Financing a University Education CSU-UC Joint Counselor Conference September

2 Help is available! Federal grants Student loans State grants University grants Both UC & CSU enroll a large number of low- income students, few of whom pay the “sticker price” - concentrate on the “net price” instead! California Students Can Afford College Parent loans Private and State scholarships Part-time work Higher education tax credits

3 How to Apply It takes two! File the FAFSA OR California Dream Application High school or student files Cal Grant GPA verification form March 2 nd is the priority deadline FAFSA & Dream Applications available beginning Jan 1 Student and parent can sign the FAFSA with a FSA-ID (replaces the PIN) California Dream Application also allows the student and parent to sign the application electronically

4 Respond immediately to all requests for follow- up documents and actions, including those from both the financial aid and admissions offices Find out how the college will communicate with the student – many rely on students checking their and on-line portals for document requests, other action, and award notices Families should hear about their award in time to make an informed decision PRIOR TO THE DATE on which university asks them to commit (often May 1 for freshmen and later for transfers) What Happens Next

5 Financing College is a Partnership  Students contribute through working and borrowing  Parents are asked to contribute based on their financial strength  Low-income parents often asked to contribute zero  Some students are “independent” of their parents – 1/3 at the CSU (over age 24, dependents of their own, etc.)  Universities pull together financial aid for students  Offer a combination of federal, state, and university grant and scholarship to eligible students  Assist families seeking loans to help meet their contribution

Working and Borrowing Students seeking financial aid at CSU and UC will often work part time while enrolled and borrow reasonable amounts that result in “manageable” student loan debt. A work study job as well as other jobs on or off campus are both roughly equivalent ways that students can contribute to their support from earnings. Working more than half time while enrolled full-time is associated with declining academic performance. 6

7 CSUUC Many students work at least half time and enroll less than full time Most students work half time or less and enroll full time Sticker price is about $6,600, but the average net amount paid by undergraduates is about $2,800 Financial aid reduces price differential between the cost of CSU and UC for grant recipients At CSU, average student loan indebtedness for 2013 graduates was $15,657 (about $180 per month for 10/yrs) At UC, average student loan indebtedness for 2014 graduates was about $20,600 (about $230 per month for 10/yrs) Typical time-to-degree for entering freshman is 5 years. Typical time-to-degree for entering freshman is 4.2 years Typical time to degree for entering junior transfer student is 3 years Typical time to degree for entering junior transfer student is 2.4 years

8 Costs of Attending CSU and UC California State University At Home On Campus Off Campus Fees $6,778 Books & Supplies 1,758 Room & Board 4,72312,53512,430 Transp. 1,3451,1671,393 Personal 1,391 TOTAL $15,995$23,629$23,750 Most families do not pay the “sticker price” University of California At Home On Campus Off Campus Fees $13,400 Books & Supplies 1,500 Room & Board 4,70014,2009,400 Personal & Transp. 3,7002,4003,100 Health Ins. 1,8002,100 TOTAL $25,100$33,600$29,500

9 CSU and UC are Affordable  Net price after financial aid is typically much less than sticker price. Financial aid may mean that universities with different sticker prices may have similar net prices – Focus on net price!  Public institutions in California are the best educational bargains, especially for low-income students  About half of undergraduate students take out student loans at UC and CSU  UC expects full-time enrollment and part-time work; CSU is more flexible  Most students enrolled in private colleges and universities take out student loans and graduate with higher average student loan debt than students who graduate from public institutions, no matter the time to degree or other factors!

Federal Education Tax Credits To the extent that students or their families pay their tuition, certain required fees, qualified books and supplies out of their own pockets (without grant or scholarship), they may apply for a federal education tax credit of up to $2500 on the first $5000 that they pay out of pocket. A tax credit reduces the amount of taxes owed! Rather than wait for an income tax refund, families eligible for the federal American Opportunity Tax Credit can reduce the amount that is withheld incrementally each pay period so that they have the extra cash when they most need it to pay college expenses. 10

BLUE AND GOLD at UC Undergraduate California residents who file FAFSA or DREAM applications on time and are determined to have financial need and total family incomes under $80K per year will not have to pay UC’s systemwide tuition and fees ($12,240 in ) out of their own pockets for the first four years (two years for transfers) that they are enrolled at UC. Eligible students may qualify for additional grant support to help pay for other college expenses. 11

California DREAM Application Must be eligible for AB 540 status, even if AB 540 certification has not been completed at the time of application Males must have registered for the Selective Service before age 26 DACA eligibility doesn’t play a role; DACA SSN is not used for any purpose other than work Student or parent may be required to verify income, even if taxes have not been filed 12

Middle Class Scholarship – “MCS” at CSU and UC A state-funded scholarship for CA residents and DREAMers from families with “total” incomes up to $150K Assets of $150K or less Students must file a FAFSA/DREAM Application by March 2 At full implementation in , MCS will cover between 10% and 40% of systemwide tuition and fees – percent varies with total income The maximum award for is 20% of systemwide tuition and fees -- $1,092 for CSU and $2,436 for UC The MCS award will be reduced by any Federal, State, or institutionally administered grants or fee waivers received by the student Student must be enrolled at least half time (6 units) Student must maintain satisfactory academic progress Beginning there will be a 4-year time limit 13

14 Resources CSU Financial Aid Information: UC Financial Aid Information: FAFSA and FSA-ID Information - Cal Grant and MCS Information - or www.csac.ca.gov California DREAM application - What will my monthly repayment be for student loans? loans/understand/plans/standard/comparison-calculator