FINANCIAL AID 20242025 1321 Butte St. Suite 101 Brad Williams Redding,

FINANCIAL AID 20242025 1321 Butte St. Suite 101 Brad Williams Redding, CA 96001 [email protected] 530-244-4022 530-768-5103 @collegeandcareeroptions on social media WWW.COLLEGEANDCAREEROPTIONS.ORG

Providing college and career preparation services Serving students and families in the North State since 2003 A non-profit organization securing grant funding to be able to provide free services and resources to our 5-county region Modoc – Shasta – Siskiyou – Tehama - Trinity Three primary service lines Academic/College Preparation Career Exploration Financial Aid Appointments available 530-244-4022

GOALS FOR TODAY Take the mystery out of the financial aid process and provide a basic understanding of how financial aid works Provide an understanding of how to maximize your financial aid potential Identify resources for help and assistance

Types of Financial Aid

Sources of Financial Aid

What is the Free Application for Federal Student Aid? Collects student and parent(s) income, assets and household information Calculates the Student Aid Index (SAI) Gateway to need-based student financial aid from: Federal Government State Government Colleges & Universities

Which Financial Aid Application to Submit?

COMPELLING REASONS TO FILE A FAFSA Even if you don’t think you will qualify for need based aid, consider the following: Regardless of income level, a FAFSA must be filed to receive free CA Community College tuition Allows for access to government student loans Allows for the opportunity to secure need-based aid if life circumstances and/or financial circumstances change (special circumstances) You can qualify for the CA Middle Class Scholarship even if you earned up to 226,000 of income and have up to 226,000 of assets Some schools will not consider you for merit scholarships until you have submitted a FAFSA FAFSA completion required for CA high school seniors unless opt-out

SPECIAL CIRCUMSTANCES Student or contributor experiences significant changes to their financial situation: Loss of employment or financial assets Reduction in income Tuition expenses at an elementary or secondary school Unusual medical or dental expenses not covered by insurance More than 1 child in college at the same time No more “sibling discount” in the SAI formula

WHEN TO FILE THE FAFSA?

WHEN TO FILE THE FAFSA? (continued)

Multiple Agencies Get FAFSA Data Simultaneously

WHAT IS COST OF ATTENDANCE? (COA)

UC DAVIS COST OF ATTENDANCE 2023-2024 (ESTIMATED)

(ESTIMATED) COST OF ATTENDANCE COMPARISON 2023-2024 Shasta College (CA Community College) 14,422* CSU Chico (CA Public 4-year) 28,030** UC Davis (CA Public 4-year) 40,591** University of the Pacific (Private) 75,573** *Living at Home **Living on Campus

WHAT IS THE STUDENT AID INDEX? (SAI)

FINANCIAL AID OFFERS Applied to the school accepted to the school listed the school on your FAFSA (can list up to 20) You will get a Financial Aid Offer from the school Example: COA 31,000 (School Cost of Attendance) -SAI - 5,000 (Your Student Aid Index) Financial Need 26,000 Schools offer varying amounts of financial aid, some more generous than others Applying to multiple schools gives you more financial aid offers to consider

FINANCIAL AID OPPORTUNITIES Federal Aid Programs - 2023-2024 Information

FINANCIAL AID OPPORTUNITIES Federal Pell Grant Program Aid Program - 2024-2025 Information

FINANCIAL AID OPPORTUNITIES Federal Aid Programs - 2023-2024 Information How is a Pell Grant Award determined? An automatic Maximum Pell Grant Award of 7,395 per year – Max Pell (see eligibility chart) SAI-calculated Pell Grant Maximum Pell Grant (i.e., 7,395) – SAI Pell Award A Minimum Pell Grant Award of 740 – Min Pell (i.e., 10% of Max Pell) (see eligibility chart) – Min Pell Federal Student Aid Estimator studentaid.gov/aid-estimator Taming the High Cost of College SAI Calculator tamingthehighcostofcollege.com/student-aid-index-sai-efc-calculator/ Both sites calculate Student Aid Index (SAI) and give federal financial aid estimate (Pell Grant)

FINANCIAL AID OPPORTUNITIES California Aid Programs* - 2023-2024 Information Cal Grant 1,648 - 15,400/year (4 years max) California College Promise Program First 2 years of community college tuition-free for lower income students who file a FAFSA/CADAA Shasta Promise – Shasta College Full-time student file a FAFSA/CADAA free tuition (regardless of income) California Middle Class Scholarship (MCS) - Up to 226,000 income and 226,000 assets *Applies to all accredited and approved schools in California

Cal Grant Income & Asset Ceilings CA is working on implementing Cal Grant reform beginning with the 2024-2025 academic year. If reform takes place, the income and asset ceilings will change. A decision is expected in May 2024.

CALIFORNIA MIDDLE CLASS SCHOLARSHIP Students enrolled at a UC or CSU whose income exceeds limits for Cal Grant will automatically be considered for the California Middle Class Scholarship If the student’s FAFSA or CADAA is submitted by March 2 (April 2 for 2024 only) Students with family income and assets up to 226,000 may be eligible Award determination is based on a complicated formula This is a last dollar award, so all other grants, scholarships, fee waivers will be applied first

FINANCIAL AID OPPORTUNITIES Institutional Aid Scholarships & Grants Need-based (financial need) and/or Merit-based (student talent or skill) Scholarships & Grants vary by school Apply to several schools to see several financial aid offers Out of State Schools Western Undergraduate Exchange (WUE) Enables students in 16 western states & territories to enroll at 160 participating public schools outside their home state and pay reduced tuition. WUE rate of 150% in-state tuition (or less)

FSA ID Needed to File FAFSA Create Federal Student Aid (FSA) ID and Password at studentaid.gov Every contributor will need and FSA ID to access the FAFSA Important Note: The student and 1 parent need to create an individual account to access the FAFSA Student and Parent cannot use the same username and password Individuals without a Social Security number can create and FSA ID (pending) Federal Student Aid Help (800) 4-FED-AID (800-433-3243)

A student is considered to be Independent if any one of these apply: Otherwise, they are considered to be Dependent

UNUSUAL CIRCUMSTANCES A dependent student may indicate that they are unable to provide parent information due to “unusual circumstances” This will allow them to submit the FAFSA under a provisional Independent status A financial aid administrator at your school will determine whether the student is eligible for a dependency override (i.e., keeping the Independent status) Examples: parental abandonment or estrangement, death of a parent, student or parent incarceration, human trafficking, refugee or asylum status, unable to contact parents, contact with parents poses risks

WHAT IS NOT CONSIDERED AN UNUSUAL CIRCUMSTANCE?

FEDERAL TAX INFORMATION FAFSA for 2024-2025 academic year requires 2022 tax return information

CONTRIBUTORS

Which Parent(s) Is A/Are FAFSA Consider parents (biological or adoptive) marital status as of Contributor(s)? the day the FAFSA is filed Unmarried, Divorced, or Separated Parents & not living together Which parent provided more financial support to the student in the last 12 months? Report only this parent’s information unless they have remarried, then report both parent and stepparent’s information Unmarried, Divorced, or Separated Parents & living together Report both parent’s information Parents are Married to each other Report both parent’s information

WHICH YEAR’S INFORMATION IS REPORTED?

SAI CALCULATION - INCOME (FOR 2024-2025 SCHOOL YEAR USE 2022 TAX RETURN INFORMATION) Parent’s When the student is considered “dependent” for FAFSA purposes Student’s 9,410 is “protected” (for the 2024-2025 academic year) 50% of income greater than 9,410 may be added to the SAI Start with your Adjusted Gross Income (AGI) and include: IRA Deductions/Payments to self-employed SEP, SIMPLE & Qualified Retirement Plans Tax Exempt Interest Income Untaxed Portions of Pensions (excluding rollovers) Untaxed Portions of IRA Distributions (excluding rollovers) Foreign Income Exclusion (reported on U.S. Tax Return)

EXEMPT FROM ASSET REPORTING Dependent student meets one of these criteria: The student qualifies for a Maximum Pell Grant The student’s parents’ 2022 combined AGI is less than 60,000 and They do not file a Schedule A, B, D, E, F, or H, and They do not file a Schedule C, or They file a Schedule C with net business income of not more than a 10,000 loss or gain FAFSA question “At any time during 2022 or 2023 did the student or anyone in their family receive benefits from any of the following federal programs?” 9 named programs including: “Free or reduced-price school lunch”

WHAT ASSETS TO DECLARE FOR FAFSA FAFSA Assets Do Not Include: Home equity (in primary home) Retirement accounts (IRA, 401k, 403b, Roth, etc.) Life insurance & annuities Personal vehicles, boats, firearms, household goods, jewelry, tools etc. Examples of FAFSA assets to declare: Cash, Savings, Checking Net worth of land, investment real estate, etc. Stocks/Bonds/Trusts/Other Investments (not in retirement accounts) Net worth of businesses and/or for-profit agricultural operations College savings plans/529 plans – do not include the value of siblings’ plans (reported as assets of the parents) Child support received in the last complete calendar year Note: if net worth is negative, enter zero

SAI CALCULATION – ASSETS Parent When the student is considered “dependent” for FAFSA purposes Student 20% of student assets may be added into the SAI Assets are often best kept out of the name of the student Assets are calculated as of the day the FAFSA is filed

SAI CALCULATION - FAMILY SIZE

FAMILY SIZE INCLUDES THE FOLLOWING

DIDN’T GET ENOUGH FINANCIAL AID? CONSIDER THESE OPTIONS Negotiate: Ask the college or university for more financial aid Scholarships: More detail on future slide Special Circumstances Consideration: More detail on prior slide Student job: Work study or on-campus or off-campus Payment Plans: Your school may have plans to avoid lump sum payments, allowing for several payments throughout a semester Parent Savings: Food, gas, insurance savings while student is in college Family resources: Savings, sell assets, 2nd mortgage, credit cards, etc. Current Income: Allocate more to education expenses Additional Loans: Government PLUS loans or private loans

REDUCING COLLEGE COSTS Career Planning before/during college Changing your major (or college) costs time and money! Internet research, informational interviews, job shadowing Avoid dropping classes and focus on graduating on time Graduate on Time The longer you are in school, the more it will cost you Apply for scholarships Priority on local (smaller applicant pool) If you are eligible, apply! Buy used textbooks or rent them Borrow responsibly Use College & Career OPTIONS tools to evaluate and compare award offers project costs over time make decisions based on objective factors Consider an alternative college Community Colleges can be great options

WHAT ABOUT SCHOLARSHIPS? Your High School Counselors know about scholarships given previously to their students The McConnell Foundation – McConnell Scholars Program The Ford Family Foundation – Ford Scholars Program Siskiyou County high school students Community Foundation of the North State Approximately 30 scholarship opportunities Reach Higher Shasta Scholarship Database Over 60 entries Local Chambers of Commerce, Rotary Clubs, Civic Groups, etc. National Scholarships (lots out there/lots of competition) Thousands of scholarships identified by each search engine (3 examples) Sallie Mae Fastweb Big Future Your College/University Admissions and/or Financial Aid Office

COLLEGE & CAREER OPTIONS FINANCIAL AID TOOLS AND RESOURCES

COLLEGE & CAREER OPTIONS FINANCIAL AID SERVICES College & Career OPTIONS is a local educational partnership that provides services at no cost to students of all ages who live in Modoc, Shasta, Siskiyou, Tehama or Trinity counties. Financial Aid services are specifically designed to meet individual needs. College & Career OPTIONS does not guarantee any specific grants, scholarships, loans or government funding. Students who receive services, and their parents or other responsible adults, are expected to provide accurate and complete information to advisors for all applications for financial aid. The best options for financial aid are based on up-to-date information. Our advisors are not financial professionals. We urge students and families to verify information and weigh the options before making financial decisions. It is our policy to maintain the privacy of every student who accesses services through College & Career OPTIONS. We do not share information with any outside agencies, companies or individuals. With the student’s permission, we may discuss a student’s progress with other educators and/or college admissions and/or financial aid officers for the benefit of the student. We welcome suggestions, comments and feedback of any kind. The best services are the result of diligent efforts by everyone. Thank you for allowing us to be of assistance to you.

SOME CONSIDERATIONS & REMINDERS Cal Grant is good for 4 academic years, including Community College Use it wisely Meet all deadlines - Cal Grant has a March 2 (April 2 in 2024 only) filing deadline (except for California community college attendance, which is September 2) Consider applying to multiple schools to see multiple financial aid offers “Verification” is a financial aid process conducted by your college/university financial aid office No need to be fearful of this - prove to us that your FAFSA information is true Keep bank statements from your FAFSA filing date Department of Education College Scorecard Compare schools – cost, graduation rate, employment rate, average amount borrowed, loan default rate www.collegescorecard.ed.gov Reach out to College & Career OPTIONS if you need assistance www.collegeandcareeroptions.org 530-244-4022 Follow College & Career OPTIONS on social media @collegeandcareeroptions

WITH GRATITUDE!!! A huge thank you to these College & Career OPTIONS funders!!! Because of their generosity, all services provided by College & Career OPTIONS personnel are free to North State families

THANK YOU!!! We are always trying to improve our effectiveness. If you have suggestions for improvement, please see me or call me or email me Brad Williams Director of Financial Aid Services College & Career OPTIONS Email: [email protected] Phone: 530-768-5103 Thank you for attending this presentation and for your interest in financial aid