1. Financial Aid 101 2018-2019 Presented by: Gina Becerril
Director of Financial Aid
Occidental College

2. Purpose of Need-Based Financial Aid
Access to college
Choice among colleges
Not a reward for academic merit

3. Basic Premise of Need-Based Financial Aid
Students and parents are the primary source of funds for higher education and are expected to contribute to the extent they are able, as measured by a national federal process.
“Need analysis” measures a family’s ability, not willingness, to pay for higher education.

4. Myths Scholarships are only for A students
You should go to the school that gives you the most money
Financial aid is only offered at some schools
Only apply to the least expensive schools
I won’t qualify because my neighbor didn’t
We make too much and we won’t qualify

5. How to Determine Financial Aid Eligibility
Student Budget $72,000 Family Contribution $20,000 Student’s Need $52,000 Need = eligibility for financial aid

6. Student Budget Tuition/Fees Room & Board Books & Supplies
Personal Expenses
Transportation
Budgets will vary from school to school
Cal States ≈ $25,000+ UCs ≈ $34,000+ Private Schools ≈ $70,000+

7. How to Apply FAFSA CSS PROFILE
Cost
FREE!
$25 for 1st school plus $16 for each additional school
How to Complete
Online
Online profileonline.collegeboard.com
Who Needs It?
Every school!
Only certain schools, mainly private colleges*
Who Completes It?
Student and custodial parent(s) only
Student and custodial parent(s)
Non-custodial parent completes a separate application; the Non-custodial PROFILE
Why is it required?
To assess and award federal and state aid
To assess and award institutional aid
When is it available?
October 1, 2017
*If a school requires the CSS PROFILE, they also require the FAFSA. The CSS PROFILE does not replace the FAFSA, it is in addition to the FAFSA.

8. Definition of Custodial Parent
In order to provide fair treatment to all families, the FAFSA & CSS PROFILE will collect parental information from both legal parents if they live together, even if they are not married to each other. This allows aid to be based on the parents’ relationship with the student, instead of the legal relationship between the parents (married or not married).
In the case of a two parent household, the custodial parents are both of the student’s legal parents (biological or adoptive).
In the case of divorced/separated parents, the custodial parent will be the parent (biological or adoptive) that the student lived with the most in the 12 months prior to completing the aid application(s).
If the custodial parent is re-married, the step-parent will also be considered a custodial parent (even in cases where a prenuptial agreement was signed).

9. Factors Considered in Determining Need
Income of custodial parent(s) and student
Assets of custodial parent(s) and student
Number of family members in the household
Number of dependent children in college
Age of older parent
Home, retirement, and business assets do not have to be reported on the FAFSA.
HOWEVER, these assets are often considered by private colleges and are reported on the CSS PROFILE.

10. Special Circumstances Considered by aid administrators to reduce family contribution
Loss or reduction in family income
Death or illness
Marriage or divorce
High out-of-pocket medical/dental expenses
Other unusual circumstances
The FAFSA does not consider consumer debt
(credit cards, personal loans, mortgages, etc.)
as a special circumstance

11. Basic Tips & Helpful Hints
File on-time
If you don’t know whether to file an aid application, file anyway, better safe than sorry
Divorced? Include custodial parent information ONLY for both the FASFA and the CSS PROFILE
Remarried? Include step-parent’s information on the FASFA and the CSS PROFILE
You might be asked to provide information about the non-custodial parent on a separate application (i.e., CSS Non-Custodial PROFILE)

12. Common Errors
Providing inaccurate or incomplete data on aid applications
Carefully read all questions asked.
Make sure you check if the question is asking for parent or student information
Misrepresenting Assets
Retirement assets & home equity are not reported on the FAFSA
REPORT equity on stocks, bonds, other investments, equity on other real estate.
Misreporting household size/number in college
List only the members living in the household whom the parents support.
Do not report parents in college; only dependent children enrolled at least half-time
Not submitting all required documents by a school’s deadline
Visit each school’s Financial Aid website for details about required documents
Make sure you know your deadlines.

13. Sources of Financial Aid
Federal Government
State Government
Post-Secondary Institutions
Private Agencies

14. Types of Aid Gift Aid Self-Help Grants Work Study Scholarships
Student Loans
Need-Based Aid
Non Need-Based Aid
Institutional Need-Based Grants/Scholarships
Merit Scholarships
State Grants
Athletic Scholarships
Federal Grants
Veteran Benefits
Federal Work Study
Federal Unsubsidized Student Loans
Federal Subsidized Student Loans
Federal Parent PLUS Loan

15. Need-Based Gift Aid Need-based Federal Grants
Pell Grants $5,920 max for 17-18
SEOG………………………$4,000 max for 17-18
Need-based State Grants/Scholarships
Cal Grants A & B (Need & GPA)
CSUs……………………….. $ 5,742 in 17-18
CA Private Schools…. $ 9,084 in 17-18
UCs…………………………… $ 13,900 in 17-18
Cal Grant C……………………………….. waives CA Community College fees
Middle Class Scholarship………….. covers up to 40% of tuition/fees at UCs and CSUs
College Need-Based Grants/Scholarships
Amounts vary from school to school

16. Middle Class Scholarship
Must be a CA resident attending a UC or CSU
Must be a U.S. Citizen or permanent resident
Available to students whose family income is up to $165,000
For families who do not qualify for Cal Grants
Families with incomes of $110,001 - $165,000 can receive a reduced scholarship of no less than 10% and no more than 40% of the mandatory system wide tuition and fees

17. Eligibility for Cal Grants
be a U.S. citizen or eligible non-citizen
be a California resident
meet income requirements
meet asset requirements
meet GPA requirements
attend a California college or university in

18. Cal Grant Ceilings 2018-2019 Income Ceilings for Dependent Students
Family Size
Cal Grant A
(3.0 GPA)
Cal Grant B
(2.0 GPA)
Cal Grant C
(no GPA requirement) 6+
$114,300
$62,800 5
$106,000
$58,200 4
$98,900
$52,000 3
$91,000
$46,700 2
$88,900
$41,500
Asset Ceiling for Dependent Students
$76,500
All parent and student assets reported on the FAFSA are considered (excludes primary home, business equity, and retirement accounts).

19. California Dream Act Application (AB540)
Allows non-citizen students the ability to receive state aid. Students must:
Meet all GPA and income/asset requirements set by the state
Have attended at least three full years in a California public or private school
Have graduated from a California high school or attained the equivalent prior to the start of the college term
Certify that if without lawful immigration status, the student will file an affidavit with the college or university they attend stating that they have filed an application to legalize their immigration status, or will file an application as soon as they are eligible to do so.
This is different from DACA (Deferred action for childhood arrivals). AB 540 is still in place.

20. Merit Scholarships
Many colleges offer scholarships based on academic and leadership qualities
Different colleges will have different ways to apply
Make sure you are aware of renewal requirements (i.e. GPA)

21. Outside Scholarships
Available from companies, religious organization, and community organizations
Usually require a separate application
Some require transcripts, essays, interviews, or auditions
Very competitive…try, but don’t be disappointed
Be wary of scholarship search engines
You can find outside scholarships
through various free search engines:
fastweb.com
unigo.com/scholarships
cappex.com/scholarships
Don’t be scammed!
DO NOT pay to search or apply for scholarships!

22. Outside Scholarship Policy
By law, all resources must be taken into account when determining eligibility for aid programs, this includes outside scholarships. If a student has had their need fully met, an outside scholarship will decrease loans, work eligibility, and need-based grants.
Outside Scholarships cannot replace the calculated
family contribution
BEST POLICY
Reduce Loan or Work First
In rare cases, may reduce grant or scholarship

23. Loans… an investment in your future
Money students and parents borrow to help pay college expenses
Repayment usually begins after the student has graduated
Most student loans have a grace period (time between when student leaves/graduates school to when repayment begins)
Always know interest rates/repayment policies/fees associated with any loans you borrow
Only borrow what you really need

24. Colleges may have their own private loan programs.
Types of Federal Loans terms (18-19 interest rates will not be available until summer 2018)
Federal Direct Subsidized Loan- interest accrues when grace period begins
4.45% interest (subject to change every year)
6 month grace period
Federal Direct Unsubsidized Loan- interest accrues when money is disbursed
Not based on need
Parent PLUS Loan- interest accrues when money is disbursed
7.00% interest (subject to change every year)
Repayment begins 60 days after final disbursement of the year
(or can be deferred until student graduates)
Colleges may have their own private loan programs.
Make sure to ask!

25. Student Employment
Work Study- federal work program available during school year for students with financial need
Amount of work study awarded is determined by school
Regular work earnings during the school year to help with expenses
Time management skills
Work experience

26. Aid Packages
Availability of funds and institutional policy will influence amount and type of aid offered
Many schools are unable to meet full financial aid eligibility (need) due to limited resources
Apply on-time!

27. Evaluating Packages Biggest is not always best
Unmet need must be considered
Is the full cost of education realistic?
Loan balances after graduation
Terms and conditions of loans offered
Renewable vs. non-renewable scholarships
Types of aid offered in view of student’s:
Career objectives
Work expectations

28. Evaluating Packages… Example 1
Need
School 1
School 2
Student Budget
$31,000
$70,000
Family Contribution
$8,000
$10,000
= Financial Need
$23,000
$60,000
Aid
Cal Grant
$13,900
$9,084
Subsidized Loan
$3,500
5% College Loan
$2,200
University Scholarship $0
$45,216
Cost
Total Aid
$19,600
Unmet Need
$3,400
Out-of-Pocket
$11,400

29. Evaluating Packages… Example 2
Need
School 1
School 2
Student Budget
$70,000
Family Contribution
$8,000
$10,000
= Financial Need
$62,000
$60,000
Aid
Cal Grant
$9,084
Subsidized Loan
$3,500
5% College Loan
$6,200
$2,200
University Scholarship
$43,216
$15,216
Merit Scholarship $0
$30,000
Cost
Total Aid
Unmet Need
Out-of-Pocket
Loans Awarded
$9,700
$5,700

30. Net Price Calculator (NPC)
The NPC is a quick and useful tool which can help you understand how to finance an education.
Federal government mandates all colleges have one
Each NPC is specific to that school
Based on the information you enter, you will be provided with an estimated financial aid award
Not an actual aid application!

31. Questions?