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Financial AidOverview2008-2009

Presented by the East Bay Cash for College Coalition

Presenter:

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Cash for College $1,000 Scholarship – Evaluation!Complete and turn in the Student Evaluation BEFORE you leave!

• Location and Date

• Write Clearly!

• Scholarship Rules on pg 2

• Must submit your FAFSA and Cal Grant GPA by March 2nd

• Winner will be chosen after March 2nd and announced by your counselor or by a letter mailed to the address provided.

• Scholarship will be sent to the college.

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Federal government

State government

Colleges and universities

Private agencies, companies, foundations, and your parents’ employers

Sources of Financial Aid

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Types of Financial Aid

Gift Aid - Grants or scholarships that do not need to be repaid

Work - Money earned by the student as payment for a job on or off campus

Loans - Borrowed money to be paid back, usually with interest

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How Does Financial Aid Work?

Cost of Attendance (COA) Expected Family Contribution (EFC)

Financial NEED (Financial Aid Eligibility)

Colleges determine and offer their students financial aid based on the following

equation. Also known as “Need Analysis.”

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What is the Expected Family Contribution (EFC)?

A number produced by the FAFSA used by colleges to calculate the amount that your family (student and parent/s) will be expected to pay for college from income and assets over time.

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What is the Cost of Attendance (COA)?

Tuition and/or fees

Room and board

Books and supplies

Transportation

Misc. personal expenses

Cost of Attendance includes most everything related to college expenses for one academic year. Also known as the “Student Budget.”

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Financial Aid Eligibility- Varies Based on Cost (COA)

Private 4-year

COA $39,000

- EFC 2,000

= Need $37,000

Public 4-year COA $23,000- EFC 2,000

= Need $21,000

Public 2-year

COA$12,000

- EFC 2,000

= Need $10,000

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Financial Aid Award Letter

All Financial Aid Award letters include the following:

• Cost of Attendance (or Student Budget)

• Expected Family Contribution

• Aid Offered - grants- work-study- loans- scholarships

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Types of Applications

FAFSA

Cal Grant GPA Verification Form

Check college websites for additional forms such as:

– CSS Financial Aid Profile

– Scholarships Applications

– CCC Board of Governor’s Fee Waiver

May need to provide a copy of your family’s 2007 Federal tax returns

GPA Form

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CSS/Financial Aid PROFILEwww.collegeboard.com/profile

– 2 step process:

» $9 online registration

» $16 per school

» fee waiver built into website

NOT used for awarding federal financial aid

NOT all schools require» mostly private schools

Filed earlier than the FAFSA

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2008-2009 Cal Grant Application Requirements

Check with your high school or college counselor for more details on how to file your Verified GPA for Cal Grant consideration.

www.csac.ca.gov

By March 2, 2008, complete and submit:

Free Application for Federal Student Aid

(FAFSA)

Cal Grant GPA

Verification Form

OR

Release Form

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Cal Grants (See Fund Your Future Workbook pages 13-17)

Cal Grant A Entitlement Awards – up to $6,636 at a U.C., $2,772 at a CSU, and $9,708 at an independent or private college. If attending a Community College, award will be held in reserve for up to 3 years until you transfer to a four-year college.

Cal Grant B Entitlement Awards – additional living allowance of $1,551 and up to the same award amounts of Cal Grant A for the second year.

Cal Grant C Awards – for students from low income families pursuing vocational programs of study. Awards up to $576 for books, tools, etc. and up to $2,592 for tuition and fees at a private college.

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Need-Based Federal Grants

Pell Grants- $4,800 maximum per year

Academic Competitiveness Grants- $750 for the first year

- $1,300 for the second year

Supplemental Educational

Opportunity Grants (SEOG)- $4,000 maximum per year

See FYF Workbook pgs 18-19

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More Need-Based Aid

Federal Work-Study

Institutional Grants, Scholarships, or Fee Waivers

Federal Perkins Loan- 5% Interest begins at repayment = 9 mo. after graduation

Federal Subsidized Stafford Loan- 6.8% Interest begins at repayment = 6 mo. after graduation

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NON-Need-Based Aid

Some institutional or private scholarships

Federal Unsubsidized Stafford Loan- 6.8% Interest begins immediately

- Repayment begins 6 mo. after graduation

- Can defer interest while in school at least half time

Federal PLUS Loan for Parents- 7.9-8.5% Interest and repayment begins immediately

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California Chafee GrantCalifornia Chafee Grant

The California Chafee Grant program provides up to $5,000 annually to current and former foster youth for college or vocational training at any accredited college in the U.S based on available funding

To apply, the foster youth must complete:

- 2008-2009 FAFSA- California Chaffee Grant Program Application

To learn more about the Chafee Grant, go to:

www.chafee.csac.ca.gov

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Special CircumstancesContact the Financial Aid Office if there is:

– Loss or reduction in parent or student income or assets

– Death or serious illness

– Natural disasters affecting parent income or assets

– Unusual medical or dental expenses not covered by insurance

– Reduction in child support, social security benefits or other untaxed benefit

– Financial responsibility for elderly grandparents

– Any other unusual circumstances that affect a family’s ability to contribute to higher education

See presenter for handout on Special

Circumstances documentation

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Citizenship Status

A valid social security # (for the student only) is required on the forms for federal and state financial aid.

You may be eligible for in-state tuition costs at California public colleges or universities.

Check with colleges and universities to see if institutional financial aid is available.

Apply for all private scholarships for which you may be eligible

For more information and a list of

scholarships, go towww.latinocollegedollars.org

NOTE: if you are undocumented or under-documented

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FAFSA Information & TipsFile early, but no later than March 2, 2008

Use estimated 2007 income information if taxes are not complete at time of FAFSA submission

Student and at least one parent whose information is reported must complete and sign the FAFSA

PINs available in Real Time thru the FAFSA Website:

www.fafsa.ed.gov

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Questions and Answers

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FAFSA on the WebWorksheet

Some Questions and Tips

Presented by the East Bay Cash for College Coalition

Presenter:

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FAFSA on the WebWorksheet

Black = questions for student

Purple = questions for parent

READ all instructions and gather what you need to complete this form!

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Your Social Security Number (Q8)Your last name (Q1)

List the student’s name and Social Security number exactly as they appear on the Social Security card.

Both will be compared through a database match process.

1 2 3 4 5 6 7 8 9

HERNANDEZ-GARCIA

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a. If U.S. citizen, status will be confirmed by a Social Security match.

b. If eligible noncitizen, SSN and ARN will be confirmed by Department of Homeland Security (DHS) match.

Write in your eight- or nine-digit Alien Registration Number (ARN)

c. If neither a citizen or eligible noncitizen, you are ineligible for federal/state aid, but might still be eligible for state or institutional funds.

Citizenship Status (Q14, Q15)

0 1 2 3 4 5 6 7 8

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Selective Service Registration (Q22)

Male students who are 18 years of age or older must be registered with Selective Service to receive federal and state aid.

Answer “yes” only if you are male, aged 18-25, and have NOT yet registered.

You may also register by going to:

www.sss.gov

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Student Loans and Work-Study (Q26)

Indicating interest does NOT obligate you to either borrow or to work, nor will it cause you to lose grants and scholarships

Answering “neither” may restrict some options for limited loans and work-study funds

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Section 2Determination of Student Dependency Status

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Section 3 – Parental Information

See top of Page 4 about who is considered a parent:

– Biological or adoptive parent(s)

– Stepparent (regardless of any prenuptial agreements)

– Use only one parent’s information if divorced or separated

DO NOT include information on:

- legal guardians

- grandparents, or

- other relatives

See presenter for handout on Special Circumstances

documentation

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Father’s and/or Mother’s SSN, Last Name, and Dates of Birth (Q58-65)

2 3 4 5 6 7 8 9 0 JONES

0 5 0 3 1 9 5 9

0 0 0 0 0 0 0 0 0

PARKER

0 7 1 9 1 9 6 0

Information should be listed as they appear on the parent/s’ Social Security Card for a database match

If parent does NOT have a SSN, enter 000-00-0000

Do NOT include additional information on parent if single, divorced, separated, or widowed.

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Parents’ Tax Return Filing Status for 2007

If you indicate that you/your parent “Will File,” use ESTIMATED income information.Remember to go back into your FAFSA to make corrections as soon as taxes are filed.

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Parent Assets (Q87)

Report the current balance of your parents’ cash, savings, and checking accounts as of the day you complete the FAFSA.

2,155

TIP: Report available cash (after the bills are paid)

NOTE: Some financial aid offices may request supporting documentation for the answers to these questions

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Parent Assets (Q88)

• bonds and other securities

• Coverdell IRAs

• 529 plans owned by parent/s

• installment and land sale contracts

• commodities, etc.

Net Worth means current value minus debt

Investments include:

• real estate (other than parents’ home)

• trust funds

• UGMA and UTMA accounts

• money market and mutual funds

• certificates of deposit

• stocks and stock options

7,900

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Parent Assets (Q89)

DO NOT include investments like:- the home you live in- the value of life insurance - parent retirement plans (pension funds, annuities, non-education IRAs, Keogh plans, etc), or - the value of a family owned and controlled small business with 100 or fewer full-time or full-time equivalent employees

Business/Investment Farm includes:

– market value of land, buildings, machinery, equipment, and inventory. Debt means only those debts for which the business was used as collateral

0

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001170 001328 023456

Section 5 – School Information

034567

• List up to 10 colleges (NOT high school codes!)- that you have applied and/or are planning to apply

• List at least one California College 1st, 2nd or 3rd, for Cal Grant consideration

• List those schools with the earliest financial aid deadlines, regardless of whether they are in-state or out-of-state

• Find school codes at: www.fafsa.ed.gov

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What Happens Next?

Students and the colleges the student listed receive Student Aid Report (SAR) from federal processor

Students who complete FAFSA and Cal Grant GPA Verification Form receive California Aid Report (CAR)

Students and families review SAR and CAR for

important information and accuracy of data

Colleges match admission records with financial aid

applications and determine aid eligibility

Colleges mail notices of financial aid eligibility to

admitted students who have completed all required financial aid forms

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Summary of the Financial Aid Process

Submit all required forms, including the FAFSA, by each college’s published deadlines (but no later than March 2)By March 2, submit a Cal Grant GPA Verification Form (or Release Form)Keep a copy of all forms submittedReview the Student Aid Report (SAR) and California Aid Report (CAR) for accuracyWatch for financial aid award notifications from colleges to which the student has been admittedBe sure to apply for financial aid this year and every year as soon as possible after January 1 to receive the best financial aid award possible

ASK QUESTIONS!

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Questions and Answers