financing a uc education: what freshman applicants need to know university of california counselor...
Post on 21-Dec-2015
216 views
TRANSCRIPT
Financing a UC Education:What Freshman Applicants
Need to Know
University of California
Counselor Conferences
Fall 2003
2
Topics of Discussion
Basic Principles Covering College Costs Building a Financial Aid Package How and When (3/2!) to Apply Resources
3
Basic Principle #1
Students can afford to attend UC with – The support of a partnership involving:
• Students • Their parents (if applicable)• The University
– Thoughtful money management– Sound use of credit
4
Basic Principle #2
While student fees will increase for 2003-04, financial aid will be increased as well– UC undergrads eligible for Cal Grants or UC
grants will have their fee increase fully offset by increased grant
• Generally students from families making less than $60,000 annually
– Financially needy UC undergrads who are not eligible for Cal Grants or UC grants and whose families make less than $90,000 annually will have ½ of the fee increase offset with grant
5
Basic Principle #3
University financial aid recipients can expect to work and borrow
However, the University’s grant program keeps student loan and work levels manageable
6
Basic Principle #4
UC undergraduates enroll full-time and work part-time rather than the other way around– The University’s financial aid program is
designed to make this possible– Enrolling full-time allows a student to enter
the workforce with a UC degree sooner
7
Covering College Costs from a Student Perspective
(A) COST OF ATTENDANCE
less (B) PARENT CONTRIBUTION*
less (C) GRANTS + SCHOLARSHIPS
= (D) STUDENT RESPONSIBILITY
*if applicable
8
(A) UC Cost of Attendance(1 of 2)
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
$20,000Personal Expenses
Transportation
Room & Board
Books & Supplies
Health CareFee/AllowanceTuition/Fees
Total Living On-campus 2003-04: $18,930
9
(A) UC Cost of Attendance(2 of 2)
Typical cost of attendance for full academic year (9-months)
Off-campus student attending full time
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
CCCCSU UC
Indep
enden
ts
10
(B) Expected Parent Contribution
Generally speaking, students under the age of 24 are considered dependent students, so their parent information is considered when calculating financial aid eligibility
For many low-income families, the Parent Contribution is zero
Parent Contribution can be paid from savings, current income, or loans
11
(C) Grant Assistance
Gift aid distributed based largely on family’s ability to cover expenses.
Grants come from many sources, including the federal government, the state of California, and UC
University grant assistance is used to fill the gap left after accounting for a parent contribution, manageable student loan/work levels, and state & federal grants
12
(C) Scholarships
Gift aid offered in recognition of academic achievement or special talents
Generally reduce need to work or borrow Apply for UC scholarships with the UC
admissions application Many resources on the Web Beware of scholarship “scams”
13
(D) Student Responsibility (1 of 2)
Work– University grants help reduce work hours
so that students can make academic progress toward their degrees
– The University assumes that students work no more than 20 hours weekly when enrolled and full time when not enrolled
– Job placement assistance is available, and many students work on campus
14
(D) Student Responsibility (2 of 2)
Borrowing– University grants help reduce borrowing to
levels that result in manageable payments upon graduation
– Nearly all UC undergraduates qualify for federal low-interest student loans
Students can generally decide how they want to balance working and borrowing
15
Financial Aid Packaging: Cost of Attendance
$17,060 $17,060 $17,060 $17,060
$0$2,000$4,000$6,000$8,000
$10,000$12,000$14,000$16,000$18,000
$25KAnnualIncome
$45KAnnualIncome
$65KAnnualIncome
IndependentStudent
Cost ofAttendance
Living On-campus 2002-03
16
Financial Aid Packaging: Student Loan and Work
$7,000 $7,000 $7,000 $8,300
$10,060 $10,060 $10,060$8,760
$0$2,000$4,000$6,000$8,000
$10,000$12,000$14,000$16,000$18,000
$25KAnnualIncome
$45KAnnualIncome
$65KAnnualIncome
IndependentStudent
RemainingCosts
Student Loanand WorkExpectation
Living On-campus 2002-03
17
Financial Aid Packaging: Parent Contribution
$7,000 $7,000 $7,000 $8,300
$10,060$7,380
$2,540
$8,760
$0$2,680
$7,520
$0
$0$2,000$4,000$6,000$8,000
$10,000$12,000$14,000$16,000$18,000
$25KAnnualIncome
$45KAnnualIncome
$65KAnnualIncome
IndependentStudent
ParentContribution
RemainingCosts
Student Loanand WorkExpectation
Living On-campus 2002-03
18
Financial Aid Packaging: Grant Support
$7,000 $7,000 $7,000 $8,300
$10,060$7,380
$2,540
$8,760
$0$2,680
$7,520
$0
$0$2,000$4,000$6,000$8,000
$10,000$12,000$14,000$16,000$18,000
$25KAnnualIncome
$45KAnnualIncome
$65KAnnualIncome
IndependentStudent
ParentContribution
Grant Support
Student Loanand WorkExpectation
Living On-campus 2002-03
19
Financial Aid Packaging: Specific Programs
$0$2,000$4,000$6,000$8,000
$10,000$12,000$14,000$16,000$18,000
$25KAnnualIncome
$45KAnnualIncome
$65KAnnualIncome
IndependentStudent
ParentContribution
UC Grant
Federal PellGrant
Cal Grant
GrantEligibility
FederalStafford Loan
Part-timeWork
Work andLoan
$3,700 $4,900$3,700$3,700
$3,300$3,400
$3,300$3,300
$4,980
$3,429
$3,429
$2,080
$3,551
$2,540
$1,331
$3,000$400
$4,000
Living On-campus 2002-03
20
About Educational Loans (1 of 3)
Federally backed educational loans are a good investment and available to almost all students
Federal subsidized loans are made to financially eligible students
Federal unsubsidized loans are made to students without regard to finances
2003-04 interest rate: 3.42%
21
About Educational Loans (2 of 3)
Subsidized Loans are a Good Investment– The Government pays the interest while
the student is in school– Interest rates are low– Loans may be consolidated into a single
payment– Repayment begins 6 months after last day
of attendance
22
About Educational Loans (3 of 3)
Unsubsidized loans are a good investment– Interest rates are low– Loans can be consolidated into one
payment– Recipient may opt to pay interest while
enrolled or choose to capitalize interest until repayment 6 months after attending
23
Strategies to Reduce Working and Borrowing
Reduce expenses
Earn scholarships– Through the University– From outside sources
Save summer earnings for use during the academic year
24
Direct vs. Indirect Costs
Much of the cost of attendance listed on award letters is for indirect costs– Most of student budget is for room, board,
and living costs – Those costs that are paid to the University
are not all paid at one time
25
Urge all Students -- Even CC-Bound -- to Apply
Many eligible community college students miss out on federal grants because they don’t apply– Some eligible CC students don’t apply
because they can work full-time and attend part-time
– With aid, might be able to attend full-time and transfer sooner
26
Cal Grant award recipients know that they have aid when they transfer– This reduces anxiety about financing– CC-bound students may receive a Cal
Grant B or a Cal Grant A reserve award, which can be activated upon transfer
Urge all Students -- Even CC-Bound -- to Apply
27
High school entitlement award eligibility requirements
• Cal Grant A: Minimum 3.0 high school GPA plus additional eligibility criteria
• Cal Grant B: Minimum 2.0 high school GPA plus expanded/stricter eligibility criteria
Urge all Students -- Even CC-Bound -- to Apply
28
How to Apply:
FAFSA: collects data to calculate eligibility for need-based financial aid (completed by student/family)
GPA VERIFICATION FORM: Collects GPA information used to make Cal Grant awards (completed by school)
29
FAFSA Variations:
Paper FAFSA FAFSA on the Web
– www.fafsa.ed.gov Renewal FAFSA
30
When to Apply for Aid
Between January 1 and March 2
Students need not have been accepted
for admission to apply for financial aid
31
What Happens After Applying?
The federal FAFSA processor sends a “SAR” to the student
The California Student Aid Commission sends letter on Cal Grant eligibility
Information is sent from the UC campus– follow-up requests (e.g. verification items)– preliminary aid estimates– financial aid offer letters
32
Campus Financial Aid Information/Resources UC Berkeley
– 510 642-6442– www.uga.berkeley.edu/fao
UC Davis– 530 752-2390– faoman.ucdavis.edu
UC Irvine– 949 824-8262– www.fao.uci.edu
UCLA– 310 206-0400– www.saonet.ucla.edu/fa.htm
UC Merced*– 559 241-7474– www.ucmerced.edu
UC Riverside– 909 787-3878– www.students.ucr.edu/finaid
UC San Diego– 858 534-4480– www.ucsd.edu/finaid
UC Santa Barbara– 805 893-2432– www.finaid.ucsb.edu
UC Santa Cruz– 831 459-2963– www2.ucsc.edu/fin-aid
*Opens in 2004
33
Resources for More Information:
Websites UC Pathways:
www.ucop.edu/pathways U.S. Department of Ed: www.ed.gov Calif. Student Aid
Commission: www.csac.ca.gov College Board:
www.collegeboard.org Electronic FAFSA :
www.fafsa.ed.gov
Phone numbers General Questions to U.S.
Dept. of Ed:
800 433-3243 FAFSA Processor
319 337-5665 Cal Grant Information
888 224-7268
34
Questions????
Please see us at the Financial Aid Information table for questions