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Financing a UC Education: Tips for Families UC Counselor Conference 2011.

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Presentation on theme: "Financing a UC Education: Tips for Families UC Counselor Conference 2011."— Presentation transcript:

1 Financing a UC Education: Tips for Families UC Counselor Conference 2011

2 Purpose of Financial Aid Provides access to education beyond high school Provides choice among a variety of educational opportunities If you’re ready to attend, money shouldn’t stand in your way. 2

3 In-State Price of UC StatusTotal Price On Campus$31,200 Off Campus$28,400 Commuter$23,400 3

4 Sample UC Financing Plan Cost = $31,200 Family Income Total GRANTPARENT Contribution STUDENT (work + loans) $20,000$21,800$0$9,400 $40,000$20,600$1,200$9,400 $60,000$16,700$5,100$9,400 $80,000$12,200$9,600$9,400 $100,000$1,900$19,900$9,400 Independent > $20,000 $20,200$0$11,000 4

5 Typical GRANT Awards for on-time applicants eligible for federal, state, and UC aid Total Family IncomeGrant Award $20,000Up to $21,800 $20,000 to $40,000Up to $20,600 $40,000 to $60,000Up to $17,600 $60,000 to $80,000Up to $12,200 $80,000 to $100,000Up to $1,900 Independent > $20,000+ $20,200 5

6 Student Share About half from student loans The other half from student employment/savings StatusContribution Dependent$9,400 Independent$11,000 6

7 Every Needy Student Should Expect to Both Borrow and Work UC will expect each student to work and borrow for the first $9,400 or $11,000  No matter what the FAFSA determines is the “Expected Family Contribution” (EFC) or the Student Contribution (SC) 7

8 Parents Must Contribute According To Their Ability To Do So Each family will be expected to pay the Parent Contribution (PC) as determined by the FAFSA (including revisions to the FAFSA calculation that result from verification) 8

9 Parent Share Family IncomeContribution $20,000$0 $40,000$1,200 $60,000$1,500 $80,000$9,600 $100,000$19,900 Independent Student > $20,000 $0 9

10 Blue and Gold Plan No tuition paid out of pocket from student or family. California resident with total family income under $80,000 per year 4 years of undergraduate study only Apply on time for financial aid Demonstrate financial need Comply with all verification requests on time No special application No special mention on financial aid award 10

11 Scholarships for AB 540 Students New CA law (AB 130) allows all AB 540 students to be considered for limited private scholarships at public institutions AB 130 affects only students eligible for AB540 All AB 540 students may be considered for scholarships derived from private gifts Students must apply on campus Students must qualify for scholarships based on campus standards of merit and or need 11

12 New CA Law Restricts Renewal Cal Grants Students awarded a Cal Grant as a freshman cannot rely on being eligible for a renewal Each year CSAC will re-check family assets and income Once eliminated from Cal Grant eligibility, students cannot regain eligibility for Cal Grant At UC, the total grant for the lowest income students will not decrease, even if Cal Grant is withdrawn 12

13 File a FAFSA March 2, 2012 is still the CA deadline Ensure that GPA verification is sent to CSAC – YOU NEED BOTH A FAFSA and the GPA VERIFICATION! Don’t wait to file 2011 taxes to file FAFSA Estimate 2011 dollars and update later, after submitting FAFSA 13

14 More on Filing a FAFSA Use IRS data retrieval tool to speed processing and reduce required documentation requests Copies of Income Tax returns will no longer be acceptable – actual IRS tax transcripts will be required Respond to all requests for additional documentation right away Check email and web frequently for financial aid information from UC 14

15 File a FAFSA - JUST IN CASE Family income and other circumstances change unexpectedly FAFSA data can be updated at any time during the year, so filing by March 2 nd 2012 is an INSURANCE PLAN! Nearly all U.S. citizens and permanent residents can borrow from the federal student loan programs, irrespective of income or credit rating Eligibility for many scholarships and grants requires on-time FAFSA filing 15

16 Federal Student Loans Still, despite interest rate increases to 6.8%, the best bet for most undergraduates Most flexible repayment options Public service cancellation for IBR repayers Cancellation for death and disability 25-year automatic cancellation for low-income repayers 16

17 Borrowing Among UC Students UC students typically borrow amounts ($16,800 in 2010-11) that result in monthly repayments for 10- year terms of around $200 per month – this is very affordable given starting salaries of UC graduates! About half of all UC undergraduates borrow at some point while enrolled at UC Students whose parents fail to contribute what is expected of them based on their FAFSA-recognized income will have to borrow more to make up for their missing parent contribution 17

18 More on Borrowing Interest rates on most federal student loans during 2012-13 will be 6.8% fixed Subsidized federal student loans will remain available to undergraduates, despite the increase in interest rates on these loans – cost of funds will not be charged to borrower while enrolled at least half time or during grace period The Income-Based Repayment Plan (IBR) limits monthly repayment amounts to no more than 15% of each borrower’s net disposable income 18

19 Bring Down Your Costs by… Finishing in four years  Take required courses as soon as possible.  Complete 15 units per term–that’s full time!  Attend summer school (aid is available!). Obtaining outside scholarships Living with roommates Working part time Buying used books when possible Using your student status to obtain discounts! 19

20 Finishing in Four UC freshmen are taking 4.3 years to graduate UC transfers are taking 2.3 years to graduate UC students can usually get the classes they need to graduate – PLAN AHEAD! Take critical coursework before electives. Attend summer session at least one summer. 20

21 Undocumented Students Those who have attended and graduated from a California high school may be eligible for AB 540 and do not have to pay non-resident tuition; High-achieving AB 540-eligible students may qualify for campus scholarships (inquire on campus where you enroll) All other undocumented students will be charged non-resident tuition and will be ineligible for any state, federal, or institutional financial aid 21

22 Veterans Education Benefits – part 1 Veterans should inform the campus right away once they decide where they are going to enroll in order to benefit from special veterans’ services The VA will no longer pay Post 9/11 tuition and fee benefits for otherwise eligible veterans who receive tuition-and-fee-specific awards from other sources (e.g., Cal Grants or UC tuition or fee waivers associated with Research Assistantships, for example.) California veterans with full eligibility for Post 9/11 VA education benefits will have all their tuition and fees paid at CA public institutions and up to $17,500 paid at independent colleges 22

23 Veteran’s Education Benefits – Part 2 The VA will no longer pay “interval” BAH payments, so veterans will not receive full BAH amounts during breaks between semesters or quarters, whenever they occur in the official institutional calendar. All veterans are encouraged to file a FAFSA and to avail themselves of all other types of financial aid and scholarships 23

24 Veteran’s Education Benefits – Part 3 For veterans who remain “fully-eligible” for Post 9/11 GI Bill education benefits, the VA will now pay all the tuition and fees charged to veterans who are residents of this state 24

25 Non-residents Students who are determined to be non-residents of California by UC’s residency standards will be charged an additional non-resident supplemental tuition of $22,878 per year 25

26 Campus Financial Aid Calculators paying-for-uc/financial-aid/index.html 26

27 Campus Financial Aid Resources 27 UC Berkeley (510) 642-6442 UC Davis (530) 752-2390 UC Irvine (949) 824-8262 UCLA (310) 206-0400 UC Merced ( 209) 228-4243 UC Riverside (951) 827-3878 UC San Diego (858) 534-4480 UC Santa Barbara (805) 893-2432 UC Santa Cruz (831) 459-2963

28 For More Information 28 General Questions to U.S. Dept. of Ed. and FAFSA Processing Issues: 1-800-433-3243 FEDERAL PIN for Electronic FAFSA: Electronic FAFSA : California Student Aid Commission (CSAC): Cal Grant Information 1-888-224-7268 UC Online Admissions Application www.universityofcaliforni

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