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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
• 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
• 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
  2. 2004 and 2005, the max deduction is $4,000 per year.


How can I save?
• Qualified Tuition Program
• Also Called 529 Plans
• Scholarshare
• $15.00 minimum contribution per pay period
• Maximum account contribution limit ranged between $124,799 and $174,648 based on beneficiary’s age and cost for college.





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
  -2004-05 maximum amount $4,050
• 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
• University Grants
  -California State University
  -University of California
• Cal Grant A l
  -3.0 GPA (10th & 11th grade)
  -Meets Income and asset limits
  -ex: $66,700 w/ 4 family members
  -UC: $5,682*
  -CSU: $2,332*
  -Indep: $8,322*
  *amounts based on 2004-2005
• Cal Grant B
  -2.0 GPA (10th and 11th grade)
  -Low income families lReceive same funding as Cal Grant A except for first year. However, you receive an additional living expense of $1,550.00 per year
• Cal Grant C (technical/vocational school)
  -Verified GPA
  -Pays up to $2,592/private or $576/community college


Cal Grant Contact Numbers
• Student Help Line 888-CA GRANT
• Cal Grant
• California Student Aid Commission
• California Chafee Grant Program
• Customer Service at California Student Aid Commission
• EdFund 1-877.EDFUND or EdFund





Scholarships

• Millions of scholarship dollars are available
• How to find them:
  -Fast Web
  -Guidance Office room 109
  -University/College: UC’s, CSU’s, Privates
  -Unions/Employers



Different Types of Scholarships
Seniors	Juniors
-Elks Scholarship -Gates Millennium -McDonald’s -PG&E Scholarship -UC Scholarships -Cal Opportunity Scholarship -Toyota Scholarship -Burger King Scholars	-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 Profile
  3. Apply, apply, apply, apply for scholarships through colleges, FastWeb and other resources



Let's Understand EFC
• EFC (Estimated Family Contribution)
      Cost of Attendance
      Family Contribution (less)
      Grants + Scholarships (less)
      ------------------------------
     =Student Responsibility
  
•  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 l
  - Family Contribution can be paid from savings, current income or loan
  


Filling out the financial aid forms
-FAFSA
-GPA Verification Form
-CSS Profile
-Scholarship Applications


Make sure you have the following:
• CSS Profile
• GPA Verification permission slip
• Tax Forms 2005
• 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 @ FAFSA





Self-Help Aid
Loans	Employment
Subsidized Stafford Unsubsidized Stafford PLUS	Federal Institutional
Federal Perkiins	Private (Alternative)

Stafford Loan
• Subsidized Stafford must show "need"
• Unsubsidized Stafford "need" is not a consideration
• Interest Rates - variable, changes every July 1st and capped at 8.25%
• Fees
  - Up to 3% origination feed paid
  - Up to 1% insurance premium paid to guarantor


PLUS Loan
• Parent borrows for dependent undergraduate
• Approval subject to credit check lInterest rate variable, capped at 9%
• Repayment begins 60 days
• Loan limits
  -Annual: COA less other aid
  -Aggregate: none


Federal Perkins Loan
• Priority given to those with exceptional need
  Eligibility for Federal Pell Grant
  Annual and aggregate loan limits:
  - $4,000/year - $20,000 (aggregate)
  - Fixed interest rate of 5 %
  - 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: CSU Mentor University of California California Colleges

Resources
Financial Aid Information Page
College Board (SAT)
ACT
On-Site Student Centers
- Mapping Your Future
- Princeton Review


Finding Scholarships
• Petersons
• Fastweb
• Mach25
• SallieMae College Answer


Selected Scholarships
• Petersons
• Fastweb
• Mach25
• SallieMae College Answer


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



College is always an option for everyone!