Financial Aid 101

1. Financial Aid 101

2. Philosophy of Financial Aid Students and parents have the responsibility to pay for higher education expenses to the extent they are able.

3. Philosophy of Financial Aid Federal calculations strive to provide consistent and equitable evaluations of the family’s circumstances.

4. 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 • Financial aid awards package to meet the student’s need: gift aid and/or self-help aid, depending on the student’s eligibility

5. Initial Student Eligibility • High school diploma or equivalent • U.S. citizen or eligible non-citizen • Valid Social Security number • Enroll in an eligible degree or certificate program • Register with Selective Service (males only) • Sign a statement of educational purpose

6. Gift Aid • Grants • Scholarships Self-help Aid • Work-study • Other employment • Loans College Types of Financial Aid Categories • Financial aid is any money given, paid or loaned to help pay for education.

7. Gift Aid: Federal – Need based • Federal Pell Grants • Federal Supplemental Educational Opportunity Grants (FSEOG)

8. Gift Aid: State –need based • Cal Grants • Calif. Middle Class Scholarship • Chafee Grants – foster youth • CSU - State University Grant (SUG) • CSU - Educational Opportunity Program (EOP) • Community Colleges – Board of Governor’s Grant (BOGG)

9. Gift Aid: College Need or Non-need based • Athletic scholarships • Academic Scholarships (gpa, test score) • Activity Scholarships (music, leadership, drama, athletics if not NCAA) • Scholarships based on college major • Alumni Scholarships • Scholarships specific to the college • Scholarships for dependents of college employees

10. Gift Aid: Private sources Need or Non-need • Religious affiliation • Ethnic background • Organization affiliation of family member • Employee’s dependents • Foundations • Clubs and organizations

11. Self-Help Aid • Federal Perkins Loans • Stafford Loans • PLUS Loans – to parents • Private Loans • Federal Work-Study • Campus or off campus Work

12. Consumer Information StudentAid.gov Twitter.com/FAFSA FSA Social Media College Affordability • collegecost.ed.gov • CollegeNavigator.gov

13. Application Process – $ for all colleges selected

14. Application Process – for $ • When applying to an institution, a student should ask the following • What forms does the institution require? • In addition to the FAFSA, does the college require the completion of an institutional form or the CSS Profile? • Filing deadlines for each form? • What type of deadline? Receipt or Postmark?

15. GPA Form Application Process • All institutions require the FAFSA • Cal Grant GPA Verification Form • Other applications or forms • Some institutions require CSS Financial Aid Profile • Institutional Scholarship and/or Financial Aid Application • BOG for Community Colleges • 2013 federal tax returns (along with schedules and W-2s) or other income documentation

16. Expected Family Contribution

17. Expected Family Contribution EFC • Need analysis is the consistent formula used in determining a family’s EFC by the Federal Government • EFC is the measure of a family’s financial strength for a given year • The EFC is used to determine the student/parent’s ability to contribute for a given year

18. Calculating Financial Aid Eligibility

19. 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

20. CSU 2013-14 Cost of Attendance (9 months)

21. Cost of Attendance 2013-2014 • UC $31,948-36,956 on campus • Private $28,000-$79,336 on campus • Community College $12,086-$19,288 at home. *see handout of cost comparison

22. Calculating Financial Aid Eligibility Eligibility Varies Based on Cost of Attendance Private 4-year COA $35,001 - EFC 1,000 = Need $34,001 Public 4-year COA $22,765 - EFC 1,000 = Need $21,765 Public 2-year COA $13,126 - EFC 1,000 = Need $12,126

23. Calculating Financial Aid Eligibility Non-Need Based Aid • College/institutional scholarships • Private sector scholarships • Federal unsubsidized Stafford loan • Federal PLUS loan (to parents) • College/institutional employment

24. Calculating Eligibility Need-Based Aid—2013-2014 Federal Programs

25. CALIF Need-Based Programs • Cal Grant A– tuition/fees up to $9,223 for private, $4000 for profit;$5,472 for CSU;$12,192 for UC (HS gpa 3.0 min) • Cal Gran B - $1473 all schools; cost of living, plus can add tuition/fees 2nd yr • Cal Grant C- up to $2462 non CCC; $547 CCC • Chafee Grant – up to $5000 (foster youth)

26. California Programs – need based • UC Student Aid - $100 or more • State Univ Grant – covers full system-wide fees • Child Dev Grant $1000 (CCC) or $2000 (4 YR) • Law Enforcemt. & Personnel Depend Grant – Up to $12,192 for up to 4yr • Robt Byrd – discontinued • CCC Bd of Gov – all enroll fees

27. Awarding & Packaging

28. Awarding & Packaging • Federal awarding guidelines • Pell Grant is awarded first • Campus-based aid awarded in any order college chooses • Subsidized Stafford loan eligibility is calculated before unsubsidized • Institutions have different awarding policies due to various program participation

29. Awarding & Packaging • Award letters may vary in composition • Listing of awards and amounts • COA, EFC, need and unmet need • Period of enrollment covered • Terms and conditions of awards • Response to the offer may or may not be required – look carefully, deadline, etc.

30. Special Circumstances

31. Special Circumstances • Presenting the case • File FAFSA first • Contact individual financial aid offices (FAO) for further guidance and additional forms • A detailed explanation should include • Student’s name and SSN (or ID#) • Specific financial details • Time period involved • Supporting documentation

32. Special Circumstances • Adjustments may be made to information on a case-by-case basis • Special circumstances may include • Dependency status changes • Income, assets, employment status • Child support • Number in household or college • Private elementary/secondary tuition*** • Medical or dental expenses (not covered by insurance) Health changes of parent

33. Special Circumstances • Student should follow up with each FAO • FAO makes its own decision, results may vary from college to college • Adjustments made by college may not necessarily affect student’s eligibility for certain types of aid

34. Professional Judgment & Dependency Status The Financial Aid Office has authority to make a dependent student independent if unusual circumstances exist: • An abusive family environment • Abandonment by parents • Inability to locate bio/adopt. parents

35. Professional Judgment & Dependency Status These Do Not qualify as “unusual circumstances” • Parents refuse contribution towards education • Parents unwilling to provide information on the application or for verification • Parents not claiming the students as a dependent for income tax purposes • Student demonstrating total self-sufficiency

36. Getting Ready . . . • Student/parent driver’s license • Student/parent Alien Registration card – if no Soc Security number • Student and parent • Social Security cards • 2012 W-2 forms and other records of money earned • Records of untaxed income • Current bank statements • Business, farm and other real estate records if appropriate • Records of stocks, bonds and other investments

37. Get your Pin #’s • Student and one parent must have individual PIN numbers at www. pin.ed.gov or link on FAFSA • Parent uses same PIN for all their kids • Parent/student use their PIN throughout college yrs. Parent may need new one if not used in 2-3 yrs. • These serve as your “electronic signature” • Should have an email • PIN will be rejected if there is no matching social security #

38. Staying Organized . . . • Create a file • Keep copies of all documents and records used to complete the FAFSA • Keep copies of all applications and forms submitted

39. FAFSA on the Web (FOTW) Contact Us • Live “chat” • (800) 433-3243 • federalstudentaidcustomerservice@ed.gov

40. Youtube can help! • http://youtu.be/cBLp-MgUaMo • This video may be helpful as you fill out the FAFSA

41. FAFSA Questions 7 Step ProcessStep 1:Student Information

42. Student Information Check for: • Name matches student social security card • Transposed numbers • Incorrect data on numeric fields Tip: Use the Help & Hints section on each page. Simple mistakes can delay determining eligibility for aid

43. Student Information Students with a high school diploma and who have never attended college must: • Identify their high school • Select Confirm to find a match. • Select the school from the list or select Next to continue.

44. Student Information • Are you a U.S. citizen? Mark one • Yes, I am a U.S. citizen (U.S. national) • No, but I am an eligible non-citizen • Alien Registration Number Required • No, I am not a citizen or eligible non-citizen

45. Student Information • Student’s martial status • Student’s state of legal residence • Are you male or female? If male, answer Selective Service Question • Student Aid Eligibility Drug Convictions

46. Student Information • Parents’ Educational Level • Some states and colleges offer aid based on the level of schooling parents completed • Indicate highest level of schooling completed by biological or adoptive parents • Definition of parents is unique for these two questions • Do not use stepparents, legal guardians, grandparents or foster parents

47. Step 2 School/College Selection • May select up to 10 colleges to receive the FAFSA information • Good to Include at least 1 Calif. College • Put most expensive colleges first • Indicate on-campus housing in all but community colleges – can change decision later

48. School/College Selection • Add a School • Federal School Code • Search by: • State • City • Name • Housing Plans • On campus • With parent • Off campus

49. School/College Selection • First Bachelor’s degree? (Yes for current high school student) • Beginning level? (when entering college -) • Which degree/certificate working toward? (BS,BA, AA, AS, certificate from Community College, etc.) • Expected enrollment status? (part-time, full-time) • Coursework for elementary and secondary college teacher? • Answer “Yes” to learn more about the TEACH Grant • Answer “Don’t know” if you are not sure but would like more information about the TEACH Grant

50. School/College Selection • Interest in Types of AidIndicating interest in either work-study or student loans does not obligate the student to borrow or to work, nor will it cause the student to lose grants and scholarships (best to enter all, you can change decision later)