Today's Workshop: Financial Aid How to par your students education Presentaded by: San José Cal-SOAP
What is Financial Aid? Funds which are available to help pay the cost of higher education Funds are distributed in the following way: Free Money Loans Work Study Local, State, Private or Institutional Scholarships and Cal-Grants, Offers students the opportunity work in a job on or off campus Funds available for students and/or parents which must be paid back OR
Federal Government (FAFSA) State Government (CAL-GRANT) Higher Educational Institutions Other/Private Agencies So who provides the funds for Financial Aid?
FINANCIAL AID CAL GRANTS 1. CAL GRANTS 2. SCHOLARSHIPS Federal Government “Pell Grant” State Government (Cal Grant A, B, y C) Local, State, Institutional, and private
Federal Pell Grant: Federal Grants You don’t have to pay it back! Offered to students who have not received their first Bachelors of Arts $400 to $5,500 per year CAL-GRANT Government Funds which are available for students to help them pay the cost of a university You don’t have to pay it back!!! Its only available for CALIFORNIA residents whom are enrolled and attending a college or university of C ALIFORNIA
Cal Grant A 3.0 GPA California resident Must need financial assistance Must be attaining a first degree. Pays up to 5 years. DON’T change majors. Pays for tuition and fees: $4,429 to $9,708* * for selected private institutions
Cal Grant B 2.0 GPA, a California resident, must need financial assistance, be attaining a first degree, and first generation to attend college. Pays tuition and fees, books, living expenses, and transportation First year = 1,551. Additional Years = Cal Grant A + $1,551 Pays tuition and fees, books, living expenses, and transportation Pays 1 year for a Voctional Program BOG Fee Waiver (CCC) CSU: SUG UC: State University Financial Aid
Cal Grant C No minimum GPA California resident Must need financial assistance Must be attending vocational school/Traininig Program Study must be at least 4 months up to 2 years of full time study Supplemental Application sent after FAFSA Books and Supplies= $576 Tuition & Fee= $2,592 Competitive Award Up to 7,761 (send the Supplemental Application)
Complete the Free Application for Student Aid Complete the GPA Verification Form It must be certified by the high school and sent to the California Student Aid Commission Ask for Certificate of Mailing ($0.95) if mailing it. Ask for Certificate of Mailing ($0.95) if mailing it. March 2 of every yearMust submit on or before March 2 of every year Unless attending a Community College- Sept 2. Unless attending a Community College- Sept 2. Supplemental Application Supplemental Application Cal Grant: To DO List
Loans with low interest rates (5%) available for students who demonstrate financial need The University or College is the loaner and you start paying the loan 9 months after you graduate or end school $4,000 per year for a total max of $20,000 “Perkins” Loan
Federal Stafford Loan 3.37% SUBSIDIZED PAYMENT STARTS 6 MONTHS AFTER THE LAST DAY OF ATTENDANCE AND... UNSUBSIDIZED PAYMENT STARTS 6 MONTHS AFTER THE LAST DAY OF ATTENDANCE BUT... The federal government pays the interest on subsidized loans while you are in school and during the first six months after you graduate, withdraw, or enroll less than half-time. You’re responsible for paying interest that accrues OR let it accumulate while in college, but interest will be added to the amount you borrowed, and future interest will be based on the NEW higher loan amount.
“PLUS” LOANS Loans that may be borrowed by parents to pay their students education if the student is still dependent and is enrolled in the school at lest half- time Interest starts to accrue immediately, with repayment beginning with in 60 says after the last day of attendance. Plus Loans are unsubsidized PLUS loans have a variable interest rate, with a cap of 9 percent
ORIGINAL LOAN TOTAL = 20,000 3.37% INTEREST TERMS of LOAN LIFE 120 MONTHS = 10 YEARS TOTAL: LOAN + INTEREST $23,958 MONTHLY PAYMENT $199 TOTAL INTEREST PAID $3,958 Educational Loan Scenario
“StTUDENT WHO BOUGHT A CAR from a PRIVATE LOAN INSTITUTION” CAR VALUE TOTAL: 20,000 The students has to start making monthly payments immediately after purchasing the car.
LOAN MOUNT TOTAL = 20,000 2,000.00 DOWN PAYMENT TERMS of LOAN LIFE 60 MONTHS = 5 YEARS $27,498 LOAN + DOWN PAYMENT + INTEREST = MONTHLY PAYMENT $424 TOTAL INTEREST PAID AFTER 5 YEARS $5,496 10% INTEREST
What is the difference between an Educational Loan and a Private Loan? Interest rate from the private loan must be paid immediately after you purchase the car The interest on private loans are generally higher depending on the B orrower, credit history and job employment Educational loans may be paid 6 months after you graduate or stop attending school Interest Rate is low Eligibility for loan is not based on credit history nor what you work in
Other things to consider... This process takes time! Filling out the FAFSA and getting the required paperwork takes a while so give yourself PLENTY of time! Nobody is perfect... Make copies of all your paperwork, your Financial Aid info as well as your Applications for schools. Try not to worry! The money IS out there, your job is to find it!
So how much does school Cost…. Tuition = $5,246 – 8,102 Books = $1,220 Rent = $5,946 – $10,458 Personal = $3,281 Total= $15,983 – $19,398
IMPORTANT AB 540 This law permits students that are California non- eligible residents to pay in-state tuition fees instead of paying out-of-state tuition fees REQUIREME NTS: Student must have attended a California HS for at least 3 years Student must have attained a High School Diploma or GED Register or be currently enrolled at an accredited public institution of higher education in California Register or be currently enrolled at an accredited public institution of higher education in California Submit the “California Nonresident Tuition Exemption Request”
AB-540 Difference of Cost Between Colleges and Universities Community Colleges of California: $26/unit $199/unit) California State University : $5,370/year $9,834/year University of California: $10,850/year $24,593/year NON-RESIDENTSRESIDENTS
The Family Educational Rights and Privacy Act of 1974 – Federal law regarding the privacy of student records and the obligations of the institution, primarily in the areas of release of the records and the access provided to these records The information that a student shares with a college or university is protected by federal law. DREAM ACT IF SIGNED INTO LAW: –Would grant qualified* immigrant students the opportunity to obtain legal status and thus enable them to pursue higher education and contribute fully to the nation. * Requirements to Qualify –Student MUST have lived in the U.S. for five years or more –Student MUST be a high school graduate –Student MUST have “good moral” conduct –Student MUST attend a minimum of 2 years of college IMPORTANT AB 540