-Paying For College- What you need to know about College Financial Aid

1. -Paying For College-What you need to know about College Financial Aid -A Financial Aid Overview- Sponsored by: Early Academic Outreach Program (EAOP) & East Bay Consortium/ Cal-SOAP (EBC)

2. Things to remember… • College is possible for anyone who works hard and is determined to succeed. • College is affordable. • All families can help their children get a college education.

3. Financial Aid Myths • We can’t pay very much so our child can’t go to college. • We can’t afford to send our child to a high cost college. • My child will not be able to pay back all the student loans.

4. What is Financial Aid? • Financial aid is funds provided to students and families to help pay for postsecondary educational expenses.

5. Types of Financial Aid • Gift Aid - Grants or scholarships that do NOT need to be repaid • Work - Money earned by the student as payment for a job on or off campus • Loans - Borrowed money to be paid back with interest

6. Sources of Financial Aid • Federal government • State government • Colleges and universities • Private agencies, companies, foundations, and your parents’ employers

7. GPA Form Types of Applications • FAFSA • Cal Grant GPA Verification Form • Check college websites for more applications such as: • CSS Financial Aid Profile • Scholarships • Board of Governors Fee Waiver • May need to provide copy of 2007 Federal tax returns

8. Citizenship Status NOTE: if you are undocumented or under-documented • A valid social security # (for the student only) is required on the forms for federal and state financial aid. • You may be eligible for in-state tuition costs at California public colleges or universities. • Check with colleges and universities to see if institutional financial aid is available. • Apply for all private scholarships for which you may be eligible • For more information and a list of scholarships, go to • www.maldef.org • see presenter after workshop

9. What is FAFSA? • Free Application for Federal Student Aid • A standard form that collects demographic and financial information about the student and family • Should be filed electronically at: www.fafsa.ed.gov (Paper form must be specially requested) • Available in English and Spanish

10. Filling Out the FAFSA • Provide estimated financial information on the FAFSA. Changes to your FAFSA can be made once you and/or your parents file tax returns. • To complete the FAFSA online, you and one parent must sign the FAFSA using a PIN number. • Complete your FAFSA, listing up to 10 colleges to receive your information.

11. Who needs to report parent financial resources on the FAFSA? • Are you 24 or older? • Are you a veteran (not ROTC)? • Are you married? • Are you an orphan or ward of the court? • Do you have a child? If you answer “no” to all the questions, you are considered “dependent” and will need to report your parents’ income on the FAFSA.

12. Parent Contribution • Financial aid regulations expect parents of most undergraduate students to pay some of their child’s education expenses • Principal components in calculating parent contribution: • Parent Income and assets • Parent age and need for retirement • Number of family dependents

13. Student Contribution • You are expected to help pay for your own education • Principal components in calculating student contribution: • Percentage of student earnings • Percentage of student savings

14. CSS Financial Aid PROFILE • www.collegeboard.com/profile • 2 step process • $9 online registration • $16 per school • fee waiver built into website • NOT used for awarding federal financial aid • Filed earlier than the FAFSA • Not all schools require(mostly private schools)

15. 2008-09 Financial Aid Applications By March 2, 2008 complete and submit: Check with your high school or college counselor for more details on how to file your Verified GPA for Cal Grant consideration. www.csac.ca.gov Cal Grant GPA Verification Form or Release Form Free Application for Federal Student Aid (FAFSA) ON THE WEB

16. Cal Grants(07-08 award amounts) • Cal Grant A Entitlement Awards – up to $6,636 at a U.C., $2,772 at a CSU, and $9,708 at an independent or private college. If attending a Community College, award will be held in reserve for up to 3 years until transfer to a four-year college. • Cal Grant B Entitlement Awards – additional living allowance of $1,551 and up to the same award amounts of Cal Grant A for the second year. • Cal Grant C Awards - for students from low income families pursuing vocational programs of study. Awards up to $576 for books, tools, etc. and up to $2,592 for tuition and fees at a private college.

17. Need-Based Federal Grants • Pell Grants • $4,800 maximum per year • Academic Competitiveness Grants • $750 for the first year • $1300 for the second year • Supplemental Educational Opportunity Grants (SEOG) • $4,000 maximum per year

18. More Need-Based Aid • Some scholarships programs • Federal Work-Study • Federal Subsidized Stafford loan • Federal Perkins loan See your Fund Your Future workbook to learn more about the different types of educational loans.

19. Non-Need-Based Aid • Some institutional or private scholarships • Federal Unsubsidized Stafford loan • Federal PLUS loan

20. Need-Based College Grants • Community College Board of Governors’ (BOG) Fee Waiver • Waives the California Community Colleges’ enrollment fee for financially needy California residents • To learn more about this BOG Fee Waiver, go to: www.icanaffordcollege.com • CSU State University Grant (SUG) amounts vary • UC Grant amounts vary • Independent College Grants amounts vary

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, the foster youth must have been in California foster care on their 16th birthday and not have reached their 22nd birthday before July 1, 2008 • To apply, the foster youth must complete: • 2008-2009 FAFSA • California Chaffee Grant Program Application To learn more about the Chafee Grant, go to: www.chafee.csac.ca.gov

22. Calculating Financial Aid Eligibility Basic Equation of Need Cost of Attendance (COA) • Expected Family Contribution (EFC) • Financial NEED (Financial Aid Eligibility)

23. What is the Cost of Attendance (COA)? Cost of Attendance includes most everything related to college expenses for one academic year: • Tuition and fees • Room and board • Books and supplies • Transportation • Misc. personal expenses Also known as the “Student Budget”

24. What is the Expected Family Contribution (EFC)? The Expected Family Contribution (EFC) is the amount a family (parents and student) is expected to pay from income and assets over time.

25. Calculating Financial Aid Eligibility Eligibility Varies Based on Cost (COA) Private 4-year COA $39,000 - EFC 1,000 = Need $38,000 Public 4-year COA $23,000 - EFC 1,000 = Need $22,000 Public 2-year COA $12,000 - EFC 1,000 = Need $11,000

26. What Happens Next? Students and the colleges the student listed receive Student Aid Report (SAR) from federal processor ê Students who complete FAFSA and Cal Grant GPA Verification Form receive California Aid Report (CAR) ê Students and families review SAR and CAR for important information and accuracy of data ê Colleges match admission records with financial aid applications and determine aid eligibility ê Colleges mail notices of financial aid eligibility to admitted students who have completed all required financial aid forms

27. Financial Aid Award Letter • All Financial Aid Award letters include the following: • Cost of Attendance (or Student Budget) • Expected Family Contribution • Aid Offered (grants, work-study, loans, and scholarships)

28. Go to a Cash for College Workshop! • FREE workshops in January and February to help you complete your FAFSA • One high school senior from each workshop will cash in on an extra $1,000 scholarship! www.calgrants.org

29. Questions?