FINANCIAL AID 101The 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 ISFINANCIAL AID?

Financial Aid Funds provided to students and

families to help pay for postsecondary educational expenses

Grants, Loans, Scholarships, and Work-Study

HOW MUCH MONEY WILL I

NEED TO PAY FOR MY EDUCATION?

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

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

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

Financial Need

Cost of Attendance

– Expected Family Contribution

= Financial Need

WHAT ARE THE DIFFERENT TYPES

OF FINANCIAL AID?

Categories of Financial Aid Need-based Non need-based

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

Scholarships Money that does not have to be paid

back Awarded on the basis of merit, skill,

or unique characteristic

Grants Money that does not have to be paid

back Usually awarded on the basis of

financial need but sometimes merit as well

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

Employment/Work-Study Allows students to earn money to help

pay educational costs A paycheck Non-monetary compensation, such as

room and board

WHAT ARE SOME OF THE MAJOR FINANCIAL AID

PROGRAMS?

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 2nd1. FAFSA or California Dream Act Application (undocumented students)

2. GPA Verification Form

Pell Grant Awards up to $5,550 For undergraduates Can be used at many schools

throughout the USA Financial need Apply using the FAFSA

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

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

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

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

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

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

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

WHERE DOES THE AID COME FROM?

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

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.

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.

Private Sources Foundations, businesses, charitable

organizations Deadlines and application procedures

vary widely Begin researching private aid sources

early Typically offer scholarship aid

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!

Employers Companies may have scholarships

available to the children of employees Companies may have educational

benefits for their own employees

HOW DO I APPLY FOR MOST

FINANCIAL AID?

FREE APPLICATION FOR FEDERAL STUDENT AID

(FAFSA)

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

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

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.

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

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

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

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

FAFSA Signatures Required

Student One parent (dependent students)

Format Electronic using PIN Signature page Paper FAFSA

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

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

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

Student Aid Report Review data for accuracy Update estimated information when

actual figures are available

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

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

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

CALIFORNIA DREAM

ACTAPPLICATION

California Dream Act Application Starting in January 2013 for the 2013-14

school year, eligible undocumented students can apply for state-funded financial aid (institutional grants, community college fee waivers, Cal Grant and Chafee Grant ) using the Dream Act Application under AB 131.

CA law requires that the financial eligibility for students who meet AB 131 criteria (eligible for AB 540 and state-funded financial aid) be calculated in the same manner as any other student receiving CA state financial aid.

California Dream Act Application The California Student Aid Commission

will process the Dream App. Any aid received can only be used at

eligible California institutions. Completing the Application

Online: www.caldreamact.org (Best Option) Paper: (888) 224-7268 California PIN: • Needed for the student and the parent• Serves as an electronic signature• You can get a PIN after you complete your

application

California Dream Act Application AB540 Eligibility

Attended a CA high school for 3 or more years

Have or will obtain a CA diploma or G.E.D, or passed the CA High School Proficiency Exam

Will or currently attend an accredited institution of public higher education in California

File or plan to file an affidavit stating that he/she will apply for legal residency as soon as possible

Not hold a valid non-immigrant visa

Parent and Student Documents(where applicable)

W-2 forms and other 2012 records of income 2012 income tax return(s) Records of child support paid Records of student grant, scholarship and

fellowship aid, including AmeriCorps awards included in tax records

Current stock, bond, and other investment records

Current business and farm records Current bank statements

After Applying… CSAC will

analyze your Application calculate an EFC for you sent the results of your application to the

schools you list on your application You can check your application status or

make corrections by going to www.caldreamact.org

Each school you list on the application will send you a notice of the types and amounts of aid you’re eligible to receive

CAL GRANT GPA VERIFICATION

Cal Grant GPA Verification Form Must be completed in addition to the FAFSA

or Dream Act Application for Cal Grant consideration

Can be submitted between Nov. 1 and March 2

Online vs. Paper Most counselor’s submit online Paper can be downloaded at www.csac.ca.gov

(counselor must complete a portion unless an ACT, SAT, or GED test score is submitted)

Check with your counselor about the status of your form submission

CSS/FINANCIAL AID PROFILE

CSS/Financial Aid Profile More than 500 colleges, universities, graduate

and professional schools, and scholarship programs use the information collected on the PROFILE to determine eligibility for nonfederal student aid funds.

Register at PROFILE Online at www.collegeboard.com. Registration requires a College Board online account.

Apply by the date designated by your college of choice.

You are charged an application fee of $9, plus $16 for each college or scholarship program to which you want information sent.

$HOW ME THE MONEY

Show Me the Money Award Notification

After corrections have been made and requested paperwork has been submitted

Typically in April Each college you listed on your FAFSA (that you

have been or will be accepted to) will provide you with an evaluation of your eligibility for financial aid

Offers may include the college’s COA, your EFC, and the amount that will be covered by a mix of grants, work-study, loans, or other aid.

Your offers will typically vary from college to college.

Show Me the Money Accepting Aid

You may want to wait until you’ve heard from each one before making a decision—but don’t wait so long that you miss deadlines.

You may want to accept one college’s offer while waiting to hear from the school of your choice. Just be sure to let the first college know if you decide later to decline its offer.

You don’t have to accept your entire student aid package. Select the aid you want.

If you’re offered a loan, remember that accepting a loan means accepting the responsibility of repaying it.

Show Me the Money Disbursements

College takes their share for any outstanding balance, such as tuition and orientation fees

You get what’s left over for books, supplies, rent, or other college related fees

QUESTIONS?