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Applying for Financial Aid�2022-2023

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Types of Financial Aid

Gift Aid - Grants or scholarships that do not need to be earned or repaid
Work - Money earned by the student as payment for a job on or off campus
Loans - Borrowed money to be paid back, usually with interest

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Types of Financial Aid

There are three major types of financial aid – grants and scholarships, work-study, and educational loans.

Grants and scholarships are gift aid that does not need to be earned or require repayment. Grants are usually based on the student’s demonstrated financial need. Scholarships are generally based on talent and/or merit.

While there are a number of grants and scholarships available to California students, the Cal Grant program is one of the most widely available. Cal Grants are an example of gift aid based on need and merit. We will discuss Cal Grants in more detail later in the presentation.

Work programs provide opportunities for students to earn money to help pay for school expenses.

Both students and parents can borrow from a variety of low interest educational loan programs designed to help with the educational expenses of the student. Student loans usually do not require repayment until the student is no longer in school. Parent loans may require payment while the student is still in school.

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Sources of Financial Aid

Federal government
State government
Colleges and universities
Private agencies, companies, foundations, and employers

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Sources of Financial Aid

By completing the financial aid applications and any other documents required by the colleges and universities to which the students are applying, they may be considered for funds from:

- the federal government;

- the state government; as well as

- colleges and universities themselves.

Private agencies, companies, foundations, and maybe even the students’ and parents’ employers provide scholarships for college. Though important, these sources provide less than 6% of the total financial aid awarded to students. Check with each of the private agencies, companies, and foundations to which the students wish to apply about application forms and deadlines. Web sites such as www.studentscholarshipsearch.com, www.fastweb.com, www.cappex.com/scholarships and www.finaid.org

are good resources for such scholarships.

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Cal Grants

Cal Grant A Entitlement Awards – for high school seniors and recent high school grads, and transfer students

with a Grade Point Average (GPA) of at least 3.0 for high school students and 2.4 for transfer students
family income and assets below the state ceilings
who demonstrate financial need

Cal Grant B Entitlement Awards – for high school seniors and recent high school grads

with a GPA of at least 2.0 for high school students and 2.4 for transfer students
who come from disadvantaged or low income families
whose family income and assets are below the state ceilings
who demonstrate financial need

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Cal Grants

Let’s talk about Cal Grants – an important source of grant funds provided by the State of California for California students. Students planning to attend a California college or university may be eligible to receive one of the following Cal Grants. Grade Point Average (usually referred to as the GPA) is an important eligibility criterion for these grants. Awarded grants may be renewed if students and their families continue to meet all eligibility requirements.

Please note: for purposes of the Cal Grant A and B Entitlement Awards, a “recent high school graduate” is defined as a student who is applying for a Cal Grant within 18 months of high school graduation.

Cal Grant A - To be eligible, students need a minimum 3.0 GPA as a high school student or recent high school graduate or 2.4 GPA as a transfer student. Transfer students are defined as students attending a California Community College and planning to attend a Bachelor Degree Granting Institution. Their families must have income and assets that are lower than the state-established ceilings and must demonstrate financial need. This grant currently covers system-wide fees at the California State University and University of California campuses and up to $12,570 of tuition and fees at independent California colleges and universities.

Cal Grant B - This grant is for students who have a minimum 2.0 GPA as high school students or a 2.4 GPA as a transfer student. These students are low income disadvantaged families, who meet state income and asset ceilings and demonstrate financial need of at least $700. This grant provides a small stipend of about $1,656 per year for up to four years to help with living expenses at all schools. In addition, the grant covers system-wide fees at California public 4-year institutions and up to $9,084 of tuition and fees at independent 4-year California schools. Students attending for-profit career colleges currently receive grants between $4,000 and $9,084 per year. In most cases, the tuition and fee portion of the Cal Grant B is available to students in their 2^nd through 4^th years only.

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Eligibility for Cal Grants

To be eligible for a Cal Grant, the student must also:

Be a U.S. citizen, or Eligible non-citizen

Or be eligible for an exemption under Assembly Bill (AB) 540 (including AB 540-eligible Deferred Action for Childhood Arrivals (DACA) students

Be a California resident
Attend an eligible, accredited California college or university at least half-time in 2021-22

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Middle Class Scholarship (MCS)

Undergraduate students with family incomes of up to $191,000 and net worth of assets of up to $184,000 who:

Submit 2022-23 Free Application for Federal Student Aid (FAFSA) or CA Dream Act Application by March 2, 2021
Attend a UC or CSU
Are U.S. citizens, Permanent residents, or have AB 540 status, and
Are California residents

Annual award amounts:

To be determined by the California Student Aid Commission

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Middle Class Scholarship

The Middle Class Scholarship (MCS) is designed to assist new and continuing UC and CSU undergraduate students with family incomes up to $184,000 and net worth of assets up to $184,000.

To apply for the MCS for 2021-22, students must submit, by March 2, 2021, the:

- 2021-22 FAFSA

- For AB540 students, the 2021-22 California Dream Act Application

MCS awards vary based on the number of eligible students, the institution, and state funding allocated.

Amounts are determined after Federal Pell Grants, Cal Grants and institutional grants are awarded. Students cannot receive both federal and/or state grant aid and the MCS.

Qualifying students will be notified by the California Student Aid Commission. The Commission will also determine the maximum awards.

The MCS does not automatically renew; therefore, students must reapply for the MCS each year.

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2022-2023 Cal Grant�Application Requirements

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By March 2, 2022, complete and submit:

Free Application for Federal Student Aid (FAFSA) at www.fafsa.ed.gov OR
California Dream Act Application (CADAA) at www.dream.csac.ca.gov, if eligible for AB540
Cal Grant GPA Verification Form at www.csac.ca.gov

Check with your high school or college counselor for more details on how to file the Cal Grant GPA Verification Form, required of all students

Cal Grant Application Requirements

In order for a student to be considered for a first-time 2022-23 Cal Grant, the California Student Aid Commission (CSAC) requires that he/she submit both the 2022-23 Free Application for Federal Student Aid and the Cal Grant GPA Verification Form by March 2, 2022. We encourage all applicants for federal and state aid to file as soon as possible after October 1, 2021.

Students who may be eligible for Cal Grants under AB540 should complete the California Dream Act application at www.caldreamact.org instead of the FAFSA. This includes AB540 eligible DACA students. The Cal Grant GPA Verification Form is also required. Students with a Deferred Action Childhood Arrivals (DACA) status should also check with the colleges and universities to which they apply for admission to see if they should complete the Free Application for Federal Student Aid (FAFSA) or other forms, but should complete the California Dream Act Application first.

Most high schools submit student grade point averages directly to CSAC on behalf of their students. Others require that students complete the student section of the Cal Grant GPA Verification Form. (The student section of the form asks simple information such as the student’s name, address and Social Security Number). If the paper form is required by the student’s current school, it is important to submit it as soon as possible to the high school counselor or registrar because it may take a few days to certify the student’s grade point average. The student can download a Cal Grant GPA Verification Form at: www.csac.ca.gov. The GPA Verification Form must be postmarked no later than March 2, 2022.

Check with the student’s high school Counseling Office/Guidance Center to see if he/she needs to submit the paper Cal Grant GPA Verification Form or if the high school will submit the GPA electronically on the student’s behalf. If the high school submits the Cal Grant GPA Verification Form electronically, the student may have to authorize the release of his/her Social Security Number.

We urge students to file these forms as soon as possible. Don’t wait for the March 2nd deadline and miss out on a valuable grant that, like other grants, does not have to be repaid.

Students who have qualified and received a Cal Grant for the previous school year should complete the 2022-23 FAFSA as soon as possible after October 1, 2021 and check with the financial aid office at the school they will attend for any other requirements. The GPA Verification Form is not required.

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California Chafee Grant

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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., based on available funding
To be eligible, foster youth must be a current or former foster youth who was a dependent or ward of the court, living in foster care for at least one day between the ages of 16 and 18 and not have reached their 26^th birthday as of July 1 of the award year
Current or former foster youth are encouraged to apply during their senior year of high school as early as October 1
To apply, foster youth must complete:

2021-22 FAFSA or CADAA
California Chafee Grant Program Application

To apply for a

Chafee Grant, go to: www.chafee.csac.ca.gov

Chaffee Grant

If the student is a current or former foster youth, the California Chafee Grant may provide some additional financial aid for college. If you are the foster parent or know a foster youth, tell him/her about this special program for foster children.

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. The continued availability of this grant is dependent on available funding.

To be eligible, current or former foster youth must have been in California foster care on their 16th birthday and may not have reached their 26th birthday before July 1, 2021.

Students are encouraged to apply during their senior year of high school, as soon as possible on or after October 1.

To apply, the foster youth must complete:

- 2021-22 FAFSA or CADAA

- California Chafee Grant Program Application

To learn more about the Chafee Grant, go to www.chafee.csac.ca.gov

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Assembly Bill (AB) 540 (Firebaugh, 2001)

Created the first state authorized benefit for undocumented students in California – exemption from non-resident tuition at public postsecondary institutions
Criteria:

Attended a CA high school for 3+ years
Graduated from a CA high school or the equivalent
Enrolls in a public CA college or university
If the student is without lawful immigration status, student must file an affidavit with the institution stating that he/she has filed an application to legalize status or will file as soon as eligible

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Getting Ready

General student information (name, SSN/Permanent Residency Card, DOB, driver’s license)
Parent(s) information (name, SSN/Permanent Residency Card/ITIN, DOB)
Student and Parent

2020 W-2 and 1099 Forms and records of money earned and other taxable benefits
2020 federal income tax form (even if not yet completed)
Records of untaxed income
Current bank statements
Business, farms, and other real estate records
Records of stocks, bonds, and other investments

Parent(s) marital status + marital date
Household size & number in college
College information
Signature (FSA ID for FAFSA; Parent PIN for CADAA)

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FAFSA on the Web (FOTW)

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Internet application used by more than 99% of students and parents to complete electronic FAFSA at:

www.fafsa.gov

Sophisticated online edit checks and skip logic help avoid errors
Online help is available for each question
Student and one custodial parent should get a Federal Student Aid ID (FSAID) to sign FAFSA at:

www.fsaid.ed.gov

FAFSA on the Web (FOTW)

The primary benefit of using FAFSA on the Web (FOTW) is that the processing time is significantly reduced. Students and schools receive a response from the federal processor more quickly, which in turn assists schools in preparing a more timely notification of eligibility for financial aid. (This is a definite advantage if the student is trying to decide between two or more schools.)

Other benefits are:

- Fewer errors on the form. Built-in edit checks will not allow the family to go to the next section if something is left incomplete in a prior section. Before submitting the FOTW, the program will do a final review of the entire application, checking for missing and/or conflicting information.

- Thanks to skip-logic, there are fewer questions to complete. This means that the student will not be asked questions that do not apply. (Example: unmarried students will not be asked questions about a spouse.)

- In many cases, drop-down boxes are provided so the family can choose from a selection of responses.

- Families who have submitted their 2020 federal income tax returns may be able to transfer IRS data directly to the FOTW by using the IRS Data Retrieval Tool

- As soon as the FOTW is submitted, a Confirmation page can be printed to instantly verify that the application has been submitted. This page will contain a Confirmation Stamp showing the date and time that the FOTW was successfully submitted. Students should print out a copy of the Confirmation page for their records

To take full advantage of the FAFSA on the Web, remember that both the student and one of his or her custodial parents must have a Federal Student Aid ID (FSA ID) to electronically sign the FOTW.

NOTE: For the remainder of this presentation, the terms FAFSA and FAFSA on the Web (FOTW) will be used interchangeably.

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Login Using FSA ID

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Section 5: IRS Data Retrieval

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This question asks if parents have completed their IRS income tax return
If parent(s) answer “Already completed,” they will be given the option to transfer their 2020 income tax information directly from IRS records to the FOTW
If parents indicate that they have recently filed their 2020 taxes, they may not be able to access their IRS data if they have filed taxes electronically within the last three weeks or by mail within the last eleven weeks
Instead, they should use their actual 2020 IRS tax return to complete the FOTW so the student does not miss any important financial aid deadlines

2019,

IRS Data Retrieval

This question may allow some parents who have already completed their 2020 federal income tax return to transfer their tax data from the IRS directly to the U.S. Department of Education. Parents will be instructed how to do this in this section of the FOTW.

If parent(s) answer “Already completed,” they will be given the option to transfer their 2020 income tax information directly from IRS records.

If parents have filed their 2020 taxes electronically within the last three weeks ago or by mail less than eleven weeks ago, they may not be able to access IRS data.

Some parents, regardless of when they filed their 2020 federal tax returns, will not be able to use this tool. These include those parents who:

are married and file separately;

file as Head of Household;

filed an amended federal tax return; or

filed a Puerto Rican or foreign tax return.

A parent who does not have a Social Security Number will not be able to use the IRS Data Retrieval Tool.

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Section 6: Signature Page

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Sign and Submit

Recommend that students and their parents sign the FAFSA electronically using their FSA IDs
Remember to read and mark “Agree” to the student Terms of Agreement

Use federal and state student aid funds for college costs
Not be in default on a federal student loan or made arrangements to repay it
Not owe money on a federal student grant or made arrangements to repay it

Student Signature Page

It is important that both students and their custodial parents read the FAFSA on the Web Certification Statement before submitting the FAFSA. They should be sure they understand to what they are agreeing.

All students (and at least one of their custodial parents, if dependent) must sign the FAFSA. When submitting the FOTW, students and at least one of their custodial parents must provide their own individual FSA IDs. Remember, students and their custodial parents can get their FSA IDs at www.fsaid.ed.gov or when they complete the FOTW. Students and parents should not share their FSA IDs with anyone else.

We recommend signing the FAFSA electronically with the student FSA ID, so the student applicant does not need to print, sign, and mail a signature page.

Also, make sure to read and mark “Agree” to the student Terms of Agreement.

By signing the agreement, the student agrees to:

Use federal and state student aid funds for college costs
Not be in default on a federal student loan or made satisfactory arrangements to repay it
Not owe money on a federal student grant or made satisfactory arrangements to repay it

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Special Circumstances

Contact the Financial Aid Office if there are circumstances which affect a family’s ability to pay for college such as:

Loss or reduction in parent or student income or assets
Death or serious illness
Natural disasters affecting parent income or assets such as the recent California wind storms, wild fires, floods, or mudslides
Unusual medical or dental expenses not covered by insurance
Reduction in child support, Social Security benefits or other untaxed benefit
High unreimbursed dependent costs for a special needs child
Financial responsibility for elderly grandparents, or
Any other unusual circumstances that affect a family’s ability to contribute to higher education

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Special Circumstances

Many families have special circumstances not reflected by the questions on the FAFSA. Families are encouraged to contact the Financial Aid Office at each of the schools to which they are applying for admission and financial aid if there are significant changes in their circumstances such as:

A loss or reduction in parent or student income or assets
A death or serious illness
Natural disasters that affect parent income or assets – this is especially true for any family adversely affected by the recent California wind storms, wildfires, floods, or mudslides
Unusual medical or dental expenses not covered by insurance
Reduction in child support or Social Security benefits
High unreimbursed dependent costs for a special needs child
Financial responsibility for elderly grandparents, or
Any other unusual circumstances that affect a family’s ability to contribute to higher education.

If the family feels there are special circumstances that may affect their ability to contribute to college, it is important that they present their case in a way that helps the financial aid office understand their unique challenges. Some schools will provide special forms to help the family provide the appropriate new information. Families are encouraged to:

Contact the financial aid office for guidance
Write a detailed explanation of circumstances

Include student’s name, college or university ID#, and date of birth
Give specific financial details including the reasons why the circumstances affect the family’s ability to contribute
Attach supporting documentation
Send to the financial aid office at each school to which the student is applying for admission and financial aid

Each financial aid office will make its own decision about the effect the special circumstances have on a student’s need. Not all aid offices will be able to provide additional funds if there are special circumstances, but they might be able to suggest other options.

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What Happens Next?

Students and the colleges the student listed receive �Student Aid Report (SAR) from federal processor

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Students who complete FAFSA and Cal Grant GPA Verification Form �receive California Aid Report (CAR)

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Students and families review SAR and CAR �for important information and accuracy of data

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Colleges match admission records with FAFSA and �other required financial aid forms to determine aid eligibility

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Colleges provide notices of financial aid eligibility to admitted students �who have completed all required financial aid forms

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Always contact the college or university you plan to attend for important deadlines and additional information

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What Happens Next

Shortly after completing the FOTW, the student should receive a Student Aid Report (SAR) from the federal processor. The SAR summarizes the information the family provided on the FAFSA. Each school listed on the SAR will also receive the information electronically.

When the California Student Aid Commission evaluates the student’s FAFSA and Cal Grant GPA Verification Form, the student will receive a California Aid Report (CAR) that will provide the student with information about his/her Cal Grant eligibility.

Students who complete the CA Dream Act Application will be able to view their CalSAR immediately upon submitting their application.

Once each school receives the electronic SAR and all other required financial aid forms, and confirms the student’s admission status, the financial aid office will determine the student’s financial aid eligibility. Some schools may request that the student submit income documentation such as student and parent 2020 federal income tax returns (including W-2s,1099s, and all schedules and attachments) or 2020 Federal IRS Tax Transcripts, before sending the student a final determination of eligibility. The school will use these and any other requested information to verify the accuracy of the data provided on the FAFSA. Schools understand that many families have used estimated data.

A financial aid notification (commonly referred to as an award letter) describing the amounts and sources of aid the student has been awarded will be prepared for the student when the student’s financial aid application is complete. Most schools will wait until the student has been accepted for admission to notify him or her about financial aid eligibility. Some schools will mail a paper notification to the student; others may provide the award letter electronically.

In some cases, the student will be required to sign and return a copy of the financial aid notification, indicating whether he/she accepts or declines each source of aid.

If family circumstances change after the student completes the FAFSA and other required financial aid documents, make sure to contact the financial aid office at each school as soon as possible.

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Federal Verification

Some students may be required to verify the information reported on the FAFSA
If selected for verification, the tax information of federal tax filers will be verified through

The IRS Data Retrieval Process, or
IRS Tax transcripts if requested by the college or university

Non-tax filers selected for verification may be asked to provide

Signed statements confirming that they did not file a 2019 federal tax return and were not required by IRS to do so
Copies of W-2s, 1099s or other income documentation from each employer , if any income was earned from work

All selected aid applicants will also be asked to verify certain demographic data listed such as

Household size and number in college
Enrollment History for transfer students
Identity Confirmation

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Federal Verification

In order to assure that information provided by students and parents is accurate, the U.S. Department of Education requires colleges and universities to verify the accuracy of financial and other demographic information provided on the FAFSA. Verification of FAFSA data helps colleges and universities accurately and equitably determine the types and amounts of federal funding students will receive. Students whose FAFSA data is chosen for Verification will see an asterisk next to the EFC on their SAR.

If selected for verification, the tax information of federal tax filers will be verified through

The IRS Data Retrieval Process, or

IRS Tax Transcripts if requested by the college or university.

Federal Tax Transcripts are available free of charge at:

www.irs.gov/individual/get-transcript

or by calling 1-800-908-9946

Non-Tax filers selected for verification may be asked to provide

Signed statements confirming that they did not file a 2020 federal tax return and were not required by IRS to do so; and

Copies of W-2s or other documentation from each employer, if any income was earned from work.

All selected aid applicants will also be asked to verify certain demographic data listed such as

Household size and number in college,

Enrollment History for transfer students

Identity Confirmation.

Some colleges and universities may require the verification of additional information for determining eligibility for state and their own student aid funds.

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Check Your Cal Grant

By opening a WebGrants4Students Account, a student can:

Check Cal Grant award status 24/7
Confirm student’s high school graduation as required
Make changes to Cal Grant school choices
View how much a Cal Grant is worth at different California colleges and universities
View Cal Grant payment history
Create a WebGrants account at: www.webgrants4students.org

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If You Need Help at Any Time

FAFSA on the Web – Live Help
Phone 1-800-4-FED-AID (1-800-433-3243) or 1-334-523-2691
TTY (hearing impaired): 1-800-730-8913
FSAID problems: 1-800-557-7394
Email the U.S. Department of Education at: FederalStudentAidCustomerService@ed.gov

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Before you go!

Please complete our post-workshop survey

https://cash4college.csac.ca.gov/Home/showWorkshopDetail?id=12148 - click on Survey

THANK YOU!

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Questions

Please mute yourself and turn off your camera

When you have a question, please

raise your hand, unmute, or just use a hand raising symbol to indicate that you have a question and would like to go into a breakout room with a FAFSA/CADAA volunteer