FINANCIAL AID 101 Presented by Elizabeth Ochoa

Federal Philosophy  Family is responsible to pay for student’s education  To the extent they are financially able  Who gets to decide what “financially able” means? You or the feds? West Valley COA$12,617 - EFC 1,000 = Need $12,617

The FAFSA application is the foundation for any financial aid gifted or loaned to help pay for your education. Need Help? Workshops Available: Every Tuesday at 11am in A&R Lobby What is a FAFSA?

CA Dream Act Application  Application is available at:

April 12, 2013

Sample : Award Letter Dear Student, Congratulations! This is an official award notification for the academic year … Budget (COA)$12,617 EFC$ 1,617 NEED$11,000 AWARD PROGRAMSAWARD TOTALFALLSPRING BOGW Board of Governors’ $ $644.00$ GRANTS Federal Pell Grant$5,645.00$2,822.50$2, Fed Supp Ed Opp Grant$500.00$250.00$ Cal Grant B$1,473.00$736.50$ Ext Opp Prog & Ser$0.00 Ext Opp Prog Book$0.00 SELF-HELP Federal Work Study$2,094.00$1,047.00$1, Fed Sub Stafford Loan$0.00 Award Total$11,000.00$5,500.00$5,500.00

Professional Judgment  If you have a change in:  Dependency Status  Income and Assets  Child Support  Number in Household or College  Private elementary/secondary school tuition  Medical or dental expenses  (not covered by insurance) * Contact your Financial Aid office for more details

Your rights and responsibilities Right to ask:  Costs and refund policies  What financial help is available  To explain the various elements in your financial aid package Responsibility to:  Know and comply with all application deadlines  Respond promptly and provide all information  Read and keep copies of all forms  Complete loan entrance and exit counseling  Repay your student loans

Know the Terminology  Debit A purchase authorized by you in which a retailer uses money electronically withdrawn from your checking account as payment for goods and services. You initiate the purchase by using your debit card, generally tied to your checking account. Does not contribute to your credit rating.  Interest The periodic fee charged by the lender to borrow money. Interest charges are repaid in addition to the principal of the loan.  Buyer’s Remorse/Impulse Purchases Regretted purchases usually bought in the heat of an emotional moment.  Checking Account The most common way to pay your bills. You write a check, use a debit card or authorize a transfer of funds and that money is deducted from your checking account.  Overdraft Protection By opting in for overdraft protection, you authorize your bank to cover charges even if you don’t have money in your account. Fees for overdraft protection transactions can be very expensive.  Credit Report A visual summary of how you handle credit. It’s typically viewed by lenders, apartment rental managers, insurance companies and employers as a symbol of your reliability.  Credit Score A number assigned to your credit report to indicate your overall credit worthiness on a scale from 350 (poor rating) to 850 (excellent). Consider using the ECMC’s Financial Awareness Basics Glossary at:

Budgeting  According to the National Center for Education Statistics (NCES), the research arm of the U.S. Department of Education, students who dropped out of postsecondary institutions cited financial reasons as the primary catalyst for leaving school. Learning to develop and manage a budget is a key skill set that will help you achieve both short- and long-term financial goals throughout life – skills that are especially handy during college when money is typically tight.  And remember, keep your eyes on the prize. The time you put into your budget, and the choices you make to keep your budget on track, will pay off over the long run by providing you with greater financial independence and security.

Protect against identity theft  Keep your SSN, DOB, Driver’s license, passwords and PINs confidential  Do not leave your wallet in the car  Never give out personal or financial information over the phone or via  Make sure Web sites are secure before providing information  Get your free credit report annually   Shred all documents you no longer need  Learn more at:

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