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Financial Aid 101- The Basics Agenda • Financial aid history & philosophy of oFree Application for Federal Student Aid • Calculating financial aid oCost of attendance (COA) oExpected Family Contribution (EFC) • Categories, types, and sources of financial aid • Special circumstances History of Financial Aid U.S. Congress passes laws that promote national prosperity: 1. Economic 2. Social 3. National defense Philosophy of Financial Aid • Students and their families have the primary responsibility to pay for postsecondary education expenses Note: even if the student has left the household Philosophy of Financial Aid • Making a college education more attainable • Providing a consistent and equitable evaluation • Ensuring eligible students benefit from financial assistance General Application Process FAFSA via Telephone IRS Data Match FAFSA on the Web Reasons to file electronically: • Faster processing • Built-in edits prevent costly errors • Skip logic allows student and/or parent to avoid unnecessary questions • Use Internal Revenue Service (IRS) data retrieval FAFSA on the Web Reasons to file electronically: • Easier corrections & updates • Comprehensive instructions and “help” for common questions • Check status on-line • Simplified renewal application Frequent FAFSA Errors • Social Security numbers • Divorced/remarried parental information • Income earned by parents/stepparents • Untaxed income • U.S. income taxes paid • Household size • Number of household members in college • Real estate and investment net worth Initial Student Eligibility • High school diploma or equivalent • U.S. citizen or eligible non-citizen • Valid Social Security number • Enroll in an eligible degree or certificate program • Register with Selective Service (males only) • Sign a statement of educational purpose Maintaining Student Eligibility • Not be in default or owe an overpayment on a grant • Maintain Satisfactory Academic Progress (SAP) • No drug convictions based on Department of Education standards Calculating Financial Aid Eligibility What is Financial Aid? Funds provided to students to help pay for postsecondary education expenses. Financial aid includes • Grants • Scholarship • Work study • Loans Cost of Attendance (COA) Standard Costs Optional Costs Tuition and fees Dependent care Room and board Study-abroad Books and Supplies Disability-related services Employment expenses for co-op Transportation study Miscellaneous personal Student loan fees expenses Note: Costs vary from institution to institution Expected Family Contribution (EFC) • EFC is the measure of a family’s financial strength • EFC is used to determine the student and parent ability to contribute towards the student’s cost of education • Need analysis is the consistent formula used in determining a family’s EFC Expected Family Contribution: The Counselor’s Role Do • Encourage students at all income levels to apply • Refer students to the college’s Net Price Calculator* Do not • Assess eligibility • Promise eligibility * only an estimate not a guarantee Calculating Eligibility For Need-Based Aid Cost of Attendance (COA) Expected Family Contribution (EFC) Eligibility for Need-Based Aid Types of Financial Aid Calculating Eligibility Need-Based Aid—2012-2013 Federal Programs Program Award Amount Notes Pell Grant Up to $5550 President’s budget request FSEOG (grant) Between $100 and $4000 Funding at FY2011 levels Proposal: replace TEACH with TEACH Grant Up to $4000 Presidential Teaching Fellows Iraq & equal to Pell Grant – not to Afghanistan Up to $5550 exceed the COA Service Grant Work Study Determined by each school Funding at FY2011 levels Up to $5500 (UG)/ $8000 Proposal: modify Perkins loans Perkins Loan (Grad) into unsubsidized Direct Loans Subsidized Direct Between$3500- $5500 Elimination of subsidized loans Loan (based on UG grade level) for Graduate students Calculating Eligibility Need-Based Aid-2012-2013 California Programs California Programs Award Amount Cal Grant A Up to $12,192 Cal Grant B $1551 (1st yr) ; $13743 Cal Grant C Up to $3168 (non CCC) $576 (at CCC) Chafee Grant Up to $5000 UC Student Aid $100 or more State University Grant Covers full system-wide fees Child Development Grant $1000 (CCC) or $2000 (4 yr) Law Enforcement & Personnel Up to $11259 (for up to four years) Dependents Grant Up to $1500 (contingent on federal Robert C. Byrd Scholarship funding) CCC Board of Governors Fee Waiver Covers all Enrollment Fees Calculating Eligibility Non Need-Based Aid Students who do not demonstrate eligibility for need-based aid may still quality for: • Federal unsubsidized Direct loan • Federal Direct PLUS loan • Private sector scholarships • Institutional scholarships and employment programs Special Circumstances Special Circumstances • If students and families have unusual circumstances, advise them to contact the financial aid office at the college they plan to attend; the office will advise them on how to proceed. Special Circumstances • Cannot be reported on the FAFSA • Contact the financial aid office for procedures • School’s decision is final and cannot be appealed to Department of Education Special Circumstances Examples • Change in employment status o Dislocated workers/Loss of employment • Change in parent marital status • Medical expenses not covered by insurance o Elder care expenses • Unusual dependent care expenses Special Circumstance Examples: What if…student related changes • Student cannot obtain parent information • Homeless individuals Professional Judgment and Dependency Status The Financial Aid Office has authority to make a dependent student independent if unusual circumstances exist: • An abusive family environment • Abandonment by parents • Inability to locate parents Professional Judgment and Dependency Status Do not qualify as “unusual circumstances” • Parents refuse contribution towards education • Parents unwilling to provide information on the application or for verification • Parents not claiming the students as a dependent for income tax purposes • Student demonstrating total self-sufficiency Remember… If your student and family have unusual circumstances, advise them to contact the financial aid office at the college they plan to attend; the office will advise them of how to proceed. Questions?
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