1. Financing Your College Education
Presented by
Katy Fitzgerald
Mission College Financial Aid
Student Enrollment &
Financial Services Recruitment Supervisor
Foster Youth Liaison

2. What You’ll Learn Today
Planning for college (or lack thereof)
Types of financial aid
Gift aid
Self-help aid
Application process
FAFSA
California Dream Act
CSS Financial Aid PROFILE
Calculating your eligibility
Cost of attendance
Awarding & packaging
What’s next?
Here’s what you’ll learn today

3. Why College?
It doesn’t take a rocket scientist to understand that a person with a college education is going to be more employable than someone without, would make more money and the likeliness of unemployment decreases

4. What we should have done!
$50 per month to each child’s college savings account AT BIRTH!
In some cases, we should have started before birth!
Planning is everything, right? 50x12=600; 600x18=10,800

5. Don’t “should” on yourself!
Life happens and we don’t always get to what we “should” have done or hoped to do!
Commitment to high-quality educational choices at the K-12 level are made that impact our ability to save!
Time “slips” by faster than we thought it could!
(It happens to those of us who are financial aid professionals, too!)
As my director likes to say, ‘don’t should on yourself’. Life happens and often brings unexpected changes. Time flies and your children are attending high school.

6. What now?
Maybe I didn’t plan enough – what can my child look forward to now for college costs payment options?
What can I afford?
What now? What are our options?

7. Types of Financial Aid  Sources
Federal government
State agency/government
Colleges and universities
Private agencies, companies, foundations and parents’ employers
Ex: service-based orgs (Kiwanis), lenders/credit unions, insurance companies (Foresters) provide scholarships
For federal, it comes from the Dept. of Education; for state, it is the Calif. Student Aid Commission; of course the colleges themselves, typically in the form of scholarships and what families often don’t realize is that there are local organizations that they may already be associated with that provide funding for college students, such as Kiwanis & Lions’ clubs, your local church, a community service agency or perhaps the company that the student or parent is employed by. These are often untapped resources.

8. Types of Financial Aid  Categories
Gift Aid
Grants: Free money!
Scholarships: Free money!
Self-help Aid
Work-study: part-time job
Loans: must be paid back
We try to keep it simple by having it broken down into two basic categories, gift aid & self-help aid
COLLEGE
Financial Aid is any money given, paid or loaned to help pay for education.

9. Types of Financial Aid – Gift Aid
 Grants:
Federal Pell Grant
up to $5,645 a year
Federal Supplemental Educational Opportunity Grant
up to $4,000 a year
Federal TEACH Grant
Iraq & Afghanistan Service Grant
up to $5,080
As you can see, there are different types of federal grants, coming from the US Education Dept.

10. Types of Financial Aid – Gift Aid
 Cal Grants:
Cal Grant A Entitlement Awards (fees and tuition)
CSU: $5,472
UC: $12,192
Private college: $8,056
Cal Grant B Entitlement Awards (+living allowance)
$1,473 first year; $ [up to] $12,192 2nd yr+ CC= $1,473
Cal Grant A & B Transfer Entitlement (CCC to 4-yr.) up to $12,192
Cal Grant C Awards (career technical programs)
Up to $2,462 CC= $547
Cal Grant A Competitive Awards
Minimum 3.0 GPA
Cal Grant B Competitive Awards
Minimum 2.0 GPA
Of course, Cal Grants come from the State of Calif. and are processed for awarding by the Calif. Student Aid Commission, known as CSAC

12. First three CA schools listed will be used for Cal Grant consideration (do not have to be in top 3 positions)

13. Types of Financial Aid – Gift Aid  Middle Class Scholarship
New for
For new, continuing and transfer undergraduates
Attend/plan to attend a UC or CSU campus
Be a U.S. citizen, permanent resident or AB540 status
Maintain 2.0 GPA
Family incomes up to $150, 000
Apply as of 1/1/2014 by either completing the FAFSA or Cal Dream Act Application

14. New: Middle Class Scholarship
For the 14/15, 15/16, and 16/17 school years the MCS amount is reduced
CSU maximum is approximately $766 and for the UC $1,700
When fully implemented in the maximum award will be 40% of systemwide tuition fees at a UC or CSU

15. Types of Financial Aid – Gift Aid
 Fee & Tuition Waivers
Community College - Board of Governor’s Fee Waiver (BOG)
Waives enrollment fees, FAFSA may be required
CSU State University Grant (SUG)
Amounts vary, FAFSA is required
or csumentor.edu
UC Grant
Amounts and application process vary
Independent College Grants or
In addition to federal & state grant funding, the different college systems offer some type of financial assistance for tuition and enrollment fees. Eligibility & the application process does vary among the different systems.

16. Financial Aid for Specific Populations
Middle Class Scholarship, new for :
Foster Youth: Chafee Grant ~ up to $5000
Athletes:
Students with dependents: EOP&S/CARE and CalWORKs
Students with disabilities:
Military and their dependents:
AB540 Students: California Dream Act
Early Childhood Education/Child Development:
Teachers: Cal Grant A & B Extended Benefits:
in addition to grants, Loan Forgiveness:
Health Occupations-Scholarships & Loan Repayment:
And of course there’s aid directed to specific populations such as athletes, students with disabilities, foster youth, specific programs of study or majors

17. Types of Financial Aid – Gift Aid
Institutional and Private Grants & Scholarships
Provider decides on
Awarding criteria
Application deadline
Forms or applications
Awards may be
Merit-based (academic performance-GPA)
Need-based (financial need)
Combination of the two
There are many types of scholarships and they often go unclaimed as people don’t always do the research to find out about their availability. Whomever the provider is, gets to decide on the criteria, so it’s not always about he straight A student or the lowest income families. Colleges and universities often have foundation based scholarships as well as links to trusted scholarship websites.

18. Scholarships No excuses . . .
APPLY! APPLY! APPLY!
No excuses . . .
There is a lot of money available that goes unclaimed
Scholarship Tips:
Create a Resume
Get active in the community:
Clubs
Community Service
Document your community service
Preview – Write – Review your essays
Finish the application and turn it in on time
Just like applying for admission to a university, a personal statement will likely be required as part of the scholarship application. Studnets will want to explain how this scholarship will make a difference for them to pursue a higher education; indicate if they’ve had any hardships while growing up, either personal or academic, and also mention what types of community service they’ve done. Closing should be about how they will give back to the community after completing their college education.

19. Types of Financial Aid – Self-Help
 Federal Work Study
Campus-based aid
Must be earned through work
Job may be on or off campus (~18 hrs./wk)
Undergraduate and graduate students
No annual maximum (~$2,000 - $3,500)
Funding levels vary at each institution
Need-based
This can be a great opportunity for students who may live on campus or be ‘transportation challenged’ to be able to work, attend classes and study all in the same location; they’ll receive job training & experience, which for some may be their first; they’re paid an hourly wage & receive a paycheck just like other employees of the college. This is a program with limited funding as awarded by Ed. Dept. to schools, often packaged on a first-come, first-served basis. Filing early & meeting deadlines becomes imperative. See the school’s website for deadlines & awarding policies.

20. Types of Financial Aid – Self-Help
 Loans:
Federal Perkins Loan (up to $5,500 u./$8,000 g.)
School serves as lender
William D. Ford Federal Direct Loan Program
Money comes from U.S. Dept. of Education
Private Loans (also known as ‘alternative’ loans)
Money comes from lending institutions (banks)
Loans can be a good thing as long as you are smart about them. Since loans tend to be auto-packaged, borrowing more than what is needed can easily happen if students do not carefully review their award offer. Always consider the big picture, like how long will a student be attending college for their program completion? Will their be multiple years of loan support required? Is there a lower-cost path?

21. Types of Financial Aid – Self-Help
 Direct Loan (DL) Program Includes:
Subsidized Stafford Loan (Need-based)
Up to $5,500 depending on grade level
Unsubsidized Stafford Loan (Not Need-based)
$5,500-$20,500 depending on grade level & dependency status
PLUS Loan (Parent Loan for Undergraduate Student)
Max based on COA minus other aid received (not need-based)
Annual and aggregate loan limits apply
6-month grace period
A financial aid package may be comprised of multiple types of loans to meet educational expenses. Need-based loans, which tend to have fixed & lower interest rates, will be offered first. Parents can borrow on behalf of the students with a PLUS loan. Different types of loans can be packaged in combination.

22. General Eligibility Criteria
Status
U.S citizen, permanent resident or meet AB540 criteria
Valid Social Security number (Parents do not need a SS#)
For CalDreamAct, no SS# is required for student or parent
Males between ages registered for Selective Service
Received HS Diploma or equivalent: GED, CHSPE, Homeschooled
Enrollment
BOG Fee Waiver & Pell Grant will pay as low as ½ unit
FSEOG, FWS, DL, Chafee & Cal Grants and loans require at least halftime status
EOP&S requires full time status (with exceptions)
Must be enrolled in an eligible program of study
Satisfactory Academic Progress
Must complete 2/3 of units attempted cumulatively
Must maintain a 2.0 ‘C’ GPA
When reviewing the criteria for status, this applies only to the student applicant, not the parents. One of the big myths about receiving financial aid is that students must be enrolled full time and as you can see, that is not the case. Students must to be enrolled in an eligible program of study and need to make satisfactory academic progress in order to receive aid & maintain their eligibility. Be sure to check the school’s policy on this. Students must reapply for financial aid each year.

23. Application Process  Applying for Aid
When applying to an institution, a student should ask the following:
What forms does the institution require?
In addition to the FAFSA, does the school require the completion of an institutional form?
For example, CSS Profile
What are the filing deadlines for each form?
What type of deadline?
Always ask questions. Be the ‘squeaky wheel’. Understand that missing a deadline can jeopardize a student receiving an award.

24. FAFSA on the Web’s Homepage
Be sure to go to the correct website as noted, otherwise you may go to a similar site and be charged to complete what is to be a ‘free’ application for federal student aid, hence the name FAFSA. There are many convenient features built into the application, like smart logic and the IRS Retrieval Tool as well as the ability to go in and make corrections to an already submitted application. Students and Parents may estimate their previous year income & submit the FAFSA to meet any school or state deadlines for preliminary awarding. However, a correction to the FAFSA must be submitted once taxes have been filed and processed by the IRS. This can be easily done by using the IRS Data Retrieval Tool. Corrections to income & assets can effect a student’s final award offer. Any school that participates in federal Title IV funding will require the completion of the FAFSA. Schools will download the FAFSA results that the student listed on the application.

25. Wherever the cursor is, Help and Hints will tell you what kind of answer they are looking for, what to include, what not to include-be sure to scroll for complete explanation

26. California Dream Act www.caldreamact.org

27. Dependency Status -FAFSA
If students are NOT able to check any of the boxes below, parents income and asset information will be required to complete the FAFSA process.
Parents need to understand that until the applicant can check one of these statuses, it is first the families responsibility, then the government’s, to support the educational costs for the student. For many, this may be until the student turns age 23.

28. Questions About Assets
Assets. This is not a time to brag about them. Knowing what to claim and how much is important. If the current amount owed exceeds the current market value, that is not an asset with a positive net worth, even in the case of a property rental. College savings plans are considered an asset and let’s face it, they’re being used for exactly what they were intended; once those funds are exhausted, that will change how assets are calculated as a resource. Businesses with fewer than 100 employees should not be valued here; any value will be calculated into the adjusted gross income.
Net worth means current market value minus debt. If net worth is negative, enter ‘0’

29. Information for Students & Parents www.studentaid.ed.gov
This is a great website for students and parents to do lots of exploring.

30. CSS Financial Aid PROFILE https://student. collegeboard
Many private colleges will require this additional financial aid application to be completed.

31. CSS Financial Aid PROFILE
Registration Guide
No paper registration form
On-demand webinar
3 step process
$25 initial application & one college report
$16/add’l college
While the FAFSA is free, there is a cost associated with the filing of the CSS Profile.

32. CSS Financial Aid PROFILE
Not used for awarding federal financial aid
May be filed earlier than the FAFSA – typically October of the Senior year
Not all schools require (California Public Colleges don’t use)
Assistance is available
To find out which schools require the CSS Profile, you can check the College Board website but also check the school’s website for confirmation.

33. Timeline of Financial Aid  Application Forms
CSS/ Financial Aid Profile
As early as October 1st of the senior year
Free Application for Federal Student Aid
. . . FAFSA on the Web (FOTW)
Beginning January 1st of the senior year
Cal Grant GPA Verification Form
By March 2nd of the senior year
Know your application timelines and filing deadlines; remember students must apply for financial aid each year and these timelines are recurring.

34. Calculating Financial Aid Eligibility  Basic Equation of Need (Eligibility)
Cost of Attendance (COA)
Expected Family Contribution (EFC)
Eligibility for Need-based Aid
Since the calculated EFC will be the same for all schools, the driving factor that determines the student’s actual need is the cost of attendance, mainly by tuition & fee expenses. You always want the cost of attendance to be higher than your expected family contribution

35. Calculating Financial Aid Eligibility  Cost of Attendance / Allowances
Standard Allowable Costs:
Tuition and fees: $ 1,358
Room and board: $ 4,518
Books and supplies: $ 2,460
Transportation: $ 1,179
Misc. personal: $ 3,096
Total standard allowance: $12,611
(based on ‘with parent’ COA)
(13-14 ‘off campus’ COA $19,253)
Additional Allowable Costs:
Dependent care
Study-abroad
Disability-related
Employment expenses for
co-op study
Student loan fees
So that all students are treated equally, a cost of attendance or student budget is determined by one of three factors: they will live on campus or with their parents or on their own paying rent while attending college. Annually, the DOE will factor these allowances as potential expenses the student could incur. Often, the higher the cost of attendance may provide for a more substantial award package.

36. Calculating Financial Aid Eligibility  Expected Family Contribution (EFC) What Is It?
Need analysis is the formula used in determining a family’s EFC
EFC is the measure of a family’s financial strength
What is in the calculation of Expected Family Contribution generated from the FAFSA:
Number in household size
Adjusted gross income
Number of dependents in college
Age of the older parent
Assets other than the family home
The FAFSA is trying to establish the financial strength of family. The information provided on the FAFSA goes through a complex need analysis and there are many factors that are taken into consideration that may be an offset to the reported income & assets.

37. Calculating Financial Aid Eligibility  Expected Family Contribution (EFC)
Federal EFC will be same at all schools
Federal financial aid eligibility varies based on institution’s Cost Of Attendance
Some schools may use institutional methodology (ex, Profile calculations) to award their own institutional funds
As the FAFSA is a federal form, the expected family contribution that it has calculated will be the same at all schools that the student has applied to.

38. Calculating Financial Aid Eligibility  Basic Equation of Need (Eligibility)
Cost of Attendance (COA)
Expected Family Contribution (EFC)
Eligibility for Need-based Aid
Since the calculated EFC will be the same for all schools, the driving factor that determines the student’s actual need is the cost of attendance, mainly by tuition & fee expenses. You always want the cost of attendance to be higher than your expected family contribution

39. Special Circumstances
Adjustments may be made to information on a case-by- case basis
Special circumstances may include changes to
Dependency status
Income and assets
Child support
Number in household or college
Private elementary/secondary tuition
Medical or dental expenses (not covered by insurance)
Again, life happens. While the Expected Family Contribution was calculated on the previous year income, that may not be the present income situation for the family. For example, both parents were working in the previous year but during the current calendar year or the academic year (which models fiscal year), one of the parents is no longer working. Another example is a one-time payout. So the previous year financial foundation that the EFC was calculated on is no longer the current picture. This is a special circumstance and students should contact the financial aid office for guidelines regarding this. The financial aid office may be able to override the previous year income to projected income and that may benefit the student for a better award package, possibly increasing grant eligibility. Just as an income decrease could effect the family’s current financial situation, so could the increase of certain unforeseen expenses going out. If you think you might have special circumstances, contact the financial aid office for guidance.

40. Cost of Attendance* w/parents off campus on campus
Comm. Coll.(CC) $12, $19, n/a
Cal.State Univ.(CSU) $16, $24, $24,223
Univ. of Cal. (UC) $24, $28, $33,320
Private (SCU,USC) $52, $59, $59,655
*Costs may not be actual
These numbers reflect those standard allowances that DOE allows us, like room & board, transportation, etc. where tuition and dorm expenses are the biggest differential factors

41. Actual Tuition & Fees* Per Year
Comm. Coll.(CC) $ 1,104 (Mission College)
Cal.State Univ.(CSU) $ 5,472 (San Jose State)
Univ. of Cal. (UC) $12,864 (Berkeley)
Private $42,156 (Santa Clara)
*Subject to change at any time
This shows JUST the current tuition & enrollment fees as of Fall 2012.

42. Awarding & Packaging Federal awarding guidelines
Pell Grant is awarded first
External Scholarships or Grants
Campus-based aid awarded in any order school chooses
Subsidized Stafford loan eligibility is calculated before unsubsidized
Institutions have different awarding policies
We understand and want to award the best types of aid to students before awarding loans. Since schools have slightly different awarding policies, students/parents should review and compare award offers carefully. Adjustments to award amounts may be possible but they should work with the financial aid office to determine that.

43. Sample Financial Aid Package Community College
Full-time Enrollment
Pell Grant $5645
SEOG $ 500
Cal Grant B $1473
EOPS $ 500
Work Study $2000
Scholarship $2000
Loan $3500
Half-time Enrollment
Pell Grant $2822
SEOG $ 500
Cal Grant B $ 736
Work Study $2000
Loan $3500
Here’s a sample financial aid package and as you can see, students do not have to be enrolled full-time to receive many of the different funded programs. In addition, the BOG Fee Waiver covering enrollment fees makes initial out-of-pocket expenses very minimal
+BOGW for Enrollment Fees ($ / 12 units)

44. Quick Tips & What’s Next?
You must apply/re-apply for financial aid every year
A PIN is required for student & one parent; can be done during application process
Application processing takes 2-3 days; schools can receive results weekly
Review your application results for questions, assumptions, any action required
Check student portal for additional documents requested
Missing documents or clarification needed
Universities will start packaging late in March, early April
Compare award offers
Community Colleges typically package over summer months
Check Cal Grant status at
Click on “WebGrants for Students”
Apply for scholarships: colleges, community organizations, etc.
Parents: File taxes early; use IRS Link on FAFSA
Delay of filing taxes can jeopardize best award offer

45. What to take away from this
There is no magic potion for eligibility
The applications are self-certifying but follow-up documentation may be requested
There is a type of financial aid for every student
Apply, apply, APPLY!
Even if you think scholarships will be the only aid, you should still complete the FAFSA - most scholarship applications will ask if you have
Consider ALL college system options, including private & CCs
Some private schools look at who’s listed #1 on FAFSA
There are Lifetime Eligibility Usage (LEU) limits for Pell Grant & Cal Grants; while we encourage students to explore career options, they need to be focused by the time they reach college or they could run out of grant funding before they complete their first Bachelor’s degree
Gift-aid (grants, scholarships) is available up through undergraduate study, typically first Bachelor’s degree OR LEU, whichever comes first
There is financial aid for graduate students like Federal Work Study, Direct Loans, some fellowship grants & scholarships
If you want help with the FAFSA, check with your HS & if they don’t offer a FAFSA workshop, check with other HS’s in the district or a local Community College for workshops

46. EFC Calculators www.fafsa4caster.ed.gov www.finaid.org
Will need a to create a password
Click on Calculators
Click on Expected Family Contribution and Financial Aid Calculator
Under “For Parents”, click on Pay for College
Click on Financial Aid Easy Planner
Estimate your Share
These websites are where nervous families can go who would like a preview of what their federal grant eligibility might be; for Pell grant, the EFC should not be higher than But even if it is, remember there are many other types of financial aid that can help.

47. Resources www.StudentAid.gov www.icanaffordcollege.com www.csac.ca.gov

48. Thank you! Questions?
For questions, you may contact me at the address on the first page of this slide presentation. Thank you for your time and I hope this presentation has provided you with information that you may not have known. Good day & good financing.