Financial Aide
FINANCIAL AID
BRIDGING THE GAP: FINANCIAL AID FOR COLLEGE
Financial aid is help for meeting college costs, both direct educational costs (such as tuition, fees, and books) and personal expenses (such as food, housing, and transportation).
People are sometimes surprised that students can get financial aid to help them pay for living expenses while living at home. Even colleges with comparatively low tuition, like community colleges, can give qualified students some help in paying for food, rent, commuting, and other personal expenses.
Many students don't realize that financial aid is available to pay for non-collegiate education and training programs, too. If you are thinking about vocational or trade school after high school, financial aid could be a possibility for you.
ELIGIBILITY FOR FINANCIAL AID
While each program has its own special criteria, certain basic eligibility requirements are common to almost all programs. For example, to be eligible for some programs you must be at least a half-time student (usually defined as six semester hours of courses per semester or its equivalent). But most programs, such as those sponsored by colleges and private organizations, require recipients to attend on a full-time basis, usually at least 12 hours per semester.
You must also be enrolled in an eligible program in an eligible institution. Programs require that you maintain satisfactory academic progress toward a degree or certification and be in good standing with the institution you attend.
WHO GETS FINANCIAL AID?
While many scholarships are based on criteria other than demonstrated need, most financial aid today is awarded on the basis of need. Sometimes factors such as academic performance, career plans, or special abilities are considered in addition to demonstrated need. Students are usually eligible for aid equal to the amount of their demonstrated financial need.
Since the amount a family can afford to pay stays the same whether the costs are high or low, you can see that you would be eligible for different amounts of aid at different colleges. In fact, if you get all the financial aid you're eligible for, you could end up paying the same amount at a high-cost college as you would at a lower-cost one.
That's a pretty big "IF." Student aid funds appear to be declining, not increasing. But you can improve your chances of getting the outside help you need. FINANCIAL AID DOESN'T JUST HAPPEN TO YOU. You have to take an active part in the process by identifying all possible sources of assistance for which you might be eligible and by applying the right way at the right time.
DETERMINING FINANCIAL NEED
Colleges determine a student’s financial need by comparing his or her resources with probable educational and living expenses. Special consideration is given to students who have unusual medical expenses. The resources colleges consider include:
The student’s contribution: The student is expected to contribute a minimum amount to his or her own educational costs. This money may come, for example, from personal savings or a part-time job during the school year and summer breaks.
The parents' contribution: If the student is financially dependent on his or her parents, the amount of their expected contribution is based upon information submitted about their income, assets, and household size.
Other resources: These include such things as public assistance, savings, and scholarships that the student receives from other sources.
If the college determines that the student's resources are not sufficient to meet educational and living expenses, he or she will be eligible for financial aid. In that case, the student will be offered a financial aid package, which may include a combination of funds from the available aid programs--scholarships, grants, loans, and work-study. The student must maintain satisfactory academic progress to continue to be eligible for financial aid.
TYPES OF FINANCIAL AID
The basic types of financial aid are described below. (Because many financial aid programs are funded by the federal and state governments, they are subject to change from year to year.) The college general catalogs are good sources of more detailed information about these programs. Prospective students are also ENCOURAGED to contact the college campus financial aid offices.
SCHOLARSHIPS:
Scholarships are awarded on the basis of academic achievement and potential. The amount of the award, however, may depend upon the student's financial need. ALL STUDENTS WITH OUTSTANDING ACADEMIC RECORDS ARE ENCOURAGED TO APPLY FOR SCHOLARSHIPS. Students should apply for federal and state financial aid unless they are sure that they will not be found financially needy. (DO NOT "SECOND GUESS" AS TO WHETHER OR NOT YOU WILL BE CONSIDERED "NEEDY." LET SOMEONE ELSE DECIDE; APPLY ANYWAY!) Scholarship awards do not have to be repaid.
There are literally thousands of private sources of financial aid for students provided through scholarships, grants, and low-interest loans. While aid from the federal government, state government, and colleges constitute much of the financial aid, private aid does offer important assistance to students of different need levels and different academic standings. Your child might qualify for one of the many specialized scholarships available. These scholarships may come from corporations, religious denominations, foundations, trade associations, clubs, veterans groups, and many other kinds of organizations. The eligibility criteria, award amounts, and application procedures obviously vary from program to program. Some base their awards on need, others on academic achievement, career plans, athletic ability, ethnic or racial heritage, religious affiliation, parents' membership in a group, or any one of other countless criteria.
FEDERAL AID PROGRAMS: www.studentaid.ed.gov
Some aid programs, such as Federal Pell Grants, are offered directly to students by the federal government. Others are administered by the schools and colleges (Federal SEOG, Federal College Work-Study, and Federal Perkins Loans). The federal student loan programs are administered by guaranteed agencies such as the California Student Aid Commission. Students must possess a valid Social Security number and have completed U.S. Selective Service requirements.
a. Federal Pell Grants:
The Federal Pell Grant program is a large student grant program and provides a "foundation" of financial aid to which other aid may be added.
Applicants who meet all requirements will receive a Federal Pell Grant. Applicants must qualify financially, be enrolling in an eligible program at an eligible school or college, and must not have already obtained a bachelor's degree.
Pell Grant eligibility is determined by a federal methodology. A need analysis service determines an applicant's eligibility according to that formula. The smaller the index number, the larger the grant. Federal Pell Grant awards for full-time students go up to $4,000. Those who qualify for a Pell Grant are usually eligible for other financial aid and should apply for it. Those not eligible for a Pell Grant still may be eligible for other aid.
b. Federal Supplemental Educational Opportunity Grants (FSEOG):
Students who qualify for additional assistance may get a Supplemental Educational Opportunity Grant (SEOG) to go with other sources of financial aid. These federal grants range from $100 to $4,000 per award year. Schools and colleges award these grants to those who qualify according to the schools' eligibility criteria. Colleges may award SEOG to students who are enrolled less than half time.
c. Federal College Work-Study:
Many colleges will offer students a federal Work-Study job as part of a financial aid package. This helps needy students earn their way through college while gaining valuable skills and work experience.
Colleges assist students in locating jobs either on or off campus with a nonprofit or government employer or with a private for-profit company. To the maximum extent practical, students will be placed in work related to their studies or career plans. Wages usually depend on the level of responsibility required by the job, but are equal at least to the federal minimum wage.
d. Federal Perkins Loans:
Perkins Loans are very low-interest federal loans available for students who have financial need and are enrolled at a participating school. The annual loan limit is $4,000 for undergraduate students and $6,000 for graduate students. The aggregate loan limits are up to $20,000 for undergraduate study leading to a bachelor's degree, and up to $40,000 for graduate or professional study. No interest is paid while enrolled in school at least half time and repayment begins nine months after graduation, leaving school, or dropping below half-time enrollment. Depending on the size of the loan, borrowers have up to 10 years to repay.
4. STATE AID PROGRAMS:
Cal Grants A, B and C:
To qualify for a Cal Grant A, B or C, a student must be a California resident attending an eligible school or college in the state of California, must be making satisfactory academic progress as determined by the institution, and must be in a program of study leading directly to an undergraduate degree or certificate. Students must apply for a Cal Grant by the March 1 deadline.
a. Cal Grant A:
Cal Grant A helps low and middle income students with tuition/fee costs. Grant recipients are selected on the basis of financial need and grade point average. Students must have an academic unweighted GPA of at least 3.0.
Awards average $8,322 at independent schools and colleges, $5,684 at UC, and $2,334 at CSU. The minimum course length is two academic years.
If you qualify for a Cal Grant A and want to attend a public community college, the Student Aid Commission will reserve a tuition/fee award until you transfer to a tuition/fee charging college, provided that you continue to qualify. However, new recipients cannot transfer a community college reserve award to a tuition/fee charging school during their first year as recipients.
To be eligible for a first-time Cal Grant A, a student must enroll at least half time in the fall term of the year for which the award is made.
b. Cal Grant B:
Cal Grant B provides a living allowance (and sometimes tuition/fee help) for very low-income students. The approximate living allowance for new awards is $1,500. The tuition/fee awards are the same as those for Cal Grant A. The minimum course length is one academic year. Students must have a minimum 2.0 GPA.
More than half of all new Cal Grant B recipients must begin at a public community college. Therefore, the Cal Grant B award for freshmen is usually limited to the non-tuition colleges costs such as living expenses, books, and supplies, transportation, etc. When renewed by sophomores, juniors, and seniors, a Cal Grant B also may cover all or part of tuition/fee costs up to $9,036.
c. Cal Grant C:
Cal Grant C helps vocational school students with tuition and training.
For 2004-05, the maximum award was $576 at California community colleges and up to $2,592 more for tuition at a college other than a community college. Recipients must be enrolled in a vocational program at a community or independent college, or vocational school, in a program of study from four to 24 months in length. A student also must enroll at least half time in the fall term of the year for which the award is made.
d. State Work-Study Program:
The State Work-Study program at a limited number of schools offers eligible college and university students the opportunity to earn money to help defray educational expenses.
Schools will help find jobs that relate to the student's course of study, career goals, or the exploration of careers. Students will be paid at rates comparable to those paid for positions within the employing organization. Jobs may be with public institutions or nonprofit or profit-making enterprises.
HOW TO APPLY FOR FINANCIAL AID:
Step 1. FIGURE OUT WHAT SCHOOLS REQUIRE.
During the college admission application process, also find out what each school requires to apply for financial aid. Even at similar colleges in California, requirements and deadlines are not the same. Schools outside the state will often have their own financial aid application process.
When mailing important letters or forms, ask the post office for a certificate of mailing. Print your name and Social Security number at the top of each document and make and keep copies. Be prepared to supply additional materials, such as your family's income tax returns (IRS Form 1040), directly to the school.
Step 2. GET AND COMPLETE THE RIGHT APPLICATIONS. AVAILABLE IN THE CAREER CENTER
In California, you may apply for a Federal Pell Grant and for a state Cal Grant by completing the Free Application for Federal Student Aid (FAFSA). At the same time, in order to qualify for Cal Grant Aid, students must also complete the Cal Grant Student Aid Supplement, a one page document verifying 10th and 11th grade G.P.A. (excluding PE), signed and verified by your high school counselor, and mailed to the California Student Aid Commission by March 1, but not before January 1.
There are Spanish language forms for those who require them, and all forms are available starting in December at counseling offices, colleges, and other post-secondary school financial aid offices. DO NOT FILE THE FAFSA EARLIER THAN JANUARY 1.
Be sure to review carefully the application instructions and provide accurate information. Mail the completed form to the appropriate need analysis service, which will determine expected family contribution.
The need analysis service will send copies to the federal government for Pell Grant evaluation, to colleges which you list, (up to six) and to the California Student Aid Commission if you so request.
In acknowledging an application, the need analysis service also sends you a form (SAR) indicating the information submitted on your application and used in determining your family contribution. Carefully review it and submit any corrections on the form supplied.
STUDENTS WHO APPLY TO PRIVATE COLLEGES AND UNIVERSITIES throughout the United States must check with their counselor to see if their particular institution ALSO requires additional information which must be provided by completing the CSS/FINANCIAL AID PROFILE and mailing the PROFILE from November 1, to no later than January 15. There is a nominal charge to have this information processed and sent to each of those private institutions that require it and to which you are making an application for admission.
Step 3. APPLY FOR A CAL GRANT BY MARCH 1.
There is no charge to apply for a state-sponsored Cal Grant A, B or C. Follow the instructions and complete the appropriate sections on the FAFSA, including answering "yes" to question 33 and completing Section I: State Information. Do not file before January 1. The need analysis service will forward your processed application to the Student Aid Commission. To be considered for a Cal Grant, a completed FAFSA must be filed by the March 1 postmark deadline.
Students applying for a Cal Grant ALSO MUST FILE the Cal Grant Supplement (signed by the high school counselor and verifying the GPA) with the California Student Aid Commission by the deadline. Counselors and college financial aid offices have complete information and materials.
The Student Aid Commission makes Cal Grant award notifications beginning in the spring. Check with the college financial aid office.
Step 4. THE FEDERAL PELL GRANT DEADLINE.
Using the FAFSA, file as early as possible after January 1, but no later than March 1. Four to six weeks after applying for a Pell Grant you will receive a Student Aid Report (SAR) from the processor, which shows whether you are eligible. Follow any instructions that are included with the SAR.
Step 5. OTHER GRANTS AND SCHOLARSHIPS.
Follow up on application requirements for private scholarships and grants. Prepare to spend some time researching this subject; writing letters or essays and even interviewing community groups may be part of the private scholarship application process.
Step 6. FEDERAL STUDENT LOAN PROGRAMS.
Application requirements for student loan programs vary. For example, the Federal Stafford loan is a need-based program and applicants first must have their eligibility determined for a Pell Grant. A separate Stafford loan application/promissory note form must be completed. Other loans will have different eligibility and application requirements. All loans must be repaid with interest. (See Page 7)
Ask your college financial aid office for exact loan application information and requirements. (Some schools are restricted from participation in the various student loan programs due to high default rates.) Complete the required forms and return them to the college for certification. You or your college then must forward the certified loan application to the participating leader.
The college financial aid offices have lists of banks, savings and loan institutions, and credit unions that make student loans, along with the current lending policies for many of them. Before applying for a student loan, make sure that doing so will not affect other aid.
Step 7. AFTER STUDENT AID IS OFFERED.
Carefully read all letters and notices received from colleges, the federal student aid processor, the need analysis service, the Student Aid Commission, and private scholarship organizations. The offer of financial aid varies by school and may be sent either before or after you are notified about admission. If additional information is requested, respond promptly.
When offering campus-based aid, schools take into account family contributions, Federal Pell Grants, Cal Grants, other scholarships and veterans' benefits. Read your award letter carefully.
Here are things you should know about a financial aid offer:
* Sign and return all forms, indicating whether you are accepting or rejecting the award.
* You need not accept the whole student aid package. If you do not accept the loan portion, the college financial aid office usually will not be able to increase the size of your grants.
* Many schools and colleges allow students to trade work aid for a loan or loan aid for work-study. Ask the financial aid office for details.
* Your award may be changed if your financial resources or expenses change. Report any changes, both before and during the school year, to the financial aid office.
Financial aid generally is disbursed when a student begins classes. Ask the financial aid office how your Pell Grant, campus-based aid, and Cal Grant payments will be made and plan accordingly. Also ask how to get your checks; some schools mail the awards, while others expect students to pick them up.
Private organizations will notify you directly of an award. Students may be paid directly or through the campus financial aid office. If you receive other aid, you must report it to the financial aid office right away.
OTHER GRANTS AND SCHOLARSHIPS
TALK WITH YOUR HIGH SCHOOL COUNSELOR; READ THIS BOOKLET THOROUGHLY; ask your parents to check at work with their employers or labor unions or with fraternal or veteran organizations.
NEXT YEAR YOU MUST REAPPLY
In order to receive aid for each year in college you will have to submit a new FAFSA, Cal Grant Supplement, AND/OR F.A.F. application and supporting documents every year. The financial aid office at the school you attend will have the information on when and how to reapply. You will be required to maintain satisfactory academic progress toward a degree or certification in order to qualify for aid each year.
To renew your Cal Grant, you must continue to have financial need and be enrolled at an eligible school or college.