Financial Aid PresentationFinancial Aid PresentationPCS PCS

December 2011December 2011

Liz Martin-GarciaLiz Martin-Garcia

831.459.4391 work831.459.4391 work

831.334.1416 cell831.334.1416 cell

Purpose of Financial AidPurpose of Financial Aid

• Everyone has the Everyone has the accessaccess to to attend college or a trade schoolattend college or a trade school

• You have the You have the choicechoice of which of which school to attendschool to attend

Role of Financial AidRole of Financial Aid

• Financial aid pays the cost of Financial aid pays the cost of attending collegeattending college

• Cost to attend is different for Cost to attend is different for different schoolsdifferent schools

• Financial aid offered may be Financial aid offered may be different at different schoolsdifferent at different schools

What is Cost of Attendance (COA)What is Cost of Attendance (COA)

TuitionTuition $14,877$14,877

Housing and FoodHousing and Food 14,727 14,727

Books Books 1,4011,401

TransportationTransportation 678678

Personal ExpensesPersonal Expenses 1,350 1,350

Total Total $33,033$33,033

FAFSA determines family FAFSA determines family contributioncontribution

Student contribution from income & assetsStudent contribution from income & assets

+Parent contribution from income & assets+Parent contribution from income & assets

EFC EFC

Cost of attendance (coa) Cost of attendance (coa)

- Expected family contribution (efc) - Expected family contribution (efc)

Eligibility for need based aid Eligibility for need based aid

EFC is an attempt to measure EFC is an attempt to measure abilityability not not willingnesswillingness to to contribute contribute

Student and Parent IncomeStudent and Parent Income • Taxable Income (or wages if non filer)Taxable Income (or wages if non filer)

• Untaxed income (child support, Untaxed income (child support, voluntary contribution to 401k, 403B, voluntary contribution to 401k, 403B, IRA, KEOGH etc.)IRA, KEOGH etc.)

• Excludes untaxed social security Excludes untaxed social security benefits, SSI, HUD, food stamps, TANF benefits, SSI, HUD, food stamps, TANF

Student and Parent AssetsStudent and Parent Assets• Cash, savings and checking account balancesCash, savings and checking account balances

• Net worth of investments Net worth of investments

• Net worth of parents’ current businesses if Net worth of parents’ current businesses if more than 100 employeesmore than 100 employees

• Investment farms (not a farm in which the Investment farms (not a farm in which the family lives on and operatesfamily lives on and operates

• Always report your assets- Do not skipAlways report your assets- Do not skip

Investments Investments • Real estate (do not include the home you live in)Real estate (do not include the home you live in)• Trust FundsTrust Funds• UGMA&UTMAUGMA&UTMA• Money market fundsMoney market funds• Certificate of deposit (CD’s)Certificate of deposit (CD’s)• Stocks and stock optionsStocks and stock options• Bonds, other securitiesBonds, other securities• Cordell savings accountsCordell savings accounts• 529 college savings plans529 college savings plans• The refund value of 529 state prepaid tuition plansThe refund value of 529 state prepaid tuition plans• Installment &land sale contracts including Installment &land sale contracts including

mortgages held) mortgages held) • Commodities, etc Commodities, etc

Same Student Different Same Student Different SchoolsSchools

JCJC CSUCSU UCUC Private Private

BudgetBudget $15,000$15,000 25,00025,000 33,00033,000 58,00058,000

EFCEFC 11,000 11,000 11,00011,000 11,00011,000 11,00011,000

NeedNeed 4,000 4,000 14,00014,000 22,00022,000 47,00047,000• Quantity vs. quality of offer Quantity vs. quality of offer • Additional assistance Additional assistance • Need blind Need blind

Types of Financial AidTypes of Financial Aid

• Grants – free moneyGrants – free money

• Scholarships – free moneyScholarships – free money

• Loans – must pay back after graduation Loans – must pay back after graduation (avoid private loans at all costs) (avoid private loans at all costs)

• Workstudy – job where you earn a paycheckWorkstudy – job where you earn a paycheck

How to ApplyHow to Apply• FAFSA -Priority filing: January 1FAFSA -Priority filing: January 1stst to March 2 to March 2ndnd

• Must apply every yearMust apply every year

• IRS retrieval or tax transcript IRS retrieval or tax transcript

• Requested verification documentsRequested verification documents

• Cal Grant GPA verification by March 2Cal Grant GPA verification by March 2ndnd

• CSS Profile for some private colleges CSS Profile for some private colleges

Survival TipsSurvival Tips• Meet all deadlines especially MARCH 2Meet all deadlines especially MARCH 2nd nd

• FAFSA - always dot gov never dot com FAFSA - always dot gov never dot com

• Apply for Campus & Outside Agency Scholarships - Never Apply for Campus & Outside Agency Scholarships - Never pay! pay!

• Change in circumstances Change in circumstances

• Strategies - gifts, insurance, RA’s, family plan, food Strategies - gifts, insurance, RA’s, family plan, food stamps, etc. stamps, etc.

• Seek advice from college financial aid professionals Seek advice from college financial aid professionals (should be free) (should be free)

Thank you!Thank you!

• Questions?Questions?