Welcome Students

1. Welcome Students

2. Today's Workshop: Financial Aid How to par your students education Presentaded by: San José Cal-SOAP

3. What is Financial Aid? • Funds which are available to help pay the cost of higher education • Funds are distributed in the following way: Local, State, Private or Institutional Scholarships and Cal-Grants, Free Money Offers students the opportunity work in a job on or off campus Work Study OR Funds available for students and/or parents which must be paid back Loans

4. So who provides the funds for Financial Aid? • Federal Government (FAFSA) • State Government (CAL-GRANT) • Higher Educational Institutions • Other/Private Agencies

5. FINANCIAL AID 1. CAL GRANTS • Federal Government “Pell Grant” • State Government (Cal Grant A, B, y C) 2. SCHOLARSHIPS • Local, State, Institutional, and private

6. CAL-GRANT • Government Funds which are available for students to help them pay the cost of a university • You don’t have to pay it back!!! • Federal Pell Grant: Its only available for CALIFORNIA residents whom are enrolled and attending a college or university of CALIFORNIA Federal Grants • You don’t have to pay it back! • Offered to students who have not received their first Bachelors of Arts • $400 to $5,500 per year

7. Cal Grant A • 3.0 GPA • California resident • Must need financial assistance • Must be attaining a first degree. • Pays up to 5 years. DON’T change majors. • Pays for tuition and fees: • $4,429 to $9,708* • * for selected private institutions

8. Cal Grant B • 2.0 GPA, a California resident, must need financial assistance, be attaining a first degree, and first generation to attend college. • Pays tuition and fees, books, living expenses, and transportation First year = 1,551. Additional Years = Cal Grant A + $1,551 • Pays tuition and fees, books, living expenses, and transportation • Pays 1 year for a Voctional Program • BOG Fee Waiver (CCC) • CSU: SUG • UC: State University Financial Aid

9. Cal Grant C • No minimum GPA • California resident • Must need financial assistance • Must be attending vocational school/Traininig Program • Study must be at least 4 months up to 2 years of full time study • Supplemental Application sent after FAFSA • Books and Supplies= $576 • Tuition & Fee= $2,592 • Competitive Award • Up to 7,761 (send the Supplemental Application)

10. Cal Grant: To DO List • Complete the Free Application for Student Aid • Complete the GPA Verification Form • It must be certified by the high school and sent to the California Student Aid Commission • Ask for Certificate of Mailing ($0.95) if mailing it. • Must submit on or before March 2 of every year • Unless attending a Community College- Sept 2. • Supplemental Application

11. “Perkins” Loan • Loans with low interest rates (5%) available for students who demonstrate financial need • The University or College is the loaner and • you start paying the loan 9 months after you graduate or end school • $4,000 per year for a total max of $20,000

12. Federal Stafford Loan 3.37% SUBSIDIZED PAYMENT STARTS 6 MONTHS AFTER THE LAST DAY OF ATTENDANCE AND... UNSUBSIDIZED PAYMENT STARTS 6 MONTHS AFTER THE LAST DAY OF ATTENDANCE BUT... The federal government pays the interest on subsidized loans while you are in school and during the first six months after you graduate, withdraw, or enroll less than half-time. You’re responsible for paying interest that accrues OR let it accumulate while in college, but interest will be added to the amount you borrowed, and future interest will be based on the NEW higher loan amount.

13. “PLUS” LOANS • Loans that may be borrowed by parents to pay their students education if the student is still dependent and is enrolled in the school at lest half-time • Plus Loans are unsubsidized • PLUS loans have a variable interest rate, with a cap of 9 percent • Interest starts to accrue immediately, with repayment beginning with in 60 says after the last day of attendance.

14. ORIGINAL LOAN TOTAL = 20,000 INTEREST 3.37% TERMS of LOAN LIFE 120 MONTHS = 10 YEARS MONTHLY PAYMENT $199 TOTAL INTEREST PAID $3,958 TOTAL: LOAN +INTEREST $23,958 Educational Loan Scenario

15. “StTUDENT WHO BOUGHT A CAR from a PRIVATE LOAN INSTITUTION” CAR VALUE TOTAL: 20,000 The students has to start making monthly payments immediately after purchasing the car.

16. LOAN MOUNT TOTAL = 20,000 INTEREST DOWN PAYMENT 10% 2,000.00 TERMS of LOAN LIFE 60 MONTHS = 5 YEARS $424 MONTHLY PAYMENT TOTAL INTEREST PAID AFTER 5 YEARS $5,496 LOAN + DOWN PAYMENT + INTEREST= $27,498

17. What is the difference between an Educational Loan and a Private Loan? • Educational loans may be paid 6 months after you graduate or stop attending school • Interest Rate is low • Eligibility for loan is not based on credit history nor what you work in • Interest rate from the private loan must be paid immediately after you purchase the car • The interest on private loans are generally higher depending on the Borrower, credit history and job employment

18. Other things to consider... • This process takes time! • Filling out the FAFSA and getting the required paperwork takes a while so give yourself PLENTY of time! • Nobody is perfect... • Make copies of all your paperwork, your Financial Aid info as well as your Applications for schools. • Try not to worry! • The money IS out there, your job is to find it!

19. Internet Resources Calgrants.org Californiacolleges.edu Fafsa.ed.gov Fastweb.com Finaid.org Maldef.org Scholarshare.com Studentaid.ed.gov

20. So how much does school Cost…. • Tuition = $5,246 – 8,102 • Books = $1,220 • Rent = $5,946 – $10,458 • Personal = $3,281 • Total= $15,983 – $19,398

21. IMPORTANT AB 540 This law permits students that are California non- eligible residents to pay in-state tuition fees instead of paying out-of-state tuition fees REQUIREME NTS: • Student must have attended a California HS for at least 3 years • Student must have attained a High School Diploma or GED • Register or be currently enrolled at an accredited public institution of higher education in California • Submit the “California Nonresident Tuition Exemption Request”

22. AB-540 Difference of Cost Between Colleges and Universities • Community Colleges of California: $26/unit $199/unit) • California State University : • $5,370/year $9,834/year • University of California: • $10,850/year $24,593/year RESIDENTS NON-RESIDENTS

23. IMPORTANT AB 540

24. IMPORTANT AB 540 • The Family Educational Rights and Privacy Act of 1974 • Federal law regarding the privacy of student records and the obligations of the institution, primarily in the areas of release of the records and the access provided to these records • The information that a student shares with a college or university is protected by federal law. • DREAM ACTIF SIGNED INTO LAW: • Would grant qualified* immigrant students the opportunity to obtain legal status and thus enable them to pursue higher education and contribute fully to the nation. • * Requirements to Qualify • Student MUST have lived in the U.S. for five years or more • Student MUST be a high school graduate • Student MUST have “good moral” conduct • Student MUST attend a minimum of 2 years of college

25. QUESTIONS?