Financial Aid 101 2018-2019

1. Financial Aid 1012018-2019 Presented by: Gina Becerril Director of Financial Aid Occidental College

2. Purpose of Need-BasedFinancial 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 *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 CircumstancesConsidered 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

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

14. Types of Aid

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 2018-2019

18. Cal Grant Ceilings 2018-2019 Income Ceilings for Dependent Students 2018-2019 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. Types of Federal Loans2017-2018 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 • 4.45% interest (subject to change every year) • 6 month grace period • 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) • Not based on need 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

29. Evaluating Packages… Example 2

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?