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Financing Your College Education
Presented byRita GroganDirector, Student Enrollment & Financial ServicesMission College
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What we should have done!
$50 per month to each child’s college savings account AT BIRTH!
In some cases, we should have started before birth!
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Don’t “should” on yourself!Life happens and we don’t always get to what we
“should” have done or hoped to do!Commitment to high-quality educational choices
at the K-12 level are made that impact our ability to save!
Time “slips” by faster than we thought it could!
(It happens to those of us who are financial aid professionals, too!)
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What now?
Maybe I didn’t plan enough – what can my child look forward to now for college costs payment options?
What can I afford?
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It’s NOT too Late!
There is money out there!
There is a way to “catch” up!
Options are still available to you!
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Types of Financial Aid Sources
Federal governmentState agency/governmentColleges and universitiesPrivate agencies, companies, foundations and
parents’ employers
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Types of Financial Aid Categories
Gift Aid
Grants
Scholarships
Self-help Aid
Work-study
Loans
COLLEGE
Financial Aid is any money given, paid or loaned to help pay for education.
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Types of Financial Aid – Gift Aid
Federal Pell Grant Entitlement
First source of aid Undergraduate students only Amount based on
Cost of Attendance (COA)Expected Family Contribution (EFC)Enrollment status
2013-2014 maximum = $5,645 per year!
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Types of Financial Aid – Gift Aid (cont.)
Federal Supplemental Educational Opportunity Grant (FSEOG)Campus-based aid Undergraduates onlyPriority to students with exceptional
needPell Grant recipients
Amounts range from $100 to $4,000Funding levels vary at each institution
Need-based
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Types of Financial Aid – Gift Aid (cont.) – State of California Sources
Cal Grants A, B and CStudent must meet
All federal and state eligibility criteria
Income and asset limits GPA requirement
Amount determined by Grant program and school segment
Renewal is based on program participation
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Types of Financial Aid – Gift Aid (cont.) – Institutional Sources
Community College - Board of Governor’s Fee Waiver (BOG)
Waives enrollment fees, FAFSA may be required www.icanaffordcollege.com
CSU State University Grant (SUG) Amounts vary, FAFSA is required www.calstate.edu or csumentor.edu
UC Grant Amounts and application process vary www.universityofcalifornia.edu
Independent College Grants Amounts and application process vary www.aiccu.edu or www.aiccumentor.org
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Types of Financial Aid – Gift Aid (cont.)
Institutional and Private Grants & Scholarships
Provider decides onAwarding criteriaApplication deadlineForms or applications
Awards may beMerit-basedNeed-basedCombination of the two
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Types of Financial Aid – Self-Help
Federal Work StudyCampus-based aidMust be earned through work
Job may be on or off campusUndergraduate and graduate studentsNo annual maximum
Funding levels vary at each institutionNeed-based
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Types of Financial Aid – Self-Help (cont.)
LoansFederal Perkins Loan
School serves as lender, $5,500 annual limit, 5% interest
William D. Ford Federal Direct Loan Program (DL)Money comes from U.S. Dept. of EducationSeveral Types with different maximum amounts
Private Loans (also known as ‘alternative’ loans)Money comes from lending institutions
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Types of Financial Aid – Self-Help (cont.)
Direct Loan (DL) Program Includes:
Subsidized Stafford Loan (Need-based)Unsubsidized Stafford Loan (Not Need-based)PLUS Loan (Parent Loan for Undergraduate
Student)
Annual and aggregate loan limits apply 6-month grace period
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Application Process Applying for Aid
When applying to an institution, a student should ask the following
What forms does the institution require?
In addition to the FAFSA, does the school require the completion of an institutional form? For example, CSS Profile?
What are the filing deadlines for each form?
What type of deadline?
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Free
Application for
Federal
Student
Aid
FAFSA
Apply for FEDERAL, California STATE, & INSTITUTIONAL financial aid funds.
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Application Process - FAFSA
www.studentaid.ed.gov
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Application Process CSS Financial Aid PROFILE
Registration GuideNo paperregistration form
2 step process• $25 initial
application & one college report
• $16/add’l college
https://profileonline.collegeboard.com
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Application Process CSS Financial Aid PROFILE (cont.)
Not used for awarding federal financial aid
May be filed earlier than the FAFSA – typically October of the Senior year
Not all schools require (California Colleges don’t use)
Assistance is availableE-mail: [email protected]
https://www.profileonline.collegeboard.com/
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Timeline of Financial Aid Application Forms
• CSS/ Financial Aid Profile– As early as October 1st of the senior year
• Free Application for Federal Student Aid . . . FAFSA on the Web (FOTW)
– Beginning January 1st of the senior year
• Cal Grant GPA Verification Form– By March 2nd of the senior year
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Calculating Financial Aid Eligibility Basic Equation of Need (Eligibility)
Cost of Attendance (COA)- Expected Family Contribution (EFC)
=Eligibility for Need-based Aid
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Calculating Financial Aid Eligibility
Cost of Attendance
Standard Allowable Costs:
Tuition and fees
Room and board
Books and supplies
Transportation
Misc. personal expenses
Additional Allowable Costs:
Dependent care
Study-abroad
Disability-related
Employment expenses for coop study
Student loan fees
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Cost of Attendance – ExamplesCommunity College
California State University
Universityof California
Private(SCU,USC)
With Parents
$ 11,958 $ 15,512 $ 19,566 $ 46,107
Off-Campus
$ 18,330 $ 22,886 $ 24,891 $ 52,554
On-Campus n/a at most CCs
$ 21,336 $ 27,507 $ 52,128
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Calculating Financial Aid Eligibility Expected Family Contribution (EFC)
Need analysis is the formula used in determining a family’s EFC
EFC is the measure of a family’s financial strength
Financial Aid Administrators use the EFC to determine the student’s overall need for financial aid
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What Factors Drive EFC?In the calculation of Expected Family
Contribution generated from the FAFSA*:
• Number in household size• Adjusted gross income• Number of dependents in college• Age of the older parent• Assets other than the family home
*CSS Profile schools will use home equity and perhaps info on the non-custodial parent’s income in determining EFC
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Calculating Financial Aid Eligibility Expected Family Contribution (EFC)
Federal EFC will be same at all schools
Federal financial aid eligibility varies based on institution’s Cost Of Attendance
Some schools may use institutional methodology (ex, Profile calculations) to award their own institutional funds
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Your Eligibility at Our Sample Schools
AssumingAn OFF-CampusCost of Education (COE)
Community College
California State University
Universityof California
Private(SCU,USC)
Budget (COE)
$ 18,330 $ 22,886 $ 24,891 $ 52,554
FAFSAExpectedFamilyContribution(EFC)
$ 2,000 $ 2,000 $ 2,000 $ 2,000
Your Federal Need orEligibility
$ 16,330 $ 20,886 $ 22,891 $ 50,554
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Awarding & PackagingFederal awarding guidelines
Pell Grant is awarded firstExternal Scholarships or GrantsCampus-based aid awarded in any order school chooses
Subsidized Stafford loan eligibility is calculated before unsubsidized
Institutions have different awarding policies
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Your Award Package at our Sample Schools
AssumingAn OFF-CampusCost of Education (COE)
Community College
California State University
Universityof California
Private(SCU,USC)
Your Need orEligibility
$ 16,330 $ 20,886 $ 22,891 $ 50,554
PellSEOG (if available)
Cal GrantACGChaffee
$ 2,500$ 1,000$ 1,551
$ 2,500$ 1,000$ Fees
$ 2,500$ 1,000$ Fees
$ 2,500$ 1,000$ up to $9700
Federal Work Study (if available)
$ 2,000 $ 2,000 $ 2,000 $ 2,000
Loans
Inst. Aid
Not Recommended
$ Fees
$ Maximum to meet need
$ Varies
$ Maximum to meet need
$ Varies
$ Maximum to meet need
$ Varies
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Special Circumstances Adjustments may be made to information on a
case-by-case basis
Special circumstances may includeDependency status (from dependent to
independent) Income and assets – changes beyond your controlChild supportNumber in household or collegePrivate elementary/secondary tuitionMedical or dental expenses (not covered by
insurance)
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Resourceswww.icanaffordcollege.comwww.studentaid.ed.govwww.federalstudentaid.govwww.csac.ca.govwww.calgrants.orgwww.collegeboard.comwww.going2college.org
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EFC Calculatorswww.finaid.org• Click on Calculators• Click on Expected Family Contribution and
Financial Aid Calculator
www.fafsa4caster.ed.gov• Will need a to create a password
www.Collegeboard.com • Under “For Parents”, click on Pay for College• Click on Financial Aid Easy Planner• Estimate your Share
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Timeline of Financial Aid Application Forms
• CSS/ Financial Aid Profile– As early as October 1st of the senior year
• Free Application for Federal Student Aid . . . FAFSA on the Web (FOTW)
– Beginning January 1st of the senior year
• Cal Grant GPA Verification Form– By March 2nd of the senior year
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Don’t Self-Deny,
Apply!
