1. Financial Aid 2019-2020 1321 Butte St. Suite 101 Redding, CA 96001

2. Providing college and career preparation services
Serving students and families in the North State since 2003
A non-profit organization securing grant funding to be able to provide free services and resources to our 5 county region
Modoc
Shasta
Siskiyou
Tehama
Trinity
 College preparation, career preparation and financial aid
appointments available

3. How Need Based Financial Aid Works
HANDOUT

4. Goals and Objectives for Today:
Take some of the mystery out of the financial aid process and provide a basic understanding of how financial aid works
Help your family to be better informed consumers regarding education choices
Provide an understanding of how to maximize your financial aid potential
Identify resources for help and assistance
Help you realize that there is a viable plan for each student
College is not a dream…it is a plan

5. What is the FAFSA?
Free Application for Federal Student Aid is the gateway to financial aid
Grants
Scholarships
Work Study
Loans
Used to determine a family’s Expected Family Contribution (EFC)
EFC is an objective means of measuring the strength of a family’s resources and its ability to pay for college costs
Must be completed every year of college
Ways to complete the FAFSA
On the web – desktop or laptop
On mobile devices – smartphones or tablets
myStudentAid mobile app (download at your app store)
Paper version - download a pdf version off the web

6. FAFSA Process studentaid.ed.gov/sa/fafsa Available October 1, 2018.
Submit with 2017 tax return information for academic year
Can save input prior to submittal
Can return to make corrections after submittal if needed
Submit FASFA prior to Cal Grant deadline (March 2, 2019) or college deadline if earlier
Submit any other state requirements by state deadline as well
FSA ID consists of a username and password
Need an FSA ID for the student and a different FSA ID for one parent
Required to “sign” and file the FAFSA on-line
Student Attending College Submit FAFSA Applicable Tax Year
July 1, 2019-June 30, Oct. 1, 2018-June 30,

8. Why File A FAFSA??? FAFSA is your gateway to Financial Aid
Grants Free Money
Scholarships Free Money
Work Study Earned Money
Loans Borrowed Money
Takes about 30 minutes to complete the FAFSA
Using the IRS Data Retrieval Tool (DRT) speeds the process
Even if you don’t think you will qualify for need based aid, it allows for:
Access to government loans
The opportunity to secure need based aid if life circumstances and/or financial circumstances change (special circumstances)

9. UC Berkeley Cost of Attendance 2018-2019
Academic Year
Living in a Campus Residence Hall
Living in an  On-Campus  Apartment
Living in an Off-Campus Apartment
Living with Relatives
Direct Costs Charged by UC Berkeley
Tuition and Fees
$14,068
Room and Board
$15,716*
$12,874*
Total Direct Costs
$29,784
$26,942
Other Estimated Costs
Housing and Utilities
$8,992
$2,630
Food
$1,558
$3,480
$4,264
$3,174
Books and Supplies
$894
Personal
$1,782
$1,780
$1,892
Transportation
$382
$542
$1,432
Total Cost of Attendance
$34,400*
$33,480
$30,540
$24,090

10. COA Comparison 2018-2019 Shasta College (CA Community College)
$11,674*
CSU Chico (CA Public 4-year)
$25,064**
UC Davis (CA Public 4-year)
$35,361**
Stanford University (Private)
$71,587**
*Living with parent
**Living on Campus

11. Financial AiD opportunities
Limited & Middle Income families
( Information)
Pell Grant*: $650 - $6,095/year (6 years max)
Cal Grant**: $1,672 - $12,570/year (4 years max)
California College Promise Grant***:
$46 per unit (3 years max)
Access to need based and merit based scholarships
Access to work study (college/university jobs)
Access to student loans
*Applies to all accredited schools in US
**Applies to all accredited and approved schools in California
***Applies to all accredited community colleges in California

12. Financial AiD opportunities
Higher Income families
CA Middle Class Scholarship
10-40% of CSU or UC tuition
Up to $171,000 income and $171,000 assets
Access to merit based scholarships
Access to student loans
Cal Poly San Luis Obispo requires ALL students who want to be considered for ANY scholarship from Cal Poly (whether based on need or not) to submit a financial aid application

13. HANDOUT

14. HANDOUT

17. How is the EFC Calculated?
Expected Family Contribution (EFC) is a calculation by the federal government, identifying the theoretical contribution by a family to college costs for their student in the upcoming year
Main components
Income (Parents & Student)
Assets (Parents & Student)
Number in Household
Number in the household in college
Age of the oldest parent

18. EFC Calculation — Income (For 2019-2020 School Year use 2017 Tax Return)
Parents
When the student is considered “dependent” for FAFSA purposes
If parents are divorced or separated, and not living together, use income from the parent that the student lived with more over the past twelve months
Student’s
$6,660 is “protected”
50% of income greater than $6,660 may be added to the EFC
Start with your Adjusted Gross Income (AGI) and include:
Retirement Contributions in the tax year
Untaxed Child Support
Worker’s Compensation
Housing Allowance
Disability Insurance
Other Untaxed Income

19. Case Study #1: Before Advising
Student
2.5 GPA
Only Cal Grant B eligible
No career direction
No savings
$3,000 annual income
Parent(s)
Single parent (divorced – 50/50 custody/support)
2 other children (also 50/50)
$43,000 savings/stocks
$23,000 in debt (poor credit)
$62,000 annual income
EFC $5,307

20. Case Study #1: After Advising
EFC#1 (MOM) EFC#2 (DAD) Number of parents in home 1 1 Parents earned income $62,000 $21,000 Student earned income $3,000 $3,000 Parents taxes paid $1,500 $0 Parents net assets $43,000 $22,000 Student net assets $0 $0 Student family size 4 2 Age of older parent Expected Student Contribution $0 $0 Expected Parent Contribution $5,307 $0 Expected Family Contribution $5,307 $0
Use EFC calculator to estimate for each parent
Career Assistance
Use College OPTIONS Tools

21. EFC Calculation – Assets
Parents
When the student is considered “dependent” for FAFSA purposes
If parents are divorced or separated, and not living together, use assets from the parent that the student lived with more over the past 12 months
Student
20% of student assets may be added into the EFC
Assets are often best kept out of the name of the student
Assets are calculated on the day FAFSA is submitted

22. What Assets to declare for FAFSA
FAFSA Assets Do Not Include:
Home equity (in primary home)
Retirement accounts (IRA, 401k, 403b, Roth, etc.)
Life insurance & annuities
Assets entitled to a business or ranch/farm, if you own/operate at least 50% and have 100 or fewer employees.
Personal vehicles, boats, firearms, household goods, jewelry, tools etc.
Examples of FAFSA assets to declare:
Cash, Savings, Checking
Investment Real Estate
Stocks/Bonds/Trusts/Other Investments (not in retirement accounts)
College savings plans (reported as assets of the parents)

23. Case Study #2: Before Advising
Student
2.95 GPA (10 & 11)
Only Cal Grant B eligible
Sr. yr. GPA is 3.8
Will be Cal Grant A eligible
1st generation college
$17,000 in savings
$4,000 annual income
Parent(s)
Both 50 years old
Married & together
$20,000 in savings
1 other child (13 yrs old)
$56,000 annual income
EFC $6,354

24. Case Study #2: After Advising
EFC#1 EFC#2 Number of parents in home 2 2 Parents earned income $56,000 $56,000 Student earned income $4,000 $4,000 Parents taxes paid $2,200 $2,200 Parents net assets $20,000 $37,000 Student net assets $17,000 $0 Student family size 4 4 Age of older parent Expected Student Contribution $3,400 $0 Expected Parent Contribution $2,954 $3,342 Expected Family Contribution $6,354 $3,342
Add 2nd year opportunity for Cal Grant(2.95 GPA)
Transfer student savings to parents if possible
“1 year out” Cal Grant may be greatly beneficial
Use College OPTIONS Tools

25. Case Study #3: Before Advising
Student
Good grades
Strong SAT Scores
Wants to attend private university
No assets
No income
Parent(s)
Married parents
Family of four
$165,000 liquid assets; $35,000 other assets
Exceed Cal Grant limits
$62,000 annual income
Home mortgage of $153,000
EFC $11,916

26. Case Study #3: After Advising
EFC#1 EFC#2 Number of parents in home 2 2 Parents earned income $62,000 $62,000 Student earned income $0 $0 Parents taxes paid $2,800 $2,800 Parents net assets $200,000 $47,000 Student net assets $0 $0 Student family size 4 4 Age of older parent Expected Student Contribution $0 $0 Expected Parent Contribution $11,916 $4,789 Expected Family Contribution $11,916 $4,789
Can use assets to pay off mortgage; primary home is NOT an asset for FAFSA
Now Cal Grant eligible (assets)
Use College OPTIONS Tools

27. EFC Calculation – Number in Household
You (the student)
Your parents (the ones reported on the FAFSA)
Parents’ other children (if they are dependent according to FAFSA definitions)
Parents’ unborn child (if child born before July 1 of upcoming year)
Other people (if more than 50% of support provided by your parents)

28. EFC Calculation – Number In the Household in College (During the 2019-2020 School Year)
You (the student)
Siblings living in/supported by the same household (if they meet FAFSA definition of dependent)
If parent is also a college student, s/he is NOT included on student’s FAFSA (but is included on parent’s FAFSA)

29. EFC Calculation – Age of Older Parent
The closer a parent is to retirement, the less impact parent assets have on the EFC

30. Financial Aid Award Letters
Applied to the school
+ accepted to the school
+ listed the school on your FAFSA (can list up to10)
= You will get a Fin. Aid Award letter from the school
Colleges start with their Cost of Attendance
Example:
Tuition/Fees $15,800
Room/Board ,000
Books/Supplies ,500
Transportation ,200
Personal Expenses ,500
Total COA $31,000
Remember, COAs vary greatly between colleges

31. Financial Aid Award Letters
Next, the college financial aid office determines the official “Financial Need”
COA – EFC = Financial Need
Example:
COA $31,000 (Cost of Attendance)
- EFC $ 5,000 (Expected Family Contribution)
Financial Need $26,000

32. Financial Aid Award Letters
The Financial Aid Office of the college creates a “package” of types of financial aid to attempt to meet the Financial Need
Example:
State Grant $12,000
Local Scholarship ,500
Federal Direct Loan ,500
Federal Work Study ,000
TOTAL AWARD: $19,000

33. Financial Aid Award Letters
Wait, wasn’t the financial need $26,000?
Financial Need ($26,000) - Award package ($19,000) =
UNMET NEED of $7,000
Don’t forget the original EFC of $5,000 to add back
Total funds for which the family is responsible for this year:
$7,000 Unmet Need + $5,000 EFC = $12,000
Schools offer varying amounts of financial aid, some more generous than others
Applying to multiple schools gives you more financial aid packages to consider
Underline that EFC doesn’t necessarily equate with out of pocket expenses for college

34. Didn’t GET enough financial aid? Consider these options
Negotiate: Ask the college or university for more financial aid
Scholarships: More detail on future slide
Special Circumstances Consideration: More detail on future slide
Student job: Work study or on-campus or off-campus
Payment Plans: Your school may have plans to avoid lump sum payments, allowing for several payments throughout a semester
Parent Savings: Food, gas, insurance savings while student is in college
Family resources: Savings, sell assets, 2nd mortgage, credit cards, etc.
Current Income: Allocate more to education expenses
Additional Loans: Government PLUS loans or private loans

35. Reducing College Costs
Career Planning before/during college
Changing your major (or college) costs time and money!
Internet research, informational interviews, job shadowing
Avoid dropping classes and focus on graduating on time
Apply for scholarships
Priority on local (smaller applicant pool)
If you are eligible, apply!
Buy used textbooks or rent them
Borrow responsibly
Use College OPTIONS tools
to evaluate and compare award letters
project costs over time
make decisions based on objective factors
Consider an alternative college
Community Colleges can be great options

36. What About Scholarships?
Your High School
Counselors know about scholarships given to their students
College OPTIONS advisors can assist
The McConnell Foundation
McConnell Scholars Program
Shasta Regional Community Foundation
Approximately 30 scholarship opportunities
Local Chambers of Commerce, Rotary Clubs, etc.
Siskiyou Promise (COS), Shasta Promise (Shasta College)
County Offices of Education
Your College/University Admissions and/or Financial Aid Office
National Scholarships (lots out there/lots of competition)

37. Special Circumstances and Applying Professional Judgment
College and University Financial Aid offices have the ability to recalculate an EFC based on significant hardships or new information
Examples:
Significant reduction of income/loss of job
Death
Abuse
Divorce/Separation
One-time settlement income
Student marriage
Schools are not required to exercise professional judgment and there is no set standard for applying judgment
Applying to multiple schools gives you more options

38. Handout

39. Handout

40. Spend your Education Dollar Wisely
Retention rate is the percentage of a school’s first-time, first-year undergraduate students who continue at that school the next year. For example, a student who studies full-time in the fall semester and keeps on studying in the program in the next fall semester is counted in this rate.
Graduation rate is the percentage of a school’s first-time, first-year undergraduate students who complete their program.
College Retention Rate year Graduation Rate year Graduation Rate
CSU Chico % 26% 66%
Southern Oregon University 68% 23% 38%
Stanford University 98% 75% 94%
UC Davis % 58% 85%
University of Nevada, Reno % 26% 55%
University of Oregon 87% 52% 72%
University of the Pacific % 47% 66%
College Comparisons-

41. College OPTIONS Financial Aid Tools and Resources
HANDOUT collegeoptions.org click on “Financial Aid”

42. Handout

43. College OPTIONS Financial Aid Services
College OPTIONS is a local educational partnership that provides services at no cost to students of all ages who live in Modoc, Shasta, Siskiyou, Tehama or Trinity counties. Financial Aid services are specifically designed to meet individual needs. We are funded by private and federal grants. College OPTIONS does not guarantee any specific grants, scholarships, loans or government funding. Students who receive services, and their parents or other responsible adults, are expected to provide accurate and complete information to advisors for all applications for financial aid. The best options for financial aid are based on up-to-date information. Our advisors are not financial professionals. We urge students and families to verify information and weigh the options before making financial aid decisions. It is our policy to maintain the privacy of every student who accesses services through College OPTIONS. We do not share information with any outside agencies, companies or individuals. With the student’s permission, we may discuss a student’s progress with other educators and/or college admissions and/or financial aid officers for the benefit of the student. We welcome suggestions, comments and feedback of any kind. The best services are the result of diligent efforts by everyone. Thank you for allowing us to be of assistance to you.

44. Special Considerations and Reminders
Cal Grant is good for 4 years including Community College
Use it wisely
Meet all deadlines
Cal Grant has a March 2 FAFSA filing deadline
Consider applying to multiple schools in order to see multiple financial aid packages
“Verification” is a financial aid process conducted by your college/university financial aid office
Prove to us that all of your FAFSA information is true
Keep bank statements from your FAFSA filing date
Reach out to College OPTIONS if you need assistance
College is not only a dream…it is a dream with a plan!!

45. Thank you!!! We are always trying to improve our effectiveness.
If you have suggestions for improvement, please see me or call me or me
Brad Williams
Director of Financial Aid Services
College OPTIONS
Phone:
Thank you for attending this presentation and for your interest in financial aid