What You Need to Know About Financial Aid FAFSA – for US Citizens Dream Act Application – for non-US Citizens CSS Profile – for many Private Institutions

What is Financial Aid? Financial aid is funds provided to students and families to help pay for postsecondary educational expenses

What are the Basic Concepts of Financial Aid?  Cost of Attendance  Expected Family Contribution  Financial Need

What is Cost of Attendance (COA)  Tuition and fees  Room and board  Books and supplies  Transportation  Miscellaneous personal expenses

What is the Expected Family Contribution (EFC)  Amount family can reasonably be expected to contribute  Stays the same regardless of college  Two components Parent contribution Student contribution  Calculated using FAFSA data and a federal formula

What is Financial Need Cost of Attendance – Expected Family Contribution = Financial Need

Need Varies Based on Cost

Sources of Financial Aid  Federal government  States  Private sources  Employers  Civic organizations and churches

Types of Financial Aid  Scholarships  Grants  Loans  Employment

Common Federal Aid Programs  Federal Pell Grant  Federal Supplemental Educational Opportunity Grant (FSEOG)  California Chafee Grant  Direct Subsidized Loan  Direct Unsubsidized Loan  Federal Work-Study  Teacher Education Assistance for College and Higher Education Grant (TEACH)  Perkins Loan  Direct PLUS Loan ‘

California Grant Programs  *CalGrant: awarded to students who meet GPA & financial need requirements – for ELIGIBLE CALIFORNIA SCHOOLS. (Many For-Profits NOT ELIGIBLE!)  Blue & Gold Opportunity Plan: FREE TUITION for UC students whose families earn $80,000 or less.  Middle Class Scholarship: TUITION program for CSU & UC students whose families earn up to $150,000 (sliding scale).

Federal Loans  Stafford Subsidized are for students with financial need & not charged interest while in school. (4.8%) Unsubsidized for all eligible students & accrues interest when loan is paid out. (6.8%)  PLUS Parents can help pay for their child's education expenses as long as certain eligibility requirements are met.  Perkins students show exceptional financial need & has a low interest rate.  Private have higher interest rate & have harder repayment plans

Free Application for Federal Student Aid (FAFSA)  A standard form that collects demographic and financial information about the student and family  May be filed electronically (available in English and Spanish)  Information used to calculate the Expected Family Contribution  Colleges use EFC to award financial aid  FAFSA is filed every year starting January 1 st through March 2 nd

California Dream Act Application  For Non-Citizens Who Qualify for AB 540: * Must have attended a CA school for 3 years * Must have graduated from a California HS * Must register or be enrolled at an accredited CA college or university * Must file affidavit with college or university promising to file for legal residency asap. * May not hold a valid lettered non-immigrant visa.

FAFSA on the Web  Web site:  FAFSA on the Web available on January 1, 2016  FAFSA on the Web Worksheet: Used as “pre-application” worksheet Questions follow order of FAFSA on the Web

FAFSA Overview: 7 Step Process  Step 1 Is about the Student  Step 2 School Selection  Step 3 Determine Student’s Dependency Status  Step 4 Parent Information  Step 5 Student Income & Assets  Step 6 Signatures & Certifications  Step 7 Confirmation

Student Financial Aid (PIN)  Web site:  Sign FAFSA electronically  Not required, but speeds processing  May be used by students and parents throughout aid process, including subsequent school years

FAFSA Processing Results  CPS notifies student of FAFSA processing results by notification containing a direct link to student’s on-line SAR  Student with PIN may view SAR on-line at  Institutional Student Information Record (ISIR) sent to colleges listed on FAFSA approximately 10 to 14 days after FAFSA submitted  College reviews ISIR May request additional documentation, such as copies of federal tax returns

Student Aid Report  Received electronically or by mail,  Summarizes FAFSA information  Can make corrections or changes, if necessary  List all schools that you submitted  Displays the EFC and DRN (upper right-hand portion on the SAR) EFC- Expected Family Contribution; used to determine eligibility for federal aid DRN- Data Release Number; used to send SAR to additional schools  Electronically within 3-5 days if submitted online with a valid address

Other items Special Circumstances  Cannot report on FAFSA  Send explanation to financial aid office at each college  College will review special circumstances Request additional documentation Unexpected Changes  Change in employment status  Change in parent marital status  Unusual dependent care expenses  Medical expenses not covered by insurance Decisions are final and cannot be appealed to U.S. Department of Education

 To check legitimacy of scholarship search services or individuals, for information about financial aid scams  Tips to avoid being scammed visit these Web sites: U.S. Department of Education: Federal Trade Commission: Better Business Bureau: Avoid Being Scammed

Summary of Financial Aid Process  Submit all required forms, including FAFSA, by each college’s published deadline (but no later than March 2)  By March 2, 2011, submit a Cal Grant GPA Verification Form  Keep a copy of all forms you submit  Review you paper Student Aid Report (SAR) or electronic SAR Acknowledgement  Watch for your financial aid award notification from colleges after their admission decisions are announced  Be sure to reapply for financial aid each year after January 1  ASK QUESTIONS!