The document discusses how to pay for college, including the direct and indirect costs that make up the total cost of attendance and how financial aid can help cover the difference between those costs and what students and families are expected to contribute based on information provided in the FAFSA. It explains the three types of financial aid - need-based aid, merit-based aid, and non-need-based aid - and provides recommendations for students and families to save money and apply for scholarships to help pay for college costs.

1. Financial Aid College
Literacy 101: HowWillWe
Pay For College?
Rebecca Joseph, PhD
getmetocollege@gmail.com
Getmetocollege.org/hs

2. Higher Earnings. High Education

3. What Is College EducationWorth?
• Careers
• Healthy Life
• Savings
• Take Care of Families
• Brains on Fire

4. First things first.
How much is college going to cost?
There are two components to this:
Direct Costs & Indirect Costs.

5. Tuition
Fees
Room & Board+
Direct Costs
(if applicable)
Direct Costs are those that are
billed directly by the University.

6. Books
Transportation
Etc.+
Indirect Costs
Indirect Costs are the other miscellaneous
expenses involved with attending college.

7. Direct Costs
Indirect Costs+
Cost of Attendance
Together, these two components make
up the total Cost ofAttendance.
(COA)

8. Ciria and Kimberly

9. UC Merced

10. Next, you need to determine how
much you can contribute toward
Cost of Attendance.

11. How Do Colleges Determine How
MuchWe Can Pay?
• FAFSA (fafsa.ed.gov)
• CSS Profile
(https://student.collegeboard.org
/css-financial-aid-profile)
• CA Dream Act
(https://dream.csac.ca.gov)
• Cal Grants
(http://www.calgrants.org)

12. Parent Contribution
Student Contribution+
Estimated Family Contribution
The data you provide on the FAFSA is used to
calculate the amount you are expected to contribute.
(EFC)

13. Cost of Attendance
Estimated Family Contribution-
Financial Need
The gap that’s left between what you are expected to
contribute and the total cost is called “Financial Need.”

14. There are 3 types of Financial Aid:
 $ Need-based
 Merit-based
 Non-need-based
Financial Aid is what helps you fill that gap.

15. Need-based
 Grants
 FederalWork Study
 Loans
(Federal, State, and College Grants)
(Stafford Subsidized Loan, Perkins Loan)
The first type of aid is determined
solely by Financial Need.

16.  Scholarships (College and Outside Scholarships)
Merit-based
The second type of aid is determined by a student’s
academic accomplishments, not Financial Need.

17. Internal Merit Scholarships

18. College Greenlight

19. External Merit Scholarships

20. https://roybal-
allard.house.gov/uploadedfiles/student_resource_guide_2014-
2015.pdf

21.  Loans (Stafford Unsubsidized Loan, PLUS Loan,Alternative Loans)
Non-need-based
The final type of aid is available to all students, regardless
of Financial Need or academic accomplishments.

22. The Financial Aid Package
consists of all or any of these.
Need-based Merit-based
Non-need-based

23. COA Across Campuses

24. Financial Aid Recommendations
• If parents make less than $60,000 per year, students and families most likely
won’t have to take out many loans.
• There are more than 50 colleges that meet all need with no loans.
http://www.usnews.com/education/best-colleges/paying-for-
college/articles/2014/09/15/colleges-and-universities-that-claim-to-meet-full-
financial-need
• Educational loans are low interest. Students have ten years to pay them back and
can deduct interest from taxes.They are best investment possible in your child.
• Students should never borrow on credit cards.
• Students can visit colleges for free at the beginning and end of senior year.
http://getmetocollege.org/hs/what-colleges-look-for/fall-2014-free-diversity-
college-visits

25. What CanWe Do Now?
• Save. Every dollars counts.
• Prepare FAFSA-Now PRIOR, PRIOR
• Explain your family finances to your children.
• Build children’s resume.
• Apply for scholarships.
– MALDEF- http://www.maldef.org/assets/pdf/1415_MALDEF_Scholarship.pdf
– Congresswoman Roybal-Allard- http://roybal-
allard.house.gov/uploadedfiles/student_resource_guide_2014-2015.pdf