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FINANCIAL AID PRESENTATION CALIFORNIA STUDENT AID COMMISSIONERS

FINANCIAL AID PRESENTATION CALIFORNIA STUDENT AID COMMISSIONERS. PRESENTED BY. California Association of Student Financial Aid Administrators (CASFAA) California Community Colleges Student Financial Aid Administrators Association (CCCSFAAA) California Lenders For Education (CLFE).

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FINANCIAL AID PRESENTATION CALIFORNIA STUDENT AID COMMISSIONERS

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  1. FINANCIAL AID PRESENTATION CALIFORNIA STUDENT AID COMMISSIONERS

  2. PRESENTED BY California Association of Student Financial Aid Administrators (CASFAA) California Community Colleges Student Financial Aid Administrators Association (CCCSFAAA) California Lenders For Education (CLFE)

  3. Presentation Overview • History & Student Eligibility • Accountability • Who We Are November 29, 2006

  4. History of Financial Aid Financial Aid began in private sector • Private Colleges: Harvard College in the 1600’s • No public funds until much later November 29, 2006

  5. 1944 • GI Bill enacted by Congress to assist WWII Veterans returning from the war November 29, 2006

  6. 1955California State Scholarship Commission created Cal Grant Program: Fueled by GI Bill benefits, the numbers of students in California pursuing post-secondary education exceeded available class room space at public universities November 29, 2006

  7. 1955…moreRather than building more campuses, the state created a scholarship program with funding that students could use at private institutions where classroom space was available The scholarships were “portable” meaning the students took them to the institution of their choice November 29, 2006

  8. 1958 • The Soviet launch of Sputnik gave Congress the occasion to justify a limited form of student assistance in the name of national security • The National Defense Education Act provided low-interest loans for college students, with debt cancellation for those who became teachers after graduation November 29, 2006

  9. 1965 • The Kennedy legacy, the civil rights movement, and the Johnson administration's War on Poverty converged in the mid-1960s • The 89th Congress presided over the broadest sweep of social legislation since the New Deal November 29, 2006

  10. 1965…more • Along with breakthroughs in civil rights came large-scale aid to education, including the Higher Education Act signed by President Lyndon Johnson November 29, 2006

  11. California State Aid Programs Today November 29, 2006

  12. History Of Need Analysis 1954 The College Scholarship Service, founded by private colleges, developed a standard need analysis formula to award scholarship money 1957 National system of need analysis 1974 Uniform need analysis was used to award private and government money November 29, 2006

  13. The Formula • CSAC used uniform need analysis to award Cal Grant funds • Today, CSAC uses the current need analysis, known as federal methodology (FM), to award Cal Grant funds November 29, 2006

  14. Income from all sources (past year) Parent’s employment status Number of dependents Federal income taxes State income taxes Net Assets Family Size Number of children in college How many parents working Age of the older parent What is included in the Federal Formula? November 29, 2006

  15. Cost of Attendance • COA is defined in HEA Sec. 472 where RULES are set by federal law and the actual STUDENT BUDGETS are set by the colleges • Student budgets include tuition, fees, books, supplies, room and board, transportation, miscellaneous personal • COA may also include child care, disability related expenses, computer expenses • COA may be increased or decreased by the college for an individual student if justified and documented in accordance with federal regulations November 29, 2006

  16. CSAC Assists Budget Determination in California Student Expense and Asset Survey (SEARS) • Collects student data every four years, updated with annual adjustments in between • Determines “average” student expense for: • Transportation • Housing & Food • Personal expenses • Books & Supplies • Many colleges use some or all of these figures, relying on CSAC guidelines to meet federal requirements for student budgets November 29, 2006

  17. The Financial Aid Process… November 29, 2006

  18. Goals of Financial Aid Institutions desire to: • Provide ACCESS and CHOICE • Conduct an accurate and fair assessment of the family ability to pay for college • Promote equity by awarding funds to the neediest students first • Promote efficiency by making the process work for all students • Be accountable for tax dollars and institutional funds November 29, 2006

  19. Student requirements for obtaining financial aid Student will receive two documents, CAR & FAN, from CSAC and college respectively Financial Aid Process Outline November 29, 2006

  20. The Initial Process… Filing the FAFSA • Student must complete and file a FAFSA each academic year • Deadlines • FAFSA • CAL Grant • Parent & student income requirements • List of schools November 29, 2006

  21. The Basic Formula • Formula guides the college’s awarding process • Determines eligibility for every student • Enacted and regulated by federal and state authorities while being implemented by the college Cost of Attendance Minus - Expected Family Contribution Equals = Financial Need Minus $1,500 (additional) Equals Eligibility for a New Cal Grant Recipient November 29, 2006

  22. Expected Family Contribution • The EFC is calculated by the federal processor from the data on the FAFSA • The formula is determined by federal law and adopted for California use by state law • It includes both student and parent’s ability to pay for a 9-month time period • College receives EFC electronically via “ISIR” • EFC adjustments permitted at the campus level based on verified information or special student or parent circumstances November 29, 2006

  23. Determination of Eligibility • College determines the student budget (COA), placing the student in the appropriate cost category • The college receives an ISIR and verifies student’s EFC • COA - EFC = Eligibility (Financial Need) • College works to find resources to fill the student’s need eligibility in a process called “packaging” November 29, 2006

  24. CCC CSU UC Private Cost $15,000 $18,000 $20,000 $47,000 EFC - 2,600 - 2,600 - 2,600 - 2,600 Need $12,400 $15,400 $17,400 $44,400 Student’s “need” is met with a financial aid package made up of grants and scholarships along with reasonable amounts of “self-help” aid (work and loan) How The Formula Works November 29, 2006

  25. COA - EFC = Financial Need November 29, 2006

  26. CAL Grant GPA Verification • CAL Grant process requirement • Filing date - March 2nd or September 2nd • Student files FAFSA annually • Most high schools and colleges submit GPA verification electronically for all enrolled students November 29, 2006

  27. California Aid Report (CAR) • The student receives a CAR directly from California Student Aid Commission (CSAC) based on information provided on the FAFSA and GPA Verification • CAR identifies student eligibility for CAL Grant (A, B, C) for the academic year November 29, 2006

  28. Financial Aid Notice (FAN) • The student will receive a FAN directly from the college to which they have applied and have been accepted • Provides the student with a financial aid award package • Indicates additional requirements the student must complete November 29, 2006

  29. Financial Aid Notice (FAN)…more • Cost of Attendance (COA) • 9 month budget • Expected Family Contribution (EFC) • Types of aid offered: • Federal (PELL Grant, Loans, Work-Study) • State (CAL Grant) • Institutional (Grants, Scholarships, Loans) • Outside Aid (Independent Scholarships, Tuition Assistance, Fee Waivers) November 29, 2006

  30. Sample UC Riverside Financial Aid Notice (FAN) Total Cost of Attendance $22,217 Minus EFC 0* Equals Financial Need $22,217 Financial Aid Award Pell Grant 4,050 Cal Grant A 6,141 UC Grant 6,320 Loan 2,625 Work3,075 Total Aid = $22,211 *CSAC deducts $1,500 as gap for self-help for Cal Grant A, and $750 for Cal Grant B, to determine financial need for a Cal Grant November 29, 2006

  31. Financial Aid Notice Open Federal Requirements • Verification Process • Loan Documentation/Entrance & Exit Loan Counseling • INS - Citizenship • Selective Service • Social Security Number November 29, 2006

  32. Accountability • Colleges are held accountable by multiple authorities: • USDE conducts thorough program reviews • Congress requires participating colleges to submit an annual audit • Federal government conducts other miscellaneous reviews (INS, IRS, Inspector General Office, etc.) • USDE follows-up on consumer and student complaints • CSAC conducts grant audits • EdFund conducts loan program reviews November 29, 2006

  33. Summary of Delivery • The college is the bottom line in the student aid process -- both for the students and for the government agencies • The college receives data, works individually with students, parents and families, verifies and documents financial data and eligibility (citizenship, residency, etc.), determines eligibility, selects funds for student aid package, determines unit load and eligible programs and determines continuing eligibility November 29, 2006

  34. Summary of Delivery…Continued • Delivery systems (other than Cal Grant) differ: • For Pell Grant, colleges identify eligible recipients from among all applicants based on set EFC criteria • For FSEOG, Federal Work Study, Perkins Loan, and State Work Study, colleges select recipients from among eligible students • For most loans, colleges provide access to capital • For segmental programs, colleges select recipients from among eligible students (when funds are limited) or identify recipients when funds are available to all eligible students November 29, 2006

  35. Summary of Delivery…Continued • However, all of these programs have something in common…the college identifies the student recipients, not the federal or state government November 29, 2006

  36. WHO WE ARE: California Association of Student Financial Aid Administrators • CASFAA is a non-partisan, non-profit professional organization with a membership of more than 1,700 California student financial aid administrators • CASFAA represents more than 500 colleges & universities, all segments of higher education in the State of California November 29, 2006

  37. CASFAA Mission • CASFAA members share a common goal of improving access to and delivery of federal, state, institutional and private donor financial aid to students in the State of California • CASFAA’s mission is to provide training and professional development opportunities to the financial aid community and to advocate on behalf of the financial aid profession for student educational access and choice November 29, 2006

  38. WHO WE ARE: California Community Colleges Student Financial Aid Administrators Association • CCCSFAAA is a not-for-profit professional organization with a membership of nearly 1,000 financial aid professionals - 716 active members and 263 associate members • CCCSFAAA represents 109 California Community Colleges which last year enrolled 2.5 million students and is the largest system of higher education in the world November 29, 2006

  39. CCCSFAAA Mission • First, accessibility to higher education is essential to the development of human potential and the human condition; and financial aid is an essential access vehicle to higher education; and • Second, that the effective administration of financial aid programs require accurate, current and focused information on federal and state legislation and regulations governing the student financial aid programs; and • Third, communication between members of the profession, government agencies, private and community organizations is critical to the development of effective financial aid programs and the advancement of our profession November 29, 2006

  40. WHO WE ARE: California Lenders for Education • CLFE formed in 1988 and incorporated as a non-profit mutual benefit corporation • CLFE is an association represented by lenders, secondary markets, servicers and guaranty agencies November 29, 2006

  41. CLFE Mission CLFEdefines common goals and engages in activities to improve and preserve the quality and integrity of education loan products and services delivered to students and colleges in the State of California through a diverse coalition of industry participants November 29, 2006

  42. CLFE Goals CLFEis committed to serving the needs of California students, parents and schools CLFEpartners in the delivery and administration of education loans CLFE promotes responsibleborrowing, default prevention/aversion and debt management November 29, 2006

  43. Contact Information CASFAA President Mindy Bergeron (925) 969-3388 bergeron@jfku.edu CCCSFAAA President Beth Asmus (661) 362-3275 beth.asmus@canyons.edu CLFE President Rob Smith (530) 244-7960 robsmith@salliemae.com November 29, 2006

  44. Thank You November 29, 2006

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