1 unraveling the mysteries of college financial aid doris keller outreach and training...
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1
Unraveling the Mysteries of
College Financial Aid
Doris KellerOutreach and Trainingdkeller@csac.ca.gov916-526-8169
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How Much Does College Cost/Yr?
• Community Colleges – Approx $8,000 – $15, 000
• CSU– Approx. $12,000 - $15,000
• UC– Approx $15,000 - $20,000
• Private Schools– Range $18,000 and $48,000
3
Where Will I Find the Money?
• Federal Government• State Government• Institution
– (college/university/trade school)
• Private• Families• Earnings• Savings
4
Federal Philosophy
• Family is responsible for student’s education– To the extent they are able
• Will be responsible until student– Is age 24– Supports their own children– Veteran of U.S. armed forces, etc.
• Guidelines treat families alike
• Many families need help
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Dependent vs. Independent
• Dependency based on Federal Rules– Not where student lives– Not who claims student on taxes
• Most HS seniors will be Dependent
• Must report parent income
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Professional Judgment
• School is Allowed not Required
• Only done by college financial aid office
• Limited in decision
• Each college makes own decision
• Must be documented
• Not a sure thing
7
Types of Financial Aid
• Gift Aid– Grants– Scholarships
• Self-Help Aid– Loans– Work Study
8
Federal Grants
• Student must file a FAFSA
• Undergraduate students only
• Eligibility based on need
• Pell Maximum = $5,350
• FSEOG Maximum =$4,000
9
Cal Grants
• Must file FAFSA and GPA verification• Undergraduates only • California resident• Must be enrolled in a CA school
– at least ½ time• Pays all or part of tuition at CA
schools
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Institutional Money
• California Community College– Board of Governors’ Fee Waiver
• CSU System– State University Grant
• UC System– University of California Student Aid
• Private Schools– Scholarships, endowments, foundations
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Scholarships• Provider decides
– Awarding criteria– Application deadline– Application forms
• Award amounts vary• Student must search (Internet/other)• HS Career or Counseling office
– Locally available scholarships– Printed information
12
Scholarships
Free internet scholarship directories:– www.fastweb.com– www.mach25.com– www.fastaid.com
• Free internet scholarship searches:– Google.com– Yahoo.com
• Scholarships, ____________• Use search box• All that describes the student
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”If you must pay money to get money, it might be a scam.”
Copyright9c0 2004 by FinAid Page LLC (FinAid.org)All rights reserved. Reprinted with permission.
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Common Scholarship Scams
• Scholarships that never materialize
• Scholarships for profit
• An advance-fee is required
• Pay a “Redemption Fee” for a scholarship
• A “guaranteed” scholarship
• Free seminar
15
Avoiding Scholarship Scams
• Legitimate scholarship organizations do not charge application fees
• Legitimate scholarships organizations cannot guarantee a scholarship
• If an offer seems suspicious, it is usually with good reason
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Scams Rules of Thumb
• If it sounds too good to be true, it probably is
• Spend the time, not the money
• Never invest more than postage or time on the web to find scholarships
• Nobody can guarantee a student will win a scholarship
17
Student Loans
• Federal or private• Undergraduates and graduates• Subsidized and Non-subsidized• Money must be repaid• 6 mo. grace period after studies end• Borrow and use wisely• Also parent loans
– Different rules apply
18
Work-Study
• Federal or institution program
• Undergraduates and graduates
• Money must be earned
• Either on or off campus
• Funding levels vary at institutions
• Job not guaranteed
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Applications
• FAFSA for Federal, State, Campus money
• GPA verification for State money
• Other applications for private money– Check each source individually
• Other applications for some Campus money– Check each campus web site
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GPA Verification• Needed for Cal Grants
• Encourage electronic filing from schools
• Students must ask:– File electronically? [answer: “Yes”]
• What do you need from me?• Is/Was my name included?
– File electronically? [answer: “No”]• Where is the form?
• Submit October through February
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Critical FAFSA Information
• Who are biological/adoptive parents?• Live with both:
– Count both incomes
• Live with* one:– Count that parent’s income– Count step-parent’s income if remarried
*The “live with” parent is the one you lived with the most in the last 12 months
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More Critical Information
• Be sure to answer the drug question honestly– Worksheet on web site or will be provided– Not eligible if:
• Convicted as an adult• Have not served probation
• Apply between 1/1 and 3/2 of HS Sr. year
23
On-Line FAFSA vs. Paper
Recommend On-Line filing• More accurate
• Faster processing
• Easier to make changes
• Electronic copy maintained temporarily
• Parents and/or students may access
• Best to have home computer– Not necessary
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PINs for Signature
• Parent and student both
• Must have name, SSN, DOB and e-mail
• If parent does not have SSN– Does not make student ineligible– Student may apply and parent will sign
• Parent & student may use same e-mail– Permanent e-mail
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PIN Notification
• Will arrive in e-mail within 72 hours
• Will come from “cpsnotify”
• Spam or virus blocker may block message– More later
• Message will refer to a URL
• Click and be prepared to print or write number– May not enter the web site a second time
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Permanent Contact Information
• Students must use permanent information– Usually parent’s information– Phone number– Mail address
AND– E-mail address
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What Happens Next?
Expected Family Contribution (EFC)• Calculated at federal level
• Use data on FAFSA
• Use formula
• Calculate all families
• EFC used to determine amount of aid
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Federal Notifications
• SAR: Student Aid Report
• ISIR: Institutional Student InformationReport sent to:
– Colleges listed on FAFSA
– CSAC
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Will You Recognize Notification?
• If you provided an e-mail address, SAR notification will be sent there– Will come from cpsnotify– Spam and virus blocker may block message– Temporarily stop auto dumping
AND/OR– Check “Junk” or “Trash” files before dumping
• Response within a week
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What to do when Notified?
• When FAFSA is processed a mini-web site for your information is created
• When notified, get on web site and read it– The information you submitted will be
reprinted on one page– This page will be retained for about 45 days– You may print it
• Your EFC will be printed in the upper right– If no numbers (blank), need more information– If all zeros, your family does not need to
contribute
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How to Correct Information
• You need to submit more information if:– There will be message in red or– Certain fields will be marked for changes
• Click in these areas to return to the data entry page and correct or enter data
• Generally both parent and student PINs must be rentered
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State Process & Notification
CSAC (California Student Aid Commission)
• Processes data on ISIR
• Compares to GPA verification
• Determines eligibility for Cal Grants
• CAR: California Aid Report– Mailed to students 3 – 4 weeks later
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• Award letters sent by college– List awards, amounts and sources– Shows COA and EFC– Period of enrollment covered
• Response may or may not be required• Students must read carefully
Awarding & Packaging
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Cost of Attendance
Basic Equation of Need #1(CSU)
Expected Family Contribution
Student’s Financial Need
COA $13,500
EFC $ 864
= Need $12,636
The amount of Financial aidthe Financial Aid Office will try to find (called a PACKAGE).
35
Sample Financial Aid Pkg. #1(CSU)
Financial Aid Package Financial Need
$12,636Pell Grant $3,200 $ 9,436
Cal Grant $2,334 $ 7,102
Work Study $2,400 $ 4,702
Loan $2,625 $ 2,077
Unmet Need $ 2,077
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Analysis of Sample Pkg. #1(CSU)
Grants $5,534
Loans $2,625
Work $2,400
Unmet $2,077
0
5
10
15
20
25
30
35
40
45
50
Grants(44%)
Work(19%)
Loans(21%)
Immet(16%)
37
Analysis of Sample Pkg. #1
(Revised – CSU)
Grants $5,534
Work $2,400
Scholarships $2,600
Savings $2,102
0
5
10
15
20
25
30
35
40
45
50
Grants(44%)
Work(19%)
Scholar-ships(21%)
Savings(17%)
Outside Scholarships:
Church $ 600Internet $2,000
$2,600
Outside Scholarships:
Church $ 600Internet $2,000
$2,600
38
Cost of Attendance
Basic Equation of Need(Private School)
Expected Family Contribution
Student’s Financial Need
COA $25,500
EFC $ 864
= Need $24,636
The amount of Financial aidthe Financial Aid Office will try to find (called a PACKAGE).
39
Sample Financial Aid Pkg. #2
(Private School)
Financial Aid Package Financial Need
$24,636Pell Grant $3,200 $21,436
Cal Grant $8,322 $13,114
Work Study $2,400 $10,714
Loan $2,625 $ 2,089
Unmet Need $ 2,089
Campus Grant $6,000 $ 4,714
40
Analysis of Sample Pkg. #2
(Private School)
Grants $17,522
Loan $ 2,625
Work $ 2,400
Unmet $ 2,089
0
10
20
30
40
50
60
70
80
Grants(71%)
Work(10%)
Loan(11%)
Unmet(8%)
41
Analysis of Sample Pkg. #2
(Revised -- Private School)
Outside Scholarships:
Church $ 600Internet $2,000
$2,600
Outside Scholarships:
Church $ 600Internet $2,000
$2,600
Grants $17,522Work $ 2,400
Scholarships $ 2,600Savings $ 2,114
0
10
20
30
40
50
60
70
80
Grants(71%)
Work(10%)
Scholar-ships(11%)
Savings(9%)
42
$864 EFC ??
Live at home
Learn to Cook
Rent movies
Toss a frisbee
No pets
Buy used books
Use public transportation
Shop at thrift
stores
Work during school breaks
Ride a bicycle
Savin
gs
($96 Monthly)
43
Apply, Don’t Disqualify
Don’t Miss DeadlinesDon’t “Pre-guess”
ComputersDon’t Assume Anything
Create a Safety Net
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