to what we “should” have done or hoped to do!

Commitment to high-quality educational choices at the K-12 level are made that impact our ability to save!

Time “slips” by faster than we thought it could!

(It happens to those of us who are financial aid professionals, too!)

What now? Maybe I didn’t plan enough – what can my

child look forward to now for college costs payment options?

What can I afford?

Types of Financial Aid Sources

Federal government State agency/government Colleges and universities Private agencies, companies, foundations and parents’

employers Ex: service-based orgs (Kiwanis), lenders/credit unions, insurance

companies (Foresters) provide scholarships

Types of Financial Aid Categories

Gift Aid

Grants: Free money!

Scholarships: Free money!

Self-help Aid

Work-study: part-time job

Loans: must be paid back

COLLEGE

Financial Aid is any money given, paid or loaned to help pay for education.

Types of Financial Aid – Gift Aid Grants: Federal Pell Grant

up to $5,730 a year Federal Supplemental Educational Opportunity Grant

up to $4,000 a year Federal TEACH Grant

up to $4,000 a year Iraq & Afghanistan Service Grant

up to $5,080

Types of Financial Aid – Gift Aid Cal Grants: Cal Grant A Entitlement Awards (fees and tuition)

CSU: $5,472 UC: $12,192 Private college: $8,056

Cal Grant B Entitlement Awards (+living allowance) $1,648 first year; $1648 + [up to] $12,192 2nd yr+ CC= $1,648

Cal Grant A & B Transfer Entitlement (CCC to 4-yr.) up to $12,192

Cal Grant C Awards (career technical programs) Up to $2,462 CC= $547

Cal Grant A Competitive Awards

Minimum 3.0 GPA

Cal Grant B Competitive Awards

Minimum 2.0 GPA

First three CA schools listed will be used for Cal Grant consideration (do not have to be in top 3 positions)

Types of Financial Aid – Gift Aid Middle Class Scholarship

New for 2014-15 For new, continuing and transfer undergraduates Attend/plan to attend a UC or CSU campus Be a U.S. citizen, permanent resident or AB540 status Maintain 2.0 GPA Family incomes up to $150, 000

Apply as of 1/1/2014 by either completing the FAFSA or Cal

Dream Act Application

New: Middle Class Scholarship

For the 14/15, 15/16, and 16/17 school years the MCS amount is reduced

2014-15 CSU maximum is approximately $766 and for the UC $1,700

When fully implemented in 2017-18 the maximum award will be 40% of systemwide tuition fees at a UC or CSU

Types of Financial Aid – Gift Aid Fee & Tuition Waivers Community College - Board of Governor’s Fee Waiver (BOG)

Waives enrollment fees, FAFSA may be required www.icanaffordcollege.com

CSU State University Grant (SUG) Amounts vary, FAFSA is required www.calstate.edu or csumentor.edu

UC Grant – Blue & Gold Plan Amounts and application process vary www.universityofcalifornia.edu

Independent College Grants Amounts and application process vary www.aiccu.edu or www.aiccumentor.org

Financial Aid for Specific Populations

● Middle Class Scholarship, new for 2014-15: www.csac.ca.gov

● Foster Youth: Chafee Grant ~ up to $5000 www.chafee.csac.ca.gov

● Athletes: www.ncaaclearinghouse.net

● Students with dependents: EOP&S/CARE and CalWORKs

● Students with disabilities: www.heath.gwu.edu

● Military and their dependents: www.gibill.va.gov

● AB540 Students: California Dream Act www.caldreamact.org

● Early Childhood Education/Child Development: www.csac.ca.gov

● Teachers: Cal Grant A & B Extended Benefits: www.calgrants.org

in addition to grants, Loan Forgiveness: www.teachforamerica.org

● Health Occupations-Scholarships & Loan Repayment: www.healthprofessions.ca.gov

Types of Financial Aid – Gift Aid Institutional and Private Grants & Scholarships Provider decides on

Awarding criteria Application deadline Forms or applications

Awards may be Merit-based (academic performance-GPA) Need-based (financial need) Combination of the two

Scholarships APPLY! . . . APPLY! . . . APPLY!

No excuses . . . There is a lot of money available that goes unclaimed

Scholarship Tips:

Create a Resume Get active in the community:

Clubs Community Service

Document your community service Preview – Write – Review your essays Finish the application and turn it in on time

Types of Financial Aid – Self-Help

Federal Work Study

Campus-based aid Must be earned through work

Job may be on or off campus (~18 hrs./wk) Undergraduate and graduate students No annual maximum (~$2,000 - $4,000)

Funding levels vary at each institution Need-based

Types of Financial Aid – Self-Help

Loans: Federal Perkins Loan (up to $5,500 u./$8,000 g.)

School serves as lender

William D. Ford Federal Direct Loan Program Money comes from U.S. Dept. of Education

Private Loans (also known as ‘alternative’ loans) Money comes from lending institutions (banks)

Types of Financial Aid – Self-Help Direct Loan (DL) Program Includes:

Subsidized Stafford Loan (Need-based) Up to $5,500 depending on grade level

Unsubsidized Stafford Loan (Not Need-based) $5,500-$20,500 depending on grade level & dependency status

PLUS Loan (Parent Loan for Undergraduate Student) Max based on COA minus other aid received (not need-based)

Annual and aggregate loan limits apply 6-month grace period

General Eligibility Criteria Status U.S citizen, permanent resident or meet AB540 criteria Valid Social Security number (Parents do not need a SS#)

For CalDreamAct, no SS# is required for student or parent (ITIN okay)

Males between ages 18-25 registered for Selective Service Received HS Diploma or equivalent: GED, CHSPE, Homeschooled

Enrollment BOG Fee Waiver & Pell Grant will pay as low as ½ unit

FSEOG, FWS, DL, Chafee & Cal Grants require at least halftime status

EOP&S requires full time status (with exceptions)

Must be enrolled in an eligible program of study

Satisfactory Academic Progress Must complete 2/3 of units attempted cumulatively Must maintain a 2.0 ‘C’ GPA

Application Process Applying for Aid

When applying to an institution, a student should ask the following: What forms does the institution require? In addition to the FAFSA, does the school require

the completion of an institutional form? For example, CSS Profile

What are the filing deadlines for each form? What type of deadline?

FAFSA on the Web’s Homepage

www.fafsa.gov

Wherever the cursor is, Help and Hints will tell you what kind of answer they are looking for, what to include, what not to include-be sure to scroll for complete explanation

California Dream Act

www.caldreamact.org

Dependency Status -FAFSA

If students are NOT able to check any of the boxes below, parents income and asset information will be required to complete the FAFSA process.

Questions About Assets

Net worth means current market value minus debt. If net worth is negative, enter ‘0’

Information for Students & Parents www.studentaid.ed.gov

CSS Financial Aid PROFILE https://student.collegeboard.org/css-financial-aid-profile

CSS Financial Aid PROFILE Registration

Guide No paper

registration form

On-demand webinar

3 step process

$25 initial application & one college report

$16/add’l college

CSS Financial Aid PROFILE

Not used for awarding federal financial aid

May be filed earlier than the FAFSA – typically October of the Senior year

Not all schools require (California Public Colleges don’t use)

Assistance is available E-mail: help@cssprofile.org

https://student.collegeboard.org/css-financial-aid-profile

Timeline of Financial Aid Application Forms

CSS/ Financial Aid Profile As early as October 1st of the senior year

Free Application for Federal Student Aid . . . FAFSA on the Web (FOTW)

Beginning January 1st of the senior year

Cal Grant GPA Verification Form By March 2nd of the senior year

Calculating Financial Aid Eligibility Basic Equation of Need (Eligibility)

Cost of Attendance (COA) − Expected Family Contribution (EFC)

= Eligibility for Need-based Aid

Calculating Financial Aid Eligibility Cost of Attendance / Allowances

Standard Allowable Costs:

Tuition and fees: $ 1,358

Room and board: $ 4,599

Books and supplies: $ 1,746

Transportation: $ 1,134

Misc. personal: $ 3,132

Total standard allowance: $11,969 (based on 13-14 ‘with parent’ COA)

(13-14 ‘off campus’ COA $18,746)

Additional Allowable Costs:

Dependent care

Study-abroad

Disability-related

Employment expenses for

co-op study

Student loan fees

Calculating Financial Aid Eligibility Expected Family Contribution (EFC) What Is It?

Need analysis is the formula used in determining a family’s EFC EFC is the measure of a family’s financial strength

What is in the calculation of Expected Family Contribution generated from the FAFSA: Number in household size Adjusted gross income Number of dependents in college Age of the older parent Assets other than the family home

Calculating Financial Aid Eligibility Expected Family Contribution (EFC) Federal EFC will be same at all schools

Federal financial aid eligibility varies based on institution’s Cost Of Attendance

Some schools may use institutional methodology (ex, Profile calculations) to award their own institutional funds

Special Circumstances

Adjustments may be made to information on a case-by-case basis

Special circumstances may include changes to Dependency status Income and assets Child support Number in household or college Private elementary/secondary tuition Medical or dental expenses (not covered by insurance)

Cost of Attendance*

w/parents off campus on campus

Comm. Coll.(CC) $11,969 $18,746 n/a

Cal.State Univ.(CSU) $16,606 $23,714 $25,020

Univ. of Cal. (UC) $25,671 $30,183 $34,356

Private (SCU,USC) $54,423 $61,200 $61,638

*Costs may not be actual

Calculating Financial Aid Eligibility Basic Equation of Need (Eligibility)

Cost of Attendance (COA) − Expected Family Contribution (EFC)

= Eligibility for Need-based Aid

Actual Tuition & Fees* Per Year

Comm. Coll.(CC) $ 1,104 (Mission College) Cal.State Univ.(CSU) $ 5,472 (San Jose State) Univ. of Cal. (UC) $12,864 (Berkeley) Private $42,156 (Santa Clara)

*Subject to change at any time

Awarding & Packaging

Federal awarding guidelines

Pell Grant is awarded first

External Scholarships or Grants

Campus-based aid awarded in any order school chooses

Subsidized Stafford loan eligibility is calculated before unsubsidized

Institutions have different awarding policies

Sample Financial Aid Package Community College

Half-time Enrollment Pell Grant $2865 SEOG $ 500 Cal Grant B $ 824 Work Study $2200 Loan $3500

Full-time Enrollment Pell Grant $5730 SEOG $ 500 Cal Grant B $1648 EOPS $ 500 Work Study $2200 Scholarship $2000 Loan $3500

+BOGW for Enrollment Fees ($1104.00 / 12 units)

Quick Tips & What’s Next? You must apply/re-apply for financial aid every year

A PIN is required for student & one parent; can be done during application process

Application processing takes 2-3 days; schools can receive results weekly

Review your application results for questions, assumptions, any action required

Check student portal for additional documents requested Missing documents or clarification needed

Universities will start packaging late in March, early April Compare award offers

Community Colleges typically package over summer months

Check Cal Grant status at www.csac.ca.gov Click on “WebGrants for Students”

Apply for scholarships: colleges, community organizations, etc.

Parents: File taxes early; use IRS Link on FAFSA Delay of filing taxes can jeopardize best award offer

What to take away from this There is no magic potion for eligibility The applications are self-certifying but follow-up documentation may be requested There is a type of financial aid for every student

Apply, apply, APPLY! Even if you think scholarships will be the only aid, you should still complete the

FAFSA - most scholarship applications will ask if you have Consider ALL college system options, including private & CCs Some private schools look at who’s listed #1 on FAFSA There are Lifetime Eligibility Usage (LEU) limits for Pell Grant & Cal Grants; while we

encourage students to explore career options, they need to be focused by the time they reach college or they could run out of grant funding before they complete their first Bachelor’s degree

Gift-aid (grants, scholarships) is available up through undergraduate study, typically first Bachelor’s degree OR LEU, whichever comes first

There is financial aid for graduate students like Federal Work Study, Direct Loans, some fellowship grants & scholarships

If you want help with the FAFSA, check with your HS & if they don’t offer a FAFSA workshop, check with other HS’s in the district or a local Community College for workshops

EFC Calculators www.fafsa4caster.ed.gov Will need a to create a password

www.finaid.org Click on Calculators Click on Expected Family Contribution and Financial Aid Calculator

www.Collegeboard.com Under “For Parents”, click on Pay for College Click on Financial Aid Easy Planner Estimate your Share

Resources www.StudentAid.gov www.icanaffordcollege.com www.csac.ca.gov www.calgrants.org www.caldreamact.org www.collegeboard.com www.going2college.org www.roybal-allard.house.gov/Students www.maldef.org www.E4FC.org

Thank you! Questions?