Financing a UC Education: Tips for

Families

UC Counselor Conference 2011

Purpose of Financial Aid

Provides access to education beyond high school

Provides choice among a variety of educational opportunities

If you’re ready to attend, money shouldn’t stand in your way.

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In-State Price of UC

Status Total Price

On Campus $31,200

Off Campus $28,400

Commuter $23,400

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Sample UC Financing Plan Cost = $31,200

Family Income

Total GRANT PARENTContribution

STUDENT(work + loans)

$20,000 $21,800 $0 $9,400

$40,000 $20,600 $1,200 $9,400

$60,000 $16,700 $5,100 $9,400

$80,000 $12,200 $9,600 $9,400

$100,000 $1,900 $19,900 $9,400

Independent> $20,000

$20,200 $0 $11,000

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Typical GRANT Awardsfor on-time applicants eligible for federal, state, and UC

aid

Total Family Income Grant Award

$20,000 Up to $21,800

$20,000 to $40,000 Up to $20,600

$40,000 to $60,000 Up to $17,600

$60,000 to $80,000 Up to $12,200

$80,000 to $100,000 Up to $1,900

Independent > $20,000 + $20,200

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Student Share

About half from student loans The other half from student

employment/savings

Status Contribution

Dependent $9,400

Independent $11,000

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Every Needy Student Should Expect to Both Borrow and Work

UC will expect each student to work and borrow for the first $9,400 or $11,000 No matter what the FAFSA determines is the “Expected

Family Contribution” (EFC) or the Student Contribution (SC)

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Parents Must Contribute According To Their Ability To Do So

Each family will be expected to pay the Parent Contribution (PC) as determined by the FAFSA (including revisions to the FAFSA calculation that result from verification)

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Parent Share

Family Income Contribution

$20,000 $0

$40,000 $1,200

$60,000 $1,500

$80,000 $9,600

$100,000 $19,900

Independent Student> $20,000

$0

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Blue and Gold Plan

No tuition paid out of pocket from student or family.

California resident with total family income under $80,000 per year

4 years of undergraduate study onlyApply on time for financial aidDemonstrate financial needComply with all verification requests on timeNo special applicationNo special mention on financial aid award

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Scholarships for AB 540 Students

New CA law (AB 130) allows all AB 540 students to be considered for limited private scholarships at public institutions

AB 130 affects only students eligible for AB540All AB 540 students may be considered for

scholarships derived from private gifts Students must apply on campusStudents must qualify for scholarships based

on campus standards of merit and or need

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New CA Law Restricts Renewal Cal Grants

Students awarded a Cal Grant as a freshman cannot rely on being eligible for a renewal

Each year CSAC will re-check family assets and income

Once eliminated from Cal Grant eligibility, students cannot regain eligibility for Cal Grant

At UC, the total grant for the lowest income students will not decrease, even if Cal Grant is withdrawn

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File a FAFSA

March 2, 2012 is still the CA deadline

Ensure that GPA verification is sent to CSAC – YOU NEED BOTH A FAFSA and the GPA VERIFICATION!

Don’t wait to file 2011 taxes to file FAFSA

Estimate 2011 dollars and update later, after submitting FAFSA

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More on Filing a FAFSA

Use IRS data retrieval tool to speed processing and reduce required documentation requests

Copies of Income Tax returns will no longer be acceptable – actual IRS tax transcripts will be required

Respond to all requests for additional documentation right away

Check email and web frequently for financial aid information from UC

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File a FAFSA - JUST IN CASE

Family income and other circumstances change unexpectedly

FAFSA data can be updated at any time during the year, so filing by March 2nd 2012 is an INSURANCE PLAN!

Nearly all U.S. citizens and permanent residents can borrow from the federal student loan programs, irrespective of income or credit rating

Eligibility for many scholarships and grants requires on-time FAFSA filing

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Federal Student Loans

Still, despite interest rate increases to 6.8%, the best bet for most undergraduates

Most flexible repayment optionsPublic service cancellation for IBR repayersCancellation for death and disability25-year automatic cancellation for low-

income repayers

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Borrowing Among UC Students

UC students typically borrow amounts ($16,800 in 2010-11) that result in monthly repayments for 10-year terms of around $200 per month – this is very affordable given starting salaries of UC graduates!

About half of all UC undergraduates borrow at some point while enrolled at UC

Students whose parents fail to contribute what is expected of them based on their FAFSA-recognized income will have to borrow more to make up for their missing parent contribution

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More on Borrowing

Interest rates on most federal student loans during 2012-13 will be 6.8% fixed

Subsidized federal student loans will remain available to undergraduates, despite the increase in interest rates on these loans – cost of funds will not be charged to borrower while enrolled at least half time or during grace period

The Income-Based Repayment Plan (IBR) limits monthly repayment amounts to no more than 15% of each borrower’s net disposable income

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Bring Down Your Costs by…

Finishing in four years Take required courses as soon as possible. Complete 15 units per term–that’s full time! Attend summer school (aid is available!).

Obtaining outside scholarships

Living with roommates

Working part time

Buying used books when possibleUsing your student status to obtain discounts!

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Finishing in Four

UC freshmen are taking 4.3 years to graduate

UC transfers are taking 2.3 years to graduate

UC students can usually get the classes they need to graduate – PLAN AHEAD!

Take critical coursework before electives.

Attend summer session at least one summer.

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Undocumented Students

Those who have attended and graduated from a California high school may be eligible for AB 540 and do not have to pay non-resident tuition;

High-achieving AB 540-eligible students may qualify for campus scholarships (inquire on campus where you enroll)

All other undocumented students will be charged non-resident tuition and will be ineligible for any state, federal, or institutional financial aid

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Veterans Education Benefits – part 1

Veterans should inform the campus right away once they decide where they are going to enroll in order to benefit from special veterans’ services

The VA will no longer pay Post 9/11 tuition and fee benefits for otherwise eligible veterans who receive tuition-and-fee-specific awards from other sources (e.g., Cal Grants or UC tuition or fee waivers associated with Research Assistantships, for example.)

California veterans with full eligibility for Post 9/11 VA education benefits will have all their tuition and fees paid at CA public institutions and up to $17,500 paid at independent colleges

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Veteran’s Education Benefits – Part 2

The VA will no longer pay “interval” BAH payments, so veterans will not receive full BAH amounts during breaks between semesters or quarters, whenever they occur in the official institutional calendar.

All veterans are encouraged to file a FAFSA and to avail themselves of all other types of financial aid and scholarships

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Veteran’s Education Benefits – Part 3

For veterans who remain “fully-eligible” for Post 9/11 GI Bill education benefits, the VA will now pay all the tuition and fees charged to veterans who are residents of this state

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Non-residents

Students who are determined to be non-residents of California by UC’s residency standards will be charged an additional non-resident supplemental tuition of $22,878 per year

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Campus Financial Aid Calculators

http://www.universityofcalifornia.edu/admissions/paying-for-uc/financial-aid/index.html

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Campus Financial Aid Resources27

UC Berkeley(510) 642-6442students.berkeley.edu/finaid

UC Davis(530) 752-2390financialaid.ucdavis.edu

UC Irvine(949) 824-8262www.ofas.uci.edu

UCLA(310) 206-0400www.fao.ucla.edu

UC Merced(209) 228-4243 financialaid.ucmerced.edu

UC Riverside(951) 827-3878www.finaid.ucr.edu

UC San Diego(858) 534-4480fao.ucsd.edu

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

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

For More Information28

General Questions to U.S. Dept. of Ed. and FAFSA Processing Issues:

1-800-433-3243www.ed.gov

FEDERAL PIN for Electronic FAFSA:

www.pin.ed.gov

Electronic FAFSA :

www.fafsa.ed.gov

California Student Aid Commission (CSAC):

www.csac.ca.gov

Cal Grant Information

1-888-224-7268

UC Online Admissions Application

www.universityofcalifornia.edu/apply