The Real Cost - University of California

Report
Counselor Conference 2013
The Real Cost of UC:
Financial Aid for the 2014-15
Year
1
Presentation Outline
• UC is still affordable
• Covering Cost
• Tips to Manage Cost
• Profile of a Typical UC Student
• Information for Specific Populations
• Resources
2
UC is affordable!
First, students must:
• Apply for admission in November
• File FAFSA and GPA verification
between January 1 and March 2
• Immediately provide documentation to
financial aid office as requested
• Expect to borrow and work part time
3
UC Cost of Attendance (‘13-’14)
Living On Campus: $32,400
personal and
transportation
expenses
$2,200
tuition/fees
$13,200
(subject to change without notice)
room/board–
on campus
$13,800
books/supplies
$1,500
health care
fee/allowance
$1,700
4
NET PRICE – the key to comparing
different college prices
• Financial aid offer:
Total cost of attendance (“student budget”)
 Subtract gift aid (grants and scholarships)
_______________________________________________________________________________________
=
Student/Family Share of Cost*
*Sources of payment – parents (in some
cases), work, loans, outside scholarships
5
Estimates of Annual Share of
UC Net Price
• Single independent students: $10K - $12K
• Dependent students in family of 4 with one in college:
 $9K
- $10K for family earning $20K
 $11K - $13K for family earning $40K
 $14K - $16K for family earning $60K
 $19K - $21K for family earning $80K
EACH UC CAMPUS HAS AN ON LINE NET
PRICE CALCULATOR
6
Coming Up with the Contribution –
Part I
• Student part time employment
(Less than 20 hrs./wk) during
school terms, and full-time
employment during summers
• Student loans – available to
nearly all students
7
Coming up with the Contribution –
Part II
• For dependent students under 24, most* families will be expected to
contribute**; in addition, students will be expected to contribute***
• For students 24 and over and financially-independent students, the
students* will be expected to contribute***
* Based on the FAFSA calculation of ability-to-pay – very lowincome families will NOT be expected to contribute
** Parent loans (PLUS) are available if parents can’t cover the
amount out-of-pocket – Upon request by the parent borrower,
PLUS loans offer the option to defer all payment during student’s
enrollment, but parents should try to pay interest as it accrues,
although they can arrange a complete postponement of bills and
payments while they have a dependent enrolled at least half time.
8
Coming up with the Contribution, Part
III
• *** Nearly all UC students seeking
financial aid will be expected to work and
borrow about $9,000 - $10,000 for
dependent students and between $10K$12K for independent students–
• exceptions include students with large
scholarships, veterans benefits, or foster
youth benefits, etc.
9
Typical Student Loan & Work
Expectation for 2013 -2014
$900
$30,000
$5,100
$10,800
$25,000
$21,300
$20,000
Parent
Contribution
$23,000
$22,100
$17,900
$12,200
$15,000
Student Loan
and Work
Expectation
$10,000
$5,000
Grant
Support
$11,100
$9,400
$9,400
$9,400
$9,400
$20K Annual
Income
$40K Annual
Income
$60K Annual
Income
$80K Annual
Income
$0
Independent
Student
(Living on campus: $32,400)
10
Student Responsibility:
Part-Time Work
• UC expects that a student will work < 20 hours
per week when enrolled, full time when not
enrolled.
• Job placement assistance is available on
campus.
• Students do not have to qualify for a workstudy job in order to find part-time work, either
on or off campus.
11
Loans: Investing in The Future
• Education loans available to families and students at ALL
INCOME LEVELS

Undergraduate loans – 3.86% interest rate for amounts
borrowed during 2013-14 (changes every year) with a
1.051% fee (taken out of disbursement amount) - “sub”
and “unsub” loans have the same interest rate/fees
• Typical UC student’s 10-yr. monthly loan repayment on
all undergraduate loans is manageable.

Around $230/month (lower monthly payments are
available, too, but cost more over time.)
• Borrowing can enable you to work less, to graduate
sooner!
12
Student Loan Interest rates for 2014-15
• New law indexes federal student loan
interest rates to a federal funds rate
• The Congressional Budget Office
anticipates an increase in the federal
funds rate for 2014 -15, so student and
PLUS loan interest rates are likely to be
higher than the current 3.86% for SUB and
UNSUB student loans and higher than
6.41% for PLUS for parents.
13
Covering Costs:
Family Responsibility
• Determined by U.S. Department of Education via
information reported on the FAFSA or by UC
based on CA DREAM Application
• Amount based on 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
• Approx. $1,200 for family earning $40,000
14
PLUS Loans
• Available to most families: maximum that can be
borrowed = cost of attendance minus other financial
aid (all sources)
• 6.41 fixed interest rate, 4.204% loan fee for
amounts borrowed during 2013-14 for the life of the
2013-14 loan. Rates applicable to subsequent
year’s loans may change based on statutory index.
• Family repayment can be reduced or deferred until a
student and siblings graduate. Recommend at least
payment of interest as it accrues!
• Student can borrow up to an additional $4,000 in
“unsub” loan if parent is denied a PLUS loan
15
Federal Education Tax Credits
• To the extent that students or their families
pay their tuition, certain required fees,
qualified books and supplies out of their
own pockets (without grant or
scholarship), they may apply for a federal
education tax credit of up to $2500 on the
first $5000 that they pay out of pocket.
• Tax credits reduce the amount of taxes
owed!
DRAFT
16
What if the family doesn’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 often 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.
17
Blue and Gold at UC
• You will receive enough grant and scholarship
money from all sources to equal your
systemwide tuition and fees (in 2013-14 that is
$12,192) IF YOU
• Are a California Resident/ AB 540 who applies
for financial aid ON TIME (March 2nd)
• Have a total family income of less than $80K
and demonstrate financial need
(FAFSA/DREAM APP)
• Are enrolled in one of your first 4 years (2 years
for transfers)
18
BLUE AND GOLD at UC
• Eligible students may qualify (and low-income
students often do) for additional grant
support, beyond the BLUE AND GOLD plan,
to help pay for other college expenses such
as room and board, etc., Blue and Goldeligible California undergraduates will not get
less total grant and scholarship than an
amount equivalent to the systemwide tuition
and fees that year.
DRAFT
19
Middle Class Scholarship (MCSP)
• You may receive a partial scholarship to help
pay your UC tuition if you:
 Are a California resident who applies for
financial aid ON TIME (March 2nd) – file
FAFSA/DREAM App.
 Are not already receiving grants and
scholarships that equal your systemwide
tuition and fees (in 2013-14 that is $12,192)
 Have a “total” family income between $80K $150K
20
More on MCSP
• Available during 4 years of undergraduate
degree program/ 2 years for transfers
• Once phased in 2017-18, will cover a maximum
of 40% of system-wide fees
• Award size is reduced to a smaller % for families
w/ incomes between $100K and $150K.
• For 2014-15, max is 14% (40% * 35%) $1,707/yr at UC less total amount of Pell
Grant, Cal Grant, and UC grant.
21
Typical Undergrad at UC
•
•
•
•
•
Enrolls full time and graduates in 4.2 years
Works fewer than 20 hours per week
Borrows while enrolled
Obtains employment within 4 months
Earns an average of $37K with liberal arts BA
and $44K for science and math BS
• Has monthly student loan repayments of around
$230/mo. reflecting loans from UC based on
current interest rates and a 10-yr term – lower
monthly payments are available
22
The Real Cost
Tips on
Managing
Cost
23
Paying Up-Front Costs
• Only a portion of the shared cost has to
be paid up front;
 UC
housing charges and fees are divided
equally by quarter/semester.
 Likewise,
financial aid* is disbursed in equal
installments by term.
*Grants, scholarships or loans (work-study awards or other
required student employment must be earned.)
24
Payment Plans/Credit Cards
• UC campuses have options to spread out UC
tuition and fee payments – fees are charged.

“Lump-Sum” payments can be deferred; make
smaller, more even-sized monthly payments by
electing a payment plan option.
 Some
UC campuses permit use of certain credit
cards to pay tuition and fees.
25
Bring Down Expenses
• Finishing at UC as soon as possible
 Take required courses first, electives second
 Complete 15 units per each quarter or semester
– that’s full time!
 Attend summer school (aid is available!).
• Applying for outside scholarships
• Working part time
26
Bring Down Expenses
• Roommates – the more, the less
• Rent Required Text Books – big savings!
• Recommended Texts – use reserve copy at
library
• Travel Cost - purchase airline tickets way
ahead of time or on sale, and car ride-share
• Campus Meal Plans – less is more
• Zip-Car – leave own car at home
27
Financial Assistance for
Specific Populations
•
•
•
•
U. S. Military Veterans
Former Foster Youth
Student Parents
Undocumented
• DACA eligible students
• Families with changed income
28
VETERANS
• Most of UC’s student veterans transfer
to UC from a community college
• 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!
29
Veterans at UC
• 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; for campus contact information
veterans.universityofcalifornia.edu
30
Foster Youth
• Each campus has 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 do not
reduce other grant eligibility
• Assistance available for school breaks
31
Campus Contacts for Foster Youth
Services
• Go to:
http://www.ucop.edu/student-affairs/index.html
• Once there choose: “Campus Contacts” and then
“Coordinators of services for current & former foster youth”
32
Student Parents
• UC is “family friendly” for student parents
• Campuses have support services and
social activities for students with children
Family housing may be available on or near
campus
• Documented child care costs may be
added to student budget to increase
eligibility for financial aid
33
Undocumented Students
• May be exempt from nonresident tuition at UC
($22,878 per year) if student attended a CA high
school for at least three years and graduated,
and is eligible for AB 540 status at UC.
• Must submit an “AB 540” application/affidavit
directly to campus when invited to do so
• Outside agency loans, grants or scholarships
are the only option if students are not eligible
for AB 540 status
34
New Financial Aid Options for
UC’s AB 540-Eligible Students
Under AB 130 and AB 131, students eligible
for AB 540 may be eligible to compete for
certain privately-donated scholarships at
UC, for Cal Grants, and for UC institutional
grants and loans.
To apply for such financial aid, students who
are not filing a FAFSA should file a
California Dream Act Application
Dream.csac.ca.gov
35
Undocumented Students
More on AB 540 — both documented
and undocumented students — including
campus contacts:
http://admission.universityofcalifornia.edu/counselors
/files/ab-540_supplemental-tuition-exemption.pdf
36
DACA eligible students
• DACA Status entitles students to be
employed legally
• DACA eligibility has no effect on eligibility
for AB 540, state residency, or financial
aid
• Taxpayer ID numbers (e.g., SSN or ITIN)
issued to DACA students may be used to
apply for UC Admission, but should not be
used to file a FAFSA/DREAM application
37
Changed Circumstances
•
When family income or other
significant circumstances change after the
filing of the FAFSA, 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.
38
Campus Financial Aid Resources
• UC Berkeley
(510) 642-6442
students.berkeley.edu/finaid/
• UC Davis
(530) 752-2390
financialaid.ucdavis.edu
• UC Irvine
(949) 824-8262
www.ofas.uci.edu
• UCLA
(310) 206-0400
www.fao.ucla.edu
• UC Riverside
(951) 827-3878
www.finaid.ucr.edu
• UC San Diego
(858) 534-4480
admissions.ucsd.edu/fin
ances/index.html
• UC Santa Barbara
(805) 893-2432
www.finaid.ucsb.edu
• UC Santa Cruz
(831) 459-2963
www.financialaid.ucsc.edu
• UC Merced
(209) 228-4243
financialaid.ucmerced.edu
39
For More Information
• General Questions
to U.S. Dept. of Ed. and
FAFSA Processing
Issues:
1-800-433-3243
www.ed.gov
• California Student Aid
Commission (CSAC):
www.csac.ca.gov
• FEDERAL PIN
for Electronic FAFSA:
www.pin.ed.gov
• UC Online Admissions
Application
• Electronic FAFSA :
www.fafsa.ed.gov
• Cal Grant Information
1-888-224-7268
www.universityofcalifornia.edu/
apply
• California Dream Application:
https://dream.csac.ca.gov/
40

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