The Real Cost of UC: Financial Aid for 2015-16

The Real Cost of UC:Financial Aid for 2015-16

UC COUNSELOR CONFERENCE SEPTEMBER 2014

It costs less than you think.• Most families pay less than the full price of attending UC.• Over 50% of undergraduates pay no systemwide tuition at all.• Over two-thirds of students receive grants and scholarships,

with an average award of around $16,300.

All students should apply for financial aid.• This is the only way to guarantee consideration for every type of

aid possible, regardless of income level.

There are lots of ways to finance a UC education.

UC is affordable!


Financing a UC education is a partnership between the student, his or her parents and UC.


Students• UC expects students to cover part of the cost of

attendance through working and borrowing.

Parents• UC expects parents to contribute based on their

financial resources and circumstances as reported on the FAFSA or California Dream Act Application.

UC• UC covers the remaining costs with gift aid from a

variety of sources. Each campus determines a student’s total grant eligibility and meets it using federal, state and UC’s own gift aid programs.


$22,000 $23,700 $23,000 $18,600 $12,200 $4,200 $1,000

$700

$5,100

$11,500

$19,500

$22,700

$11,100$9,400 $9,400 $9,400 $9,400 $9,400 $9,400

SAMPLE FINANCING PLANS (On-Campus)

Estim

ated

cos

t (li

ving

on

cam

pus)

: $3

3,10

0

Independent student

$20,000 $40,000* $60,000* $80,000* $100,000* $120,000*

*Could be eligible for the American Opportunity Tax Credit

Student Contribution

Parent Contribution

Gift Aid


NET COST is the key to comparing different college prices.


Average UC Cost of Attendance (2014-15)

The net cost actually is much less for over two-thirds of UC’s undergraduate students because they receive gift aid.

$13,300

tuition/fees

$1,900health care

fee/allowance$1,500

books & supplies

$2,400personal & transportation

expenses

$14,000

room & board

Living on campus: $33,100


Our Blue + Gold Opportunity Plan will cover systemwide tuition and fees for students who qualify.


How does it work?• The Blue and Gold Opportunity Plan gives California families who

qualify for financial aid the assurance that they won’t have to pay

UC’s systemwide tuition and fees if their total income is less than

$80,000.• Qualified students must be in their first four years of attendance for

students entering as freshmen (first two for transfer students).

How do students apply?• Students must file a FAFSA or the California Dream Act Application

and Cal Grant GPA Verification form by March 2 of the year they plan

to enter UC.• No separate application is needed; students will receive benefits

automatically if they qualify.


The Blue and Gold Opportunity Plan provides a minimum

amount of grant money for qualifying students.• Students with sufficient financial need can qualify for

even more grants to cover other educational expenses,

such as room and board, books and transportation.• UC currently provides grant and scholarship assistance

averaging over $16,000 per student to more than two-

thirds of undergraduates.


Starting in the 2014-15 academic year, California’s Middle

Class Scholarship (MCS) program will provide

scholarships to undergraduate California students who

apply for aid on time and have family incomes up to

$150,000.

Eligible students will be notified of the actual scholarship

amount by the California Student Aid Commission

(CSAC).


Student Responsibility: Part-Time Work• UC expects that a student will work less than

20 hours per week when enrolled and full time when not enrolled.

• Job placement assistance is available on campus.

• Students do not have to qualify for a work-study job in order to find part-time work, either on or off campus.


Loans: Investing in the Future• Education loans are available to families and students at all

income levels.• 55% of undergraduates borrow while enrolled at UC• A typical undergraduate at UC who borrows has a manageable 10-

year loan repayment—around $230/month.• Borrowing can enable students to work less and graduate sooner!

Federal Student Aid Repayment Estimator• Shows federal student loan balances and estimated payments

under Standard, Graduated, Pay As You Earn, Income-Based

Repayment (IBR), and Income-Contingent Repayment (ICR) plans:

studentloans.gov/myDirectLoan/mobile/repayment/repaymentEstimator.action

https://studentloans.gov/myDirectLoan/mobile/repayment/repaymentEstimator.action





Family Responsibility• Determined by UC based on information reported on

the FAFSA or the California Dream Act Application• Amount based on the income and assets of custodial

parent(s) for dependent students under age 24• Can be paid from savings, current income or federal

parent loans (PLUS)• May be $0 for low-income families• Approximately $700 for families earning $40,000


PLUS Loans• Available to most families; maximum that can be borrowed is

cost of attendance minus all other sources of financial aid• 7.21% fixed interest rates for the life of the 2014-15 loan, 4.3%

loan fee for amounts borrowed during 2014-15; rates applicable

to subsequent year’s loans may change based on the statutory

index• Family repayment can be reduced or deferred until a student

and siblings leave college• Students can borrow additional unsubsidized Stafford loans

($4,000 during the first two years and $5,000 during the

remaining years) if family does not qualify for a PLUS loan


Federal Education Tax Credits• To the extent that students or their families pay

for their tuition, certain required fees, and/or

qualified books and supplies out of their own

pockets (without grant or scholarship), they

may qualify for a federal education tax credit of

up to $2,500 on the first $5,000 that they pay.• Tax credits reduce the amount of taxes owed!


What if parents don’t pay their share?• UC will attempt to help students find additional

education loans so they don’t work more than half-time.

• A creditworthy U.S. co-signer will bring the price down for such private loans.

• UC will try to offer refinancing advice when a student leaves UC so their monthly repayment amount is manageable.


Typical Undergraduate at UC• Enrolls full time and graduates in 4.2 years• Works fewer than 20 hours per week• Borrows while enrolled• Earns an average of $37,000 with liberal arts BA and

$44,000 for science and math BS upon graduation• Those who borrow have monthly student loan

repayments of around $230/month reflecting loans

from UC (based on current interest rates and a 10-

year term—lower monthly payments are available)

Financial Assistance for Specific Populations


Undocumented Students• May qualify for a nonresident tuition exemption under AB

540 and for state and UC financial aid under the California

Dream Act.• The student must attend a CA high school for three or

more years and graduate and• Certify that he or she is taking steps to legalize his or her

immigration status or will do so as soon as eligible to do

so (“AB 540” application/affidavit).

• These students must file a California Dream Act Application

and submit a Cal Grant GPA Verification Form by March 2.


Undocumented Students (cont’d.)• Some UC campuses are providing institutional student loans to

AB 540-eligible students who are not eligible to obtain federal

student loans.• UC is sponsoring a state bill (SB 1210) that would establish a

state student loan program to serve AB 540-eligible students

who are not eligible for federal student loans.• Outside agency loans, grants or scholarships are the only

option if students are not eligible for AB 540 status.

• New resource: undoc.universityofcalifornia.edu

http://undoc.universityofcalifornia.edu/


DACA-eligible Students• Deferred Action for Childhood Arrivals (DACA) entitles

students to be employed legally—which makes it much

easier to find jobs to help cover some of their educational

costs.• DACA has no effect on eligibility for the AB 540 tuition

exemption or financial aid.• Some UC campuses are setting up programs so that AB

540-eligible students with DACA certification may work in

institutional work-study programs.


Former Foster Youth• Each UC campus has a liaison to work with

incoming former or current foster youth.• Current foster youth are “independent” for

financial aid eligibility.• Foster youth benefits are treated as

scholarships, so they do not reduce other grant eligibility.

• Assistance is available during school breaks.


U.S. Military Veterans• Most of UC’s student veterans transfer to UC from a community

college.• Each UC campus has special services available to help veterans

transition to college.• Notify the campus as early as possible about the veteran status of

an incoming student.• Federal law no longer allows a Vet to have simultaneously the

benefits of both a Cal Grant and also Chapter 33 education

benefits for tuition and fees.

• Tip: Try to save Chapter 33 benefits to use when attending a

higher cost program!


Student Parents• UC welcomes student parents.• Campuses have support services for students

with children.• Family housing may be available on or near

campus.• Documented child care costs may be added to

the student budget to increase eligibility for financial aid.


Changed Circumstances• When family income or other significant

circumstances change after the filing of the FAFSA or California Dream Act Application, students may petition to have their financial aid awards reconsidered.

• Each campus has a financial aid appeal process—check with the financial aid office on campus.


Paying Up-Front Costs• Financial aid is disbursed in equal installments by term• Students and families who have completed the

financial aid process will be expected to pay only the difference between the UC charges and the financial aid applied to the student account

Payment Plans / Credit Cards• UC campuses have options to spread out UC tuition

and fee payments• Some UC campuses permit use of certain credit cards

to pay tuition and fees

Tips on Managing Cost


Finish at UC as soon as possible

Apply for outside scholarships

Work part time

Make cost-saving choices• Roommates• Rent required text books• Travel cost• Choose on-campus meal plan wisely• Leave cars at home

Bring Down Expenses


Campus Financial Aid Resources

UC Berkeley(510) 664-9181financialaid.berkeley.edu

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

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

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

UC Merced(209) 228-7178financialaid.ucmerced.edu

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

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

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

UC Santa Cruz(831) 459-2963financialaid.ucsc.edu

http://financialaid.berkeley.edu/

http://financialaid.ucdavis.edu/

http://www.ofas.uci.edu/


For More Information

Paying for UCadmission.universityofcalifornia.edu/paying-for-uc

UC Online Admissions Applicationuniversityofcalifornia.edu/apply

Resources for Undocumented Students at UCundoc.universityofcalifornia.edu/

California Dream Act Application dream.csac.ca.gov

Electronic FAFSAfafsa.gov

U.S. Dept. of Ed. & FAFSA Processing1-800-433-3243ed.gov

Federal PIN for FAFSApin.ed.gov

Cal Grant Information1-888-224-7268csac.ca.gov

http://admission.universityofcalifornia.edu/paying-for-uc/index.html

http://admission.universityofcalifornia.edu/paying-for-uc/index.html

http://www.universityofcalifornia.edu/apply

http://undoc.universityofcalifornia.edu/

http://www.fafsa.ed.gov/

Questions?

[email protected]

Documents

The Real Cost of UC: Financial Aid for 2015-16