Financial Aid
Here are some key resources to consider during the FAFSA Week of Action:
• Complete the 2024-25 FAFSA
• Understanding FAFSA Guide - available in 10 languages
• Financial Aid Toolkit for Counselors
• Financial Aid Non-Citizens Toolkit for Counselors
• Guidance on completing FAFSA without a SSN
• Additional Training and FAQ for the Better FAFSA
What is Financial Aid?
Funding from federal, state, institutions, and outside agencies intended to help students pay for post-secondary educational expenses at an approved community college, four-year college, vocational school, or graduate/medical school.
The philosophy behind financial aid is that parents have the primary responsibility to pay for their children’s college education, and students are also responsible for contributing to the effort. Students will be evaluated for financial need using one national standard. The following formula is used by schools to determine aid eligibility: COST OF ATTENDANCE (COA) minus EXPECTED FAMILY CONTRIBUTION (EFC) equals FINANCIAL AID ELIGIBLITY OR NEED
COA:
Tuition, fees, room & board, books, transportation, personal expenses, and insurance. Costs vary by school.
EFC:
A calculated numerical value of how much the family is expected to contribute to the student’s education on an annual basis. It is determined by a formula called the federal methodology, which looks at parents’ and student’s income and assets. The EFC number stays constant no matter the school selected.
ELIGIBILITY OR NEED:
The college financial aid office will look at their available financial resources and the student’s EFC to put together a financial aid package that strives to meet the student’s financial aid eligibility. This package could be composed of grants, scholarships, work-study, and/or loans.
Funding from federal, state, institutions, and outside agencies intended to help students pay for post-secondary educational expenses at an approved community college, four-year college, vocational school, or graduate/medical school.
The philosophy behind financial aid is that parents have the primary responsibility to pay for their children’s college education, and students are also responsible for contributing to the effort. Students will be evaluated for financial need using one national standard. The following formula is used by schools to determine aid eligibility: COST OF ATTENDANCE (COA) minus EXPECTED FAMILY CONTRIBUTION (EFC) equals FINANCIAL AID ELIGIBLITY OR NEED
COA:
Tuition, fees, room & board, books, transportation, personal expenses, and insurance. Costs vary by school.
EFC:
A calculated numerical value of how much the family is expected to contribute to the student’s education on an annual basis. It is determined by a formula called the federal methodology, which looks at parents’ and student’s income and assets. The EFC number stays constant no matter the school selected.
ELIGIBILITY OR NEED:
The college financial aid office will look at their available financial resources and the student’s EFC to put together a financial aid package that strives to meet the student’s financial aid eligibility. This package could be composed of grants, scholarships, work-study, and/or loans.
Types of Financial Aids
- Federal Aid: Aid that comes from the U.S. government. Usually distributed through the college.
- Gift Aid: Financial aid that does not need to be paid back.
- Grants: Typically based on financial need
- Scholarships: Typically based on achievement or talent.
- Loans: Funds that must be paid back later, with interest. Federally-guaranteed loans can be from a private lender (e.g. a bank) or from the federal government (administered by the college.)
- Private Aid: Financial aid from non-government sources. Private loans are offered by private lenders with terms set by the lender.
Federal State Aid Programs
- Pell Grant Gift aid that is given based on financial need. How much aid you will be eligible to receive is based on your EFC (Expected Family Contribution), which is determined when you complete the FAFSA (Free Application for Federal Student Aid).
- Cal Grants are awarded by the California Student Aid Commission (CSAC) to undergraduate students with demonstrated financial need and academic achievement which is measured by GPA's and scoring criteria.
- Federal Work-Study: Provides part-time employment for students who have financial need. Jobs are usually available both on or off campus. Work study is also determined by FAFSA.
- Perkins Loan: Fixed low-interest loan through your college. You must demonstrate financial need.
- Stafford Loan: Currently a variable interest rate loan. You can receive this loan from a private lender or your college. They can be subsidized (no interest accrues while enrolled full-time in school) or unsubsidized (interest accrues while in school).
- Federal Supplemental Educational Opportunity Grants (SEOG) are awarded to a student who demonstrates exceptional financial need and are Pell Grant recipients.
- California Promise Grant waives community college enrollment fees for qualified California residents who meet application requirements and deadlines.
- Irvine Valley College ivc.edu/promise/Pages/default.aspx
- Saddleback Community College saddleback.edu/promise/Saddleback-College-Promise-Program
- Orange Coast College orangecoastcollege.edu/student_services/student-equity/Pages/pirates-promise.aspx
What is the FAFSA?
FAFSA stands for Free Application for Federal Student Aid. This form is the single most important financial aid gateway. It asks you questions about the student's (and, if you are under the age of 24, the student's parents') income and savings to estimate how much aid the student needs. Your FAFSA information is used to award federal grants, state grants, and numerous scholarships from colleges, foundations, and companies. Experts recommend all students file a FAFSA, even if you are uncertain whether or not your family will qualify for aid. Click on the link above more information about the FAFSA.
Q. How do I fill out the FAFSA?
A. Go to FAFSA.ed.gov. To start a FAFSA, you'll first need a Federal Student Aid ID and password. To get those, you'll need your Social Security card or Alien Registration number if you are not a U.S. citizen. To complete a FAFSA, you'll need to provide information from your (and, if you are under the age of 24, your parents') most recent income tax return, W-2s, and bank statements. You must file a FAFSA each academic year you want aid.
Q. When is the FAFSA due?
A. Every state has its own deadline for the FAFSA. Some states and colleges distribute aid on a first-come, first-served bases so file as soon as you can after October 1. You should also check with your college financial aid administrator to find out your college's FAFSA deadline. Anyone planning to attend college in the Fall of 2022—high school seniors and current college students—should fill out a 2022-23 FAFSA as soon as possible starting October 1, 2021.
Q. When do I find out how much money I will receive?
A. After submitting your FAFSA, you will receive a Student Aid Report (SAR), which is a summary of the FAFSA data you submitted. Review your SAR for accuracy, as this information will forward to the list of colleges you selected in your application to determine your financial aid. Each college that you are accepted by will then use the information to create a financial aid package—typically a mix of grants or scholarships, loans, and work-study jobs—for you. Some schools will send you an award notification quickly. Others will take months. Applicants hoping to be freshmen in the fall who have finished their applications before March 31 should get their notice no later than April 15. Returning undergraduates typically get their awards a little later, possibly as late as June.
Q. What tax information do I use when filling out my 2022-23 FAFSA?
A: You will be providing your family's 2020 tax information on your 2022-23 FAFSA. If there has been a significant change in your family's income in the current year, you will still need to provide the 2019 tax information and prepare an appeal for each college.
Q. How do I get my FSA ID?
A. Go to fsaid.ed.gov to create the FSA ID. You will need to create a unique user ID and a password and verify that you are at least 13. You do not need an email address to create an FSA ID, but having one does make things faster and easier. You will need to provide your Social Security number, date of birth, and name exactly as it appears on your Social Security card. If the student is under the age of 24, the parents will also have to get an FSA ID. (If you are applying using email addresses, you and your parents will need separate accounts. You cannot share email accounts for FAFSA purposes.
Q. If I am undocumented, can I still apply for the FAFSA?
A. No. Unfortunately, undocumented students are not eligible for federal student aid. There are some states, however, that offer grants to undocumented students, like California and Texas. These states have forms specifically designed for undocumented students. Additionally, there are private scholarships available.
Q. If my parents are undocumented, but I am a legal resident, can I apply for the FAFSA?
Citizenship status does not affect your eligibility for federal student aid. In fact, the FAFSA does not ask about your parents' status. If your parent does not have a Social Security number, you may enter all zeroes in the question that asks about their number on the FAFSA. Because your parents don't have a valid Social Security number, though, they will not be able to create a FSA ID and, therefore, cannot sign the FAFSA electronically. In this case, you should electronically sign and submit the FAFSA form, then print the signature page so that your parents can sign it. Once they have signed it, you should mail it. Note: It will take longer to process your FAFSA, so plan accordingly.
Q. I have no money to pay for college; does that mean I can't go?
A. You can definitely go to college, no matter how little money you have right now. Low-income students who fill out a FAFSA, for example, typically receive enough federal grants (and loans, if necessary) to at least pay for tuition and books at a local community college. Many other kinds of colleges provide full aid to different types of students—those from disadvantaged backgrounds, those with top grades, etc.
Q. What is the difference between a subsidized loan and an unsubsidized loan?
A. The federal government offers two kinds of student loans. Both have low-interest rates and lots of benefits, including the possibility of forgiveness (which means you might not have to pay it all back). The best type of federal student loan a "subsidized" loan because while you are in school, the government will pay (or subsidize) the interest on your loan. In other words, if you borrow a $1,000 subsidized loan in your freshman year, you will only owe $1,000 when you graduate. The government only awards "subsidized" loans to students whose FAFSA indicates they need aid to attend their college. But any student who fills out a FAFSA— no matter how wealthy—can take out a federal "unsubsidized" loan. That loan's interest charge builds up while the student is in school. As an example, a first-year student who borrowed a $1,000 unsubsidized loan in the fall of his/her freshman year would owe close to $1,200 on graduation day because the debt will have grown by 4.29% (varies) a year in interest charges.
Answers to Common Questions about the FAFSA
As we enter the financial aid filing season, questions come up every year about filing the FAFSA. Further FAFSA questions can be addressed to the Federal Student Aid Programs at studentaid.gov/h/apply-for-aid/fafsa.
Q: When should I file the FAFSA?
A: October 1. It is recommended to complete your FAFSA as soon as possible after October 1. to best position yourself for financial aid! The FAFSA is filed online at www.fafsa.ed.gov. Please do not use any website that will charge you a fee to file the FAFSA for you. Remember that the first "F" in FAFSA stands for "Free."
Q: How can I apply for the Cal Grant?
A: To be considered for a Cal Grant you must file the FAFSA by March 2. The California Student Aid Commission advises students to file as early as possible. In addition, a Cal Grant GPA must be submitted for each student that wishes to receive a Cal Grant. Laguna Beach High School will submit all Seniors' Cal Grant GPA to the California Student Aid Commission. After you submit your FAFSA, check the status of your Cal Grant here: mygrantinfo.csac.ca.gov/
Q: How can I find out whether my college has an earlier financial aid and scholarship filing deadline?
A: Visit the college financial aid website. The federal and state program deadline will be the same at most schools but institutional scholarships frequently have deadlines in January.
Q: Do I or my parents have to complete our tax returns before we can file the FAFSA?
A: No. The FAFSA asks whether the student and parents have already filed, will file, or won't be filing with the IRS. If the FAFSA is filed before taxes are filed, the student and parents provide the best estimate of their income as possible, then later, when the actual taxes are filed, they log back into www.fafsa.gov and add the actual figures.
Q: Shouldn't I wait to file the FAFSA until my parent's taxes are done?
A: No. File as soon as you can, then correct the FAFSA later. The FAFSA allows students and parents to import their final tax information from the IRS starting about two weeks after the return is filed. This makes it very easy to update the tax info later.
Q: What questions will I have to answer on the FAFSA?
A: The FAFSA questions are all on the FAFSA on the Web worksheet. The worksheet can be completed before sitting down to file the FAFSA. By completing the FAFSA on the Web Worksheet, students and parents can have all of the answers ready for entry, including their financial information.
Undocumented students can NOT apply for financial aid using the FAFSA. You must complete the DREAM Act application. See the instructions listed below for the California Dream Act Application.
CSS /Financial Aid Profile: Seniors applying to private universities need to complete the on-line CSS Profile no later than November 1 for Early Decision and Early Action applications and no later than December 1 for Regular Decision applications. Check specific colleges for extended deadlines. The profile allows students to report their financial and family circumstance information in one streamlined application and submit it to all the colleges that require it for scholarship and grant consideration. Apply on-line at www.collegeboard.com. The fee is $25 for the PROFILE application and first college report and $16 for each subsequent college report.
Fee waivers are available for eligible applicants.
FINANCIAL AID FAFSA VIEDO
Grants
There are three kinds of CAL Grants: Cal Grant A; Cal Grant B; and Cal Grant C. Cal Grants can be used at any UC, CSU, California Community College, almost all independent colleges, and many career and technical schools in California.
To be eligible for a Cal Grant you must:
To be eligible for a Cal Grant you must:
- Submit FAFSA application by the deadline (usually in March)
- GPA will be automatically be submitted per Assembly Bill 2160
- Be a US Citizen
- Be a California Resident
- Meet any minimum GPA requirements
- Have a Social Security Number
- Attend a qualifying CALIFORNIA college
- Have financial need based on your college costs and your EFC (Expected Family Contribution)
- Be in a program leading to an undergraduate degree or certificate
- Be enrolled at least half time
The California DREAM (Development, Relief, and Education for Alien Minors) Act is a package of California state laws that allow children who were brought into the US under the age of 16 without proper visas/immigration documentation who have attended school on a regular basis and otherwise meet in-state tuition and GPA requirements to apply for student financial aid benefits. In 2011, the California Dream Act was divided into two bills, AB130 and AB131. AB130 was signed by Governor Jerry Brown on July 25, 2011, and AB131 was signed by Brown on October 8, 2011. AB 130 allows students who meet AB 540 criteria to apply for non-state funded scholarships for colleges and universities. AB 131 allows students who meet AB 540 criteria to apply for state-funded financial aid.
CSS/Financial Aid PROFILE® The fast, easy, convenient secure way to apply for financial aid. The CSS Financial Aid Profile is a national, not-for-profit membership association whose mission is to connect students to college success and opportunity. Many of the member colleges, universities, graduate and professional schools, and scholarship programs use the information collected on PROFILE to help them award nonfederal student aid funds. For more information regarding the CSS profile please visit https://profileonline.collegeboard.com
Student Loans
Student Loans "The Basics Types of student loan borrowing options If you need money for college expenses, you need to know what your borrowing options are. The two most common ways to borrow are federal student loans and private student loans.
Learn about other borrowing options for college
Federal Student Loans: There are three types of federal student loans. They’re all provided by the government through the Federal Direct Loan Program.
Learn more about federal student loans
Private Student Loans: When you’ve explored scholarships, grants, and federal loans, and still need money for college, you can consider a private student loan.
Learn about other borrowing options for college
Federal Student Loans: There are three types of federal student loans. They’re all provided by the government through the Federal Direct Loan Program.
- Direct Subsidized Loans are based on financial need.
- Direct Unsubsidized Loans are not based on financial need. They’re not credit-based, so you don’t need a cosigner. Your school will determine how much you can borrow, based on the cost of attendance and how much other financial aid you’re receiving.
- Direct PLUS Loans are credit-based, unsubsidized federal loans for parents and graduate/professional students. Direct PLUS Loans for parents are also known as Parent PLUS Loans.
Learn more about federal student loans
Private Student Loans: When you’ve explored scholarships, grants, and federal loans, and still need money for college, you can consider a private student loan.
- They’re issued by a bank or other financial institution.
- Private student loans are taken out by the student; they’re often cosigned by a parent or another creditworthy individual.
- Parent loans are another way to get money for college. A parent or other creditworthy individual takes out the loan to help their student pay for college.
