Financing a College Education 2013

Why Are You Here?  College is critical to your future  Jobs of the future will require more skills than those provided by a high school education alone  Students who go to college have financial advantages –their life-time earnings are higher than those of high school graduates –they are less likely to be unemployed –their children are more likely to attend college 2

3 Who Wants a Million Dollars? 3

Workshop Agenda The financial aid equation  Who gets the money? Types of financial aid - grants, scholarships, work, and loans How to apply for financial aid Free scholarship searches 4

Who Gets the $$ Basic Student Eligibility Requirements: Must be a US Citizen or an Eligible Non-Citizen Males must be registered with the Selective Services Must not be in Default on any Federal Loans Must be enrolled at least ½ time as a regular student in an eligible degree seeking program Must have received their high school diploma, GED Must make Satisfactory Academic Progress (SAP) Be clear of any Drug Charges 5

Basic Concepts of Financial Aid: Cost of Attendance Expected Family Contribution Financial Need Need-Based Aid Non Need-Based Aid 6

7 The Costs of Going to College (Cost of Attendance) Tuition & Fees Books & Supplies Room & Board Personal Expenses Transportation 7

Expected Family Contribution The Expected Family Contribution (EFC) - Calculated by the FAFSA - Amount a family is expected to contribute to education according tothe DOE (not an actual contribution number) - It lets the college know what Grants and Loans you may be eligible for 8

Need-Based Aid? - Grants - Scholarships - Federal Work Study - Federal Subsidized Direct Loan This is the “Cheapest” or “Free’ist” money you can receive 9

What Is Financial Need? Cost of Attendance - EFC_ _____ Financial Need* * amount of money you can receive in need- based aid 10

How The Need Formula Works CC CSU UC Private COA $3,500 $18,600 $26,400 $50,000 EFC ___ Need $3000 $18,100 $25,900 $49,500 CC CSU UC Private COA $3,500 $18,600 $26,400 $50,000 EFC - 4, , , ,000___ Need $-500/0 $15,600 $22,400 $46,000 In the best possible situation full “need” will be met with a Grants, Scholarships, and Work Study Most 4 year Colleges and Universities are not able to meet full need with Grants and Scholarships only, other aid will be needed 11

Institutional Charges Only Cost of Attendance Tuition & Fees Books & Supplies Room & Board Personal Expenses Transportation 12

Need Varies Based on Cost } Need If Need doesn’t cover it all; how will I pay the rest? 13

Non Need-Based Aid - Federal Unsubsidized Direct Loan - Federal PLUS Loan (Parent and Grad) - Private Bank Loans 14

The Primary Sources of Financial Aid Federal Financial Aid State Aid Colleges and universities Private agencies and organizations 15

Federal Financial Aid Funding  PELL Grants Up to $5550 per Academic Year Based on your EFC from the FAFSA & Enrollment Status  Federal Work Study  Loans Subsidized Unsubsidized 16

Federal Financial Aid Funding  Federal Perkins Loans 5% fixed rate Up to $5,500 per academic year  Federal Stafford Loans Subsidized loan up to $3500 per academic year, interest adjusted annually Unsubsidized loan up to $6000 per academic year, interest adjusted annually  Federal Direct Loans Subsidized Interest paid by the government while in school, up to 150% of the published length of the program Unsubsidized Interest accruing and paid by you w/ an option to pay while you are completing your program  PLUS Loan – Parent or Grad loan Parental Loan (taken out by parent for student, parent is responsible for this loan) 17

State Aid Funding  Cal-Grant A  Cal-Grant B  Cal-Grant C  Chafee Grant 18

Cal Grant A Entitlement Requirements High school GPA of 3.0 or greater, Must be working toward a two-year or four-year degree Demonstrate financial need, Meet parental income and asset requirements, and File a FAFSA and GPA Verification by March 2, 2013 Covers  System-wide fees at UC and CSU campuses, $12,192 and $5,970 respectively  As much as $9,223 at independent California colleges or universities up to 4 years 19

Cal Grant B Entitlement Requirements High school GPA of 2.0 or greater Must be working on coursework at least one academic year in length. Demonstrate financial need Meet parental income and asset requirements File a FAFSA and GPA Verification by March 2, 2013 Covers  $1,473 Books and Supplies up to 4 years After your Freshman year it covers  system-wide fees at UC and CSU campuses for second through fourth years  as much as $9,223 at independent California colleges or universities for second through fourth years 20

Cal Grant C For Vocational/Technical/Occupational Students You must enroll in a occupational, technical, or vocational program that is at least four months long at a California Community College, an independent college, or a vocational/career school. File a FAFSA by March 2, 2013  $547 for Books, Tools, Equipment  As much as $2,462 for Tuition and Fees at a school other than a California Community College Up to 2 years 21

Chafee Grant Grant Available for Foster Youth To qualify, you must:  be eligible, or have been eligible, for foster care between your 16th and 18th birthday,  not have reached your 22nd birthday as of July 1,of the award year Up to $5,000 22

Community College Fee Waiver The California Community College Board of Governors’ Enrollment Fee Waiver (BOG Fee Waiver)  Covers the California Community College’s enrollment fee for California residents:  Who are eligible for need-based financial aid, or  Who receive CalWORKs/TANF, SSI, or General Assistance payments, or  Whose family income falls below published income ceilings Learn more about the BOG Fee Waiver at 23

Scholarships Use FREE Scholarship Searches Available from colleges, companies, community-based groups and other agencies and organizations Usually require separate applications May require transcript, essay, interview, or audition Check with your high school, college or university about scholarship opportunities Beware of scholarship search companies that charge a fee Scholarships are a numbers game, the more you apply for the better the odds of receiving one

Remember, Don’t Be Fooled! Beware of false claims!  “Thousands of dollars in scholarships go unclaimed each year”  “Guaranteed or your money back!”  “Give me your credit card or bank account number to hold this scholarship”  “The scholarship will cost some money”  “You’ve been selected...”  “You’re a finalist in a contest” (that you never entered) 25

Applying For Financial Aid In You and your parent will need a PIN # (Based on Dependency) Fill out a FAFSA (Free Application for Federal Student Aid) between January 1 st and March 2nd parent and student IRS Federal Tax Returns (including all schedules and W-2 forms) or other income documentation Cal Grant GPA Verification Form (you or your school may do this) Some colleges may request:  CSS/Financial Aid PROFILE 26

CEF Merit Achievement Award Every year CEF offers several Merit Achievement Awards Offered to High School Seniors that have been accepted to 4-year college/university Minimum Requirements  Min. GPA 3.0  Min. SAT Score 1800  Personal Statement  Two Letter of Recommendations  Community Services Check CEF web Site on May 1 st  Applications are due on May 31 27

Apply For a PIN Federal PIN (Personal Identification Number) serves as the electronic signature on the FAFSA and other federal aid documents Student and at least one custodial parent need a PIN May also be used to:  Check on FAFSA status  Verify FAFSA data  Make FAFSA Corrections on the Web  Reapply for financial aid in future years Apply NOW for your PINs at: 28

To Register for a PIN: 29

Filling Out the FAFSA (Optional) Use FAFSA on the Web Worksheet to get ready.  Get worksheet at  Use checklist to gather documents you need.  Fill out worksheet to prepare your answers. Fill out your FAFSA online at  Apply on or after Jan.1 but as early as possible to meet all deadlines.  Need help? Use “Live Help” icon or call FED-AID.  Don’t forget to print confirmation page. Watch for response by , from or by mail  Double-check your information online at (use your PIN to log on) or on the paper Student Aid Report mailed to you  Correct any mistakes and update any information as necessary 30

FAFSA on the Web: 31

Other Common Application Items College Board’s PROFILE application Copies of most recent tax return Verification Worksheet Institutional Aid Application 32

Important Reminders 1. Watch for s or letters from the schools you are considering  Give the schools any additional paperwork they ask for  Meet all deadlines or you could miss out on aid! 2. Each school will tell you how much aid you can get at that school. 3. Once you decide which school to attend, keep in touch with the financial aid office to find out when and how you will get your aid. 33

Dependency Status Who’s a Dependant student? Were you born before January 1, 1990? As of today are you married? At the beginning of the school year, will you be working on a master's or doctorate program (such as an MA, MBA, MD, JD, PhD, EdD, or graduate certificate, etc.)? Are you currently serving on active duty in the U.S. Armed Forces for purposes other than training? Are you a veteran of the U.S. Armed Forces? Do you have children who will receive more than half of their support from you between July 1, 2013 and June 30, 2014? Do you have dependents (other than your children or spouse) who live with you and who receive more than half of their support from you, now and through June 30, 2014? 34

Dependency Status Who’s a Dependant student? Were you born before January 1, 1990? As of today are you married? At the beginning of the school year, will you be working on a master's or doctorate program (such as an MA, MBA, MD, JD, PhD, EdD, or graduate certificate, etc.)? Are you currently serving on active duty in the U.S. Armed Forces for purposes other than training? Are you a veteran of the U.S. Armed Forces? Do you have children who will receive more than half of their support from you between July 1, 2013 and June 30, 2014? Do you have dependents (other than your children or spouse) who live with you and who receive more than half of their support from you, now and through June 30, 2014? If you answer NO to all these questions, you need your parents information 35

Undocumented Students Undocumented and under-documented students are NOT eligible for federal aid but MAY be eligible for State Aid  Apply for all scholarships for which the student may be eligible  Check with colleges and universities to see if institutional financial aid is available  Watch for changes in federal and state laws regarding the eligibility of undocumented or under-documented students 36

AB 540 What is it? Assembly Bill 540 that allows undocumented students to pay in- state tuition for California community colleges and public universities. Who is eligible under AB 540?  You must have completed 3 years of high school in California and graduated from a California high school or attainment of the equivalent  You must also complete an AB 540 affidavit at the college/university that you will attend, stating that you meet AB 540 eligibility requirements which includes that you are in the process of, or will soon be, applying for legal residency. 37

AB 540 How do you apply for AB 540? * Students should speak with a college/university representative to receive accurate information about the specific campus as the requirements may differ from campus to campus. * For all UC and most CSU campuses, the fall term applicant must apply by November 30th of the year before they wish to begin. Two sections must be left blank: 1. Social Security Number Section 2. Immigration Status Section * For community colleges, the student must turn in the AB 540 affidavit when they register for classes. 38

California Dream Act – AB130 & AB131 AB130 a llows students who meet AB540 criteria to:  Apply for & receive private scholarships administered by the public colleges and universities, including  scholarships funded through private donors  alumni contributions  individual departmental efforts 39

California Dream Act – AB130 & AB131 AB130 a llows students who meet AB540 criteria to:  Apply for & receive institutional grants like UC Grant, State University Grant, Educational Opportunity Program and Educational Opportunity Program & Services fee waivers  Apply for & receive Board of Governors fee waivers at the California Community Colleges  Apply for & receive state financial aid, including Cal Grants and Chafee Foster Youth Grants for use at eligible public and private institutions 40

California Dream Act – AB130 & AB131 Application The online application will be available January 14 th Must complete and submit the application before the March 2nd deadline. Must complete a GPA Verification form 41

Useful Websites These sites contain useful financial aid and scholarship information 42

Before You Decide On A College Make a list of colleges and universities that have programs of interest to you Consult with your school counselor If possible, don’t make a final decision about which school you will attend until you have visited the colleges and universities Consider all factors – not just cost – when making the final decision 43

Summary Financial Aid Application   Due date March 2 nd Get a PIN #  College Board Applications  Copies of parents tax returns Watch for or letter from each school you applied for Apply for CEF Merit Award – Before May 31st  44

Questions?? If you have any questions please feel free to contact: Christine Fanous (626) Cherif Youssef (818)