Financial Aid at the University of California

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					Financing a UC Education:
Information for Transfer Students



  Ensuring Transfer Success
        Spring 2008

                               1
   You can afford to attend UC!
You must:
• Apply for admission in November
• File FAFSA and GPA verification between
  January 1 and March 2, 2009
• Provide documentation to financial aid office as
  requested immediately
• Expect to borrow and work part time
                                                 2
 UC Cost of Attendance (08–09)

         Living Off Campus: $23,000
 Personal and                   Tuition/fees
transportation                     $8,100
   expenses                  (subject to change
                               without notice)
    $3,200

                                Health care
   Room/board                  fee/allowance
      $9,200                       $1,000

                             Books/supplies
                                 $1,500
                                                  3
            Your Share of the Cost
• When you review your financial aid offer:
   Find your total cost of attendance (―student
     budget‖)

   Subtract         gift aid (grants and scholarships)
  _______________________________________________________________________________________

      =                       YOUR COST*

  * Sources of payment = parents (in some cases), work,
    loans, outside scholarships
                                                                                            4
    Approximate Cost at UC
• Dependent students in family of 4 with one in
  college:
   $8K - $10K for family earning $20K
   $10K - $12K for family earning $40K
   $14K - $16K for family earning $60K
   $22K - $24K for family earning $80K

• Single independent students: $9K - $11K

                                                  5
      Comparing UC and CSU
• Average net cost difference is often smaller
  than assumed:
Parent Income                  Net Cost Difference*
< $40K                              - $2,000
$40K - $79K                         - $2,500
$80K - $119K                        - $3,000


* For dependent students, after gift aid taken into account

                                                              6
       UC vs. Private Colleges
• Even after gift aid is taken into account, it is
  typically more costly to attend a comparable
  private institution than to attend UC:

Parent Income       Average Net Cost Difference
< $40K                         + $6,500
$40K - $79K                    + $5,400
$80K - $119K                   + $7,900
                                                     7
 Coming Up with YOUR SHARE
• If you are under 24, your parents may be expected
  to contribute, based on the FAFSA calculation
  (Parent loans are available if parents can’t cover
  the amount out of pocket)

• Student part-time employment during the school
  terms

• Student loans


                                                       8
 Loans: Investing in the Future
• Education loans available to families and
  students at all income levels
• Typical UC student’s loan repayment is
  manageable.
   Less   than $200/month – less than a car payment!

• Borrowing can enable you to work less,
  graduate sooner!

                                                        9
 Comparing Student Borrowing

• Students borrow at comparable rates at all
  types of four-year colleges:
   UC:   52%

   CSU:   48%

   Independents:   55%


                                           10
 Comparing Student Loan Debt
• Average cumulative debt (and monthly
  payments*) are similar for UC and CSU
  students:
    UC:   $13,699 ($158/month)
    CSU:   $13,554 ($156/month)
    Selective   Independents: $19,548 ($225/month)


* Based on 10-year repayment plan

                                                      11
         Borrowing and Enrolling Full-Time
               Pays for Itself Quickly
                          Simon                     Serena
                  Work Full-Time @ CCC,     Work Part-Time @ CCC,
                   Transfer After 3 Years    Transfer After 2 Years
                    Wages        Loans      Wages         Loans
At CCC




         Year 1    $12,000        $0        $6,000       $6,000
         Year 2    $12,000        $0        $6,000       $6,000
         Year 3    $12,000        $0        $6,000       $6,000
At UC




         Year 4     $6,000       $6,000     $6,000       $6,000
         Year 5     $6,000       $6,000     $40,000        $0

         Total     $48,000      $12,000     $64,000      $24,000
                              ($138/mo.)               ($276/mo.)   12
Graduating Sooner & Starting a Career
     Has Big Payoff Over Time
   $65,000
                       Total Difference 10 Years After Graduation: $36,000
   $60,000


   $55,000
                                     Serena’s Salary
   $50,000


   $45,000                                                 Simon’s Salary

   $40,000


   $35,000


   $30,000
                   Year 6   Year 7     Year 8   Year 9   Year 10   Year 11   Year 12   Year 13   Year 14   Year 15
Serena's Salary    $43,000 $44,720 $46,509      $48,369 $50,304 $52,316 $54,409 $56,585          $58,848 $61,202
Simon's Salary     $40,000 $41,600 $43,264      $44,995 $46,794 $48,666 $50,613 $52,637          $54,743 $56,932
                                                                                                             13
Total Difference   $3,000   $6,120     $9,365   $12,739 $16,249 $19,899 $23,695 $27,643          $31,748 $36,018
Typical CCC Transfer to 4-Year University
  • Enrolls full time (15 units) and graduates in 2.3 years
    after transfer
  • Works fewer than 20 hours per week at UC
  • Borrows $12.5K while enrolled at 4-year university
  • Obtains employment within 4 months
  • Earns an average of $37K with liberal arts B.A.,
    $44K for science and math B.S.
  • Has monthly student loan repayments of $195,
    reflecting loans from both CCC and 4-year
    university
                                                         14
        Based on 6.8% interest rate and a 10-yr term
            Covering Costs:
      The Student’s Responsibility

• STUDENT RESPONSIBILITY (savings,
  loans and work) :
     Approximately      $9,400 in 2008 – 09*



* If applicable, as determined by the data submitted on the FAFSA
and calculated by the federal government



                                                               15
  Typical Student Loan & Work Expectation

$23,000
                          $1,400
                                         $4,950

                                                         $11,050                   Parent
                                                                      $11,200
           $13,600                                                                 Contribution
                         $12,200
                                         $8,650                                    Grant Support

                                                          $2,550
                                                                                   Student Loan
                                                                                   and Work
                                                                      $11,800      Expectation
            $9,400        $9,400         $9,400           $9,400


    $0
          $20K Annual   $40K Annual    $60K Annual     $80K Annual   Independent
            Income        Income         Income          Income        Student

                                (Living off campus: $23,000)                            16
Student Responsibility: Part-Time Work

  • UC expects that you will work < 20 hours per
    week when enrolled, full time when not enrolled

  • Job placement assistance is available on campus

  • You do not have to qualify for a work-study job in
    order to find part-time work, either on or off
    campus


                                                      17
Student Responsibility: What’s New?

 • 6.8% fixed interest rate for most federal
   student loans
 • Perkins Loans remain at 5%




                                               18
SMART Grants in Certain Majors
• Additional grants of $4,000 per year for junior
  and senior Pell Grant recipients who are U.S.
  citizens with a cumulative GPA of at least 3.0
  majoring in:
   Engineering
   Mathematics
   Physical, biological and computer sciences
   Technology
   Certain limited ―critical foreign languages‖
                                                   19
             Covering Costs:
          Parents’ Responsibility
• Determined by U.S. Department of Education via
  information reported on the FAFSA

• Amount based on income and assets of custodial
  parent(s) for dependent students under age 24

• Can be paid from savings, current income or federal
  parent loans (PLUS)

• May be $0 for low-income families

• Approx. $1,600 for family earning $40,000
                                                        20
              PLUS Loans
• Available to most parents: maximum that can be
  borrowed = cost of attendance minus other
  financial aid (all sources)
• 7.9 – 8.5% fixed interest rates
• Parent repayment can be reduced or deferred until
  you or your siblings graduate
• Can borrow an additional $4,000 if parent is denied
  PLUS due to credit problems


                                                   21
      What if parents don’t pay
             their share?
• UC will help you find additional education loans
  so you don’t work more than half time

• A co-signer will bring the price down

• UC will try to offer refinancing advice when you
  leave UC so your monthly repayment amount is
  manageable

                                               22
Tips for Paying Up-Front Costs
• Only a portion of student’s share of the cost
  has to be paid up front
    UC   housing charges and fees are divided equally by
      quarter/semester
    Likewise,  financial aid* is disbursed in equal
      installments by term

* Grants, scholarships or loans (work-study awards or other required
student employment must be earned.)


                                                                23
  Payment Plans/Credit Cards
• UC campuses have options to spread out UC
  tuition and fee payments
   Defer  ―lump-sum‖ payments at start of each term
    and make even-sized monthly payments throughout
    the year by electing a payment plan option

   Some  UC campuses permit use of credit cards to
    pay fees



                                                      24
   UC’s Role: “Gift” Assistance
• If you filed your FAFSA and GPA verification
  on time (March 2) and have cooperated with
  any requests for additional documentation, UC
  will provide enough UC grant to ―backfill‖ after
  you and your parents and various federal and
  state government grants have done their part



                                                25
             UC Grant Aid
    Your Budgeted Cost of Attendance
minus Your parent contribution
minus Your (student) ―loan/work‖
minus Federal and state grants
 _____________________________________________
     = YOUR UC GRANT AID



                                                 26
Financial Aid: ALL students should apply

  • Community college students can qualify for
    Federal Pell Grant and Cal Grant B

  • May also qualify for Cal Grant A reserve award,
    which can be activated upon transfer

  • With aid, CCC students may be able to attend
    CCC full time and transfer sooner!


                                                   27
        No Matter What…
• You should apply for financial aid by March
  2 deadline even if:
   You  are not sure you are going to college in the fall
   You have not applied for admission yet
   You have not yet been accepted anywhere
   You can only estimate taxes or income for
    previous year
   You or your family need help completing a FAFSA




                                                       28
     After Applying for Aid…
You must:
• Check e-mail and websites often!
• Notify UC, FAFSA and CSAC if address or e-
  mail changes
• Respond to requests for further documentation
  immediately


                                               29
Issues for Undocumented Students
• You may be exempt from nonresident tuition at
  UC ($19,068 per year) if you attended a CA high
  school for at least three years and graduated
  (including passing CAHSEE)
• Must submit an ―AB 540‖ application directly to
  campus you will attend
• UC cannot award any other financial aid
• Outside agency loans, grants or scholarships are
  only option                                    30
Issues for Undocumented Students
More on AB 540 — both documented and
undocumented students:
•Eligibility, application procedures and FAQs:
www.ucop.edu/sas/sfs/docs/ab540_faqs.htm
•Copy of model application:
www.ucop.edu/sas/sfs/docs/ab540_application.pdf
•General information and campus contacts:
www.ucop.edu/sas/sfs/docs/ab540_gen_info.pdf
                                                 31
Campus Financial Aid Resources
• UC Berkeley                     • UC Riverside
  (510) 642-6442                    (951) 827-3878
  www.students.berkeley.edu/fao     www.finaid.ucr.edu
• UC Davis                        • UC San Diego
  (530) 752-2390                    (858) 534-4480
  www.financialaid.ucdavis.edu      www.fao.ucsd.edu
• UC Irvine
  (949) 824-8262                  • UC Santa Barbara
  www.ofas.uci.edu                  (805) 893-2432
                                    www.finaid.ucsb.edu
• UCLA
  (310) 206-0400                  • UC Santa Cruz
  www.fao.ucla.edu                  (831) 459-2963
                                    www2.ucsc.edu/fin-aid
• UC Merced
  (209) 724-4384                                            32

  financialaid.ucmerced.edu
         For More Information
• General Questions:      • California Student Aid
  U.S. Dept. of Ed. and     Commission (CSAC)
  FAFSA Processing          www.csac.ca.gov
  Issues
                          • Cal Grant Information
  1-800-433-3243
                            1-888-224-7268
  www.ed.gov
                          • UC Online Admissions
• FEDERAL PIN
                            Application
  for Electronic FAFSA
                            www.universityofcalifornia.
  www.pin.ed.gov
                            edu/apply
• Electronic FAFSA
  www.fafsa.ed.gov                                   33

				
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