Ron Johnson, Director of the UCLA Financial Aid Office, offers his advice and answers some of the questions that UCLA students and their families are asking about financing a UCLA education.

Click on any of these topics to go directly to that answer, or see the full article below.

• What is the role of the UCLA Financial Aid Office?
• Who qualifies for financial aid?
• When should I apply for financial aid?
• Are there tools to assist parents in figuring out how to manage the expense of attending UCLA?
• How is the financial aid office responding to families’ economic concerns during such turbulent financial times?
• What if a student or their family has a change in their financial situation or income stream after they have completed their FAFSA?
• What is the Blue and Gold Opportunity Plan?
• What about families from income backgrounds in excess of $60,000?
• Can my student qualify for scholarships? If my student receives an outside scholarship will it reduce my University Grants?
• Should parents and families pay for the entire cost of college or should the student assist as well?
• Can parents call or speak with financial aid counselors about their students financial aid awards?
• Do personal savings reduce a student’s chance at receiving financial aid?
• How much debt should college alumni expect to owe?
• Where can college graduates go for help with financial aid or debt questions?
• What is your best financial advice for college students and their families?
• How will the proposed mid-year fee increase effect financial aid awards in coming years?

 

What is the role of the UCLA Financial Aid Office?

The Financial Aid Office is here to help remove financial barriers to assist all students in meeting the cost of attendance at UCLA. The role of the office is to try and fill the gap (i.e. “financial need”) that exists between the cost of attendance and the student’s Expected Family Contribution.

Who qualifies for financial aid?

All students who complete a Free Application for Federal Student Aid (FAFSA) are considered for financial aid. Filing the FAFSA electronically is faster than paper – and is encouraged – as it allows electronic signature on the web and the application can be processed much sooner than the paper form.

The FAFSA captures financial information on the family which is run through a series of formulas. The result is known as the Expected Family Contribution (EFC): the amount that the government calculates that you and/or your family should be able to contribute toward one year of attendance based on income and assets. The EFC can range from zero to more than $50,000. Based on the information provided on the FAFSA, the Financial Aid Office is able to determine the type of aid (grants, loans, work-study) and the award amounts that a student may be eligible to receive.

When should I apply for financial aid?

It is very important that the FAFSA be filed between January 2nd and March 2nd annually to be considered an on-time applicant. For example, the FAFSA for the 2010/11 academic year should be filed beginning January 2 and before March 2, 2010. Like most Universities, we have limited funds for federal campus-based aid and institutional financial aid. Therefore, these types of financial aid are awarded to those who file their applications before our priority deadline (March 2). Students who submit their applications afterwards are considered late applicants and will not be considered for University or State Grants, and thus would receive more self-help aid (work-study and loan).

Are there tools to assist parents in figuring out how to manage the expense of attending UCLA?

Last fall, all UC campuses launched interactive Web-based financial aid estimators that allow families to obtain information about UC campus costs and ways to meet those costs specifically based on their unique financial circumstances – including their annual income, assets and family size. These estimators are available at www.universityofcalifornia.edu/admissions/paying.html.

Also, parents and family members should bookmark and visit the UCLA Financial Aid office web site at: www.fao.ucla.edu. This site contains a wealth of information and guidance that will orientate you to many facets of the financial aid process.

Additionally, the Financial Aid Office has partnered with Cash Course to provide Bruins with financial literacy information. Cash Course information is available at http://www.cashcourse.org/faoucla/Default.aspx.

How is the financial aid office responding to families’ economic concerns during such turbulent financial times?

We communicate with students earlier and more often to get the message out that financial aid is available. The Financial Aid Office can assist families with filing appeals when changes in circumstances are encountered that affect family’s ability to cover students’ educational expenses (i.e. loss of employment). Also, the University of California established the Blue and Gold Opportunity Plan beginning Fall 2008 to assist families earning below $60,000 who demonstrate financial need annually to meet UC Fees.

What if a student or their family has a change in their financial situation or income stream after they have completed their FAFSA?

Given the economic downturn, several families have lost their primary source of income or had a personal financial crisis. These types of changes in family situations can impact your financial aid award. If your family’s financial situation has changed since you first completed your FAFSA, submit an appeal with the Financial Aid Office that explains and documents your family’s circumstances. Financial Aid has appeal forms available at http://www.fao.ucla.edu/forms.html that can be printed out and submitted to our office to address income changes.

What is the Blue and Gold Opportunity Plan?

University of California’s Blue and Gold Opportunity Plan will cover registration fees with grant and/or scholarship funds for qualifying in-state residents admitted to the University for Fall 2009. In order to be eligible, students have filed the FAFSA by March 2 and have a family incoming below $60,000, in addition to a few other criteria shown here: http://www.universityofcalifornia.edu/blueandgold/eligible.html.

You can find additional information on the Blue and Gold Opportunity Plan at
http://www.universityofcalifornia.edu/blueandgold/.

What about families from income backgrounds in excess of $60,000?

Students who submit a FAFSA on-time and demonstrate financial need coming from income backgrounds between $60,000 and $100,000 can be considered for a University Fee Grant which will cover one-half of the increase in fees for 2009/10. For academic year 2010/11, the income ceiling will be increased to $120,000 dollars.

Can my student qualify for scholarships? If my student receives an outside scholarship will it reduce my University Grants?

UCLA awards thousands of dollars in scholarship assistance to eligible students. Student can apply annually on-line beginning in January. A variety of scholarships are awarded to students through various offices on campus. For more information, visit:

• Financial Aid Office: http://www.fao.ucla.edu/uclascholarships/general.html
• Scholarship Resource Center: www.ugeducation.ucla.edu/src/

Outside scholarships are also an excellent source of additional aid. Students can utilize the Internet and dedicated scholarship web sites to search for scholarships; all of these sources are free and should never require a fee.

Students should not be worried about outside scholarships hurting their financial aid. At UCLA, if a student receives an outside scholarship, it will result in a decrease of only the self-help (loan and work-study) portion of the award.

Should parents and families pay for the entire cost of college or should the student assist as well?

One of the foundations of need based financial aid is that it is the family’s primary responsibility to help a student finance their education. Having said that, both the parents and the students should contribute to meeting the cost of attendance. The student is the direct beneficiary of their educational training and can contribute by working and saving money to meet a portion of his or her educational cost. This will place the student at an advantage in minimizing the borrowing of loans.

The years your child spends in college are a time of transition and a bridge between being a teenager and becoming a young adult. Parents can be very valuable in helping to guide their child into becoming a responsible adult. So many adults today have never been taught how to be financially responsible.

The years spent attending college can be used to help your child develop healthy financial habits that will follow him or her into the adult years. Having a student take on responsibility to pay for some of his or her college expenses can provide a valuable lesson in fiscal responsibility. At a minimum, have your student be responsible for earning their spending money. To accomplish this, your child can work during the summer or work part-time during the school year. Studies have shown that students who work 15 hours per week or less during the school year tend to receive higher grades in college. These students are forced to focus more on time management than students who do not work.

Can parents call or speak with financial aid counselors about their students financial aid awards?

The Financial Aid Office Service Counter in A129J Murphy Hall is open every week day from 10 a.m. to 4 p.m. Our counseling phone line at (310) 206-0400 is open every weekday from 10 a.m. until noon and from 2 to 4 p.m. We can also be reached via e-mail at finaid@saonet.ucla.edu. Additionally, students can also request an appointment with his or her financial aid counselor for more complex issues and information.

Your student’s financial and academic records are protected under the Family Educational Rights and Privacy Act (FERPA). The Financial Aid Office cannot release any information to a third party (including a parent) without the student’s permission. In order to gain full access to your student’s records, please have your Bruin submit the disclosure waiver found here: http://www.fao.ucla.edu/disclosure_waiver.htm.

Do personal savings reduce a student’s chance at receiving financial aid?

In 30 years, I’ve never seen a family who’s saved be any worse off than a family that didn’t. Only about 5.64% percent of assets are taken into consideration in the financial aid formula to determine a contribution.

Assets in your child’s name are assessed at a rate of 35%. Some parents neglect saving because they believe it is better to qualify for more financial aid instead of saving their own money. But financial aid rarely covers 100% of the educational costs, nor is it always free money. All aid awards often have a substantial student loan component which has to be repaid. Having personal savings is the only way to ensure less future debt.

How much debt should college alumni expect to owe?

A UCLA graduate can expect to take on an average debt of $19,000 to $22,000.

Due to the increasing cost of education, it is very difficult for students to attend college without some type of loan. Moreover, grant and scholarships, under most circumstances, will not cover the entire cost of attendance. At UCLA, all students will have an amount of loan and work-study (self-help) built into their financial aid award. The student has the option of accepting or rejecting all or a portion of these funds. When choosing a loan it is important that parents and students are well informed about loans by reviewing our financial aid web site.

The best loan is a subsidized Stafford Loan. With this loan the student does not have to repay until six months after graduation or dropping below a half-time enrollment status, and there is no interest accrued while the student is in school or during the grace period.

In addition, some students may be eligible for the Perkins Loan, which is a 5 percent interest rate and nine month grace period after the student graduates or drop below half time enrollment status (the Perkin’s Loan terms may be revised in the coming year 2010/11 due to pending legislation). If the student is not eligible for these need-based loans, the parents can apply for a Federal Parent Loan for Undergraduate Students (PLUS). The PLUS Loans have better interest rates and deferment options than Private Loans which currently have very stringent underwriting conditions.

Where can college graduates go for help with financial aid or debt questions?

Before graduating, every UCLA student must participate in a financial aid exit interview. This process is conducted by the Student Loan Services Office located at A227 Murphy Hall (www.loans.ucla.edu). After graduation, alumni are encouraged to contact the Student Loan Services Office or the Financial Aid Office with questions about loan repayment and debt management.

What is your best financial advice for college students and their families?

Every year, sit down and discuss college expenses with your student. Plan and budget accordingly. For many students, financial aid can greatly impact their decision about whether or not they can afford to attend UCLA and/or remain in attendance after being enrolled. This important decision should only be made with a clear understanding of the financial aid process, deadlines, document requirements, benefits and responsibilities.

How will the proposed mid-year fee increase effect financial aid awards in coming years?

All campuses will be revising student winter and spring 2010 financial aid packages to reflect both the higher fee amounts and additional UC and Cal Grant funds that will be available to help offset these fee increases. While the administration of student financial aid entail a myriad of regulations, policies, and procedures, parents should understand the UCLA Financial Aid staff are here to help.

As the Director of the Financial Aid Office, my job is to manage the process and our resources of institutional, state, and federal funds. Although our frontline points of contact are our very knowledgeable and advisors who work closely with parents and students, both my Associate and Assistant Directors and I regularly confer with parents and students and get involved in special cases. We are committed to assisting the student in realizing his or her educational goals here at UCLA because we believe in higher education and its power to positively change individuals and their families for generations to come.

– Bruinlink -