 Copyright 2008 Financial Aid Overview Presented by the East Bay Cash for College Coalition Presenter:

 Copyright Cash for College $1,000 Scholarship – Evaluation! Complete and turn in the Student Evaluation BEFORE you leave! Location and Date Write Clearly! Scholarship Rules on pg 2 Must submit your FAFSA and Cal Grant GPA by March 2nd Winner will be chosen after March 2nd and announced by your counselor or by a letter mailed to the address provided. Scholarship will be sent to the college.

 Copyright Federal government State government Colleges and universities Private agencies, companies, foundations, and your parents’ employers Sources of Financial Aid

 Copyright Types of Financial Aid Gift Aid - Grants or scholarships that do not need to be repaid Work - Money earned by the student as payment for a job on or off campus Loans - Borrowed money to be paid back, usually with interest

 Copyright How Does Financial Aid Work? Cost of Attendance (COA)  Expected Family Contribution (EFC)  Financial NEED (Financial Aid Eligibility) Colleges determine and offer their students financial aid based on the following equation. Also known as “Need Analysis.”

 Copyright What is the Expected Family Contribution (EFC)? A number produced by the FAFSA used by colleges to calculate the amount that your family (student and parent/s) will be expected to pay for college from income and assets over time.

 Copyright What is the Cost of Attendance (COA)? u Tuition and/or fees u Room and board u Books and supplies u Transportation u Misc. personal expenses Cost of Attendance includes most everything related to college expenses for one academic year. Also known as the “Student Budget.”

 Copyright Financial Aid Eligibility - Varies Based on Cost (COA) Private 4-year COA $39,000 - EFC 2,000 = Need $37,000 Public 4-year COA $23,000 - EFC 2,000 = Need $21,000 Public 2-year COA$12,000 - EFC 2,000 = Need $10,000

 Copyright Financial Aid Award Letter All Financial Aid Award letters include the following: Cost of Attendance (or Student Budget) Expected Family Contribution Aid Offered - grants - work-study - loans - scholarships

 Copyright 2008 Types of Applications FAFSA Cal Grant GPA Verification Form Check college websites for additional forms such as: –CSS Financial Aid Profile –Scholarships Applications –CCC Board of Governor’s Fee Waiver May need to provide a copy of your family’s 2007 Federal tax returns GPA Form

 Copyright 2008 CSS/Financial Aid PROFILE –2 step process: »$9 online registration »$16 per school »fee waiver built into website NOT used for awarding federal financial aid NOT all schools require »mostly private schools Filed earlier than the FAFSA

 Copyright Cal Grant Application Requirements Check with your high school or college counselor for more details on how to file your Verified GPA for Cal Grant consideration. By March 2, 2008, complete and submit: Free Application for Federal Student Aid (FAFSA) Cal Grant GPA Verification Form OR Release Form

 Copyright Cal Grants (See Fund Your Future Workbook pages 13-17) Cal Grant A Entitlement Awards – up to $6,636 at a U.C., $2,772 at a CSU, and $9,708 at an independent or private college. If attending a Community College, award will be held in reserve for up to 3 years until you transfer to a four-year college. Cal Grant B Entitlement Awards – additional living allowance of $1,551 and up to the same award amounts of Cal Grant A for the second year. Cal Grant C Awards – for students from low income families pursuing vocational programs of study. Awards up to $576 for books, tools, etc. and up to $2,592 for tuition and fees at a private college.

 Copyright Need-Based Federal Grants Pell Grants -$4,800 maximum per year Academic Competitiveness Grants -$750 for the first year -$1,300 for the second year Supplemental Educational Opportunity Grants (SEOG) -$4,000 maximum per year See FYF Workbook pgs 18-19

 Copyright More Need-Based Aid Federal Work-Study Institutional Grants, Scholarships, or Fee Waivers Federal Perkins Loan -5% Interest begins at repayment = 9 mo. after graduation Federal Subsidized Stafford Loan -6.8% Interest begins at repayment = 6 mo. after graduation

 Copyright NON-Need-Based Aid Some institutional or private scholarships Federal Unsubsidized Stafford Loan -6.8% Interest begins immediately -Repayment begins 6 mo. after graduation -Can defer interest while in school at least half time Federal PLUS Loan for Parents % Interest and repayment begins immediately

 Copyright California Chafee Grant The California Chafee Grant program provides up to $5,000 annually to current and former foster youth for college or vocational training at any accredited college in the U.S based on available funding To apply, the foster youth must complete: FAFSA - California Chaffee Grant Program Application To learn more about the Chafee Grant, go to:

 Copyright Special Circumstances Contact the Financial Aid Office if there is: –Loss or reduction in parent or student income or assets –Death or serious illness –Natural disasters affecting parent income or assets –Unusual medical or dental expenses not covered by insurance –Reduction in child support, social security benefits or other untaxed benefit –Financial responsibility for elderly grandparents –Any other unusual circumstances that affect a family’s ability to contribute to higher education See presenter for handout on Special Circumstances documentation

 Copyright Citizenship Status u A valid social security # (for the student only) is required on the forms for federal and state financial aid. u You may be eligible for in-state tuition costs at California public colleges or universities. u Check with colleges and universities to see if institutional financial aid is available. u Apply for all private scholarships for which you may be eligible For more information and a list of scholarships, go to NOTE: if you are undocumented or under-documented

 Copyright FAFSA Information & Tips File early, but no later than March 2, 2008 Use estimated 2007 income information if taxes are not complete at time of FAFSA submission Student and at least one parent whose information is reported must complete and sign the FAFSA PINs available in Real Time thru the FAFSA Website:

 Copyright Questions and Answers

 Copyright 2008 FAFSA on the Web Worksheet Line-by-Line Presentation Presented by the East Bay Cash for College Coalition Presenter:

 Copyright 2008 FAFSA on the Web Worksheet Black = questions for student Purple = questions for parent READ all instructions and gather what you need to complete this form!

 Copyright Your Social Security Number (Q8) Your last name (Q1) List the student’s name and Social Security number exactly as they appear on the Social Security card. Both will be compared through a database match process HERNANDEZ-GARCIA

 Copyright a.If U.S. citizen, status will be confirmed by a Social Security match. b.If eligible noncitizen, SSN and ARN will be confirmed by Department of Homeland Security (DHS) match.  Write in your eight- or nine-digit Alien Registration Number (ARN) c.If neither a citizen or eligible noncitizen, you are ineligible for federal/state aid, but might still be eligible for state or institutional funds. Citizenship Status (Q14, Q15)

 Copyright Residency relates to your permanent home state if you are dependent, the state of legal residence is usually the state in which your custodial parent/s live State of legal residence is also used: to determine eligibility for state grants in the need calculation to determine the appropriate allowance for state and other taxes paid by that state’s residents CA Your State of Legal Residence (Q18)

 Copyright Selective Service Registration (Q22) Male students who are 18 years of age or older must be registered with Selective Service to receive federal and state aid. Answer “yes” only if you are male, aged 18-25, and have NOT yet registered. You may also register by going to :

 Copyright Indicate the student’s most immediate degree or certificate objective for Degree Objective (Q23)

 Copyright Indicate your expected grade level for Graduating high school seniors should indicate 1st year/never attended college, even if you have taken some college classes. Grade Level (Q24)

 Copyright 2008 Indicate your enrollment plans for the college you are most likely to attend. - If unsure, report “Full-time” 30 Your Expected Enrollment Status (Q25)

 Copyright Student Loans and Work-Study (Q26) Indicating interest does NOT obligate you to either borrow or to work, nor will it cause you to lose grants and scholarships Answering “neither” may restrict some options for limited loans and work-study funds

 Copyright 2008 First Bachelor’s Degree? (Q28) 32 If you are a high school senior, the answer is ‘NO’

 Copyright Parents’ Educational Level (Q29-30) Indicate highest level of schooling completed by your biological or adoptive parents (for state award purposes only) Use birth parents or adoptive parents - NOT stepparents or foster parents This definition of parents is unique to these two questions

 Copyright DO NOT SKIP THIS QUESTION –Answer “NO” if: Conviction was for alcohol or tobacco Conviction was removed from record or occurred before age 18 (unless tried as an adult) –Answer “YES” if you have been convicted of possessing or selling illegal drugs while you were receiving federal financial aid Drug Conviction Question (Q31)

 Copyright Section 2 Determination of Student Dependency Status

 Copyright Section 3 – Parental Information See top of Page 4 about who is considered a parent: –Biological or adoptive parent(s) –Stepparent (regardless of any prenuptial agreements) –Use only one parent’s information if divorced or separated DO NOT include information on: - legal guardians - grandparents, or - other relatives See presenter for handout on Special Circumstances documentation

 Copyright Your parents’ marital status as of today (Q56) Month and year your parents were married, separated, divorced, or widowed (Q57) M M Y Y Y Y

 Copyright Father’s and/or Mother’s SSN, Last Name, and Dates of Birth (Q58-65) JONES PARKER Information should be listed as they appear on the parent/s’ Social Security Card for a database match If parent does NOT have a SSN, enter Do NOT include additional information on parent if single, divorced, separated, or widowed.

 Copyright Parents’ State of Legal Residence (Q68-70) Indicate the two-digit state code for your parents’ permanent address If the answer to the previous question is “no,” enter the month and year residency began for your parent who has been a legal resident of that state the longest CA M M Y Y Y Y

 Copyright Parents’ Tax Return Filing Status for 2007 If you indicate that you/your parent “Will File,” use ESTIMATED income information. Remember to go back into your FAFSA to make corrections as soon as taxes are filed.

 Copyright Parents’ Household 2007 Federal Benefits Indicate if you, your parents, or anyone in your parents’ household received benefits in 2007 from any of the federal programs listed

 Copyright Parent 2007 Adjusted Gross Income (Q79) Reminder: If the answer is zero or the question does not apply, enter 0 If your parents have not yet filed their 2007 federal tax return information, it is fine to estimate information for these questions If your parents have completed their 2007 federal tax return, use 2007 tax return information to complete this item. Pay attention to specific line- items on 2007 federal tax return, if completed 45, 250

 Copyright Money Earned from Work by Parent/s in 2007 Use W-2 forms and other records to list all income in 2007 earned from work (including income earned from self-employment) 45, , , 200

 Copyright 2008 Parents’ Income Tax Paid in 2007 (Q80) What was the amount your parent/s paid in income tax for 2007? - Use U.S. Income tax paid (or to be paid) - NOT the amount withheld from your parents’ paychecks 2, 130 Parents’ 2007 Tax Exemptions (Q81) 5

 Copyright Parents’ Household Information for Include in your parents’ household: –yourself –your parent(s) –your parents’ other dependent children, if your parents provide more than half their support or the children could answer “no” to every question in Section 2, regardless of where they live –other people, if they now live with your parents and will continue to do so from 7/1/08 through 6/30/09, and if your parents provide more than half their support now, and will continue to provide support from 7/1/08 through 6/30/09 6

 Copyright Family Members Attending College in NOTE: Some financial aid offices will require proof that other family members are attending college Always include yourself even if you will attend college less than half-time in Include other household members only if they will attend at least half time in in a program that leads to a college degree or certificate Never include your parents 2

 Copyright Worksheets A, B, and C NOTE: You should keep a copy of the worksheets because the financial aid office may request a copy Go to the worksheets on the back of the FAFSA (page 8): - Worksheet A = Untaxed Income & Benefits - Worksheet B = More Untaxed Income & Benefits - Worksheet C = Exclusions to Income

 Copyright Parent Assets (Q87) Report the current balance of your parents’ cash, savings, and checking accounts as of the day you complete the FAFSA. 2, 155 TIP: Report available cash (after the bills are paid) NOTE: Some financial aid offices may request supporting documentation for the answers to these questions

 Copyright Parent Assets (Q88) bonds and other securities Coverdell IRAs 529 plans owned by parents installment and land sale contracts commodities, etc. Net Worth means current value minus debt Investments include: real estate (other than parents’ home) trust funds UGMA and UTMA accounts money market and mutual funds certificates of deposit stocks and stock options 7, 900

 Copyright Parent Assets (Q89) DO NOT include investments like: - the home you live in - the value of life insurance - parent retirement plans (pension funds, annuities, non-education IRAs, Keogh plans, etc), or - the value of a family owned and controlled small business with 100 or fewer full-time or full-time equivalent employees Business/Investment Farm includes: – market value of land, buildings, machinery, equipment, and inventory. Debt means only those debts for which the business was used as collateral 0

 Copyright 2008 These questions are identical to the parent financial questions we covered in the Section 3 In Section 4 (page 6): – Report your 2007 income – If you are single, ignore references to “spouse” – Q90-96 are for INDEPENDENT students only 51 Section 4 – Student Finances

 Copyright Section 5 – School Information List up to 10 colleges - that you have applied and/or are planning to apply List at least one California College 1st, 2nd or 3rd, for Cal Grant consideration List those schools with the earliest financial aid deadlines, regardless of whether they are in-state or out-of-state Find school codes at:

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 Copyright What Happens Next? Students and the colleges the student listed receive Student Aid Report (SAR) from federal processor  Students who complete FAFSA and Cal Grant GPA Verification Form receive California Aid Report (CAR)  Students and families review SAR and CAR for important information and accuracy of data  Colleges match admission records with financial aid applications and determine aid eligibility  Colleges mail notices of financial aid eligibility to admitted students who have completed all required financial aid forms

 Copyright Summary of the Financial Aid Process Submit all required forms, including the FAFSA, by each college’s published deadlines (but no later than March 2) By March 2, submit a Cal Grant GPA Verification Form (or Release Form) Keep a copy of all forms submitted Review the Student Aid Report (SAR) and California Aid Report (CAR) for accuracy Watch for financial aid award notifications from colleges to which the student has been admitted Be sure to apply for financial aid this year and every year as soon as possible after January 1 to receive the best financial aid award possible ASK QUESTIONS!

 Copyright Questions and Answers