Upward Bound Presentation on how to fund your College Education given on January 24, 2015

1. Funding Your College Education
2015
Upward Bound,
Los Angeles City College

2. 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

3. 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

4. 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)

5. 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

6. 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?

7. 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

8. 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

9. COA: The “non-bill items”

10. 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.?

11. COA: Transportation
 “Non-Bill” item
 Not just commuters
 Examples:
– Moving there and back
– Holidays
– Bus
– Bike, skateboard, rollerblades, etc.

12. COA: Personal and Miscellaneous
 An estimated “non-bill item”
 Examples:
– Toothpaste
– Soap
– Entertainment
– Occasional pizza, taco
– Clothes (heavy coat, mittens, boots?)
– Computer & Electronics?

13. 4 COA Examples

14. 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.

15. 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

16. UC Berkeley 2014-2015
Residence 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

17. 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

18. 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?

19. Paying for it: Sources of Funding

20. 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

21. Three Types of Financial Aid
Grants
Work-Study
Loans

22. 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

23. 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)

24. 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!

25. 5 Minute Break!
Next: LOANS

26. Loans

27. Types of Loans/Debt for College
 Federal
– Stafford (Direct Loan)
– Perkins
– Parent PLUS
 Private Educational Loans
 School Loans*
 Credit Cards and Banks

28. 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.

29. 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

30. 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

31. 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

32. Other Debt
 School Loans – Depends on the school
 Credit Cards
 Bank Loans
 Friends/Relatives

33. 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

34. Other Sources of Funding

35. 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.)

36. 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

37. 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

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

39. 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!

40. 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

41. 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

42. 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

43. 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

44. 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

45. Q & A