What you need to know about Financial Aid for 2014-2015

1. What you need to know about Financial Aid for2014-2015

2. Presented by: Andi Schreibman Financial Aid Officer, Las Positas College 2

3. What Will You Learn Today? • Important terms explained • Calculating Eligibility • Categories, types and sources of Financial Aid • Application Process & Deadlines • Awarding and Packaging • Tips for completing the FAFSA • Special Circumstances • Finding help / further resources • Answers to your questions

4. TERM: ‘Financial Aid’ Financial aid consists offunds provided to students and families to help pay for postsecondary educational expenses TERM: ‘FAFSA’ The Free Application for Federal Student Aid (‘FAFSA’) is the financial aid application that must be completed for every college in the U.S.

5. Term: ‘Expected Family Contribution’ (EFC) • Amount the govt assumes a family can reasonably be expected to contribute toward a student’s education for one year • Stays the same regardless of college • Two components • Parent contribution • Student contribution • Calculated using data from the FAFSA application form and a federal formula

6. Term: ‘Cost of Attendance’ (COA) • Average cost to attend a specific college for one year • Direct costs (tuition & fees, campus housing • Indirect costs (books & supplies, room & board, personal expenses, transportation) • Direct and indirect costs are combined into cost of attendance • Varies widely from college to college

7. Comparing various College and University COAs (2013-2014 data) *Families making less than $100,000 per year are guaranteed free tuition. Families making less than $60,000 a year are not expected to pay tuition or contribute to the costs of room, board, and other expenses.

8. Term: ‘Financial Need’ Cost of Attendance –Expected Family Contribution = Financial Need Colleges determine and offer financial aid based on this equation. Some types of aid require financial need and some types do not.

9. Categories of Financial Aid • Need-based • Non-need-based

10. Types of Financial Aid Free Financial Aid • Grants are free money you don’t have to repay, typically based on financial need. • Fee Waivers are free money, waive enrollment fees at community colleges, based on financial need. • Scholarships are free money, usually based on basis of merit, skill or unique characteristics. Self-Help Aid • Federal Work-study programs—work for pay • Loans are borrowed money that you must pay back, usually with interest – ‘self-help’.

11. Federal government State government Colleges and universities Private sources: civic organizations, businesses, foundations, employers, etc Sources of Financial Aid

12. Free Money: Federal Pell Grants Federal Pell Grant • Largest source of financial aid, for very low income students • Aid awarded primarily on the basis of financial need and Expected Family Contribution (EFC) • Students with EFC from 0 – 5157 qualify for a Pell Grant for 2014-15. • Pell maximum = $5730/year for 2014-15. Amount received varies with enrollment status (less money if less than fulltime) • You will receive the same amount of a pell grant at any college you attend; you don’t get more at a more expensive college. • Must apply each year using the FAFSA

13. Free Money: Other Federal Grants • There are other federal grants for low income students. Your college will determine which grants you qualify for. • The FAFSA is the only application needed to apply for all types of federal aid. G

14. Free Money: State Cal Grants • For 2-yr, 4-yr, public, private, and • vocational colleges in CA • Pays FULL TUITION at a CSU or UC, @ up to $9,708/year for private institution. • Renewable up to 4 years. The tuition part is on reserve while student attends a community college. • Cal B recipients receive a $1473 annual grant in addition to full tuition for 4 years

15. Cal Grant A Entitlement Awards – for high school seniors and recent high school grads with a Grade Point Average (GPA) of at least 3.0 Cal Grant B Entitlement Awards – for high school seniors and recent high school grads with a GPA of at least 2.0, who come from disadvantaged or low income families Cal Grant C Awards - for students from low income families pursuing vocational programs of study Free Money: State Cal Grant Entitlement Program

16. To be eligible for a Cal Grant, the student must also: be a U.S. citizen,eligible noncitizen, or eligible under CA Dream Act (later slide) be a California resident attend an accredited California college or university at least half-time Meet income and asset ceiling criteria Eligibility for Cal Grants

17. California Dream Act • New California regulations allow undocumented students who attended a CA high school for 3 years or more and earned a diploma or equivalent, to now qualify for an Entitlement Cal Grant. They may also legally qualify for scholarships, Community College Registration Fee waivers, college/university grants and other assistance programs in California. • To apply, file a CA. DREAMAPPLICATION instead of a FAFSA at www.csac.ca.gov • Contact your college admissions office to submit an AB540 application, needed to receive aid through the Ca. Dream Act

18. Check with your high school or college counselor for more details on how to file the Cal Grant GPA Verification Form, required of all students 2014-2015 Cal GrantApplication Requirements • By March 2, 2014, complete and submit: Free Application for Federal Student Aid (FAFSA) OR Cal Grant GPA Verification Form If undocumented and eligible under AB540, students should complete the California Dream Act Application: www.caldreamact.org

19. Check Your Cal Grant Status By opening a WebGrants Account a student can: • Check Cal Grant award status 24/7 • Confirm student’s high school graduation as required once they have actually graduated • Make changes to Cal Grant school choices • View how much a Cal Grant is worth at different California colleges and universities • Create a WebGrants account at: www.webgrants4students.org

20. Middle Class Scholarship (MCS) • Starting with the Fall of 2014-15, the Middle Class Scholarship (MCS) will be phased in to assist new and continuing UC and CSU undergraduate students with family incomes up to $150,000 • To apply, after January 1, 2014, students should submit • 2014-15 FAFSA • For AB540 students, the 2014-15 California Dream Act Application • Note: no GPA is required • MCS awards vary based on the number of eligible students, the institution, and state funding allocated. In 2014-15, maximum awards will range up to $1,706 • Amounts are determined after Federal Pell Grants, Cal Grants and institutional grants are awarded. Students cannot receive both grant aid and the MCS • Qualifying students will be notified by the California Student Aid Commission • In 2017-18, when fully funded, the maximum awards will be no more that 40 percent of UC and CSU system-wide tuition and fees

21. California Chafee Grant • The California Chafee Grant program provides up to $5,000 annually to current and former foster youth for college or vocational training at any accredited college in the U.S., based on available funding • To be eligible, foster youth must have been in California foster care on their 16th birthday and not have reached their 22nd birthday before July 1, 2014 • Foster youth are encouraged to apply during their senior year of high school • AB540 students may also be eligible To apply for a Chafee Grant, go to: www.chafee.csac.ca.gov

22. Free Money: Community College Board of Governors’ Fee Waiver Program • Waives enrollment fees at all community colleges for CA residents • File a FAFSA to qualify. Waiver is automatically awarded if you qualify. All CA resident students who have $1104 or more of financial need receive an automatic fee waiver Example: Las Positas College COA = $11,460 - EFC = - 8100 NEED = $ 3360 Student qualifies for fee waiver because need >1104

23. Free Money: College/Institutional Grants Be mindful of priority filing deadlines or you may miss out on $$thousands! Each college has their own deadline by which you must submit your FAFSA. DON’T MISS IT! Check with each college or university you are considering attending. • CSU State University Grant (SUG) • www.calstate.edu or csumentor.edu • UC Grant • www.universityofcalifornia.edu • Independent College Grants • www.aiccu.edu or www.aiccumentor.org

24. Free Money: Scholarships Scholarships are awards provided by the private and public sector -institutions/colleges -organizations -corporations -clubs -foundations -individuals

25. Free Money: Scholarships • Provider decides on • Awarding criteria • Application deadline • Forms or applications • Awards may be • Merit-based • Need-based or NOT Need-based • Based on any other criteria determined by donor • Begin researching private aid sources early and continue all through college

26. Free Money: Scholarships WHERE TO FIND THEM: • Start with your High School Career Center • Local section of Newspaper • Organizations your family is connected to, including parent’s workplace, church, unions, clubs, etc. • Check your intended colleges’ financial aid/scholarship website for opportunities • Free online searches • Pedrozzi Foundation Scholarships for students who graduate from any high school in Livermore -Deadline March 1st each year. www.pedrozzifoundation.org

27. Private FREE Scholarship Searches • FinAid on the Web: www.finaid.org • College Board: www.collegeboard.com • FastWeb: www.fastweb.com • Scholarship Resource Network Express: www.srnexpress.com • GoCollege: The Collegiate Websource: www.gocollege.com • Wired Scholar:www.wiredscholar.com

28. Self-help aid: Federal Work-Study • Federal financial aid program, but funds are limited • Money must be earned through work • Must have financial need • Job may be on or off campus • Each college has its own award policy and procedures for getting a job.

29. Self-help aid: Federal Direct Student Loans Loan is only in the student’s name, no co-signer. Must be enrolled in at least 6 units. Two types: Federal Subsidized Direct Loan • For students with unmet financial need • Government pays interest while in school Federal Unsubsidized Direct Loan • For all students; no financial need required • Student responsible for cost of interest while in school

30. Federal Direct Student Loans • Annual and aggregate loan limits apply • Must be enrolled at least halftime • 6-month grace period after graduation before repayment begins • 10 – 30 year repayment period • Interest currently 3.86% for both types of loans • Repayment is deferred while in college at least halftime

31. Self-help aid: Federal Parent Loans for Undergraduate Students (PLUS) • Parents of dependent undergraduates can borrow up to the total cost of their child’s undergraduate study, less any other aid the student may receive • based on credit record • May borrow up to full cost of attendance less aid • Interest fixed at 6.41%, origination fee is 4.288% • 10 year repayment period • Parents can defer payment until student graduates college. • http://studentaid.ed.gov/types/loans/plus

32. Self-help aid: Private loans • May or may not carry higher interest rates and fees than federal loans • Typically the interest rates are variable • Based on your credit rating and debt-to-income ratio • May require a co-signer • Best to use federal student loan programs first; if you still need additional financing then turn to private loans.

33. Basic Awarding • When your college receives and processes your fafsa information they will be able to determine your eligibility for financial aid and will make you an award offer. • Your college will offer you federal and state grants first, then institutional scholarships and grants, based on your eligibility, need and their awarding policies. • They will award WorkStudy and Loans after the free aid. You are not required to accept the workstudy or loans, but it is an option available to you. • You may still have unmet financial need when you receive your award offer.

34. Comparing your college choices using financial aid offers • Your bottom line for choosing colleges isn’t the cost of attendance, but rather the net actual cost to you and your family. • Once you subtract the free aid (grants and scholarships) from your cost of attendance, determine how much of the bill you will need to finance through loans and workstudy or your own funds. This is what you need to understand when determining affordability in making a college choice. • Be aware if institutional grants or scholarships offered are multi-year or not; you may get a good package the first year but can you rely on the same for the remainder of the years?

35. Applying for Financial AidFAFSA on the Web www.fafsa.ed.gov DO NOT use the website www.fafsa.com or you will pay money to file the FREE Application for Federal Student Aid! The 2014-2015 FAFSA on the Web may be used for the January 1, 2014 through June 30, 2015 federal student aid application cycle

36. File early, but no later than March 2, 2014 Use estimated 2013 income information if taxes are not complete at time of FAFSA submission. Correct the info later when taxes are filed. Student and at least one parent whose information is reported must complete and sign the FAFSA FAFSA Information & Tips

37. PIN (Personal Identification Number) serves as the electronic signature Both student and one parent need PINs to sign the FAFSA electronically May be used to: Check on FAFSA status Verify and correct FAFSA data Add additional schools to receive FAFSA data Change home and e-mail addresses Access fafsa to apply in subsequent years If an e-mail address is provided, PIN will be e-mailed to the PIN applicant within minutes Federal Personal Identification Number (PIN) Apply for student and parent PINs at: www.pin.ed.gov

38. tIPS for completing the FAFSA • SAVE YOUR DATA FREQUENTLY! • As you complete the online Fafsa, SAVE your information frequently! You choose your own password and can save it for an indefinite period of time. • SUBMIT the fafsa only when it is complete and signed with your pin number. 42

39. TIPS for completing the FAFSA • Common questions that tend to cause confusion or errors 43

40. Section 1STUDENT DEMOGRAPHICS

41. Section 1 - Student Social Security Number • Be sure that both the student and parent personal identifying information is accurate and exactly matches with the complete name and ssn on the social security card or it will be rejected! • Do not file a fafsa using a T.I.N. number; if you don’t have a valid SSN you shouldn’t file the fafsa; you should file a DREAM APPLICATION.

42. Section 1 - Selective Service Registration • All male students who are between the ages of 18 and 25 years must be registered with Selective Service to receive federal and/or state aid • Answer “Register me” only if you are male, aged 18-25, and have not yet registered. • The student may also register by going to: www.sss.gov

43. Section 2SCHOOL SELECTION

44. List a California college or university first (for Cal Grant consideration) If the student is applying to more than ten schools, wait for the processed Student Aid Report (SAR) and add additional schools via the Web or by phone using the student PIN Section 2 - School Selection Strategies for Listing Colleges NOTE: Each UC and CSU campus must be listed separately

45. Section 3STUDENT DEPENDENCY STATUS

46. Section 3Determination of Student Dependency Status

47. Section 3 - Determination of Student Dependency Status (con’t)

48. Section 3 - Determination of Student Dependency Status (con’t)

49. Section 3 - Determination of Student Dependency Status • If the student checks “No” in all of the boxes about Dependency Status, the student will be asked to go to Section 4. For FAFSA filing purposes, the student is considered a dependent student and will be required to provide parental information • If the student can answer ‘YES’ to any one of the items in this section, he/she should mark the appropriate box, skip Section 4, and go to Section 5. The student is considered an independent student for FAFSA filing purposes and is NOT required to provide parental information

50. Is there any other way to be independent? • Dependency statusmay be changed in very specific extenuating circumstances (abusive situation, abandonment, etc). Student may file a Dependency Override Petition at the college of attendance. Third party documentation required (social worker, police report, counselor, clergy, etc). The FA Director can use ‘professional judgement’ to allow the student to be independent.