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The Real Cost of UC: Financial Aid for the 2014-15 Year

Counselor Conference 2013. The Real Cost of UC: Financial Aid for the 2014-15 Year. Presentation Outline. UC is still affordable Covering Cost Tips to Manage Cost Profile of a Typical UC Student Information for Specific Populations Resources . UC is affordable!. First, students must:

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The Real Cost of UC: Financial Aid for the 2014-15 Year

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  1. Counselor Conference 2013 The Real Cost of UC:Financial Aid for the 2014-15 Year

  2. Presentation Outline • UC is still affordable • Covering Cost • Tips to Manage Cost • Profile of a Typical UC Student • Information for Specific Populations • Resources

  3. UC is affordable! First, students must: • Apply for admission in November • File FAFSA and GPA verification between January 1 and March 2 • Immediately provide documentation to financial aid office as requested • Expect to borrow and work part time

  4. UC Cost of Attendance (‘13-’14) personal and transportation expenses $2,200 tuition/fees $13,200 (subject to change without notice) room/board– on campus $13,800 health care fee/allowance $1,700 books/supplies $1,500

  5. NET PRICE – the key to comparing different college prices • Financial aid offer: Total cost of attendance (“student budget”) • Subtract gift aid (grants and scholarships) _______________________________________________________________________________________ = Student/Family Share of Cost* *Sources of payment – parents (in some cases), work, loans, outside scholarships

  6. Estimates of Annual Share of UC Net Price • Single independent students: $10K - $12K • Dependent students in family of 4 with one in college: • $9K - $10K for family earning $20K • $11K - $13K for family earning $40K • $14K - $16K for family earning $60K • $19K - $21K for family earning $80K EACH UC CAMPUS HAS AN ON LINE NET PRICE CALCULATOR

  7. Coming Up with the Contribution – Part I • Student part time employment (Less than 20 hrs./wk) during school terms, and full-time employment during summers • Student loans – available to nearly all students

  8. Coming up with the Contribution – Part II • For dependent students under 24, most* families will be expected to contribute**; in addition, students will be expected to contribute*** • For students 24 and over and financially-independent students, the students* will be expected to contribute*** * Based on the FAFSA calculation of ability-to-pay – very low- income families will NOT be expected to contribute ** Parent loans (PLUS) are available if parents can’t cover the amount out-of-pocket – Upon request by the parent borrower, PLUS loans offer the option to defer all payment during student’s enrollment, but parents should try to pay interest as it accrues, although they can arrange a complete postponement of bills and payments while they have a dependent enrolled at least half time.

  9. Coming up with the Contribution, Part III • *** Nearly all UC students seeking financial aid will be expected to work and borrow about $9,000 - $10,000 for dependent students and between $10K-$12K for independent students– • exceptions include students with large scholarships, veterans benefits, or foster youth benefits, etc.

  10. Typical Student Loan & Work Expectation for 2013 -2014 (Living on campus: $32,400)

  11. Student Responsibility: Part-Time Work • UC expects that a student will work < 20 hours per week when enrolled, full time when not enrolled. • Job placement assistance is available on campus. • Students do not have to qualify for a work-study job in order to find part-time work, either on or off campus.

  12. Loans: Investing in The Future • Education loans available to families and students at ALL INCOME LEVELS • Undergraduate loans – 3.86% interest rate for amounts borrowed during 2013-14 (changes every year) with a 1.051% fee (taken out of disbursement amount) - “sub” and “unsub” loans have the same interest rate/fees • Typical UC student’s 10-yr. monthly loan repayment on all undergraduate loans is manageable. • Around $230/month (lower monthly payments are available, too, but cost more over time.) • Borrowing can enable you to work less, to graduate sooner!

  13. Student Loan Interest rates for 2014-15 • New law indexes federal student loan interest rates to a federal funds rate • The Congressional Budget Office anticipates an increase in the federal funds rate for 2014 -15, so student and PLUS loan interest rates are likely to be higher than the current 3.86% for SUB and UNSUB student loans and higher than 6.41% for PLUS for parents.

  14. Covering Costs: Family Responsibility • Determined by U.S. Department of Education via information reported on the FAFSA or by UC based on CA DREAM Application • Amount based on income and assets of custodial parent(s) for dependent students under age 24 • Can be paid from savings, current income or federal parent loans (PLUS) • May be $0 for low-income families • Approx. $1,200 for family earning $40,000

  15. PLUS Loans • Available to most families: maximum that can be borrowed = cost of attendance minus other financial aid (all sources) • 6.41 fixed interest rate, 4.204% loan fee for amounts borrowed during 2013-14 for the life of the 2013-14 loan. Rates applicable to subsequent year’s loans may change based on statutory index. • Family repayment can be reduced or deferred until a student and siblings graduate. Recommend at least payment of interest as it accrues! • Student can borrow up to an additional $4,000 in “unsub” loan if parent is denied a PLUS loan

  16. Federal Education Tax Credits • To the extent that students or their families pay their tuition, certain required fees, qualified books and supplies out of their own pockets (without grant or scholarship), they may apply for a federal education tax credit of up to $2500 on the first $5000 that they pay out of pocket. • Tax credits reduce the amount of taxes owed! DRAFT

  17. What if the family doesn’t paytheir share? • UC will attempt to help students find additional education loans so they don’t work more than half time. • A creditworthy U.S. co-signer will often bring the price down for such private loans • UC will try to offer refinancing advice when a student leaves UC so their monthly repayment amount is manageable.

  18. Blue and Gold at UC • You will receive enough grant and scholarship money from all sources to equal your systemwide tuition and fees (in 2013-14 that is $12,192) IF YOU • Are a California Resident/ AB 540 who applies for financial aid ON TIME (March 2nd) • Have a total family income of less than $80K and demonstrate financial need (FAFSA/DREAM APP) • Are enrolled in one of your first 4 years (2 years for transfers)

  19. BLUE AND GOLD at UC • Eligible students may qualify (and low-income students often do) for additional grant support, beyond the BLUE AND GOLD plan, to help pay for other college expenses such as room and board, etc., Blue and Gold-eligible California undergraduates will not get less total grant and scholarship than an amount equivalent to the systemwide tuition and fees that year. DRAFT

  20. Middle Class Scholarship (MCSP) • You may receive a partial scholarship to help pay your UC tuition if you: • Are a California resident who applies for financial aid ON TIME (March 2nd) – file FAFSA/DREAM App. • Are not already receiving grants and scholarships that equal your systemwide tuition and fees (in 2013-14 that is $12,192) • Have a “total” family income between $80K - $150K

  21. More on MCSP • Available during 4 years of undergraduate degree program/ 2 years for transfers • Once phased in 2017-18, will cover a maximum of 40% of system-wide fees • Award size is reduced to a smaller % for families w/ incomes between $100K and $150K. • For 2014-15, max is 14%   (40% * 35%) - $1,707/yr at UC less total amount of Pell Grant, Cal Grant, and UC grant.

  22. Typical Undergrad at UC • Enrolls full time and graduates in 4.2 years • Works fewer than 20 hours per week • Borrows while enrolled • Obtains employment within 4 months • Earns an average of $37K with liberal arts BA and $44K for science and math BS • Has monthly student loan repayments of around $230/mo. reflecting loans from UC based on current interest rates and a 10-yr term – lower monthly payments are available

  23. The Real Cost Tips on Managing Cost

  24. Paying Up-Front Costs • Only a portion of the shared cost has to be paid up front; • UC housing charges and fees are divided equally by quarter/semester. • Likewise, financial aid* is disbursed in equal installments by term. *Grants, scholarships or loans (work-study awards or other required student employment must be earned.)

  25. Payment Plans/Credit Cards • UC campuses have options to spread out UC tuition and fee payments – fees are charged. • “Lump-Sum” payments can be deferred; make smaller, more even-sized monthly payments by electing a payment plan option. • Some UC campuses permit use of certain credit cards to pay tuition and fees.

  26. Bring Down Expenses • Finishing at UC as soon as possible • Take required courses first, electives second • Complete 15 units per each quarter or semester – that’s full time! • Attend summer school (aid is available!). • Applying for outside scholarships • Working part time

  27. Bring Down Expenses • Roommates – the more, the less • Rent Required Text Books – big savings! • Recommended Texts – use reserve copy at library • Travel Cost - purchase airline tickets way ahead of time or on sale, and car ride-share • Campus Meal Plans – less is more • Zip-Car – leave own car at home

  28. Financial Assistance for Specific Populations • U. S. Military Veterans • Former Foster Youth • Student Parents • Undocumented • DACA eligible students • Families with changed income

  29. VETERANS • Most of UC’s student veterans transfer to UC from a community college • Federal law no longer allows a Vet to have simultaneously the benefits of both a Cal Grant and also Chapter 33 education benefits for tuition and fees. • Tip: Try to save Chapter 33 benefits to use when attending a higher cost program!

  30. Veterans at UC • Each UC campus has special services available to help veterans transition to college • Notify the campus as early as possible about the veteran status of an incoming student; for campus contact information veterans.universityofcalifornia.edu

  31. Foster Youth • Each campus has liaison to work with incoming former or current foster youth • Current foster youth are “independent” for financial aid eligibility; foster youth benefits are treated as scholarships, so do not reduce other grant eligibility • Assistance available for school breaks

  32. Campus Contacts for Foster Youth Services • Go to: http://www.ucop.edu/student-affairs/index.html • Once there choose: “Campus Contacts” and then “Coordinators of services for current & former foster youth”

  33. Student Parents • UC is “family friendly” for student parents • Campuses have support services and social activities for students with children Family housing may be available on or near campus • Documented child care costs may be added to student budget to increase eligibility for financial aid

  34. Undocumented Students • May be exempt from nonresident tuition at UC ($22,878 per year) if student attended a CA high school for at least three years and graduated, and is eligible for AB 540 status at UC. • Must submit an “AB 540” application/affidavit directly to campus when invited to do so • Outside agency loans, grants or scholarships are the only option if students are not eligible for AB 540 status

  35. New Financial Aid Options for UC’s AB 540-Eligible Students Under AB 130 and AB 131, students eligible for AB 540 may be eligible to compete for certain privately-donated scholarships at UC, for Cal Grants, and for UC institutional grants and loans. To apply for such financial aid, students who are not filing a FAFSA should file a California Dream Act Application Dream.csac.ca.gov

  36. Undocumented Students More on AB 540— both documented and undocumented students — including campus contacts: http://admission.universityofcalifornia.edu/counselors/files/ab-540_supplemental-tuition-exemption.pdf

  37. DACA eligible students • DACA Status entitles students to be employed legally • DACA eligibility has no effect on eligibility for AB 540, state residency, or financial aid • Taxpayer ID numbers (e.g., SSN or ITIN) issued to DACA students may be used to apply for UC Admission, but should not be used to file a FAFSA/DREAM application

  38. Changed Circumstances • When family income or other significant circumstances change after the filing of the FAFSA, students may petition to have their financial aid awards reconsidered. • Each campus has a financial aid appeal process – check with the financial aid office on campus.

  39. UC Berkeley(510) 642-6442 students.berkeley.edu/finaid/ UC Davis(530) 752-2390financialaid.ucdavis.edu UC Irvine(949) 824-8262www.ofas.uci.edu UCLA(310) 206-0400www.fao.ucla.edu UC Merced(209) 228-4243financialaid.ucmerced.edu UC Riverside(951) 827-3878www.finaid.ucr.edu UC San Diego(858) 534-4480 admissions.ucsd.edu/finances/index.html UC Santa Barbara(805) 893-2432www.finaid.ucsb.edu UC Santa Cruz(831) 459-2963 www.financialaid.ucsc.edu Campus Financial Aid Resources

  40. General Questions to U.S. Dept. of Ed. and FAFSA Processing Issues: 1-800-433-3243 www.ed.gov FEDERAL PIN for Electronic FAFSA: www.pin.ed.gov Electronic FAFSA : www.fafsa.ed.gov California Student Aid Commission (CSAC): www.csac.ca.gov Cal Grant Information 1-888-224-7268 UC Online Admissions Application www.universityofcalifornia.edu/apply California Dream Application: https://dream.csac.ca.gov/ For More Information

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