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					Financing a UC Education



   University of California
  UC Counselor Conference
                      2001
Topics of Discussion

   Basic Principles
   Myths about Financial Aid
   Costs of Attending UC
   Meeting those Costs
   Understanding Financial Aid Awards
   How and When (3/2!) to Apply
   Resources
               UC Counselor Conference, Fall   2
                          2001
UC’s Growing Affordability
   Undergraduate systemwide student
    fees have not gone up since 1994-95
    and have declined by 5%-- twice
   Per capita borrowing among under-
    graduate need-based aid recipients at
    UC declined by 8% between 1997-98
    and 1999-00
   Over the same period, per capita gift aid
    increased by 7%
                UC Counselor Conference, Fall   3
                           2001
Basic Principle #1
   Students can afford to attend UC with
    – The support of a partnership among:
       • Students
       • Their parents (if applicable)
       • The University
    – Thoughtful money management
    – Sound use of credit


                    UC Counselor Conference, Fall   4
                               2001
Basic Principle #2

   University financial aid recipients can
    expect to work and borrow
   However, the University’s grant program
    keeps student loan and work levels
    manageable



               UC Counselor Conference, Fall   5
                          2001
Basic Principal #3
   Grants generally limit the need to work
    and borrow as follows
    – Work hours while enrolled generally do not
      exceed 20 hours per week to allow for
      academic progress during full-time
      enrollment
    – Borrowing is generally limited such that
      payments upon graduation are
      manageable
                 UC Counselor Conference, Fall     6
                            2001
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
    – This is a change for many transfer students


                 UC Counselor Conference, Fall   7
                            2001
Myths about Financial Aid:
   Scholarships aren’t worth earning since
    they only result in reduced grant
    awards
   Community college students don’t
    qualify for financial aid
   The school that offers the most aid or
    the largest grant award is always the
    best choice
               UC Counselor Conference, Fall   8
                          2001
Cost Comparisons

Typical 9-Month Cost of Attendance for a
 student living away from home

   Community College:                   $ 10,500
   CSU campus                             12,500
   Independent campus                     31,500
   UC campus                              15,300
              UC Counselor Conference, Fall         9
                         2001
How Eligibility for Need-Based
Financial Aid is Calculated

        COST OF ATTENDANCE
 less EXPECTED FAMILY CONTRIBUTION
  (Parent,if applicable, plus student contributions)
       = FINANCIAL AID ELIGIBILITY




                 UC Counselor Conference, Fall         10
                            2001
Covering College Costs
from a Student Perspective

        COST OF ATTENDANCE
    less PARENT CONTRIBUTION
              (if applicable)
  less GRANTS + SCHOLARSHIPS
   = STUDENT RESPONSIBILITY



          UC Counselor Conference, Fall   11
                     2001
    Typical 2001-2002 Budget or
    “Cost of Attendance” @ UC
   Tuition/Fees               $3,800
   Books/Supplies              1,200
   Room & Board                7,100
   Transportation              1,300
   Health Care Fee/Allowance     500
   Personal Expenses           1,400
    TOTAL Student Budget:     $15,300
                UC Counselor Conference, Fall   12
                           2001
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

                UC Counselor Conference, Fall   13
                           2001
Grant Assistance
Grants are distributed based largely on a
  student’s family financial resources.
   Grants come from many sources,
    including the federal government, the
    State of California, and UC
   University grant assistance is used to
    ensure that loan and work levels are
    reasonable

                UC Counselor Conference, Fall   14
                           2001
Scholarships
Gifts in recognition of academic
  achievement or special talents
 May reduce need to work or borrow

 Apply for UC scholarships with the UC
  admissions application
 Many resources on the World Wide
  Web
 Beware of scholarship “scams” or “fee-
  for-service”
              UC Counselor Conference, Fall   15
                         2001
Student Responsibility (1 of 2)

   Work
    – University grants help limit 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
                UC Counselor Conference, Fall   16
                           2001
Student Responsibility (2 of 2)
   Borrowing
    – University grants help limit 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
                UC Counselor Conference, Fall   17
                           2001
About Educational Loans (1 of 3)
   Educational loans are a good
    investment
   Federally backed loans are 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
               UC Counselor Conference, Fall   18
                          2001
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
                UC Counselor Conference, Fall   19
                           2001
About Educational Loans (3 of 3)

   Unsubsidized loans are a good
    investment
    – Interest rates are low
    – Loans can be consolidated into one
      payment
    – Repayment begins up to 6 months after
      last day of attendance


                UC Counselor Conference, Fall   20
                           2001
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

                 UC Counselor Conference, Fall   21
                            2001
Understanding Financial Aid
Award Letters (1 of 2)
 Cost of Attendance    Cost of Attendance
          less                 less
Grants & Scholarships Grants & Scholarships
       = Family                less
     Responsibility    Parent Contribution
    (parent + student)
                            =Student
                           Responsibility
                                      (loan, work, savings)

              UC Counselor Conference, Fall                   22
                         2001
Understanding Financial Aid
Award Letters (2 of 2)

   Calculating student/family responsibilities is a
    good way to understand award letters
   The cost of attendance and fee levels are
    meaningful only when considered relative to
    financial aid




                  UC Counselor Conference, Fall    23
                             2001
News: Cal Grants (1 of 4)

   While the program has been
    restructured, the most important
    message is unchanged:
    – Apply by March 2nd by filing both
       • the FAFSA
       • the GPA Verification Form




                  UC Counselor Conference, Fall   24
                             2001
News: Cal Grants (2 of 4)
   Entitlement Program for Students
    Applying Within one Year of Leaving
    High School
    – Cal Grant A: Minimum 3.0 Cal Grant GPA
      plus additional eligibility criteria
    – Cal Grant B: Minimum 2.0 Cal Grant GPA
      plus expanded/stricter eligibility criteria



                 UC Counselor Conference, Fall   25
                            2001
News: Cal Grants (3 of 4)
   Entitlement program for students
    transferring from a community college
    – Must have a minimum GPA of 2.4
    – Must have graduated from high school in
      2001-2002 or later
    – Must generally be age 24 or under
    – Additional Cal Grant A and B program
      eligibility criteria match those for students
      leaving high school
                  UC Counselor Conference, Fall       26
                             2001
News: Cal Grants (4 of 4)
   Students not eligible for an entitlement
    award are considered for a competitive
    award
   However, because entitlement awards
    are focused on younger applicants,
    students should apply for Cal Grants as
    early as possible


                UC Counselor Conference, Fall   27
                           2001
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)

                  UC Counselor Conference, Fall   28
                             2001
FAFSA Variations:

   Paper FAFSA
   FAFSA on the Web
    – www.fafsa.ed.gov
    – Pathways/FAFSA link
   Renewal FAFSA


               UC Counselor Conference, Fall   29
                          2001
When to Apply for Aid

   Between January 1 and March 2
   Students must have applied for
    admission in November
   Students need not have been accepted
    for admission to apply for financial aid


                UC Counselor Conference, Fall   30
                           2001
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

                 UC Counselor Conference, Fall       31
                            2001
Campus Financial Aid
Information/Resources
   UC Berkeley                                 UC Riverside
    –   510 642-6442                               –   909 787-3878
    –   www.uga.berkeley.edu/fao                   –   www.students.ucr.edu/finaid

   UC Davis                                    UC San Diego
    –   530 752-2390                               –   858 534-4480
    –   faoman.ucdavis.edu                         –   www.ucsd.edu/finaid

   UC Irvine                                   UC Santa Barbara
    –   949 824-8262                               –   805 893-2432
    –   www.fao.uci.edu                            –   www.finaid.ucsb.edu

   UCLA                                        UC Santa Cruz
    –   310 206-0400                               –   831 459-2963
    –   www.saonet.ucla.edu/fa.htm                 –   www2.ucsc.edu/fin-aid

                             UC Counselor Conference, Fall                           32
                                        2001
    Resources for more information:
          Websites
   UC Pathways:
                                             Phone numbers
                                          General Questions to U.S.
    www.ucop.edu/pathways
                                           Dept. of Ed:
   U.S. Department of Ed:
                                           800 433-3243
    www.ed.gov
                                          FAFSA Processor
   Calif. Student Aid
    Commission:                            319 337-5665
    www.csac.ca.gov                       Cal Grant Information
   College Board:                         888 224-7268
    www.collegeboard.org
   Electronic FAFSA :
    www.fafsa.ed.gov

                      UC Counselor Conference, Fall                    33
                                 2001
Questions????




          UC Counselor Conference, Fall   34
                     2001

				
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