Cash for College October 2015 Cash for College

Cash for College October 2015

Cash for College Partners and Sponsors Office of Mayor Eric Garcetti Bixel Exchange California Cash for College City of Los Angeles Economic and Workforce Development Department Edvisors. com Family. Source Financial Aid TV Los Angeles Area Chamber of Commerce Los Angeles City Workforce Investment Board Los Angeles Community College District Los Angeles County Department of Children and Family Services Los Angeles Unified School District UNITE-LA Work. Source California Youth. Source 2

College Is Power! A College Education Opens Doors to a Better Life, A Better Job and Many Other Benefits

Workshop Overview �Why Should Students Go To College? �College is the pathway to success and a better life �College graduates earn more money and get better jobs �Jobs of the future will require more skills than those provided by a high school education alone �Unemployment rates are lower for college graduates �College is a lot of fun! �How To Pay For College 4

Who Wants a Million Dollars? Average Lifetime Earnings High School Graduate Bachelor's Degree Master's Degree Doctorate (Ph. D) Professional Degree College graduates earn over $1. 2 million more during their lifetimes than high school graduates $1, 531, 400 $2, 742, 160 $3, 337, 800 $4, 449, 440 $5, 612, 760 5

What Does Financial Aid Offer? �Access to funds to help pay for � 4 -year public and independent colleges and universities �Community colleges �Private career colleges �Choice among schools �Choose the best academic, career, cultural, and social fit rather than the least expensive program 6

How To Pay For College? �Financial aid myths �Financial aid concepts �Types of financial aid �Sources of financial aid �How to apply for financial aid �Free scholarship searches 7

Financial Aid Myths • The unclaimed aid myth falsely claims that billions of dollars went unclaimed last year. • There’s a penalty for savings, so you will get more financial aid if you don’t save. • I will win a free ride through scholarships. 8

More Financial Aid Myths �My family can’t pay much, so that means I can’t go to college �Obama Student Loan Forgiveness 9

What are the Basic Concepts of Financial Aid? �College’s Cost of Attendance �Expected Family Contribution �Student’s Financial Need 10

The Costs of Going to College Tuition & Fees Books & Supplies Room & Board Personal Expenses Transportation 11

What is the Expected Family Contribution? �The Expected Family Contribution (EFC) is the amount a family (parents and student) is expected to contribute from income and assets over time 12

What is Financial Need? Cost of Attendance - Expected Family Contribution Financial Need* *Financial Aid Eligibility is based on Financial Need 13

How the Formula Works Cost* EFC Need CC CSU UC $14, 000 - 500 $13, 500 $24, 500 - 500 $24, 000 $32, 300 - 500 $31, 800 Independent $55, 000 - 500 $54, 500 In the best of all possible worlds, full “need” will be met with financial aid awards made up of grants and scholarships along with reasonable amounts of work and loan. Some schools are not able to meet full need which increases what families pay. *Assumes student will live away from home. Total “Costs” for students living at home are lower. 14

What are the Major Types of Financial Aid Funding? � Gift Aid - Grants or scholarships free money that does not need to be repaid � Work - Part-time jobs where students earn while they learn � Loans - Borrowed money to be repaid, usually with interest 15

What are the Primary Sources of Financial Aid? �Federal government �State governments �Colleges and universities �Private agencies and organizations 16

Need-Based Grants for Current Year � Federal Pell Grants ($5, 775 maximum per year) � Federal Supplemental Educational Opportunity Grant (FSEOG) � $4, 000 annual maximum � State Cal Grants (financial need; sophomore and junior years cumulative GPA) � CSU’s - full educationally related system-wide tuition and fees ($5, 472) � UC’s - full educationally related system-wide tuition and fees ($12, 240) � Independents (up to $9, 084) � Private Career Colleges (from $4, 000 to $9, 084) � Grants from Colleges and Universities � Community College Fee Waivers (BOG) � CSU State University Grants (SUG) � UC Grants � Independent and private college/university grants 17

Student Employment Earnings �Work-Study - Work program during school year or summer for students with financial need �Regular work earnings during school year �Summer jobs �Studies show most students who work in part-time campus-sponsored jobs earn as good or better grades than non-working students and they are more likely to graduate in four years 18

Education Loans: An Investment in Your Future �Federal Direct Stafford Loans �Federal Direct Parent PLUS Loans �Private or Institutional Loans for students and parents �Institutional Monthly Payment Plans �Some families use home equity loans for college �Interest paid on student loans is deductible on federal tax returns for many middle income students and parents 19

2016 -2017 Cal Grant A Entitlement �All students who have earned a high school GPA of 3. 0 or greater, demonstrate financial need, meet parental income and asset requirements, and file by March 2, 2016 may receive up to four years of �system-wide fees at UC ($12, 240) and CSU ($5, 472) campuses �as much as $9, 084 toward tuition and fees at independent California colleges and universities �may range from $4, 000 to $9, 084 toward tuition and fees at eligible California private career colleges and universities 20

2016 -2017 Cal Grant B Entitlement �All students who have earned a high school GPA of 2. 0 or greater, demonstrate financial need, meet parental income and asset requirements, and file by March 2, 2016 may receive up to four years of �a $1, 656 stipend for living expenses for up to four years at all California colleges and universities �plus �system-wide fees at UC ($12, 240) and CSU ($5, 472) campuses for second through fourth years �as much as $9, 084 toward tuition and fees for second through fourth years at independent California colleges �may range from $4, 000 to $9, 084 toward tuition and fees at eligible California private career colleges and universities for second through fourth years 21

Possible Cal Grant and Federal Pell Maximum Awards If the student qualifies for Cal Grant, amounts vary depending on the college/university attended, financial need, year in college (full- or part -time) If the student qualifies for the Federal Pell Grant, amounts vary depending on family contribution and enrollment status (full- or part-time) Other eligibility requirements may apply Cal Grant* (From $5, 472 to $12, 192) FAFSA or - for AB 540 students - the California Dream Act Application Verified GPA Apply by March 2, 2016 + Federal Pell Grant (up to $5, 775) FAFSA = $11, 247 to $17, 967 annually depending on the college/university the student attends and financial need * Check for eligible schools at: www. csac. ca. gov 22

Community College Fee Waiver �The California Community College Board of Governors’ Enrollment Fee Waiver (BOG Fee Waiver) covers the California Community College enrollment fee for California residents: �who are eligible for need-based financial aid, or �who receive Cal. WORKs/TANF, SSI, or General Assistance payments, or �whose family income falls below published income ceilings �Learn more about the BOG Fee Waiver at www. icanaffordcollege. com 23

Middle Class Scholarship � Undergraduates with family incomes of up to $150, 000 and net worth of assets of up to $150, 000 who: �Submit 2016 -17 Free Application for Federal Student Aid (FAFSA) by March 2, 2016 �attend a UC or CSU �are U. S. citizens, permanent residents, or have AB 540 status, �are California residents, and �maintain a 2. 0 cumulative GPA � Annual award amounts: �To be determined by the California Student Aid Commission 24

California Chafee Grant For Foster Youth � The California Chafee Grant program provides up to $5, 000 annually to current and former foster youth for college or vocational training at any accredited college in the U. S. � To be eligible, the foster youth must have been in California foster care on his or her 16 th birthday and not have reached his or her 22 nd birthday before July 1, 2016 � To apply, complete the: � 2016 -17 Free Application for Federal Student Aid (FAFSA) or, for AB 540 students, the 2016 -17 California Dream Act Application �California Chafee Grant Program Application � To learn more about the Chafee Grant, go to www. chafee. csac. ca. gov 25

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How Students Apply for Financial Aid in 2016 -2017 �Book about filing the FAFSA available for free download at www. edvisors. com/fafsa-book �By March 2, 2016, complete and submit � 2016 -17 FAFSA (Free Application for Federal Student Aid) www. fafsa. ed. gov � 2016 -17 Cal Grant verified GPA as submitted by the school �After submitting the completed and electronically signed 2016 -17 FAFSA online, Confirmation Page will show �Estimated Federal Pell Grant eligibility � a federal grant whose value ranges from $588 to $5, 775 based on the student’s calculated federal need and enrollment status �Estimated Federal Direct Student Loan eligibility 27

How Students Apply for Financial Aid in 2016 -2017 In addition, �Some colleges may request: �CSS/Financial Aid PROFILE www. collegeboard. com � 2015 parent and student Federal Tax Returns (including all schedules and W-2 forms) or other income documentation, such as Federal Tax Return Transcripts �Other required forms as requested by the colleges to which the student applies 28

Undocumented Students � Undocumented students, while not eligible for federal aid, may be eligible for state aid in California �start inquiring in elementary and high school to see if it is possible for the student to become a permanent resident �apply for all scholarships for which the student may be eligible �check with colleges and universities to see if institutional financial aid is available �watch for changes in federal and state laws regarding the eligibility of undocumented or under-documented students �for more information: call MALDEF at (213) 629 -2512 �for a list of scholarships, go to http: //www. maldef. org/assets/pdf/1415_MALDEF_Scholarship. pdf 29

California Undocumented Students � California state laws affecting undocumented students �AB 540 - allows some undocumented students to qualify for in-state tuition at California public colleges and universities �Student must have attended an accredited California high school for at least three years and graduated, or will graduate from the school; or �have attained a G. E. D. �AB 130 - allows AB 540 students to apply for non-state- funded scholarships for California colleges and universities �AB 131 - allows AB 540 students to apply for state-funded financial aid, such as Cal Grants and the California Dream Loan program 30

How Do AB 540 Students Apply for 2016 -17 State Financial Aid? For AB 540 eligible students, by March 2, 2016, complete and submit: • The 2016 -17 California Dream Act Application at www. caldreamact. org • Cal Grant verified GPA 31

Financial Aid Eligibility for Formerly Incarcerated Students • • Convicted of sale/possession of illegal drugs while receiving federal student aid suspension of aid Otherwise, may still be eligible Suspension of eligibility Possession of Illegal Drugs Sale of Illegal Drugs First offense Second offense Third and next offenses 1 year from date of conviction 2 years from date of conviction Indefinite period 32

Special Circumstances � Contact the Financial Aid Office if there is a change in your family circumstances, such as: �A loss or reduction in parent or student income or assets �Reduction in child support, Social Security or other income or benefits �A death or serious illness of a parent or family member � Or if there are unusual circumstances, such as: �High family medical or dental expenses not covered by insurance �Additional expenses for special needs children �Financial responsibility for grandparents �Any other unusual circumstances that affect your family’s ability to contribute to your education 33

Financial Aid Awards � After the student is admitted to one or more colleges or universities and his or her financial aid application is complete, the Financial Aid Office at each school will provide a: �Financial Aid Award Letter or Notification that contains details on the types and amounts of aid such as grants, work-study and lowinterest loans the college is offering � The student should then: �compare the awards offered to the costs of the college that made the offer �subtract gift aid from total college costs to get the net price �compare the amount of loans offered by each college or university �decide whether the you should borrow or if you and your family should pay the loan amount from your own resources 34

Useful Websites �www. studentaid. ed. gov �www. fafsa 4 caster. ed. gov �www. fafsa. ed. gov �www. edvisors. com �www. collegeboard. com �www. fastweb. com �www. studentscholarshipsearch. com These sites contain useful financial aid and scholarship information 35

Scholarships � Scholarships, like grants, are funds that don’t have to be repaid! �Some funds are awarded based on financial need (the difference between the costs and expected family contribution) �Some funds are based on academic, artistic or athletic merit or other skills and activities �Some funds are based on unusual criteria � Creating a prom costume out of duct tape (www. stuckatprom. com) � A scholarship for left-handed students (Juniata College) � A scholarship for students with a last name of Zolp (Loyola University of Chicago) �Be sure to check out scholarships such as the: � Gates Millennium Scholarship � www. gmsp. org � Application deadline - January 13, 2016 � Dell Scholars Program � www. dellscholars. org � Application deadline - January 15, 2016 36

How to Apply for Scholarships � Use FREE Scholarship Searches � Available from colleges, companies, community-based groups and other agencies and organizations � Usually require separate applications and may require transcript, essay, interview, or audition � Check with your high school, college or university about other scholarship opportunities � Don’t miss application deadlines � Make sure the application is complete � Only apply for scholarships for which you meet all eligibility requirements � Beware of scholarship search companies that charge a fee � Never pay money to get money � Never share your or your parent’s SSN, credit card, debit card or bank account numbers 37

Tips for Winning Scholarships • Search for scholarships ASAP and during the SUMMER • Use a free scholarship matching site like • • Student. Scholarship. Search. com or Fastweb. com to find all of the scholarships for which you are eligible Answer the optional questions for more matches Pursue less competitive scholarships, such as small awards and essay contests Don’t miss deadlines Tailor your application to the sponsor’s goals. Read and follow the instructions carefully 38

More Tips for Winning Scholarships • Personalize your essay and be passionate • Clean up your online presence, including the content of your • • Facebook account, removing inappropriate and immature material Proofread a printed copy of your essay and the application for spelling and grammar errors Make a photocopy of your application before mailing it Send the application by certified mail, return receipt requested or with delivery confirmation Beware of Scholarship Scams 39

Don’t Be Fooled! �Beware of false claims! �“Thousands of dollars in scholarships go unclaimed each year” �“Guaranteed or your money back!” �“Give me your credit card or bank account number to hold this scholarship” �“The scholarship will cost some money” �“You’ve been selected. . . ” �“You’re a finalist in a contest” (that you never entered) 40

Beware of Scholarship Scams • Scholarships are about giving away money, not getting • • money If you have to pay money to get money, it is probably a scam Don’t invest more than a postage stamp to get information about scholarships or to apply for scholarships. Nobody can guarantee that you will win a scholarship Do not give out personal information like bank account numbers, credit card numbers and Social Security numbers 41

Before Deciding on a College �Make a list of colleges and universities that have academic majors and programs of interest to you �Consult with your school counselor �Compare the net price of each college �Consider all factors – not just cost – when making the final decision 42

Things to Remember � College is possible for anyone who works hard and is determined to succeed � College is affordable � Financial aid and scholarships help you pay for college � By March 2, 2016, complete and submit �The FAFSA; or �For AB 540 students, the California Dream Act Application �Cal Grant verified GPA � Be sure to apply for scholarships � Don’t miss deadlines � Ask questions 43

If You are Graduating From High School This Year? �You and your family should participate in all financial aid information sessions offered at the high school and local colleges and universities �Attend a Cash for College FAFSA Workshop on Saturday, January 30, 2016 �for help completing the 2016 -17 FAFSA or, for AB 540 students, the 2016 -17 California Dream Act application (both due by March 2, 2016) and �a chance to win one of many scholarships �To find a location close to you, visit: www. lacashforcollege. org 44

If You are Here Today � In addition, if you are here today and you are in high school or middle school: �attend a College Life or Career workshop here at the Cash for College Fair; �Enter online, or visit Exhibit Hall G to enter for a chance to win a $1, 000 Cash for College Scholarship today! Good luck! “Like” us on facebook. com/LACashfor. College or follow @LACash 4 College on Twitter for additional scholarship opportunities! 45