Financial Aid 101

1. Financial Aid101 CSU HS Counselor 2007

2. What is Financial Aid • Gift Aid • Scholarships • Grants • Self-help aid • Loans • Employment opportunities

3. Goals of Financial Aid • Primary goal is to assist students in paying for college and is achieved by - • Evaluating family’s ability to pay educational costs • Distributing limited resources in an equitable manner • A package of financial aid awards is put together to meet the student’s need & may consist of gift aid and/or self-help aid, depending on the student’s eligibility

4. Definition of Need Cost of Attendance (COA) - Expected Family Contribution (EFC) ___________________________________ = Need

5. 2010-11 Cost of Attendance (9 months)

6. Principles of Need Analysis • Need Analysis determines the Expected Family Contribution. This calculation is based on a standard formula determined by the U.S. Congress. • To extent they are able, parents have primary responsibility to pay for dependent child’s education • Students also have responsibility to contribute to educational costs

7. Independent Student Definition • At least 24 years old by December 31 of award year covered by the FAFSA; • Graduate or professional student; • Married; • Has children or dependents (other than a spouse) for whom the student provides more than half support;

8. Independent Student Definition • Orphan or ward/dependent of the court, emancipated, in foster care, homeless; • Currently an active duty member or Veteran of U.S. Armed Forces; or • Determined to be “independent” by financial aid administrator based on unusual circumstances

9. Types of Gift Aid (Federal) • Federal Pell Grants • Federal Supplemental Educational Opportunity Grants (FSEOG)

10. Types of Gift Aid (State) • Cal Grants • Chafee Grants • CSU - State University Grant (SUG) • CSU - Educational Opportunity Program (EOP) • Community Colleges – Board of Governor’s Grant (BOGG)

11. Types of Self – Help Aid • Federal Work-Study (FWS) • Federal Perkins Loans • Stafford Loans • PLUS Loans

12. Primary Applications • FAFSA • For Federal, State, Campus, some private $$ • GPA verification for California grant

13. FAFSA • Collects family’s personal and financial information used to calculate student’s EFC • Available in English and Spanish • Apply electronically via FAFSA on the Web

14. FAFSA on the Web • Web site: www.fafsa.gov • 2011-12 FAFSA on the Web available on or after January 1, 2011 • FAFSA on the Web Worksheet: • Used as “pre-application” worksheet • Questions follow order of FAFSA on the Web Get PIN to complete electronic process

15. PIN Registration • Web site: www.pin.ed.gov • Can get PIN at any time • Recommend parents get a PIN also • May be used by students and parents throughout aid process, including subsequent school years

16. FAFSA Processing Results • Central Processing System (CPS) notifies student of FAFSA processing results by email, or by letter if no email address is provided on the FAFSA. • If information needs to be updated or corrected, students and parents can make corrections online at www.fafsa.gov using their PIN’s for access and signatures. • Institutions may correct information after requested verification documents are submitted and reviewed.

17. California (Cal) Grant • March 2 deadline, most CSU campuses (FAFSA too) • High schools have a critical role in submitting GPAs for students • On-line if you can • It takes 2 – GPA verification for Cal Grant and the FAFSA

18. Cal Grant Award Notification • California Aid Report (CAR)- Electronic • Email sent to student, directing them to WebGrants for Students to view on-line CAR • Sent 2-4 weeks after both FAFSA and GPA are submitted, usually beginning in mid-February • If eligible will show Cal Grant amount at 1st 3 California colleges listed on FAFSA • If no letter by April: • Call 1-888-224-7268 (1-888 CA GRANT)

19. What Students Should Do Next • Respond immediately to all requests for follow-up documents, including the admissions office • Ask questions, don’t make assumptions or go by another student’s experience • Find out how the college will communicate with the student – many rely on student checking their email and portals for document requests and award notices • Understand the costs of education, ways they can control them, and financial decision points • Investigate other sources of aid

20. PARTNERING FOR SUCCESS • Cal Grant GPA Verification – let students know their responsibilities for meeting this requirement. • Graduation Verification – encourage students to request final transcript before school year ends. • Special Circumstances – If the student or family’s situation has changed dramatically due to recent events, such as layoff, disability, death of parent, etc., the student should speak with the financial aid office to request reconsideration.

21. CSU Financial Aid 2008-09 • 269,751 CSU Students received aid • Nearly $2.4 Billion in Total Aid • Grants: 204,000 students receive $1.15 Billion • Average Award: $5,627 • 76% received grants • Loans: 159,000 students - $1.2 Billion • Average Loan: $7,605 • 59% received loans • Work-Study: 7,900 - $19.6 Million • Average Award: $2,494 • 3% received work-study

22. Questions???

23. www.calstate.edu