1. Financial Aid 101- The Basics

2. Agenda Financial aid history & philosophy of o Free Application for Federal Student Aid Calculating financial aid o Cost of attendance (COA) o Expected Family Contribution (EFC) Categories, types, and sources of financial aid Special circumstances

3. 1. 3. 2. Economic Social National defense History of Financial Aid U.S. Congress passes laws that promote national prosperity:

4. Philosophy of Financial Aid Students and their families have the primary responsibility to pay for postsecondary education expenses Note: even if the student has left the household

5. Philosophy of Financial Aid Making a college education more attainable Providing a consistent and equitable evaluation Ensuring eligible students benefit from financial assistance

6. General Application Process IRS Data Match FAFSA via Telephone

7. FAFSA on the Web Reasons to file electronically: Faster processing Built-in edits prevent costly errors Skip logic allows student and/or parent to avoid unnecessary questions Use Internal Revenue Service (IRS) data retrieval

8. FAFSA on the Web Reasons to file electronically: Easier corrections & updates Comprehensive instructions and “help” for common questions Check status on-line Simplified renewal application

9. Frequent FAFSA Errors Social Security numbers Divorced/remarried parental information Income earned by parents/stepparents Untaxed income U.S. income taxes paid Household size Number of household members in college Real estate and investment net worth

10. High school diploma or equivalent U.S. citizen or eligible non-citizen Valid Social Security number Enroll in an eligible degree or certificate program Register with Selective Service (males only) Sign a statement of educational purpose Initial Student Eligibility

11. Not be in default or owe an overpayment on a grant Maintain Satisfactory Academic Progress (SAP) No drug convictions based on Department of Education standards Maintaining Student Eligibility

12. Calculating Financial Aid Eligibility

13. What is Financial Aid? Funds provided to students to help pay for postsecondary education expenses. Financial aid includes Grants Scholarship Work study Loans

14. What is Cost of Attendance (COA) Direct costs Indirect costs Direct and indirect costs combined into cost of attendance Varies widely from college to college

15. Cost of Attendance (COA) Note: Costs vary from institution to institution Standard CostsOptional Costs Tuition and feesDependent care Room and boardStudy-abroad Books and SuppliesDisability-related services Transportation Employment expenses for co-op study Miscellaneous personal expenses Student loan fees

16. EFC is the measure of a family’s financial strength EFC is used to determine the student and parent ability to contribute towards the student’s cost of education Need analysis is the consistent formula used in determining a family’s EFC Expected Family Contribution (EFC)

17. Expected Family Contribution: The Counselor’s Role Do Encourage students at all income levels to apply Refer students to the college’s Net Price Calculator* Do not Assess eligibility Promise eligibility * only an estimate not a guarantee

18. Calculating Eligibility For Need-Based Aid Cost of Attendance (COA)  Expected Family Contribution (EFC)  Eligibility for Need-Based Aid

19. Types of Financial Aid

20. ProgramAward AmountNotes Pell GrantUp to $5550President’s budget request FSEOG (grant)Between $100 and $4000Funding at FY2011 levels TEACH GrantUp to $4000 Proposal: replace TEACH with Presidential Teaching Fellows Iraq & Afghanistan Service Grant Up to $5550 equal to Pell Grant – not to exceed the COA Work StudyDetermined by each schoolFunding at FY2011 levels Perkins Loan Up to $5500 (UG)/ $8000 (Grad) Proposal: modify Perkins loans into unsubsidized Direct Loans Subsidized Direct Loan Between$3500- $5500 (based on UG grade level) Elimination of subsidized loans for Graduate students Calculating Eligibility Need-Based Aid—2012-2013 Federal Programs

21. California ProgramsAward Amount Cal Grant AUp to $12,192 Cal Grant B$1551 (1 st yr) ; $13743 Cal Grant CUp to $3168 (non CCC) $576 (at CCC) Chafee GrantUp to $5000 UC Student Aid$100 or more State University GrantCovers full system-wide fees Child Development Grant $1000 (CCC) or $2000 (4 yr) Law Enforcement & Personnel Dependents Grant Up to $11259 (for up to four years) Robert C. Byrd Scholarship Up to $1500 (contingent on federal funding) CCC Board of Governors Fee Waiver Covers all Enrollment Fees Calculating Eligibility Need-Based Aid-2012-2013 California Programs

22. Students who do not demonstrate eligibility for need-based aid may still quality for: Federal unsubsidized Direct loan Federal Direct PLUS loan Private sector scholarships Institutional scholarships and employment programs Calculating Eligibility Non Need-Based Aid

23. Special Circumstances

24. If students and families have unusual circumstances, advise them to contact the financial aid office at the college they plan to attend; the office will advise them on how to proceed. Special Circumstances

25. Cannot be reported on the FAFSA Contact the financial aid office for procedures School’s decision is final and cannot be appealed to Department of Education

26. Special Circumstances Examples Change in employment status o Dislocated workers/Loss of employment Change in parent marital status Medical expenses not covered by insurance o Elder care expenses Unusual dependent care expenses

27. What if…student related changes Student cannot obtain parent information Homeless individuals Special Circumstance Examples:

28. The Financial Aid Office has authority to make a dependent student independent if unusual circumstances exist: An abusive family environment Abandonment by parents Inability to locate parents Professional Judgment and Dependency Status

29. Do not qualify as “unusual circumstances” Parents refuse contribution towards education Parents unwilling to provide information on the application or for verification Parents not claiming the students as a dependent for income tax purposes Student demonstrating total self-sufficiency Professional Judgment and Dependency Status

30. Remember… If your student and family have unusual circumstances, advise them to contact the financial aid office at the college they plan to attend; the office will advise them of how to proceed.

31. Questions?