Financing Your College Education by Katy Fitzgerald, Financial Aid Advisor, Mission College [email protected] 408-855-5070 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? Why College? 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 Types of Financial Aid  Categories Gift Aid  Grants: Free money!  Scholarships: Free money! Self-help Aid  Work-study:  Loans: part-time job 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 $5,645 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 $5,645 Types of Financial Aid – Gift Aid Cal Grants:  Cal Grant A Entitlement Awards (fees and tuition)    CSU: $5,472 UC: $12,192 Private college: $9,084  Cal Grant B Entitlement Awards (+living allowance)  $1,473 first year; $1473 + [up to] $12,192 2nd yr+ CC=$1,473  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 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  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 - $3,500)  Funding levels vary at each institution  Need-based Types of Financial Aid – Self-Help Loans:  Federal Perkins Loan  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)  Unsubsidized Stafford Loan (Not Need-based)  PLUS Loan (Parent Loan for Undergraduate Student)  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  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 and loans 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 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 Information for Students & Parents www.studentaid.ed.gov CSS Financial Aid PROFILE https://profileonline.collegeboard.com CSS Financial Aid PROFILE  Registration Guide  No paper registration form  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: [email protected]  https://www.profileonline.collegeboard.com/ 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  Cost of Attendance / Allowances Standard Allowable Costs:  Tuition and fees: $ 1,358  Room and board: $ 4,518  Books and supplies: $ 2,460  Transportation: $ 1,179  Misc. personal: $ 3,096 Additional Allowable Costs:  Dependent care  Study-abroad  Disability-related  Employment expenses for co-op study Total standard allowance: $12,611 (based on 13-14 ‘with parent’ COA) (13-14 ‘off campus’ COA $19,253)  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 Calculating Financial Aid Eligibility  Basic Equation of Need (Eligibility)  Cost of Attendance (COA) Expected Family Contribution (EFC)  Eligibility for Need-based Aid Special Circumstances  Adjustments may be made to information on a caseby-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* Comm. Coll.(CC) Cal.State Univ.(CSU) Univ. of Cal. (UC) Private (SCU,USC) w/parents off campus on campus $12,611 $19,253 n/a $16,442 $24,642 $24,223 $24,092 $28,858 $33,320 $52,725 $59,367 $59,655 *Costs may not be actual Actual Tuition & Fees* Comm. Coll.(CC) Cal.State Univ.(CSU) Univ. of Cal. (UC) Private Per Year $ 1,104 $ 5,472 $12,864 $42,156 *Subject to change at any time (Mission College) (San Jose State) (Berkeley) (Santa Clara) 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 $2822 SEOG $ 500 Cal Grant B $ 736 Work Study $2000 Loan $3500 Full-time Enrollment Pell Grant $5645 SEOG $ 500 Cal Grant B $1473 EOPS $ 500 Work Study $2000 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   Check student portal for additional documents requested     Compare award offers Community Colleges typically package over summer months Check Cal Grant status at www.csac.ca.gov   Missing documents or clarification needed Universities will start packaging late in March, early April   Review your application results for questions, assumptions, any action required 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.finaid.org  Click on Calculators  Click on Expected Family Contribution and Financial Aid Calculator  www.fafsa4caster.ed.gov  Will need a to create a password  www.Collegeboard.com  Under “For Parents”, click on Pay for College  Click on Financial Aid Easy Planner  Estimate your Share Resources           www.icanaffordcollege.com www.studentaid.ed.gov www.federalstudentaid.gov 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 Acknowledgements Santa Clara County Library District acknowledges the support of the FINRA Investor Education Foundation and the American Library Association which made this webinar possible through a Smart Investing @ your library® grant. Thank you! Questions?