Financial Aid
Types of Financial Aid:
Gift Aid –“free money” that does not have to be repaid
- Scholarships (based on academic or other talent)
- Institutional
- Outside Organizations
Grants/Scholarships (based on your family’s financial need)
- Institutional
- State
- Federal
Self-Help Aid – funding which must be earned or repaid
- Student Loans- must be repaid after graduation
- Federal Perkins Loan
- Government loan program administered by colleges
- Usually reserved for needier students
- Up to $5,500 annually with no interest while enrolled
- 5% interest begins accruing 9 months after graduation
- No credit approval required
- Direct Stafford Loan
- Most common type of loan for students, funded by Dept. of Education
Work Study
- Students work during the school year and earn money to help pay for books, supplies, and other educational expenses
Financial Aid Vocabulary:
Free Application for Federal Student Aid (FAFSA) – The government’s financial aid form used to determine eligibility for federal aid programs.
This form is available online (http://www.fafsa.ed.gov/) October 1st of the student’s senior year in high school.
Estimated Family Contribution (EFC) - A figure derived from the FAFSA which estimates how much your family can pay for college and is used to determine eligibility for Federal Aid.
The expected family contribution (EFC) is not necessarily what your family will pay. Not all colleges use the FAFSA EFC; many institutions have their own formula for determining what your family can pay for college.
Cost of Attendance (COA) – The total estimated cost of attending a college for one year, including tuition, food, housing, travel, and books and other expenses.
Financial Need – The difference between your expected family contribution and the cost of attendance.
For example, if a school’s cost of attendance (COA) is $20,000 and your expected family contribution (EFC) is $3,000, your financial need is $17,000
COA – EFC = Financial Need
$20,000 - $3,000 = $17,000
Financial Aid Package – The combination of federal, state, and college funds a school awards to help your family pay for college. The financial aid package may consist of scholarships, grants, loans and/or work-study.
Net Price - Your family’s bottom line cost for one year at a given college. Net Price = Cost of Attendance – Grant/Scholarship Aid
Example: State University’s cost of attendance is $30,000 and you are offered $20,000 in scholarship, your family’s net price is $10,000.
Net Price Calculator- Each college you apply to has a Net Price Calculator available on its website.
The calculator provides a rough estimate of your family’s bottom line cost at the institution, and results can vary widely from school to school. The calculator is useful as a preliminary tool in determining college costs.
FAFSA or Dream Act?
Which application should you complete the FAFSA or CA Dream Act Application???
- Were you born in the U.S?
- If yes, complete the FAFSA (Free Application for Federal Student Aid).
- Were you born outside of the U.S., but are a U.S. Citizen?
- If yes, complete the FAFSA.
- Were you born outside of the U.S., and obtained a Social Security Number that states “For Employment Only” or was granted through DACA (Deferred Action for Childhood Arrival)?
- If yes, complete the Dream Act application.
- Were you born outside of the U.S., and plan to meet AB 540 requirements?
- Attend a California high school for at least 3 full years
- Graduate from a California high school, or obtain General Equivalency Diploma GED, or pass the California High School Proficiency Exam (CHSPE)
- Enroll in an accredited and qualified California college or university
- If applicable, file an affidavit to legalize immigration status
- If yes, complete the Dream Act application.