Torrance Unified School District

2018-2019

Financial Aid Workshop

October 4, 2017

Presented by

Catherine GrahamGraham Strategies, Inc

FINANCIAL AID LITERACY 101…

I. What is Financial Aid?

II. Types & Sources of Financial Aid

III. College Selection and Admission Overview

IV. Applying for Financial Aid for 2018-2019

The Financial Aid Formula

College Expenses – what are the costs?

What is the Expected Family Contribution (EFC)?

How is your Financial Aid Eligibility determined?

V. Awarding Process & Comparing Awards

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WHAT IS FINANCIAL AID?Financial aid helps students and their families pay for college.

Financial assistance can/may cover educational expenses including tuition and fees, room and board, books and supplies, and transportation.

There are several types of financial aid, including grants and scholarships, work study and loans.

Financial Aid comes from many sources including the federal and state governments, colleges and universities and private organizations.

Financial aid may be free in that you don’t have to pay it back, or require payments after graduating from college.

There is financial aid (loans) available for both students and parents of dependent students.

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FINANCIAL AID PARTNERS… The Federal Government

Higher Education Act of 1965 and since then…

More than $126 billion in grants, work-study funds, loans, and tax benefits were awarded by the federal government last year to help undergraduate students afford college.

Manage the primary application for financial aid eligibility:

Free Application for Financial Aid (FAFSA)

and determine the formula for federal, most state and most institutional financial aid.

https://studentaid.ed.gov

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FINANCIAL AID PARTNERS…

The State of California via (CSAC)

Since 1955

the California Student Aid Commission(CSAC) has been making education beyond high school financially assessible to all Californians.

http://www.csac.ca.gov

In 2017

the State of California will offer $2.2 billion in Cal Grants to eligible students and $117 million in Middle Class Scholarships to students attending CSU and UC campuses.

CSAC will support over 800 Cash for College Workshops during the financial aid application season.

https://cash4college.csac.ca.gov5

FINANCIAL AID PARTNERS…

The Financial Aid Office

Financial Aid Offices process financial aid applications and determine student’s eligibility on behalf of the federal and state governments using a consistent and equitable formula vis-à-vis the FAFSA (and possibly additional materials may be required).

Stewards of federal, state and institutional financial aid dollars.

U.S. Colleges and Universities award approximately $532 Billion of their own resources to support their students each year.

Strive to deliver accurate, informative, timely and friendly manner via web, phone, in person and email formats.

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FINANCIAL AID PARTNERS…

Parents

To contribute to the application, awarding and financing process throughout student’s entire UndergraduateEducation.

Students are considered dependents of their parent(s) for financial aid eligibility purposes if they were born after January 1, 1995.

Parents and students have the responsibility to pay for their children’s higher education expenses to the extent they are able.

Parent information will be required on the FAFSA application irrespective of their income & assets or willingness/ability to pay.

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FINANCIAL AID PARTNERS

Student

Continue to focus on grades and credits needed to graduate

Maximize senior year course selections

Graduate from HS or complete your GED/California HS Proficiency Exam – a requirement for financial aid

Take or retake SAT as needed to improve scores

Visit college campuses & take tours

Working now? Save for your educational expenses

Update your resume – look for summer and/or on-campus work

Search online for scholarship opportunities, begin applying for scholarships

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AID TYPES: NEED BASED

Requires completion of the FAFSA

Grants: Gift aid that does not need to be repaid

Loans: Borrowed aid that must be repaid with interest

Separate promissory notes required

Repayment typically begins after graduation

Work: A set amount that a student can earn by working on campus

How does “work” work? Benefits?

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AID TYPES: NON-NEED BASED

Typically does not require the FAFSA Application

Merit/Academic/Talent Scholarships

Based on Admission Information

Separate Application

Interview Process and/or separate deadlines

Athletic Scholarships

Non-Need Based Loans

Federal Direct Student Loans * does require the FAFSA

Federal Direct Parent Loans * does require the FAFSA

Alternative Educational Loans * No FAFSA required

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GENERAL AID SOURCES

1. Federal Financial Aid Programs for Students

Federal Pell Grant up to $5,920 (17-18 amount)

Federal Supplemental Grants (SEOG) ($100-$4000)

Federal Work Study (amounts vary, usually around $2,500)

Federal Direct Loans $3500, $4500, $5500 + $2000

Subsidized – gov’t pays interest while in school

Or

Unsubsidized: gov’t does NOT pay interest while in school.

Loan Fees & Interest Rates

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GENERAL AID SOURCES 2. State Financial Aid Programs for Students

Cal Grant A: 3.0 HS GPA required/Income & Asset Ceilings

$12,294 at University of California

$5,472 at Cal State University

$9,084 at qualifying private California colleges

$4,000 at qualifying accredited for-profit institution

*If you chose to attend a California Community College, your grant will be held in reserve until you transfer to a four year college.

Cal Grant B: 2.0 HS GPA required/Income & Asset Ceilings

$1,670 living allowance for your first year, plus Tuition & Fee awards stated above.

Cal Grant C: technical or career education: $547 for books and $2462 for tuition (if not attending a California Community College).

http://www.csac.ca.gov

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GENERAL AID SOURCES State Financial Aid Programs for Students (Continued)

Middle Class Scholarship (MSC) for UC & CSU schools only

Students whose families have income and assets up to $165,000 per year may be eligible for a scholarship of no less than 10 percent and no more than 40% of the mandatory system-wide tuition and fees at the UC & CSU schools

MCS scholarships are not set amounts and may vary by student and institution. The award is amount is determined after you are awarded any federal, state, and institutional need-based grants for which you are eligible.

The final award amount will be based on the number of students eligible for the MCS statewide and the funding allocated by the State Budget.

http://www.csac.ca.gov/mcs.asp13

GENERAL AID SOURCES

3. Institutional Programs for Students

Scholarships

Grants

Loans

Work

4. Outside Resources

Check for scholarships at your school’s Career Center

Seniors can submit their Local Scholarship Application in CC

Community: Rotary, YMCA, Torrance Organizations

Web Sites: www.fastweb.com

Time spent on searches… Worthwhile?

Outside Scholarships can and may replace loans/work

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RESOURCES FOR PARENTS1.Federal Plus Loan Program

Can borrow up to the cost of attendance minus any financial aid

https://studentaid.ed.gov/sa/types/loans/plus

2. Payment Plans – quarterly/semester payment plans

3. Federal IRS Educational Tax Benefits - Publication 970

The American Opportunity Tax Credit (AOTC) allows you to claim up to $2,500 per student per year for qualified educational expenses for four years.

The Lifetime Learning Credit allows you to claim up to $2,000 per tax return for tuition, fees and other qualified educational expenses.

https://www.irs.gov/publications/p970

4. Savings – California’s 529 Plans https://www.scholarshare.com

5. Employer Reimbursement for Dependents15

CONNECTING AID & ADMISSIONS

Do NOT wait for an admission decision to apply for financial aid!

Apply for Admission

and

Apply for Financial Aid

as soon as possible

Schools will only begin processing your application for financial aid only

after an admission decision has been made.

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ADMISSION @ CA COMMUNITY COLLEGE

Apply on-line

Regular admission, Honors Programs and First Year Experience available

https://home.cccapply.org/colleges/requirements

Basic Requirements

HS GPA or Equivalent

Placement Tests

No SAT/ACT required

Transfer Opportunities

Priority transfer to UC’s and CSU’s

Honors Transfer Program

Transfer Admission Guarantee (UC’s)

Note: Be sure to make a Transfer Plan and beware of the

“I can’t transfer trap” 17

ADMISSION @ CSU SYSTEM

Apply on-line now thru November 30

One application for all CSU campuses

$55 application fee per campus (fee waivers are available)

https://www2.calstate.edu/Apply

Basic Requirements

Completion of “A- G Requirements”

After submitting the application each school will notify you when to…

send transcripts and

any supporting documents

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ADMISSION @ UC SYSTEM

Apply on-line now thru November 30 One application for all UC Campuses

$70 application fee per campus (fee waivers are available)

http://admission.universityofcalifornia.edu/how-to-apply/apply-online/

Basic RequirementsCompletion of “A- G Requirements”

Essays

Test Scores

Once Admitted

Transcripts

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ADMISSION @ PRIVATE COLLEGES

Apply on-line NOW via “Naviance”, the Common Application or directly thru schools website

Fees vary, fee waivers may be available

Basic Requirements

Essay

Resume of Extracurricular Activities

Letters of Recommendation

Additional Requirements may include

Secondary School Report (Counselor)

Mid Year Report (7th semester grades-Counselor)

Transcript ($2/school)20

WHERE ARE YOU APPLYING?The College Search: Which schools are you considering?

Safety School

Target School

Reach or Dream School

Financial Fit?

Major, location, special programs, housing

Naviance

College Score Card

https://collegescorecard.ed.gov

4 & 6 year graduation rates

Outcomes – employment and salary information

Final College Selected? May 1, 2018 National Candidate Date

Some schools may have earlier decision dates 21

SAT & ACT TESTING

In your senior year, you can continue to test…

SAT TESTING

http://sat.collegeboard.org

ACT TESTING

http://www.actstudent.org

***All testing must be completed by December of the senior year for UC & CSU campuses.

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2018-2019 FAFSA Free Application for Federal Student Aid (FAFSA)

http://www.fafsa.gov

FAFSA now available as of October 1, 2017

Federal Student Aid Identification Number (FSA ID)

required to log into the FAFSA

used to sign legally binding documents

https://studentaid.ed.gov/sa/fafsa/filling-out/fsaid

Worksheet & supporting documentation

Check your colleges for their own FAFSA deadlines

March 2, 2018 at the latest! 23

FAFSA ON-LINE

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https://fafsa.gov

2018-2019 FAFSA & 2016 TAXES

When completing the 2018-2019 FAFSA will use your already completed 2016 Federal Income Tax information for both parent and student

And…

You may be able to transfer your tax data directly from the IRS using the IRS Data Retrieval tool (IRS DRT).

https://studentaid.ed.gov/sa/fafsa/filling-out#irs-drt

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2018-2019 FAFSA TIPS

Use your legal name as it appears on your Social Security card. Nicknames or aliases will cause a processing delay.

Read the questions carefully. The words “you” and “your” on the FAFSA always refer to the student, not the parents.

If your parents are divorced or separated, the parent with whom you lived the most during the past 12 months is the parent responsible for filling out the FAFSA. This is not necessarily the parent who has legal custody.

If the parent responsible for completing the FAFSA has remarried, the new spouse must report their income and assets on the FAFSA. Prenuptial agreements have no bearing on this requirement.

The Earned Income Credit is considered “untaxed income” on the FAFSA.

Other types of untaxed income include retirement plan contributions made during the year and military food and housing allowances.

Prepaid tuition plans should be reported as assets on the FAFSA.

Sign the form using your and your parent’s FSA ID.

If you don’t understand a question or are having trouble filling out the form, call the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243).

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FAFSA FOLLOW-UP

Always read emails from the U.S Department of Education

Student Aid Report - Check for accuracy, signatures & eligibility

Some, but not all, schools require Parent and Student Federal Tax Transcripts (if no tax return filed, may be required to submit a “non-filing statement”)

If selected for Verification by the Department of Education you will be required to submit Federal Tax Transcripts

Respond as quickly as possible if your college asks for additional information.

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CAL GRANT G.P.A. VERIFICATION Required for Cal Grant eligibility & awarding

Torrance Unified School District will be submitting student’s CA ID directly to CSAC on November 1, 2017 meeting the Cal Grant GPA Verification requirement.

*Check to be sure your name on your school records

identically matches your name on your Social Security

card. If there is a discrepancy, fix it in the counseling office

ASAP (before the electronic submission).

There is nothing for TUSD seniors or their parents to do. Yeah!

Check the status of your Cal Grant eligibility and awarding at…

https://mygrantinfo.csac.ca.gov

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CA DREAM ACT APPLICATION

Eligible undocumented students should complete the California Dream Act Application (CADAA)

http://www.csac.ca.gov/dream_act.asp

Mirrors the FAFSA

Complete now – March 2, 2018 deadline

May be eligible for Cal Grant, Chafee Grant, UC and State campus based public and private scholarships.

Check the websites of the schools you are applying for additional aid that may be available to you.

Most private institutions determine financial aid eligibility based on admission information (and not citizenship status)

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COLLEGE BOARD CSS PROFILE

College Board CSS PROFILE Application

Required by some Private Institutions, now available

Check websites of the schools you to which you apply

On-line, two step application process

March 2, 2018 (or earlier)

For fee application (fee waivers available)

www.collegeboard.org/profile30

THE FINANCIAL AID FORMULA

Cost of Attendance

MINUS

Expected Family Contribution (EFC)

EQUALS

Family Financial Aid Eligibility

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COST OF ATTENDANCE

Direct Expenses (billed directly by school)

Tuition and Fees (variable by courses/major)

Room & Board (varies by housing options)

Indirect Expenses (not billed by school)

Books

Transportation

Personal Expenses

*Indirect costs are the most difficult to manage

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THE EXPECTED FAMILY CONTRIBUTION

The Expected Family Contribution (EFC) is what the family is expected to pay according to the Federal Government and the information reported on the FAFSA.

The Federal Government offers limited resources, so the entire need is not always met.

Often the families do have to pay more than the estimated EFC.

Institution may calculate their own EFC for allocating their own limited resources by collecting CSS Profile application information.

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HOW THE EFC IS CALCULATED Federal EFC Formula

Calculated from the information collected from the 2018-2019 FAFSA

Parent & Student Data

Income (taxed and untaxed)

Assets (not including home equity or retirement accounts)

Benefits

Allowances in methodologies

Family Members & Number in College

Age of older parent

Special Circumstances & Appeals

Any additional information the family believes to be important

that is not reflected on the FAFSA

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THE FORMULA WITH NUMBERS!

Example #1 Private Institution

Cost of Attendance $60,000

MINUS

Expected Family Contribution ($15,000)

= Financial Need $45,000

Example #2 State Institution

Cost of Attendance $15,000

MINUS

Expected Family Contribution ($15,000)

= Financial Need $0

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THE FORMULA WITH NUMBERS

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School Private UC CA State Community

*Estimated Cost/yr

for living ON-

CAMPUS

$60,000 $35,000 $24,000 $10,000

**Estimated Family

Contribution (EFC)

/yr.

$10,000 $10,000 $10,000 $10,000

***Amount of

“Need” for Fin.

Aid/yr.

$60,000 $25,000 $14,000 0

*Cost for college includes: Tuition & Fees, On-Campus Room & board ,books and supplies and personal expenses

* Estimated Costs are estimated and rounded to keep the math easy! Based on living on-campus

**Estimated Family Contribution. Amount used above is for demonstration purposes only.

*** “Need” is the difference between Cost and EFC.

PACKAGING FINANCIAL AID

The Formula

Cost of Attendance (COA) $ 60,000

Minus Expected Family Contribution (EFC) ($15,000)

Financial Need (or maximum amount of aid) $ 45,000

Financial Aid Package

Direct Student Loan Subsidized $ 3,500

Work Study $ 3,000

Grants & Scholarships $38,500

Total Awarded $45,000

Direct Student Loan Unsubsidized: $ 2,000

Unmet Need $0

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THE EXPECTATIONS & REALITIESCompare Awards from each institution!

Not all awards are the same…

Is the Cost of Attendance realistic?

In State & Out of State

Discretionary expenses

The Student Contribution (savings, summer employment)

The Parent Contribution (PLUS Loans)

The nuances of award funds

Work, Loan, Unmet Need

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FINANCIAL AID CALCULATORFAFSA4Caster is a free financial aid calculator that gives you an early estimate of your eligibility for federal student aid

https://studentaid.ed.gov/sa/fafsa/estimate

Net Price Calculators are available on every college website in the country to assist in determining state and institutional aid

Why use calculators and some caution…

For planning purposes. Do not let outcomes prevent you from applying

Data may not reflect awarding efforts for 2018-2019

Do not let results deter you from applying and completing admission and aid processes

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AWARD NOTIFICATIONUnderstanding your “Award” Letter

This “letter” has many names

Estimated or Final (and maybe many revisions)

Award Guide

Accepting, Declining & Adjusting Awards

On-line processes

Student Rights & Responsibilities

Satisfactory Academic Progress

Appeal Requests and Special Circumstances

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PAY & DISBURSING AWARDS

Commitment Deposits by May 1, 2018

Payment in full for each term or payment plans usually set up before the term begins

Fall billing usually in summer months, Spring billing in December

For aid to disburse in full, Full-time enrollment required

Accepting, Declining & Adjusting Awards

Entrance Counseling Requirements for Loan Programs

Completing Promissory Notes

Finding Employment/Completing Time Sheets

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FINANCIAL AID TIPS

Make sure the name on your school records identically matches the name on your Social Security card. If need be, fix it in the counseling office ASAP!

Send documents electronically if you can, PDF – gives you “electronic record of submission”

Regularly research outside agencies for scholarships all four years and on-campus too!

Regularly review website of selected school regularly, in particular consumer information pages

Use on-line “web services tool” provided by the school

Apply for a FSA ID Now

Don’t change your name or your email during the admission and aid application process.

Apply Each and Every Year

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FOR FEE APPLICATION SERVICES For Admission and Financial Aid For-Fee Services

Be Cautious

Limit Dependency

Do your Homework

Manage Expectations

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THANK YOU!

Thank you for being here this evening!

You are well on your way to successful financial aid literacy and the 2018-2019 financial aid application cycle!

QUESTIONS?

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