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FINANCIAL AID 101

FINANCIAL AID 101. The Basics. Topics We’ll Cover Today. What is Financial Aid Determining Costs and Family Contributions Different Types and Sources of Financial Aid Applying for Aid with FAFSA Information Special Circumstances Accepting Aid Receiving Aid. WHAT IS FINANCIAL AID?.

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FINANCIAL AID 101

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  1. FINANCIAL AID 101 The Basics

  2. Topics We’ll Cover Today • What is Financial Aid • Determining Costs and Family Contributions • Different Types and Sources of Financial Aid • Applying for Aid with FAFSA Information • Special Circumstances • Accepting Aid • Receiving Aid

  3. WHAT ISFINANCIAL AID?

  4. Financial Aid • Funds provided to students and families to help pay for postsecondary educational expenses • Grants, Loans, Scholarships, and Work-Study

  5. HOW MUCH MONEY WILL I NEED TO PAY FOR MY EDUCATION?

  6. Cost of Attendance (COA) • Direct costs (tuition, fees, on-campus housing) • Indirect costs (books and supplies, transportation, off-campus housing, personal expenses) • Direct and indirect costs are combined into COA • Varies widely from college to college

  7. WHAT IF I CAN’T AFFORD THE COST OF ATTENDANCE?

  8. Expected Family Contribution (EFC) • Amount family can reasonably be expected to contribute • Stays the same regardless of college • Two financial components • Parent contribution • Student contribution • Calculated using data submitted on the FAFSA • Notification received on the Student Aid Report after submitting the FAFSA

  9. Financial Need Cost of Attendance –Expected Family Contribution = Financial Need

  10. WHAT ARE THE DIFFERENT TYPES OF FINANCIAL AID?

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

  12. Types of Financial Aid • Scholarships • Grants • Loans • Employment/Work-Study

  13. Scholarships • Money that does not have to be paid back • Awarded on the basis of merit, skill, or unique characteristic

  14. Grants • Money that does not have to be paid back • Usually awarded on the basis of financial need but sometimes merit as well

  15. Loans • Money students and parents borrow to help pay college expenses • Repayment usually begins after education is finished • Only borrow what is really needed • Look at loans as an investment in the future

  16. Employment/Work-Study • Allows students to earn money to help pay educational costs • A paycheck • Non-monetary compensation, such as room and board

  17. WHAT ARE SOME OF THE MAJOR FINANCIAL AID PROGRAMS?

  18. Cal-Grant • Cal Grant A • Awards up to $12,192 • 3.0 high school/2.4 college GPA and financial need • For undergraduates at a CSU, UC, and some independent institutions • Cal Grant B • Awards up to $1,473 for the first year, and up to $12,192 for the following years • 2.0 high school GPA and financial need • For undergraduates at a CSU, UC, and some independent institutions • Can be awarded while at a CCC and reserved until transfer • Cal Grant C • Awards up to $3,009 • Use at a CCC for a technical program or technical/career school • Apply with the Following Forms by March 2nd • FAFSA or California Dream Act Application (undocumented students) • GPA Verification Form

  19. Pell Grant • Awards up to $5,550 • For undergraduates • Can be used at many schools throughout the USA • Financial need • Apply using the FAFSA

  20. Federal Supplemental Educational Opportunity Grant • Awards up to $4,000 • For undergraduates • Can be used at many schools throughout the USA • Not all schools offer the FSEOG • Financial need • Apply using the FAFSA

  21. University of California Student Aid • Referred to as the BLUE + GOLD Opportunity Plan • Average award was $14,500 in AY 2011-2012 • For undergraduates and graduates • Nearly two-thirds of all undergraduate students receive UC grant and scholarship aid • Can be used only at a UC • Apply using the FAFSA • Financial need

  22. California State University Grant • Awards up to full system-wide fees • For undergraduates and graduate • Can be used only at a CSU • Apply using the FAFSA • Financial need

  23. Board of Governors Fee Waiver • Waives registration fees • Can be used only at a California Community College • Fee waiver application at www.icanaffordcollege.com • Application accepted throughout the year • Financial need

  24. Chafee Grant • Awards up to $5,000 in addition to other federal or state aid your may receive • Must have been in foster care from ages 16-18 and is not yet 22 • Can be used at any eligible California institution • Apply using the FAFSA, GPA Verification form, and Chafee Grant application at www.chafee.csac.ca.gov • Financial need

  25. EOPS & EOP Grants • Awards vary; up to $2,000 annually but the average award is $900 per student (EOP) • Intended for California Community College students (EOPS) or CSU students (EOP) • Financial need and educationally disadvantaged • Contact the EOP/EOPS office at your intended college

  26. Non-Resident Tuition • Waive non-resident tuition costs • Intended for undocumented or non-CA resident students • Requirements • Must have attended a CA high school for 3 years • Must have graduated from a CA high school or attained the equivalent • Must file an affidavit stating the intent to legalize the immigration status • Contact the college’s financial aid office for more information

  27. WHERE DOES THE AID COME FROM?

  28. Sources of Financial Aid • Federal government • States • Private Sources • Civic Organizations and Churches • Employers

  29. Federal Government • Largest source of financial aid • Aid awarded primarily on the basis of financial need • Must apply every year using the Free Application for Federal Student Aid (FAFSA) • Common Programs: Pell Grant, Work-Study, Perkins Loans, etc.

  30. State Aid • Residency requirements • Awarded aid on the basis of both merit and need • Use information from the FAFSA, California Dream Act Application and/or the GPA Verification Form • Deadline to apply – March 2nd • Common Programs: Cal Grant, Chafee Grant, etc.

  31. Private Sources • Foundations, businesses, charitable organizations • Deadlines and application procedures vary widely • Begin researching private aid sources early • Typically offer scholarship aid

  32. Civic Organizations & Churches • Research what is available in the community • Application process is usually spring of senior year • Typically offer scholarship aid; small scholarships add up!

  33. Employers • Companies may have scholarships available to the children of employees • Companies may have educational benefits for their own employees

  34. HOW DO I APPLY FOR MOST FINANCIAL AID?

  35. FREE APPLICATION FOR FEDERAL STUDENT AID (FAFSA)

  36. FAFSA • A standard form that collects demographic and financial information about the student and family • May be filed electronically or using paper form as early as January 1st • Should be renewed annually. • Available in English and Spanish • The sooner you and your parents complete your tax return, the easier it’ll be to complete the FAFSA

  37. FAFSA • Information used to calculate the Expected Family Contribution or EFC • The amount of money a student and his or her family may reasonably be expected to contribute towards the cost of the student’s education for an academic year • Colleges use EFC to award financial aid

  38. FAFSA • May be filed at any time during an academic year, but no earlier than the January 1st prior to the academic year for which the student requests aid • For the 2013-2014 academic year, the FAFSA may be filed beginning January 1, 2013 • Deadline for Cal Grant consideration is March 2nd (September 2nd for the community college) • Colleges may set FAFSA filing deadlines for other aid; check with the college for their definition of deadline: processed or submitted.

  39. FAFSA on the Web • www.fafsa.gov • FAFSA on the Web Worksheet: • Used as “pre-application” worksheet • Questions follow order of FAFSA on the Web

  40. FAFSA on the Web • Good reasons to file electronically: • Built-in edits to prevent costly errors • Skip-logic allows student and/or parent to skip unnecessary questions • More timely submission of original application and any necessary corrections • More detailed instructions and “help” for common questions • Ability to check application status on-line • Simplified application process in the future

  41. FAFSA Personal Identification Number (PIN) • Web site: www.pin.ed.gov • Sign FAFSA electronically • Can request PIN before January 1, 2013 • Not required, but speeds processing • May be used by students and parents throughout aid process, including subsequent school years

  42. What You’ll Need to Complete the FAFSA • Student’s driver’s license • Student’s Alien Registration Card • Student’s and Parent’s • Social Security cards • 2012 W-2 Forms and records of money earned and other taxable benefits • 2012 federal income tax form (even if not yet completed) • Records of untaxed income • Current bank statements • Business, farm, and other real estate records • Records of stocks, bonds, and other investments

  43. FAFSA Signatures • Required • Student • One parent (dependent students) • Format • Electronic using PIN • Signature page • Paper FAFSA

  44. Frequent FAFSA Errors • Social Security Numbers • Divorced/remarried parental information • Income earned by parents/stepparents • Untaxed income • U.S. income taxes paid • Household size • Number of household members in college • Real estate and investment net worth

  45. FAFSA Processing Results • Central Processing System (CPS) notifies student of FAFSA processing results by: • Paper Student Aid Report (SAR) if paper FAFSA was filed and student’s e-mail address was not provided • SAR Acknowledgement if filed FAFSA on the Web and student’s e-mail address was not provided. Students with a PIN can view their SAR online at www.fafsa.gov. • E-mail notification containing a direct link to student’s on-line SAR if student’s e-mail was provided on paper or electronic FAFSA

  46. FAFSA Processing Results • Institutional Student Information Record (ISIR) sent to colleges listed on FAFSA approximately 10 to 14 days after FAFSA submitted • College reviews ISIR • May request additional documentation, such as copies of federal tax returns

  47. Student Aid Report • Review data for accuracy • Update estimated information when actual figures are available

  48. Making Corrections • If necessary, corrections to FAFSA data may be made by: • Using FAFSA on the Web (www.fafsa.gov) if student has a PIN; • Updating paper SAR (SAR Information Acknowledgement cannot be used to make corrections); or • Submitting documentation to college’s financial aid office

  49. Special Circumstances • Cannot report on FAFSA • Send explanation to financial aid office at each college • College will review special circumstances • Request additional documentation • Decisions are final and cannot be appealed to U.S. Department of Education

  50. Special Circumstances • Change in employment status • Medical expenses not covered by insurance • Change in parent marital status • Unusual dependent care expenses • Student cannot obtain parent information

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