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A comprehensive approach to financial aid College OPTIONS UC Davis College Opportunity Programs Nick Webb, Shasta County Director Buffy Tanner, Director of Financial Aid Services www.collegeOPTIONS.org Slide 2 College OPTIONS Five counties in Californias far north state Home to ETS and GEAR UP programs, as well as a resource center and other services to strengthen the college-going culture in the North State. UC Davis is fiscal agent Division of Student Affairs Department of College Opportunity Programs PARTNERS AVID - California State University, Chico - College of the Siskiyous Expect More Tehama - The McConnell Foundation - National University, Redding Reach Higher Shasta - Shasta College - Shasta County Office of Education Shasta County Public Health - Shasta Union High School District - Simpson University Siskiyou County Office of Education - Southern Oregon University Tehama County Department of Education - University of California, Davis Slide 3 Our Goal for Today Overview of our regions financial aid programming Provide understanding of important components of financial aid education How we incorporate tools and resources into financial aid programming Help you develop your plan of action Lastly: group planning/brainstorming how to modify activities to accommodate timing of 2017-18 FAFSA Slide 4 For Real Success: Bring Your KEYS K E Y S nowledge nergy ourself hampoo Slide 5 Annual FA Programming Office Advising Appointments Throughout The Year Slide 6 What Makes Us Different Focus on Pre-FAFSA information and planning Partnering with students, parents, and educators from high schools, colleges, other student support organizations, state agencies Utilizing four distinct financial aid outreach activities School Counselor Training Financial Aid Curriculum Financial Aid Information Nights Cash for College FAFSA completion workshops Slide 7 Pre-FAFSA Prep Means Two Things Outreach and education High school counselor training in October Financial aid information nights at all comprehensive high schools in November/December (before end of tax year) Office advising appointments for families in College OPTIONS resource center Family financial aid planning and preparation Considering how income and assets will affect EFC and eventual FA award Taking steps to improve financial position in reference to financial aid Slide 8 High School Counselor Training In conjunction with CA Student Aid Commission and CA Association of School Financial Aid Administrators Attendees include counselors from local schools, academic advisors, financial advisors Provide basic to advanced financial aid information, including FAFSA changes/updates, changes to state aid programs, FA basics, scholarship programs, FA scenarios, etc Slide 9 CSAC/CASFAA/College OPTIONS Financial Aid Training for High School Counselors and Student Support Professionals 9:30 am 2:30 pm 9:30 10:00 amRegistration 10:00 10:10 amWelcome 10:10 10:30 amSetting the Stage for FAFSA/CA DREAM Application completion 10:30 11:15 amCSAC and State Updates/FAFSA Changes (CSAC Representative) 11:15 11:30 amCash for College FAFSA Completion Workshop update 11:30 am 12:00 pmLunch 12:00 12:40 pmRemoving Barriers for Students by Increasing the Use of Webgrants 12:40 12:55 pmScholarships Updates on local/regional scholarships Scholarship summit - explore best practices Considering a Common Application 12:55 1:05 pmBreak 1:05 2:30 pmFinancial Aid Breakout Sessions FA 101: Basics for those new(ish) to the world of Financial Aid FA 201: Advanced for those who feel comfortable with the Basics Slide 10 High School Counselor Training To ensure success: Capitalize on quality partnerships Get wide-spread involvement Participation from counselors, financial folks, academic advisors Presenters from FA offices and beyond Slide 11 High School Counselor Training To ensure success: Be a quality and ongoing resource (NC3 listserv) Provide value to the audience Dont waste the audiences time Make the information up to date and timely Feed your people! Slide 12 What FA training happens in your area? Groups of 4 Use handout in your packet to take notes Discussion for 10 minutes Sharing for 10 minutes (time constraints we will hear from a representative sampling of groups) Slide 13 Financial Aid Curriculum in the Classroom Year-long sequence of 6 PPT workshops developed for high school teachers to present in Econ/Govt classes 15-45 minutes in length All workshops end with Questions? Talk to your counselor, College OPTIONS or your future college financial aid office Designed to promote awareness of opportunity of aid and timelines Mechanism to embed FA into regular school culture SYSTEMIC and SUSTAINABLE! Slide 14 Financial Aid Curriculum in the Classroom http://www.collegeoptions.org/#!financial-aid- curriculum/c1aby http://www.collegeoptions.org/#!financial-aid- curriculum/c1aby November: What IS Financial Aid? December: What is the FAFSA and the FSA ID? January: FAFSA on the Web Worksheet March: FAFSA Application Follow-up April: Understanding and Comparing Financial Aid Awards May: repeat of March Slide 15 Financial Aid Curriculum in the Classroom Groups of 4 Use handout in your packet to take notes Discussion for 10 minutes Sharing for 10 minutes (time constraints we will hear from a representative sampling of groups) Slide 16 Financial Aid Information Nights November/December each year Hosted and organized by high schools, presentations provided by College OPTIONS Seniors/parents invited Some schools invite juniors & juniors parents 1-hour presentation, -hour Q&A Slide 17 Financial Aid Information Nights Basics of need-based financial aid State-specific financial aid information Focus on planning and how to maximize need-based aid Review financial aid tools for planning/evaluation Include scenarios to illustrate how simple changes can have significant impact on aid Slide 18 Start of Financial Aid Information Night Presentation Slide 19 Phone: 530-245-1845 1407 Market Street, Redding www.collegeoptions.org Slide 20 Goals for Today Basic understanding of how financial aid works and terms used and how to maximize opportunities How to make informed family decisions regarding education choices Understand that choosing a college is an economic decision Know where to go for resources and help College is not a dreamit is a plan. Slide 21 Financing College Decisions affects entire familys finances long term What do you NEED? What do you WANT? What can you AFFORD? How will the decision affect the rest of the family? Slide 22 What is Financial Aid? GIFT AID: Grants Scholarships Based on need and/or merit SELF HELP: Work-study Loans Work-study and some loans based on need Slide 23 Why Apply for Financial Aid? Limited Income families: Pell Grant: $588 - $5,775/year (6 years max) Cal Grant: $1,656- $12, 240/year (4 years max) BOG fee waiver: $1,104/year value (3 years max) Access to need and merit based scholarships Access to workstudy (jobs on college campus) Access to student loans Between $3,348-$18,015/year in grant aid possible Slide 24 Why Apply for Financial Aid? Middle Income families: Cal Grant: $5,472 - $12, 240/year (4 years max) CA Middle Class Scholarship: 10-40% of CSU or UC Fees BOG fee waiver: $1,104/year value (3 years max) Access to need and merit based scholarships Access to student loans Income Tax Credits Between $547 - $12,240/year in grant aid possible Slide 25 Why Apply for Financial Aid? Higher Income families: CA Middle Class Scholarship: 10-40% of CSU or UC Fees (family income up to $150,000) Access to merit based scholarships Example: Cal Poly San Luis Obispo Access to student loans Income Tax Credits FREE insurance life can change between January and summer prior to student going to college 30 minutes to fill out application Slide 26 Types of Applications FAFSA (US Citizens or Permanent Residents) Other applications or forms as required by the college such as: 2015 federal tax transcript, tax return or other income documentation (ok to use 2014 information for initial submission) CSS/Financial Aid PROFILE Institutional Scholarship and/or Financial Aid Application 26 California DREAM Act Application (for AB540 students) Slide 27 VERIFICATION and CORRECTIONS Financial Aid Cycle Fill the Bucket Apply by state deadline Expected Family Contribution (EFC) Cost of Attendance (COA) COA-EFC=Need Meeting the Need (Filling the Bucket) Financial Aid Award FA pays bills to the college; refund to student Slide 28 Fafsa.gov Help and Hints make the application easier Interacts with the IRS FAFSA Free Application for Federal Student Aid 28 Slide 29 What is the Expected Family Contribution (EFC)? An index created by the FAFSA to help the Financial Aid office determine your eligibility for aid Unique for each student Stays the same regardless of college Slide 30 What is Cost of Attendance* (COA)? Five components: Tuition & fees Room & board Books & supplies Transportation Personal expenses Direct payments to the college for tuition/fees and room/board (if living on campus) Student chooses how much to spend on books/supplies, transportation, personal expenses, (room/board if living off campus) COA is different at EVERY college *Sometimes called Student Budget Slide 31 Notes about Income on the FAFSA Do NOT separately report any amount of Social Security income Student income $6,310 is protected Student income greater than $6,310 may be calculated into the EFC Slide 32 Assets on the FAFSA: do NOT include the following: Home equity Retirement accounts (IRA, 401k, 403b, Roth, etc) Life insurance & annuities Assets entitled to a business or ranch/farm, IF You own/operate at least 50% AND Have 100 or fewer employees Assets are usually best kept out of the students name. Slide 33 Assets affect the EFC Student 3.9 GPA Excellent SAT Scores Wants to attend a UC $33,000 in UGMA $1,200 annual income Parent(s) Single parent No savings/assets No other children $34,000 annual income EFC: 7,332 Slide 34 Change ownership of the Asset Initial EFCFinal EFC Student net assets$33,000$0 Student earned income$1,200$1,200 Student family size33 Parents net assets$0$33,000 Parents earned income$34,000$34,000 Number of parents in home11 Expected Family Contribution7,3322,419 Change UGMA to 529 plan consult with financial professional Use College OPTIONS Tools Slide 35 Household Size You (the student) Your parents (the ones reported on the FAFSA) Same-sex couples are treated the same as opposite-sex couples for financial aid purposes Parents other children (if they are dependent according to FAFSA definitions) Parents unborn child (if child born before July 1 of upcoming year) Other people (if more than 50% of support provided by your parents) Slide 36 Dependent vs. Independent Dependent and Independent very uniquely defined for financial aid Unless Student can answer one of the dependency questions yes, Student will need to provide parental information If Student has an unusual situation, talk to high school counselor ASAP Slide 37 Number of Household in College You (the student) Siblings living in and/or supported by the same household (if they meet FAFSA definition of dependent) If parent is also a college student, s/he is NOT included on students FAFSA (but is included on parents FAFSA) Slide 38 Household Can Affect EFC Student 2.5 GPA No career direction No savings $3,000 annual income Parent(s) Single parent (divorced 50/50 custody/support) 2 other children (also 50/50) $43,000 savings/stocks $23,000 in debt (poor credit) $62,000 annual income EFC 5,319 Slide 39 Review Each Household EFC#1 (MOM)EFC#2 (DAD) Student net assets$0$0 Student earned income$3,000$3,000 Student family size42 Parents net assets$43,000$22,000 Parents earned income$62,000$21,000 Number of parents in home11 Expected Family Contribution5,3190 Slide 40 Using an EFC Estimator See what Students EFC might be before filling out the FAFSA Two good estimators: ECMC EFC Estimator: https://www.ecmc.org/students/my-EFC- calculator.html https://www.ecmc.org/students/my-EFC- calculator.html FAFSA Forecaster: https://fafsa.ed.gov/FAFSA/app/f4cForm?execution =e1s1 https://fafsa.ed.gov/FAFSA/app/f4cForm?execution =e1s1 Slide 41 VERIFICATION and CORRECTIONS Financial Aid Cycle Fill the Bucket Apply by state deadline Expected Family Contribution (EFC) Cost of Attendance (COA) COA-EFC=Need Meeting the Need (Filling the Bucket) Financial Aid Award FA pays bills; $$ to student Slide 42 What is Financial Need? Basic formula: Cost of Attendance - Expected Family Contribution = Financial Need Slide 43 Financial Aid Award Once the Financial Aid office has determined the Financial Need, they create a Financial Aid Award Evaluate the students eligibility for every kind of financial aid (grants, work-study, scholarships and loans) Communicate the award in a letter (either paper or online via the students individual portal) Award also called a Financial Aid Package If selected for Verification Student MUST submit additional documents before Financial Aid Award is created Slide 44 Filling the Bucket EFC Pell grant Other Federal grant Cal Grant or Middle Class Scholarship Institutional grants and scholarship Federal work-study Outside scholarships Loans Gap Unmet need How a Financial Aid Office will package a Financial Aid Award Slide 45 Filling the Bucket at CSU Chico Living on- campus EFC of 4,000 COA: $23,496 EFC: 4,000 Need: $19,496 From family: EFC + gap = $5,224 EFC (4,000) Pell grant ($1,500) Cal grant ($5,472) EOP ($800) Federal work-study ($3,500) Outside scholarships ($1,500) Loans ($5,500) Gap Unmet need of $1,224 Slide 46 Addressing Unmet Need and EFC: Student job: Work study program or off-campus job Budgeting: Food, gas, insurance savings at home while student is in college Current Income could it be increased? Education tax credits Family resources: Savings, selling of assets, second mortgages, credit cards etc. Additional government student loans (PLUS Loan) Private direct-to-consumer loans: Could adversely affect future financial aid eligibility Always discuss with colleges financial aid department Slide 47 Reducing College Costs Extra roommate Career Planning before/during college Changing your major (or college) costs time and money Internet, informational interviews, job shadowing Apply for scholarships Priority on local (smaller applicant pool) If you are eligible, apply! Use College OPTIONS Tools to evaluate and compare award letters, project costs over time, make decisions based on OBJECTIVE factors Consider an alternative college (what you want, need and can afford) Slide 48 Special Circumstances and Professional Judgment Colleges Financial Aid offices have the ability to recalculate an EFC based on significant hardships or new information Examples: Significant reduction of income/loss of job Death Abuse Divorce/Separation One-time settlement income Student marriage Slide 49 What will you need to fill out the FAFSA? If you are a dependent student, then you will also need the information blow for your parent(s).dependent student Student & at least one Parent create Federal Student Aid ID Social Security Number Alien Registration Number (if you are not a U.S. citizen) Most recent federal income tax returns, W-2s, and other records of money earned. (Note: You may be able to transfer your federal tax return information into your FAFSA using the IRS Data Retrieval Tool.) Bank statements and records of investments (if applicable) Records of untaxed income (if applicable) Slide 50 College OPTIONS Tools www.collegeoptions.org Click on Financial Aid Slide 51 How to Create a Federal Student Aid ID for the FAFSA (student and one parent each need an ID) Slide 52 Senior Year College & Financial Aid Checklist (in English and Spanish) Slide 53 Who is My Parent When I Fill Out the FAFSA? Slide 54 Types of Federal Student Aid Slide 55 2015-16 Cal Grant Income & Asset Ceilings (2016-17 update coming out November) Slide 56 The California Middle Class Scholarship How much can students get? Up to 40% of mandatory system-wide fees for students whose annual family income is up to $100,000 Up to 40% of mandatory system-wide fees for students whose annual family income is up to $100,000 No less than 10% of mandatory system-wide fees for students whose annual family income is between $100,001 and $150,000 No less than 10% of mandatory system-wide fees for students whose annual family income is between $100,001 and $150,000 Submit the FAFSA (or the CA DREAM Application) by March 2 nd to apply More information: http://www.csac.ca.gov/mcs.asp http://www.csac.ca.gov/mcs.asp Slide 57 Federal and Private Student Loans: Comparison Slide 58 North State Scholarships: Common Online Application Slide 59 Financial Aid Award Comparison Worksheet Slide 60 College Scorecard: Useful Data to help families make informed choices about college Slide 61 For more information Key websites: www.StudentAid.gov (Federal grants, Work-Study, Loans) www.StudentAid.gov www.csac.ca.gov (Cal Grant, Chafee, Middle Class Scholarship, CA DREAM Application) www.csac.ca.gov http://home.cccapply.org/money/bog-fee-waiver (BOG fee waiver for community colleges) http://home.cccapply.org/money/bog-fee-waiver www.CollegeOPTIONS.org (this PPT as well as tools featured in this PPT)www.CollegeOPTIONS.org Slide 62 Questions? High School Counselor College Financial Aid Offices College OPTIONS Financial Aid Information Nights at high schools in November/December Cash for College Workshops at high schools in January/February College is not a dreamIt is a PLAN! Slide 63 End of Financial Aid Information Night Presentation Slide 64 Financial Aid Information Nights To ensure success: Point person at the school (counselor) schedule event Require at least one counselor to be present and actively participate in the presentation Promote event through teachers, coaches, newsletters, robo-call system, etc Provide extra-credit for attendance, snacks/food for attendees, door prizesand publicize it! Slide 65 Financial Aid Information Nights Groups of 4 Use handout in your packet to take notes Discussion for 10 minutes Sharing for 10 minutes (time constraints we will hear from a representative sampling of groups) Slide 66 FAFSA Completion Workshops Cash for College Regional Coordinator for Far North State (11-county region) Held at almost every comprehensive high school in the region 20-30 minute presentation followed by FAFSA completion time in a computer lab with financial aid experts College FA staff High school counselors College access staff Trained volunteers Slide 67 Important Aspects of Cash for College PowerPoint Presentation Recaps need-based financial aid process Provides information about state-specific financial aid programs and processes Rough section by section overview of FAFSA questions Reviews income, assets, and household member rules/guidelines Review of most common FAFSA mistakes Slide 68 Important Aspects of Cash for College FA Experts assist with FAFSA completion in the computer lab HS counselors/academic advisors who have attended the HS counselor FA workshop FA staff from local colleges and universities Students must complete an exit survey to enter scholarship drawing even if their FAFSA was already completed FAFSA Follow up Slide 69 FAFSA Follow Up Project Utilized survey data to contact all students who indicated on survey they had not completed their FAFSA Partnered with financial aid professionals from five colleges/universities to contact hundreds of students Incredible side benefit: Deeper, better partnerships with institutional financial aid staff These FA experts become ongoing resources for assistance with complicated cases at their institutions Slide 70 FAFSA Completion Worshops Groups of 4 Use handout in your packet to take notes Discussion for 10 minutes Sharing for 10 minutes (time constraints we will hear from a representative sampling of groups) Slide 71 Other FA Resources We Offer: Office hours scheduled for those who need additional help ECMCs MyEFC calculator for pre-FAFSA planning https://www.ecmc.org/students/my-EFC-calculator.html https://www.ecmc.org/students/my-EFC-calculator.html Assistance with FAFSA preparation and corrections for complicated cases Trouble shooting for special circumstances Office advising appointments in our Resource Center Slide 72 Other FA Resources We Offer: Financial Aid Basics Wants vs Needs (financial literacy) Budgeting for Wants & Needs (financial literacy) Scholarships: Myths, Realities and Strategies Cost of Attendance: College Cost Realities Evaluating Financial Aid Award Letters Lessons begin in 7 th grade Financial aid and financial literacy workshops provided by ETS/GEAR UP Advisors Slide 73 Other FA Resources We Offer: All providers agree to require FA SAR as part of scholarship application Common fields of application allows students to import elements of one application into other applications Facilitates discussions among providers for best practices of awarding scholarships Regional online scholarship application https://northstatescholarships.communityforce.com Slide 74 Thats the way weve BEEN doing it Slide 75 2017-18 FAFA changes Use of prior prior year information 2016-17 FAFSA will use 2015 tax info 2017-18 FAFSA will use 2015 tax info better utilization of IRS Data Retrieval Tool 2017-18 FAFSA opening on Oct 1, 2016 This change is heavily supported by Financial Aid Administrators should drastically reduce verifications for majority of students but it has some ramifications on our activities Slide 76 How does Oct. 1 opening day for FAFSA affect Timing of FA training for counselors? Timing of FA Information Nights for families? Timing of FA Curriculum in the classroom? Timing of FAFSA completion workshops? And the impact on OTHER activities occurring at those times? Slide 77 Let the brainstorming begin! Slide 78 College OPTIONS www.collegeOPTIONS.org 530-245-1845 Nick Webb nwebb@ucdavis.edu Buffy Tanner ektanner@ucdavis.edu