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Student Financial Aid Programs

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					Student Financial Aid
Programs

PART THREE
Getting the $$$ To The Student

• Determine Cost of Attendance

• Packaging Policy

• Award Notification

• Disbursement of Funds




10/8/2010        Commission Presentation   2
     Getting the $$$ To Student

                     Calculate EFC



    Determine Cost
     of Attendance                             Package



Disburse               Award
                     Notification
   Aid


     10/8/2010       Commission Presentation             3
Getting the $$$ To Students

                     Cost of Attendance



                      Expected Family
             MINUS
                        Contribution



            EQUALS    Financial Need




10/8/2010            Commission Presentation   4
Cost of Attendance

• Determined by federal law
      – Higher Education Act, Sec. 472

• Law specifies types of educational
  costs allowed in the “cost of
  attendance”

• Institutions determine appropriate
  amounts for those types of costs

10/8/2010          Commission Presentation   5
Cost of Attendance

• Types of Educational Costs

      – Tuition & Fees
      – Books & Supplies
      – Housing & Meals
      – Transportation
      – Personal/Miscellaneous




10/8/2010         Commission Presentation   6
Cost of Attendance

Student Expense and Asset Survey
  (SEARS)
      – Collects student data every four years
      – Updated with annual adjustments in between
      – Determines “average” student expense for:
            •   Transportation
            •   Housing & Meals
            •   Personal/Miscellaneous
            •   Books & Supplies
      – Many colleges use some or all of these figures,
        relying on CSAC guidelines to meet federal
        requirements for student budgets


10/8/2010                    Commission Presentation      7
Cost of Attendance
California Community Colleges
       Budget Components                  College of the Canyons
   Tuition & Fees                                             $768
   Books/Supplies                                           $1,332
   Housing/Meals                                            $9,522
   Transportation                                              $954
   Misc/Personal                                            $2,340
   TOTAL                                                  $14,916


            *Sample Student Budget –2-Year Public California Community
            College, 2006-2007 Academic Year, California Resident, Living
            Off-campus
10/8/2010                    Commission Presentation                        8
Cost of Attendance
UC and CSU
    Budget Components           UC                  CSU
                              Berkeley           Long Beach
   Tuition & Fees                   $7,800            $3,116
   Books/Supplies                   $1,326            $1,386
   Housing/Meals                   $9,122             $9,288
   Transportation                    $684             $1,206
   Misc/Personal                   $1,606             $2,174
   TOTAL                          $21,014            $17,170

              *Sample Student Budget – 4-Year Public UC and CSU,
              2006-2007 Academic Year, California Resident,
              Living Off-Campus
10/8/2010              Commission Presentation                     9
Cost of Attendance
Independent and Proprietary
          Budget          University of
        Components         San Diego
   Tuition & Fees                $32,564
   Books/Supplies                 $1,380
   Housing/Meals                  $9,288
   Transportation                 $1,098
   Misc/Personal                  $2,520
   TOTAL                         $46,850

            *Sample Student Budget – 4-Year Private College or
            University, 2006-2007 Academic Year, California Resident,
            Living Off-Campus
10/8/2010                 Commission Presentation                       10
Packaging - Definition

• Packaging is the process of combining
  various types of aid from a variety of
  sources to meet the financial need of the
  student.

• Packaging policy is defined as:
      – Determining what types of financial aid (i.e.,
        grant, loan, workstudy) a student will be
        awarded, in what order, and the amount of
        each award.


10/8/2010             Commission Presentation            11
Application & Packaging Priority
Deadlines
• Institutions establish an annual priority filing date to
  determine institutional aid funding priority.

• In California, the financial aid priority filing date
  generally coincides with CSAC’s March 2nd Cal Grant
  application deadline

• However, the CCC’s package year round and generally
  publish a May priority filing deadline to award limited
  funds

• Also, community college students have a secondary
  Cal Grant application deadline of September 2nd



10/8/2010               Commission Presentation              12
Packaging

• The financial aid package is created with a
  combination of grants, scholarships, loans,
  and workstudy

• Institutions establish their own packaging
  policies within the parameters of federal,
  state, and institutional guidelines




10/8/2010        Commission Presentation        13
Packaging

• Financial aid packaging policies will vary
  between institutions based upon
  differences in:
   – Cost of Attendance
   – Self-Help Policy
   – Priority Filing Deadline
   – Institutional Grants & Scholarships
   – Packaging Philosophy
   – Student Loan Philosophy

10/8/2010         Commission Presentation      14
Packaging

• In determining the student’s need for aid,
  we must first consider other educational
  resources the student expects to
  receive. This may consist of veteran's
  benefits, EOPS/CARE Grants, Bureau of
  Indian Affairs, or other educational
  benefits, including outside scholarships

• Next, a financial aid package is created to
  come as close as possible to meeting the
  student’s financial need

10/8/2010         Commission Presentation       15
Packaging

    Calculated Financial Need               $10,000

Minus       Need-Based Aid                  $ 7,500

Minus       Non-Need Based Aid $ 1,000

Equals      “Unmet Need”                    $ 1,500




10/8/2010         Commission Presentation             16
Sample Packaging Sequence


1. State Fee Waiver / Grant
2. Federal Pell Grant
3. Federal Academic Competitiveness
   Grant and SMART
4. Cal Grant
5. Federal Supplemental Educational
   Opportunity Grant




10/8/2010      Commission Presentation   17
Sample Packaging Sequence
6. Federal / Institutional Workstudy
7. Scholarships & Other Educational
    Resources
8. Subsidized Stafford Loan
9. Unsubsidized Stafford Loan
10. PLUS Loan
11. Alternative / Institutional Loan




10/8/2010      Commission Presentation   18
Tuition / Fee Waiver or Grant
                                                    Packaging
                                         Federal Pell Grant


                        Federal SEOG

                                          Federal ACG or SMART

                                                Cal Grant

                                         Institutional Aid /
                                          Other Resources

                                        Federal Workstudy

                                 Student Loan (Need-based)

                                  Student Loan (Non-need)
10/8/2010                 Commission Presentation                19
Student Award Notification
California State University, Chico




10/8/2010      Commission Presentation   20
Packaging

• Most funds are limited

• Types and amounts awarded often do not
  meet the student’s total financial need

• Total amount of financial aid packaged
  may not exceed the student’s financial
  need




10/8/2010        Commission Presentation    21
Student Award Notification

• Examples

      – Community Colleges

      – California State University

      – California Student Aid Commission




10/8/2010           Commission Presentation   22
Student Award Notification
College of the Canyons




10/8/2010      Commission Presentation   23
Student Award Notification
California State University, Chico




10/8/2010      Commission Presentation   24
Coordinating Student Resources




10/8/2010   Commission Presentation   25
Coordinating Resources
               STUDENT X – Foster Youth
                Financial Need = $17,170
            CSU University Grant                 $3,000
            F Pell Grant                         $4,150
            Federal Workstudy                    $5,000
            Stafford Sub Loan                    $3,500
                  Total Aid =          $15,650
                  Unmet Need = $1,520
            CHAFEE Grant                         $5,000
                OVERAWARD = $3,480


10/8/2010             Commission Presentation             26
Coordinating Resources

                     STUDENT Y
            Cal Grant “C” Nursing Student
             Financial Need      $11,450
             BOG Fee Waiver         $800
             F Pell Grant         $4,150
             F SEOG               $2,000
             Stafford Sub Loan $ 4,500
                 Total Aid = $11,450
             Unmet Need            $-0-
             Cal Grant “C”                   $576
                OVERAWARD = $576
10/8/2010               Commission Presentation     27
Disbursement of Financial Aid

• Checks and balances required prior to
  disbursement of aid to the student

      – Enrollment Verification

      – Institutional HOLDS

      – Satisfactory Academic Progress




10/8/2010          Commission Presentation   28
Disbursement of Financial Aid

• How funds are disbursed to students above and
  beyond costs owed to institution

      – UC, CSU, Independent & Proprietary
         $$$ transferred into student account and
          credit balance disbursed to student for
          educational cost

      – Community Colleges
         $$$ disbursed directly to student
            (no student accounts)


10/8/2010              Commission Presentation      29
Disbursement of Financial Aid
                                       Timely              Late
                                    Disbursement      Disbursement
                                        of Aid            of Aid
Student Account Balance                      $3,116        $3,116
(Tuition & fees, on-campus
housing and meal plans)

Financial Aid Disbursed                    $15,650       $10,650
(Grants, loans and
scholarships)

Balance Due/Balance Owed                   $12,534       $ 7,534
by Student



10/8/2010               Commission Presentation                      30
Ultimate Goal – Serving Students

• The ultimate goal for financial aid - between the
  time the student completes a FAFSA to the
  disbursement of funds – is serving students

             INVISIBLY
• Solid, efficient processes at the
  institutions make financial aid award
  delivery seem invisible to the student



10/8/2010           Commission Presentation           31
Ultimate Goal


   Disbursement                       Student Submits
  Of Aid To Student                       FAFSA




               INVISIBILITY


10/8/2010             Commission Presentation           32
Next Presentation

• Guarantor and Lender Steps for
  Student Loan Borrowers

      – Stafford Loan

      – Direct Student Loan

      – PLUS

      – Alternative Loans

10/8/2010          Commission Presentation   33
• CASFAA – California Association of
    Student Financial Aid Administrators


Thank You
• CCCSFAAA –
    California Community Colleges
    Student Financial Aid Administrators
    Association


• CLFE – California Lenders for Education

10/8/2010           Commission Presentation   34

				
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