How to Pay for College and Still Have Money in Your
PocketsPresented by: Anna Maria Vaccaro Guidance DirectorImmaculate Conception Academy
Sources of Financial Aid
Federal Government (FAFSA form)
State Government (Cal Grant )
Institution (University/Colleges)
Work Study Private companies,
foundations or individuals (SCHOLARSHIPS)
Various Investments
Higher Education Tax Incentives
Hope Scholarship Credit– 100 percent of the 1st $1,000 of the taxpayer’s out
of pocket expenses for tuition – 50 percent of the next $1,000 of the taxpayer’s
qualified expenses for EACH student– Maximum amount is $1,500 per eligible student– Student or Parent can claim for the Hope Credit– Only for first or second year in college
There’s more…..
Lifetime Learning Credit– Obtain a credit towards
federal taxes that is equal to 20 percent of the taxpayer’s first $10,000 of out of pocket qualified expenses.
– Calculation is per family NOT per student
– No limit on years of education
Can I save in other ways?
YES!!!!!!!!
Deduction for Higher Education Expenses
1. Taxpayers can claim both this deduction and a Hope or Lifetime Credit for educational expenses in the same year
How can I save?
Qualified Tuition Program Also Called 529 Plans Scholarshare www.scholarshare.com $15.00 minimum contribution per pay
period Maximum account contribution limits
Gift Aid
Grants (a.k.a. Free Money)
– Federal (Pell Grant)– State (Cal Grant)– Institutional (school)– Private
Scholarships– Institutional– Private
Types of Grants
Pell Grant*– Must demonstrate exceptional need
Federal Supplemental Educational Opportunity Grant (FSEOG)*– Priority given to students with exceptional
financial need and are Pell Grant recipients– Funding varies with each school
– *Need to fill out FAFSA Form
Show me more grants……
University Grants– California State University– University of California
Cal Grant A
3.0 GPA (10th & 11th grade)
Meets Income and asset limits
Assists with tuition for UC’s, CSU’s and independent four year private colleges in CA
Cal Grant B & C
Cal Grant B– 2.0 GPA (10th and 11th
grade)– Low income families
Receive same funding as Cal Grant A except for first year. However, you receive an additional living expense
Cal Grant C (technical/vocational school)
– Verified GPA – Contributes towards tuition
expenses
Cal Grant Contact Numbers
Student Help Line 888-CA GRANT
www.calgrants.org www.csac.ca.gov www.chafee.csac.ca.gov [email protected] 877.EDFUND or
www.edfund.org
Scholarships – “Show me the money!”
Millions of scholarship dollars are available
How to find them:– www.fastweb.com– Guidance Office room 109– University/College: UC’s,
CSU’s, Privates– Unions/Employers
Different Types of Scholarships
Seniors– Elks Scholarship – Gates Millennium – www.gmsp.org– McDonald’s – PG&E Scholarship– UC Scholarships – Cal Opportunity
Scholarship– Toyota Scholarship– Burger King Scholars
Juniors– Discover Card – Comcast
Scholarships for ALL students:
– Duck Tape Scholarship– Kaptest.com/essay– Dale E. Fridell Scholarship– GM Scholarship– & many more…….
Where do we go from here?
The steps to obtaining financial aid:1. Fill out the FAFSA (Free Application
Federal Student Aid) Form between January 1st to March 2nd. Best before Feb.
2. Check to see if you need the CSS Profile3. Apply, apply, apply, apply for scholarships
through colleges, FastWeb and other resources
Let’s understand EFC
EFC (Estimated Family Contribution)
(A) Cost of Attendance
(B) Family Contribution (less)
(C) Grants + Scholarships (less)
(D) ------------------------------
(E) =Student Responsibility
(B) Expected Family 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 family contribution is zero
Family Contribution can be paid from savings, current income or loans
Here comes the scary part:
Filling out the financial aid forms
FAFSA GPA Verification Form CSS Profile Scholarship
Applications
Make sure you have the following:
FAFSA Form CSS Profile GPA Verification
permission slip Tax Forms Pay Stubs Accounts/Assets
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)
CSS PROFILE: collects data to calculate institutional formula for aid
FAFSA
Paper Application
OR
ONLINE @
www.fafsa.ed.gov
Self-Help Aid
Loans Employment
Subsidized Stafford Federal
Unsubsidized Stafford Institutional
PLUS
Federal Perkins
Private (Alternative)
Stafford Loan
Subsidized Stafford must show “need” Unsubsidized Stafford “need” is not a
consideration Interest Rates – variable Fees
PLUS Loan
Parent borrows for dependent undergraduate Approval subject to credit check Interest rate variable Repayment begins 60 days Loan limits
– Annual: COA less other aid– Aggregate: none
Federal Perkins Loans
Priority given to those with exceptional need
Eligibility for Federal Pell Grant
Annual and aggregate loan limits
Fixed interest rate
9 month grace period
Repayment 10 year maximum
Deferment and cancellation provisions
Private Loans
Also known as Alternative Loans
Not made under the Title IV regulations
Lender assumes the risk of default
Credit based and may require a co-signer
Interest and fees may be higher than a Stafford loan
Work Study
Funded by federal government or institution
Undergraduates and graduates Job not guaranteed Money must be earned Can be either on or off campus Funding levels vary at each
institution
Special Circumstances
Adjustments may be made to information on a case-by-case basis such as….
– Dependency status– Income and assets– Child Support– Number in household or college– Medial or dental expenses– Private elementary/secondary
institution
Think College NOW!!!!
Where to plan out and prepare:
www.csumentor.edu
www.universityofcalifornia.edu
www.californiacolleges.edu
Resources
Financial Aid Information Pagewww.finaid.org
College Board (SAT)www.collegeboard.org
ACT www.actstudent.org
On-Site Student Centerswww.mapping-your-future.orgwww.princetonreview.org
Finding Scholarships
Petersons– www.petersons.com
Fastweb– www.fastweb.com
Mach25– www.mach25.com
SallieMae College Answer– www.collegeanswer.com
Selected Scholarships
MALDEF– www.maldef.org
NAACP– www.uncf.org
Native American– www.doi.gov
Asian American– www.uspaacc.com
Hard Work = Money
10 hours prep time to get a $500 scholarship comes out to $50 an hour
Petersons says there are 1.6 million scholarships
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