Financing a University Education
CSU-UC Joint Counselor Conference
September 2014
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California Students Can Afford College
• Help is available!
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Federal grants
Student loans
State grants
University grants
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Parent loans
Private and State scholarships
Part-time work
Higher education tax credits
• Both UC & CSU enroll a large number of lowincome students, few of whom pay the “sticker
price” - concentrate on the “net price” instead!
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How to Apply
• It takes two!
• File the FAFSA OR California Dream Application
• High school or student file Cal Grant GPA verification form
• March 2nd is the priority deadline
• FAFSA & Dream Applications available beginning Jan 1
• Student and parent can sign the FAFSA with a federal
“PIN”
• California Dream Application also allows the student and
parent to sign the application electronically
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What Happens Next
• Respond immediately to all requests for followup documents and actions, including those
from both the financial aid and admissions
offices
• Find out how the college will communicate with
the student – many rely on student checking
their email and on-line portals for document
requests, other action, and award notices
• Families should hear about their award in time
to make an informed decision PRIOR TO THE
DATE on which university asks them to commit
(often May 1 for freshmen and later for
transfers)
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Financing College is a Partnership
 Students contribute through working and borrowing
 Parents are asked to contribute based on their financial strength
 Low-income parents often asked to contribute zero
 Some students are “independent” of their parents – over 1/3
at the CSU (over age 24, dependents of their own, etc.)
 Universities pull together financial aid for students
 Offer a combination of federal, state, and university grant
and scholarship to eligible students
 Assist families seeking loans to help meet their contribution
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Working and Borrowing
• All student seeking financial aid at CSU and UC are expected
to work part time and to borrow reasonable amounts that
result in “manageable” student loan debt.
• A work study job as well as other jobs on or off campus are
both roughly equivalent ways that students can contribute to
their support from earnings.
• Working more than half time while enrolled full time is
associated with declining academic performance.
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CSU
UC
Many students work at least half
time and enroll less than full time
Most students work half time or
less and enroll full time
Sticker price is about $6,500, but
the average net amount paid by
undergraduates is about $2,400
Financial aid reduces price
differential between the cost of
CSU and UC for grant recipients
At CSU, average student loan
indebtedness for 2012 graduates
was about $18,460
(about $193 per month for 10/yrs)
At UC, average student loan
indebtedness for 2012
graduates was about $20,600
(about $230 per month for 10/yrs)
Typical time-to-degree for
entering freshman is 5.3 years.
Typical time-to-degree for
entering freshman is 4.2 years
Typical time to degree for entering Typical time to degree for entering
junior transfer student is 3.3 years junior transfer student is 2.4 years
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Costs of Attending CSU and UC 2014-2015
California State University
2014-15
Fees
Books &
Supplies
University of California
At Home
On
Campus
Off
Campus
$6,698
$6,698
1,719
1,719
2014-15
At Home
On
Campus
Off
Campus
$6,698
Fees
$13,300
$13,300
$13,300
1,719
Books &
Supplies
1,500
1,500
1,500
4,600
14,000
9,300
Room &
Board
4,532
12,080
12,089
Room &
Board
Transp.
1,345
1,169
1,391
Personal &
Transp.
3,700
2,400
3,100
Personal
1,364
1,364
1,364
Health Ins.
1,600
1,900
2,000
$15,658
$23,030
$23,261
$24,700
$33,100
$29,200
TOTAL
TOTAL
Most families do not
pay the “sticker price”
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CSU and UC are Affordable
 For families paying “full sticker price,” per year, CSU is on average $9,075 less
for commuters, $10,104 less for students living on our campuses, and $5,885
less for students living off campus, but not with family. This annual cost
differential between CSU and UC may be slightly less for financial aid
recipients. UC budgets also include around $1,900 per year for student health care.
Most of this amount is for health insurance; UC students can waive out of paying for
UC student health insurance if they are covered under a non-UC policy.
 UC expects full-time enrollment and part-time work; CSU is more flexible
 About half of undergraduate students take out student loans at UC and CSU
 Public institutions in California are the best educational bargains, especially
for low-income students
 Most students enrolled in private colleges and universities take out student
loans and graduate with higher average student loan debt than students who
graduate from public institutions, no matter the time to degree or other
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factors!
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.
• A tax credit reduces the amount of taxes owed!
• Rather than wait for an income tax refund, families eligible for
the federal American Opportunity Tax Credit can reduce the
amount that is withheld incrementally each pay period so that
they have the extra cash when they most need it to pay
college expenses.
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BLUE AND GOLD at UC
• Undergraduate California residents who file FAFSA or DREAM
applications on time and are determined to have financial
need and total family incomes under $80K per year will not
have to pay UC’s systemwide tuition and fees ($12,192 in
2014-15) out of their own pockets for the first four years (two
years for transfers) that they are enrolled at UC.
• Eligible students may qualify for additional grant support to
help pay for other college expenses.
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California DREAM Application
• https://dream.csac.ca.gov/
• Must be eligible for AB 540 status, even if AB 540
certification has not been completed at the time of
application
• Males must have registered for the Selective Service
before age 26
• DACA eligibility doesn’t play a role; DACA SSN is not used
for any purpose other than work
• Student or parent may be required to verify income, even
if taxes have not been filed
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Middle Class Scholarship – “MCS” at CSU and UC
• A state-funded scholarship for CA residents and DREAMers from
families with “total” incomes up to $150K
• Students must file a FAFSA/DREAM Application by March 2
• MCS will cover between 10% up to 40% of systemwide tuition and
fees – percent varies with total income
• Each year award amount will increase until 2017-18 when it
reaches 40% of systemwide tuition and fees if state funds are
sufficient
• The MCS award will be reduced by any Federal, State, or
institutionally administered grants or fee waivers received by the
student
• Student must be enrolled at least half time (6 units)
• Student must maintain satisfactory academic progress
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Resources
CSU Financial Aid Information:
http://www.calstate.edu/SAS/sfa_index.shtml
UC Financial Aid Information:
http://www.universityofcalifornia.edu/admissions/paying.html
FAFSA and federal PIN Information - www.fafsa.ed.gov
Cal Grant and MCS Information - www.csac.ca.gov or 1-888-224-7268
California DREAM application - https://dream.csac.ca.gov/
What will my monthly repayment be for student loans?
http://studentaid.ed.gov/repayloans/understand/plans/standard/comparison-calculator
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