1. Ensuring Transfer Success 2014 Financing a UC Education

2. UC is affordable! It costs less than you think.
Most families pay less than the full price of attending UC.
Over 50% of undergraduates pay no systemwide tuition and at all.
Over two-thirds of students receive grants and scholarships, with an average award of around $16,300.
All students should apply for financial aid.
This is the only way to guarantee consideration for every type of aid possible, regardless of income level.
There are lots of ways to finance a UC education.
More than half of all UC undergraduates get some form of financial aid; about half get some amount of gift aid—grants, scholarships, or fellowships—that doesn’t have to be paid back.
First, students must apply for admission in November.
Then, they must submit a FAFSA or California Dream Act Application and Cal Grant GPA verification form between January 1 and March 2.
Most students/families do not have their income taxes completed by the time they file a FAFSA, but students/families should file a FAFSA or California Dream Act Application in January or February anyway, and estimate their income and taxes.
After filing their income taxes, corrections must be made by submitting an electronic Student Aid Report (SAR).
The IRS Data Retrieval Tool allows students and parents to access IRS tax information needed to complete the application and transfer the data directly into the FAFSA from the IRS web site. If students/parents have filed taxes, they may be able to view and import tax return information automatically by using the IRS Data Retrieval Tool. Tax data should be available 1-2 weeks after electronically filing taxes and 6-8 weeks after filing a paper tax return.
Students must provide documentation to the financial aid office immediately as requested.
It’s free to apply for financial aid; workshops are available to help you complete the FAFSA and California Dream Act Application, and we have printable guides for completing both the FAFSA and California Dream Act Application available on our website:
FAFSA guide: admission.universityofcalifornia.edu/paying-for-uc/files/fafsa-tips.pdf
California Dream Act Application guide: admission.universityofcalifornia.edu/paying-for-uc/files/dream-act-tips.pdf
Community college students can qualify for Federal Pell Grant and Cal Grant B. They may also qualify for Cal Grant A reserve award, which can be activated upon transfer.
Students should expect to borrow and work part time.
Financial aid is important, but it is also important that students find a school that is a good fit for them.
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3. Financing a UC education is a partnership between the student, his or her parents and UC.
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4. Students
UC expects students to cover part of the cost of attendance through working and borrowing.
Parents
UC expects parents to contribute based on their financial resources and circumstances as reported on the FAFSA or California Dream Act Application. UC
UC covers the remaining costs with gift aid from a variety of sources. Each campus determines a student’s total grant eligibility and meets it using federal, state and UC’s own gift aid programs.
Student part-time employment (less than 20 hrs/wk) during school terms, and full-time employment during summers.
Student loans—available to nearly all U.S. citizens and permanent residents.
For dependent students under 24 , most* families will be expected to contribute,** in addition, students will be expected to contribute.***
For students 24 and over and financially-independent students, the students* will be expected to contribute.***
*Based on the FAFSA/California Dream Act Application calculation of ability-to-pay—very low-income families will not be expected to contribute.
**Parent loans (PLUS) are available if parents can’t cover the amount out-of-pocket—no payment during enrollment.
***Nearly all UC students seeking financial aid will be expected to work and borrow about $8,700-$9,700 for dependent students and between $10K-$12K for independent students—exceptions are students with scholarships, or foster youth or veterans benefits, etc.
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5. SAMPLE FINANCING PLANS
These sample financial aid packages illustrate how the amount students are expected to contribute through part-time work or borrowing stays constant, regardless of income level.
Because independent students have no parent contribution, they are expected to provide a greater portion of their own support.
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6. NET COST is the key to comparing different college prices.
Estimates of annual share of UC net cost for:
Single independent students
$10,000-$12,000
Dependent students in a family of four with one in college:
$9,000-$10,000 for family earning $20,000
$11,000-$13,000 for family earning $40,000
$14,000-$16,000 for family earning $60,000
$19,000-$21,000 for family earning $80,000
The total cost of attendance or student budget/“sticker price” is not what low- and low-middle income students and their families actually pay to attend UC. They pay less.
The “net cost,” or the student and family cost, is the critical amount to compare to other options for college: the total cost of attendance for that student (student budget) less the total of all gift aid. (For this comparison, ignore student employment and both student and parent loans.)
If a student files the FAFSA/California Dream Act Application and GPA verification on time (March 2) and has cooperated with any requests for additional documentation, UC will provide enough UC grant to “backfill” after the student and his/her parents and various federal and state government grants have done their parts.
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7. Average UC Cost of Attendance (2013-14)
Living off campus (not living with family): $29,200
The net cost is actually much less for almost half of UC’s undergraduate students because they receive gift aid.
For a full-time student living off campus (not living with family), the typical cost is about $29,200 ($9,700 room and board allowance), but the net cost is actually much less for almost half of UC’s undergraduate students because they receive gift aid.
Average commuter budget (for a student living with family): $24,000 with a $4,500 room and board allowance.
Non-fee costs, such as room and board (both on- and off-campus), are the biggest portion of the cost of attendance.
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8. Average UC Cost of Attendance (2013-14)
Living on campus: $32,400
The net cost is actually much less for almost half of UC’s undergraduate students because they receive gift aid.
For a full-time student living on campus, the typical total cost is about $32,400, but the net cost is actually much less for almost half of UC’s undergraduate students because they receive gift aid.
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9. Our Blue + Gold Opportunity Plan will cover systemwide tuition and fees for students who qualify.
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10. How does it work? How do students apply?
The Blue and Gold Opportunity Plan gives California families who qualify for financial aid the assurance that they won’t have to pay UC’s systemwide tuition and fees if their total income is less than $80,000.
Qualified students must be in their first two years of attendance for transfer students (first four for students entering as freshmen).
How do students apply?
Students must file the FAFSA or the California Dream Act Application and Cal Grant GPA Verification form by March 2 of the year they plan to enter UC.
No separate application is needed; students will receive benefits automatically if they qualify.
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11. The Blue and Gold Opportunity Plan provides a minimum amount of grant money students can receive.
Students with sufficient financial need can qualify for even more grants to cover other educational expenses, such as room and board, books and transportation.
UC currently provides grant and scholarship assistance averaging over $16,000 per student to more than half of undergraduates.
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12. Starting in the academic year, California’s Middle Class Scholarship (MCS) program will provide scholarships to undergraduate students with family incomes up to $150,000. Eligible students will be notified of the actual scholarship amount by the California Student Aid Commission (CSAC).
How does it work?
There are no separate forms required to apply for the MCS, but students will need to apply for financial aid every year by March 2.
Students may receive a partial scholarship to help pay UC tuition if they:
Are a California resident and apply for financial aid on time (March 2) and
Have a total family income under $150,000 per year.
Eligible students will be notified of the actual scholarship amount by the California Student Aid Commission (CSAC).
What should students expect?
The program will phase in over four years.
In , when fully phased in, the maximum scholarship amount will be:
40% of systemwide tuition and fees for students whose family income is up to $100,000, and
Between 10% and 40% of systemwide tuition and fees for students whose family income is up to $150,000 per year (based on a sliding scale).
The maximum award for UC students in will be $1,707 (subject to state funding).
Things to keep in mind
MCS award amounts are determined after a student is awarded any federal Pell grant, Cal Grant and UC need-based grants.
A student will be awarded a scholarship only if these awards, taken together, do not exceed the amount that the student is entitled to under the MCS program.
The final award amount will be based on the number of eligible students statewide and the funding allocated for the program by the State Budget.
The MCS award is a minimum level of grant and scholarship assistance. Many students with financial need will qualify for UC grants or Cal Grants that are worth even more than the amount provided by the MCS program.
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13. Student Responsibility: Part-Time Work
UC expects that a student will work less than 20 hours per week when enrolled and full time when not enrolled.
Job placement assistance is available on campus.
Students do not have to qualify for a work-study job in order to find part-time work, either on or off campus.
Working more than 20 hours per week is associated with lower academic achievement and longer enrolled time to degree completion. The latter is a false economy, since protracted enrollment is costly.
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14. Loans: Investing in the Future
Education loans are available to families and students at all income levels.
A typical transfer student at UC has a manageable 10-year loan repayment--around $175/month.
Borrowing can enable students to work less and graduate sooner!
Federal Student Aid Repayment Estimator
Shows federal student loan balances and estimated payments under Standard, Graduated, Pay As You Earn, Income-Based Repayment (IBR), and Income-Contingent Repayment (ICR) plans: studentloans.gov/myDirectLoan/mobile/repayment/repaymentEstimator.action
Undergraduate loans—3.86% interest rate for amounts borrowed during (changes every year; 4.66% for ) with a 1.051% fee (taken out of disbursement amount).
A new law indexes federal student loan interest rates to a federal funds rate.
The Congressional Budget office anticipates an increase in the federal funds rate for , so student and PLUS loan interest rates are 4.66% for student loans and 7.21% for PLUS loans for parents.
Subsidized and unsubsidized loans have the same interest rate/fees.
Lower monthly payments are available too, but cost more over time.
Repayment Estimator
Students can view repayment options for average loan balances or enter individual loan amounts manually.
Estimated payments are calculated based on interest rates and information the student provides, including: tax filing status, adjusted gross income, family size, and state of residence.
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15. Family Responsibility
Determined by U.S. Department of Education via information reported on the FAFSA or by UC based on the California Dream Act Application
Amount based on the income and assets of custodial parent(s) for dependent students under age 24
Can be paid from savings, current income or federal parent loans (PLUS)
May be $0 for low-income families
Approximately $900 for families earning $40,000
Parent Contribution is derived from information provided on the financial aid application form.
There is no maximum income level which disqualifies a student from aid eligibility, so all families should be encouraged to apply (complete a FAFSA or California Dream Act Application).
Low-income families with $0 parent contribution comprise 41% of parents of grant recipients.
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16. PLUS Loans
Available to most families; maximum that can be borrowed is cost of attendance minus all other sources of financial aid
7.21% fixed interest rates, 4.3% loan fee for amounts borrowed during for the life of the loan; rates applicable to subsequent year’s loans may change based on statutory index
Family repayment can be reduced or deferred until a student and siblings graduate
Students can borrow an additional $4,000 in unsubsidized Stafford loans if family is denied a PLUS loan
File a FAFSA in order to obtain a PLUS loan, even if the student doesn’t expect need-based financial aid or a scholarship.
There is a credit check for the family borrower, but the standard for approval is “no adverse credit” which is a lower credit standard than that used to qualify for a credit card, for example.
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17. 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 $2,500 on the first $5,000 that they pay out-of-pocket.
Tax credits reduce the amount of taxes owed!
Information about the American Opportunity Credit can be found here: irs.gov/uac/American-Opportunity-Tax-Credit
Information about the Lifetime Learning Credit can be found here: irs.gov/Individuals/LLC
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18. What if parents don’t pay their share?
UC will attempt to help students find additional education loans so they don’t work more than half-time.
A creditworthy U.S. co-signer will bring the price down for such private loans.
UC will try to offer refinancing advice when a student leaves UC so their monthly repayment amount is manageable.
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19. Typical Community College Transfer at UC
Enrolls full time and graduates in 2.4 years
Works fewer than 20 hours per week
Borrows while enrolled
Obtains employment within 4 months after graduation
Earns an average of $37,000 with liberal arts BA and $44,000 for science and math BS upon graduation
Has monthly student loan repayments of around $175/month reflecting loans from UC (based on current interest rates and a 10-year term—lower monthly payments are available)
Among community college transfer students who graduated in , 56% borrowed while enrolled with average cumulative debt of $15,600
Loan repayment—reflecting loans from UC, based on 6.0% interest rate and a 10-year term.
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20. Financial Assistance for Specific Populations
U.S. military veterans
Former foster youth
Student parents
Undocumented students
DACA-eligible students
Families with changed circumstances
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21. U.S. Military Veterans
Most of UC’s student veterans transfer to UC from a community college.
Each UC campus has special services available to help veterans transition to college.
Notify the campus as early as possible about the veteran status of an incoming student.
Federal law no longer allows a Vet to have simultaneously the benefits of both a Cal Grant and also Chapter 33 education benefits for tuition and fees.
Tip: Try to save Chapter 33 benefits to use when attending a higher cost program!
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22. Former Foster Youth
Each UC campus has a liaison to work with incoming former or current foster youth.
Current foster youth are “independent” for financial aid eligibility.
Foster youth benefits are treated as scholarships, so they do not reduce other grant eligibility.
Assistance is available during school breaks.
Campuses won’t know if a student is a former or current foster youth unless the student mentions it in his or her admissions application or notifies the campus foster youth liaison.
In addition to financial aid, various campus programs offer guidance and counseling, academic advising, housing, and other support services that may include:
Orientation to university life
Student employment opportunities
Assistance with financial aid applications
Life skills counseling
Career planning
Priority class registration
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23. Student Parents UC welcomes student parents.
Campuses have support services for students with children.
Family housing may be available on or near campus.
Documented child care costs may be added to the student budget to increase eligibility for financial aid.
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24. Undocumented Students
May qualify for a nonresident tuition exemption under AB 540 and for state and UC financial aid under the California Dream Act.
The student must attend a CA high school for three or more years and graduate and
Certify that he or she is taking steps to legalize his or her immigration status or will do so as soon as eligible to do so (“AB 540” application/affidavit).
These students must file a California Dream Act Application and submit a Cal Grant GPA Verification Form by March 2.
AB 540 is available equally to citizens, permanent U.S. residents, and undocumented individuals who meet the California high school attendance and graduation criteria, but is not available to individuals with nonimmigrant visas.
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25. Undocumented Students (cont’d.)
Some UC campuses are providing institutional student loans to AB 540-eligible students who are not able to obtain federal student loans.
UC is sponsoring a state bill (SB 1210) that would establish a state student loan program to serve AB 540-eligible students who are not eligible for federal student loans.
Outside agency loans, grants or scholarships are the only option if students are not eligible for AB 540 status.
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26. DACA-eligible Students
Deferred Action for Childhood Arrivals (DACA) entitles students to be employed legally—which makes it much easier to find jobs to help cover some of their educational costs.
DACA has no effect on eligibility for the AB 540 tuition exemption or financial aid.
Some UC campuses are setting up programs so that AB 540-eligible students with DACA certification may work in institutional work-study programs.
We anticipate news on residency "flexibility" for some students with DACA certification who are NOT also eligible for AB 540. They may be able to qualify as state residents at UC for the LIMITED PURPOSE of not being subject to nonresident supplemental tuition after they can demonstrate that they, and their parents in the case of dependent students, have been present in California for at least the most recent 366 days of their legal presence associated with the DACA certification and have indicia of intent to remain.
If temporary state residency does become available to some DACA students, it will not be in the best interest of AB 540-eligible students to seek state residency under those circumstances. Certification of temporary state residency will be an advantage only to those DACA students who do not qualify for AB 540, as state residency, if it is granted in these cases, will be in effect ONLY during the time when the DACA certification is current and will not allow eligibility for federal, state, or UC institutional financial aid, only eligibility for in-state tuition, which AB 540 already confers.
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27. Changed Circumstances
When family income or other significant circumstances change after the filing of the FAFSA or California Dream Act Application, students may petition to have their financial aid awards reconsidered.
Each campus has a financial aid appeal process—check with the financial aid office on campus.
Most students work a lot while attending community college, but most community college transfer students aren’t be able to continue working as much when they enroll at UC.
These students can ask the financial aid office to consider future year income instead of prior year income when calculating financial aid awards.
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28. Tips on Managing Cost Paying Up-Front Costs
Only a portion of the shared cost has to be paid up front
Payment Plans / Credit Cards
UC campuses have options to spread out UC tuition and fee payments
Some UC campuses permit use of certain credit cards to pay tuition and fees
Paying Up-Front Costs
UC housing charges and fees are divided equally across quarters/semesters.
Likewise, financial aid (grants, scholarships or loans—work-study awards or other required student employment must be earned) is disbursed in equal installments by term
Students and families who have completed the financial aid process will be expected to pay only the difference between the UC charges and the financial aid applied to the student’s account.
Payment Plans/Credit cards
“Lump-Sum” payments can be deferred; make smaller, more even-sized monthly payments by electing a payment plan option.
There are sometimes additional fees associated with the use of a payment plan or a credit card.
These fees are intended to recoup the cost of the extra administrative processing involved and/or the cost of funds represented by these two special payment options.
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29. Bring Down Expenses Finish at UC as soon as possible
Apply for outside scholarships
Work part time
Make cost-saving choices
Roommates
Rent required text books
Travel cost
Choose on-campus meal plan wisely
Leave cars at home
Finish at UC as soon as possible
Take required courses first, electives second
Complete 15 units per term—that’s full time!
Attend summer school (aid is available!)
These are choices that the student can sometimes make in order to reduce the price of college; parents need to be aware and encourage these cost-saving choices.
Make cost-saving choices
Roommates: having more (as many is comfortable) reduces each student’s cost.
Textbooks: rental prices are often less expensive than the price of a used text. For recommended textbooks—campus library reserve or public library are good places to find/use the book without purchasing/renting
Travel cost: purchase airline tickets way ahead of time or on sale and look for shared-rides home with other college students; many transfer students tend to enroll at campus located near where they already live—personal and transportation cost of student budget can be greatly reduced if they don’t need to travel for school breaks
Meals: if students live on campus, select a plan with a lower number of campus dining facility meals included—students don’t always use the plan and at some campuses unused meals don’t rollover to the next term
Cars—leave cars at home and use a car sharing service (e.g., Zip-Car) when needed
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30. Campus Financial Aid Resources
UC Berkeley
(510)
financialaid.berkeley.edu
UC Davis
(530)
financialaid.ucdavis.edu
UC Irvine
(949)
UCLA
(310)
fao.ucla.edu
UC Merced
(209)
financialaid.ucmerced.edu
UC Riverside
(951)
finaid.ucr.edu
UC San Diego
(858)
fao.ucsd.edu
UC Santa Barbara
(805)
finaid.ucsb.edu
UC Santa Cruz
(831)
financialaid.ucsc.edu
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31. For More Information Paying for UC
admission.universityofcalifornia.edu/paying-for-uc
UC Online Admissions Application
universityofcalifornia.edu/apply
Electronic FAFSA
fafsa.gov
California Dream Act Application dream.csac.ca.gov
U.S. Dept. of Ed. & FAFSA Processing:
ed.gov
Federal PIN for FAFSA
pin.ed.gov
Cal Grant Information
csac.ca.gov
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