Financing a UC Education: What Freshman Applicants Need to Know University of California Counselor Conferences Fall 2003.

Financing a UC Education:What Freshman Applicants

Need to Know

University of California

Counselor Conferences

Fall 2003

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Topics of Discussion

Basic Principles Covering College Costs Building a Financial Aid Package How and When (3/2!) to Apply Resources

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Basic Principle #1

Students can afford to attend UC with – The support of a partnership involving:

• Students • Their parents (if applicable)• The University

– Thoughtful money management– Sound use of credit

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Basic Principle #2

While student fees will increase for 2003-04, financial aid will be increased as well– UC undergrads eligible for Cal Grants or UC

grants will have their fee increase fully offset by increased grant

• Generally students from families making less than $60,000 annually

– Financially needy UC undergrads who are not eligible for Cal Grants or UC grants and whose families make less than $90,000 annually will have ½ of the fee increase offset with grant

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Basic Principle #3

University financial aid recipients can expect to work and borrow

However, the University’s grant program keeps student loan and work levels manageable

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Basic Principle #4

UC undergraduates enroll full-time and work part-time rather than the other way around– The University’s financial aid program is

designed to make this possible– Enrolling full-time allows a student to enter

the workforce with a UC degree sooner

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Covering College Costs from a Student Perspective

(A) COST OF ATTENDANCE

less (B) PARENT CONTRIBUTION*

less (C) GRANTS + SCHOLARSHIPS

= (D) STUDENT RESPONSIBILITY

*if applicable

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(A) UC Cost of Attendance(1 of 2)

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

$20,000Personal Expenses

Transportation

Room & Board

Books & Supplies

Health CareFee/AllowanceTuition/Fees

Total Living On-campus 2003-04: $18,930

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(A) UC Cost of Attendance(2 of 2)

Typical cost of attendance for full academic year (9-months)

Off-campus student attending full time

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

CCCCSU UC

Indep

enden

ts

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(B) Expected Parent Contribution

Generally speaking, students under the age of 24 are considered dependent students, so their parent information is considered when calculating financial aid eligibility

For many low-income families, the Parent Contribution is zero

Parent Contribution can be paid from savings, current income, or loans

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(C) Grant Assistance

Gift aid distributed based largely on family’s ability to cover expenses.

Grants come from many sources, including the federal government, the state of California, and UC

University grant assistance is used to fill the gap left after accounting for a parent contribution, manageable student loan/work levels, and state & federal grants

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(C) Scholarships

Gift aid offered in recognition of academic achievement or special talents

Generally reduce need to work or borrow Apply for UC scholarships with the UC

admissions application Many resources on the Web Beware of scholarship “scams”

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(D) Student Responsibility (1 of 2)

Work– University grants help reduce work hours

so that students can make academic progress toward their degrees

– The University assumes that students work no more than 20 hours weekly when enrolled and full time when not enrolled

– Job placement assistance is available, and many students work on campus

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(D) Student Responsibility (2 of 2)

Borrowing– University grants help reduce borrowing to

levels that result in manageable payments upon graduation

– Nearly all UC undergraduates qualify for federal low-interest student loans

Students can generally decide how they want to balance working and borrowing

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Financial Aid Packaging: Cost of Attendance

$17,060 $17,060 $17,060 $17,060

$0$2,000$4,000$6,000$8,000

$10,000$12,000$14,000$16,000$18,000

$25KAnnualIncome

$45KAnnualIncome

$65KAnnualIncome

IndependentStudent

Cost ofAttendance

Living On-campus 2002-03

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Financial Aid Packaging: Student Loan and Work

$7,000 $7,000 $7,000 $8,300

$10,060 $10,060 $10,060$8,760

$0$2,000$4,000$6,000$8,000

$10,000$12,000$14,000$16,000$18,000

$25KAnnualIncome

$45KAnnualIncome

$65KAnnualIncome

IndependentStudent

RemainingCosts

Student Loanand WorkExpectation


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Financial Aid Packaging: Parent Contribution

$7,000 $7,000 $7,000 $8,300

$10,060$7,380

$2,540

$8,760

$0$2,680

$7,520

$0

$0$2,000$4,000$6,000$8,000

$10,000$12,000$14,000$16,000$18,000

$25KAnnualIncome

$45KAnnualIncome

$65KAnnualIncome

IndependentStudent

ParentContribution

RemainingCosts



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Financial Aid Packaging: Grant Support

$7,000 $7,000 $7,000 $8,300

$10,060$7,380

$2,540

$8,760

$0$2,680

$7,520

$0

$0$2,000$4,000$6,000$8,000

$10,000$12,000$14,000$16,000$18,000

$25KAnnualIncome

$45KAnnualIncome

$65KAnnualIncome

IndependentStudent

ParentContribution

Grant Support



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Financial Aid Packaging: Specific Programs

$0$2,000$4,000$6,000$8,000

$10,000$12,000$14,000$16,000$18,000

$25KAnnualIncome

$45KAnnualIncome

$65KAnnualIncome

IndependentStudent

ParentContribution

UC Grant

Federal PellGrant

Cal Grant

GrantEligibility

FederalStafford Loan

Part-timeWork

Work andLoan

$3,700 $4,900$3,700$3,700

$3,300$3,400

$3,300$3,300

$4,980

$3,429

$3,429

$2,080

$3,551

$2,540

$1,331

$3,000$400

$4,000


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About Educational Loans (1 of 3)

Federally backed educational loans are a good investment and available to almost all students

Federal subsidized loans are made to financially eligible students

Federal unsubsidized loans are made to students without regard to finances

2003-04 interest rate: 3.42%

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Subsidized Loans are a Good Investment– The Government pays the interest while

the student is in school– Interest rates are low– Loans may be consolidated into a single

payment– Repayment begins 6 months after last day

of attendance

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Unsubsidized loans are a good investment– Interest rates are low– Loans can be consolidated into one

payment– Recipient may opt to pay interest while

enrolled or choose to capitalize interest until repayment 6 months after attending

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Strategies to Reduce Working and Borrowing

Reduce expenses

Earn scholarships– Through the University– From outside sources

Save summer earnings for use during the academic year

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Direct vs. Indirect Costs

Much of the cost of attendance listed on award letters is for indirect costs– Most of student budget is for room, board,

and living costs – Those costs that are paid to the University

are not all paid at one time

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Urge all Students -- Even CC-Bound -- to Apply

Many eligible community college students miss out on federal grants because they don’t apply– Some eligible CC students don’t apply

because they can work full-time and attend part-time

– With aid, might be able to attend full-time and transfer sooner

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Cal Grant award recipients know that they have aid when they transfer– This reduces anxiety about financing– CC-bound students may receive a Cal

Grant B or a Cal Grant A reserve award, which can be activated upon transfer


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High school entitlement award eligibility requirements

• Cal Grant A: Minimum 3.0 high school GPA plus additional eligibility criteria

• Cal Grant B: Minimum 2.0 high school GPA plus expanded/stricter eligibility criteria


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How to Apply:

FAFSA: collects data to calculate eligibility for need-based financial aid (completed by student/family)

GPA VERIFICATION FORM: Collects GPA information used to make Cal Grant awards (completed by school)

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FAFSA Variations:

Paper FAFSA FAFSA on the Web

– www.fafsa.ed.gov Renewal FAFSA

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When to Apply for Aid

Between January 1 and March 2

Students need not have been accepted

for admission to apply for financial aid

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What Happens After Applying?

The federal FAFSA processor sends a “SAR” to the student

The California Student Aid Commission sends letter on Cal Grant eligibility

Information is sent from the UC campus– follow-up requests (e.g. verification items)– preliminary aid estimates– financial aid offer letters

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Campus Financial Aid Information/Resources UC Berkeley

– 510 642-6442– www.uga.berkeley.edu/fao

UC Davis– 530 752-2390– faoman.ucdavis.edu

UC Irvine– 949 824-8262– www.fao.uci.edu

UCLA– 310 206-0400– www.saonet.ucla.edu/fa.htm

UC Merced*– 559 241-7474– www.ucmerced.edu

UC Riverside– 909 787-3878– www.students.ucr.edu/finaid

UC San Diego– 858 534-4480– www.ucsd.edu/finaid

UC Santa Barbara– 805 893-2432– www.finaid.ucsb.edu

UC Santa Cruz– 831 459-2963– www2.ucsc.edu/fin-aid

*Opens in 2004

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Resources for More Information:

Websites UC Pathways:

www.ucop.edu/pathways U.S. Department of Ed: www.ed.gov Calif. Student Aid

Commission: www.csac.ca.gov College Board:

www.collegeboard.org Electronic FAFSA :

www.fafsa.ed.gov

Phone numbers General Questions to U.S.

Dept. of Ed:

800 433-3243 FAFSA Processor

319 337-5665 Cal Grant Information

888 224-7268

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Questions????

Please see us at the Financial Aid Information table for questions

Financing a UC Education: What Freshman Applicants Need to Know University of California Counselor Conferences Fall 2003.

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