Funding Your College Education 2015

Upward Bound,

Los Angeles City College

What we will answer today:

What am I paying for? What are the differences between schools? How can I pay for it all? What’s the timeline? How can I make good decisions? Q & A at the end but feel free to ask any time

Cost of Attendance “COA”

COA = Total cost, per year (usually) for you to be a student in college

Different from one school to another Is an estimate produced by the school You will not get a single bill for your COA

COA: Tuition and Fees

You get a bill for this from the school Based on unit load COA usually assumes full-time status Full-time status is 12 or more units Bachelor Degree (BA/BS) usually 120 units Therefore 15 units per semester for 8

semesters = your degree (with no summer)

Unit Math

1 Unit = 1 hour of class per week

3-unit class = 3 hrs of class per week

4 X 3-unit classes = 12 units = Full-Time

$46 per unit with 15 units = $690 per term

15 units per term for 8 terms (4 years) = $5,520

FULL TIME STUDENT?!?!?!

What does it really mean? Assume 15 units/semester to graduate in 4

years Experts: 2-3 hours of study for each hour of

class So 15 units = roughly 15 hours of class/week

= 30-45 hours of study per week And you want to work at a Rhumba Juice?

COA: Room and Board

You get a bill from the school for this too Often more expensive than Tuition and Fees What is it? Housing and Meals

Room & Board: Components

On-Campus (Dorms/Residence Halls)– Actual “rent” rates provided in COA– Meals usually an average Meal Plan

Off-Campus – Living in an apartment– Uses average rental estimate for area– Purchased food estimate

With Parents – “Commuter”– Usually assumes little/no rent, reduced food costs

COA: The “non-bill items”

COA: Books & Supplies

First, most important of the “no-bill” items COA by school is estimate based on

averages Depends on your classes/major Use the school’s estimate to start, then save

money where you can as you go Computers, Calculators, etc.?

COA: Transportation

“Non-Bill” item Not just commuters Examples:

– Moving there and back– Holidays– Bus– Bike, skateboard, rollerblades, etc.

COA: Personal and Miscellaneous

An estimated “non-bill item” Examples:

– Toothpaste– Soap– Entertainment– Occasional pizza, taco– Clothes (heavy coat, mittens, boots?)– Computer & Electronics?

4 COA Examples

Los Angeles City College 2014-2015*2012-2013 tuition & fees, all other costs based on 2010-2011 figures

$46 per unit (all CA community colleges)

At Home Away from Home

Tuition & Fees $ 1,698 $ 1,698

Books & Supplies 1,620 1,620

Room & Board 4,806 11,556

Transportation 918 1,044

Personal 2,862 2,754

Total $11,904 $18,672*Assioated Student Fee. $7

Represented Fee $1.

Health Fee $11

Parking $20. or $27.

Cal State Los Angeles 2014-2015

Commuter On-Campus Off-Campus

Tuition/Fees $ 6,345 $ 6,345 $ 6,345

Books & Supplies

1,809 1,809 1,809

Room & Board

4,599 12,627 13,050

Trans. 1,494 1,389 1,455

Misc, Personal 1,365 1,365 1,365

Total $15,612 $23,535 $24,024

UC Berkeley 2014-2015Residence Hall Off-Campus W/ Relatives

Housing & Utilities $14,232 $ 7,458 $ 2,506

Food 948 2,626 1,706

Books & Supplies 1,226 2,626 1,706

Personal 1,430 1,746 1,962

Trans. 606 924 1,814

Health Insurance 2,014 2,014 2,014

Fees 12,876 12,876 12,876

Total Resident $33,320 $28,858 $24,092

Non-Resident $56,198 $51,736 $46,970

USC 2014-2015 (Private School)

12-18 Units X 2 semesters, on-campus

Tuition: $48,347

Mandatory Fees: 761

Room & Board: 13,334

Books & Supplies: 1,500

Personal and Misc.: 1,000

Transportation: 580

Total: $65,522

Some Notes

Google: “SCHOOL cost of attendance” in March-April for 2013-2014 numbers

2011-2012 to 2012-2013 Tuition increases:– LACC: $264 = 18.6%– CSULA: $241 = 3.9%– UC Berkeley: $42 = 0.03%– USC: $1,560 = 3.7%

Besides Tuition, other COA items mostly flat So should you wait to go to school?

Paying for it: Sources of Funding

Financial Aid

Refers to “Need-Based” funds Usually provided by:

– U.S. Government– State Government– College/University

All Financial Aid requires:family income information– Young Men – Must register with Selective Service

Three Types of Financial Aid

Grants

Work-Study

Loans

Grants – Free Money!

Federal Pell Grant and others– 2014-2015 = up to $5,730– Given to students with highest need

CalGrant – Three types (2014-2015):– CalGrant A: Up to CA 4-Year Univ. tuition & fees

UC: $12,192 CSU: $5,472 CA Independent (Private): $9,084

– CalGrant B: Up to $1,473 for books & supplies 1st year, + CalGrant A tuition award 2nd, 3rd, 4th years

– CalGrant C: For vocational & technical education

A few words on the CalGrant

Seniors should do their GPA Verification ASAP (from your College Counselor)

CalGrant Entitlement:– Means you automatically get the money if you

meet the GPA/Need criteria and apply on-time

CalGrant Competitive:– Means you must meet GPA criteria and have

financial need, and compete with others for what’s left

Deadline: March 1, 2015 (for class of ’15)

Work-Study

Feds pay someone to pay you! Campus determines rates/amounts Minimum pay = Federal Minimum Wage Usually on-campus, but can be non-profits You get a total amount for the year, then

have to earn it (or not) Your employer will take your school schedule

into account Not paid up front!

5 Minute Break!

Next: LOANS

Loans

Types of Loans/Debt for College

Federal– Stafford (Direct Loan)– Perkins– Parent PLUS

Private Educational Loans School Loans* Credit Cards and Banks

Federal Loans – Stafford, “The Best”

Stafford Loans – Subsidized and Unsubsidized– Low interest rates– Don’t repay until you’re out of school– Federal Consolidation available– Can have them forgiven– $5,500 1st year; $6,500 2nd year; $7,500 3rd/4th year

Unsubsidized – Up to above amounts minus… Subsidized – Up to $3,500 1st year, $4,500 2nd

year, $5,500 3rd year and beyond.

FYI: Stafford Interest Rates

Stafford Loans rates 2014-2015:

3.86% Subsidized, 3.86% Unsubsidized

Federal Consolidation:After you graduate, put all your Stafford loans

together, fixed at an average rate of each loan

1914 - 2006 Average Rate of Inflation:3.41% per year

National Credit Card Average APR: 14.89%**Source: Creditcards.com 1/23/2015

Federal Loans – Perkins and PLUS

Perkins– Up to $5,500/year, 5% interest rate– Campus-Based– Consolidation not available,10 yr repayment term– Up to $27,500 for your undergrad education

Parent PLUS Loan– Parents’ responsibility, used for student– COA – Other Financial Aid received = Amount– 7.9% interest rate fixed; 10 yr term, starting 60

days after disbursal

Private Educational Loans

Offered by banks and non-profit corporations Special type of loan for students Not need-based (not “Financial Aid”) Interest rates vary by credit rating, economy Private consolidation available Schools generally affiliated with a selection of

providers Higher interest rates, less generous terms

Other Debt

School Loans – Depends on the school Credit Cards Bank Loans Friends/Relatives

Making Good Decisions About Debt

Federal Loans = best type of loan in life? Education = Investment in the Future Interest Rates Credit History Consequences of $$ Worry in College

– Stress– Lack of focus– “Time off”– Work too many hours– Settle for less

Other Sources of Funding

Scholarships

Free money Internal – Offered by or to your school External – Offered by corporations,

organizations, individuals, etc.– No limit to external scholarships– Often just write an essay or fill out application– You can get started NOW– Best reasons to get involved and get to know

people (Teachers, Counselors, etc.)

Scholarship/Funding Information, FREE

U.S. Federal Govt. – FAFSA and other info State of California – CalGrant and other info College Board – SAT people scholarship

search service FastWeb – Popular online search service FindTuition.com – Similar to FastWeb United Negro College Fund – Online portal

and search service for similar organizations and scholarship services

Work – Things to consider

If you’re offered work-study, take it Upward Bound doesn’t recommend more

than 20 hrs per week Full-time student is your job

– Most colleges: 2-3 hrs study for each 1 hour of class per week

– 15 credits: 15 hrs class + 30-45 hrs study = 45-60 hrs per week just for school

Work off-campus less likely to sympathize

FAFSA, COA, EFC Award Letters and Other Confusing Things…

FAFSA

Free Application for Federal Student Aid U.S. Department of Education Determines your financial need Sends info to all schools you want to go to Allows schools to determine how much

money you’ll get and whether that will cover your costs

FAFSA.ED.GOV Fafsa.com = SCAM!

FAFSA/Financial Aid Timeline

1. 12th Gr. Fall: FAFSA PIN (student and parent)

2. January-February: Parents do taxes

3. Before March 2: Complete FAFSA

4. U.S. Dept. of Ed. Calculates your EFC

5. Prospective colleges calculate your package

6. You receive your award letter/package

FAFSA Timeline Continued…

7. You accept/deny your award (or parts)

8. Decide where you’re going

9. School determines your bill or refund

10. Your award is deducted from your bill

11. You either owe the difference or get a refund check

Note on Timelines

Missing, or being unaware of deadlines can be costly

You may get a bill before you get your aid (especially for housing)

Students may need to pay Mom/Dad back later with the refund check

Sample Award Letter/Package

Decline Accept

Total COA $33,000

Expected Family Contribution (EFC) $0

Outside Scholarship $1,500

Financial Need $31,500

Federal Pell Grant $5,550

CalGrant B $1,400

Institutional Grant $6,500

Perkins Loan $5,500

Stafford Sub & Unsubsidized $5,500

Work-Study $2,000

Parent PLUS Loan $5,050

Total $31,500

Notes about the sample award

Total Grant Award: $13,450– Plus Work Study = $15,450 not-loans

Total Student Loans: $11,000– Plus Parent PLUS Loan = $16,050

Based on $0 EFC if it’s higher, increase the loan amount, decrease grant amount, or look for a shortfall

Almost anyone can increase the “outside scholarship” amount

Q & A