Financial Aid 101: Understanding Funds for Education

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

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 $1,551 for the first year, and $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 $3,168 • Use at a CCC for a technical program or technical/career school • Apply using the FAFSA and GPA Verification Form by March 2nd

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 • Average award is $14,000 • 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 (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 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 2011 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 2012-2013 academic year, the FAFSA may be filed beginning January 1, 2012 • 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. Personal Identification Number (PIN) • Web site: www.pin.ed.gov • Sign FAFSA electronically • Can request PIN before January 1, 2012 • 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 • 2011 W-2 Forms and records of money earned and other taxable benefits • 2011 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. 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