Following is a list of required applications and forms:

FREE APPLICATION FOR FEDERAL STUDENT AID (FAFSA)
All applicants for financial aid must complete the Free Application for Federal Student Aid. The FAFSA collects the family and financial information of the client. When the FAFSA is completed and sent to the Federal processor, this information is put through the eligibility determining formula and an Expected Family Contribution (EFC) is calculated.  A Student Aid Report (SAR) is then mailed back to the client. The client must then take the SAR to the Community College Financial Aid Office–which will base the financial aid award on the student's EFC number.

STUDENT AID REPORT (SAR)
Processing of the FAFSA normally takes two to four weeks. A SAR will be mailed to the home address. The SAR is notification that the FAFSA has been processed.  When the SAR is received, it must be checked for accuracy and then brought to the attending school's financial aid office for review.

SUPPLEMENTAL APPLICATION
Students must also complete their community college supplemental application.  This form is returned directly to their community college Financial Aid Office along with the SAR.  Information from the Supplemental Application takes precedence over information from the FAFSA.

OTHER FORMS AND DOCUMENTS
A certain number of individuals are required each year to verify the information they supplied on the FAFSA. Those individuals receive a letter from the federal processor informing them that they are required to submit additional information such as tax information or proof of income. Clients should always keep copies of the tax forms they submitted to the Internal Revenue Service, since copies of these will be requested if their application is selected for verification.  Telefilers will need to submit a signed copy of the worksheet used to file by phone.

College financial aid offices may also need copies of INS (Immigration and Naturalization Service) documents to verify eligible non-citizen status, verification of Selective Service registration, a copy of the client's Social Security Card, and/or a Verification Worksheet.   (*Information from www.finaid.com)

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What Kind of Financial Aid is Available?

GRANTS Grants are gift awards that do not need to be repaid.  Grant awards are normally reserved for individuals with the highest financial need. Grant programs typically available at community colleges include:

FEDERAL PELL GRANT
Everyone is automatically considered for a Federal Pell Grant when they file the FAFSA.  Individuals who receive an Expected Family Contribution (EFC) of 3850 or less on the Student Aid Report (SAR) are eligible for a Federal Pell award. Less than half-time students must have an EFC of 1800 (or lower) to be eligible. Students may receive a Federal Pell Grant for enrollment in one or more units; however, awards for students enrolled less than full-time (12 units) are prorated based on their enrollment status. Awards: $400 - $4,000

FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANT (FSEOG)
FSEOG is a grant award made by a community college to individuals with exceptional need. Because funds are limited, individuals who apply early and are eligible for Federal Pell Grant receive first priority consideration for FSEOG. Individuals are automatically considered for FSEOG when they complete the FAFSA by the priority deadline. Awards for less than full-time (12 units) are prorated based on enrollment level.
Awards : $100-$800

BOARD OF GOVERNORS WAIVER (BOGW)
The State of California offers a BOGW for California residents who are eligible for need-based financial aid. The BOGW pays for the enrollment and health fee for the student for the academic year once eligibility has been determined.  Other fees, for parking and student activities for example, must be paid by the student.
Students who do not apply for Federal financial aid may qualify for a BOGW if they meet the State defined income requirements.

Number in Household
Total Family Income (Include Adjusted Gross Income and/or all Untaxed Income)
1 - $13,290 or less
2 - $17,910 or less
3 - $22,530 or less
4 - $27,150 or less
Add $4620 for each additional dependent.

In addition, students can qualify for the BOGW if the student (if considered independent) or the parent of the student (if the student is considered dependent) is a current recipient of TANF (AFDC), General Assistance, SSI/SSP, or have certification from the California Department of Veterans Affairs or the National Guard Adjutant General that they are eligible for a dependents fee waiver. BOGW applications are available in the Financial Aid Office. If a student does not meet the BOGW criteria listed above, they need to file a FAFSA for a BOGW eligibility determination. It is strongly recommended that a student apply for Federal aid as well as for the BOGW program. Award: Enrollment and health fees only

CAL GRANT A, B, AND C:
Cal Grants are for California residents only. They are awarded by the California Student Aid Commission for attendance at California schools. Many criteria influence eligibility, including family income, family assets, family size, student grade point average, parental educational level, and parental marital status.  If a student is eligible for Cal Grant A, this grant is put on reserve while the student is attending a California Community College.  Most Cal Grant B awards are directed to California Community College students. These community college Cal Grant B recipients, who have four years of eligibility, can also get a Cal Grant B award when they transfer to a four-year college or university.  Cal Grant C is awarded to students enrolled in vocational programs.  Students who appear to be eligible to receive Cal Grant C will also receive a supplemental form to complete.  Beginning in the 2004/2005 academic year, students have two application deadlines: March 2 and September 2.  To apply for a Cal Grant, a student must file a FAFSA application and submit verification of their GPA.  Students must be enrolled at least half-time (6 units) to receive Cal Grants.  Awards for less than full-time (12 units) are pro rated based on their enrollment level. Maximum awards: Cal Grant B $1,551 / Cal Grant C $576

EXTENDED OPPORTUNITY PROGRAMS AND SERVICES (EOPS)
EOPS is a State-funded program that provides book vouchers, grants, and support services to high-need, educationally disadvantaged students who are California residents. Final eligibility for EOPS and CARE (Child Care Reimbursement) is determined and coordinated through the EOPS Office.

WORK STUDY EMPLOYMENT

FEDERAL WORKSTUDY (FWS)
FWS is employment financed with Federal funds.  Students receive a monthly paycheck for hours worked. The hourly rate ranges from $8.00/per hour to $12.75/per hour. The total a student may earn depends on the amount of the FWS award for the student as determined by the Financial Aid Office. Many jobs are designed to assist students in providing service to the community. Maximum Annual Award: $6,500

CALWORKS WORK STUDY (CWS)
CWS is employment for CalWorks recipients. It is financed with state funds.

LOANS
Loans are financial aid funds that the student repays after she or he completes a program of study or stops going to school. Educational loans have a low interest rate and an extended repayment period, which makes them easier to repay than most non-educational loans. But because loans must be repaid from future earnings, community colleges recommend that students use all other possible resources first and borrow only when it is absolutely necessary. Students who are planning to transfer to four-year colleges, especially, should be aware that loans are almost always the largest portion of a financial aid package at those colleges and should consider total educational indebtedness before borrowing.

Federal Family Educational Loans (FFEL), which include Federal Stafford Subsidized, Federal Stafford Unsubsidized, and PLUS loans, have origination and insurance fees of 2-4% deducted from the loan proceeds before the loan is received. These fees must also be repaid. To ensure students are aware of all the provisions and responsibilities of borrowing from the educational loan programs, all loan applicants must attend an entrance interview loan counseling meeting before receiving an initial loan check disbursement, and an annual loan exit interview. Students may request a loan by completing the Loan Request Form.

FEDERAL PERKINS LOAN
Federal Perkins Loans are the least costly loans and are awarded by community colleges first to students with the highest financial need who meet the priority deadline for filing the FAFSA.  No interest is charged during college attendance.  The interest rate is 5%.  Repayment begins nine months after the student graduates or stops going to school.  The minimum monthly repayment is $40 and, depending on the total amount borrowed, repayment can extend for up to ten years.  These funds are extremely limited.

SUBSIDIZED AND UNSUBSIDIZED FEDERAL STAFFORD LOAN
Federal Stafford Loans are made through lending institutions such as banks and credit unions.  Students who are enrolled in at least six units and who demonstrate financial need through the financial aid application process can have the interest paid (subsidized) on Federal Stafford loans by the Federal government while they are in school. Students who do not demonstrate need for Federal Stafford may still obtain the loan; however, interest will be charged directly to the student (unsubsidized).  Interest on unsubsidized loans starts to accrue at the time of check disbursement. Federal Stafford loan interest changes annually and is based on Federal Treasury Bill rate. Interest will never exceed 8.25%. Monthly repayments, which begin six months after enrollment stops or drops below half-time, are based on the total amount borrowed but will never be less than $50 per month.  In addition to the FAFSA, this loan requires a separate loan application (available in the Financial Aid Office). Annual Maximum: $2,625 until completion of first year of program $3,500 after completion of first year of program

FEDERAL ADDITIONAL UNSUBSIDIZED STAFFORD
Federal Additional Unsubsidized Stafford Loans, like Subsidized Federal Stafford Loans, are made through lending institutions.  Only students who are considered to be independent may apply for this type of Federal Stafford.  Because they are significantly more costly loans, with interest accruing while the student is in school, community colleges strongly discourages borrowing through this program.  Students must exhaust all other resources and demonstrate that enrollment cannot continue without these additional loan funds.  Applicants must also apply for Subsidized Federal Stafford Loans before applying for this type of Federal Stafford.  Interest rates for this loan are variable and change annually, but will not exceed 8.25%. Students who are considering the additional unsubsidized Federal Stafford must make an appointment with the loan coordinator for additional loan counseling. Annual Maximum: $4,050
           
FEDERAL PARENT LOAN FOR UNDERGRADUATE STUDENTS (PLUS)
Federal PLUS loans are loans borrowed by parents of dependent students and are also made through banks. Repayment and interest accrual begins on the day of disbursement.  The interest rate is variable and changes annually, but will not exceed 9% for new borrowers.

EMERGENCY LOAN PROGRAM
The Financial Aid Office at community college campuses offers a short-term emergency loan program. This loan program offers 30 day loans of $100 (or less). No interest is charged on this short-term loan. For financial aid recipients, repayment is due upon receipt of financial aid funds from the school.

(*Information from www.icanaffordcollege.com)

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How is Eligibility Determined?

There are four basic steps used to determine how much financial aid students may receive.  These steps are:

STEP 1: DETERMINING EXPECTED FAMILY CONTRIBUTION (EFC)
Expected family contribution is the amount of money the individual and family (if dependent or married) can realistically be expected to contribute toward your educational costs while the individuals is in school.  It is calculated from the FAFSA submitted to the Federal processor.  The calculation to determine individual family contribution is based on the financial and other information the individual supplies for himself or herself and family (if relevant).  If the individual is considered an independent student (no parental contribution), only the individual's information (and spouse's, if married) is used to calculate the expected family contribution. This contribution is subtracted from the student budget when determining the amount of award. If the individual is a dependent student, parents' income information is also used.
Students are considered independent if any one of the following applies: s/he is at least 24 years old, is married, has legal dependents of his or her own, is a veteran of the U.S. Armed Forces, is a ward of the court or both parents are deceased.

STEP 2: DETERMINING STUDENT BUDGET
A standard student budget is constructed for all financial aid recipients, which includes the average costs associated with attending community college. Average student costs for various categories in the budgets are developed by the Financial Aid Office, using surveyed information provided by the California Student Aid Commission and the Chancellors Office for California Community Colleges. Standard student budgets are constructed recognizing different costs for three categories of students: self-supporting, not self-supporting, and less than half time. (Less than half-time budgets are used to determine Federal Pell eligibility only.)

BUDGET ADJUSTMENTS are automatically made to add additional tuition for non-resident students and additional fees for students when applicable. Students may request adjustments when they have additional costs for (non-discretionary) expenses such as child care, uninsured medical or dental expenses, additional supplies or tools required for their programs that are in excess of the standard budget allowance, and additional expenses related to a disability which are not paid for by an outside funding agency.

STEP 3: DETERMINING FINANCIAL AID ELIGIBILITY
When the Financial Aid Office has determined an accurate expected family contribution, it subtracts the family contribution (EFC) from the standard student budget. The result is the amount of financial aid a student is eligible to receive. STUDENT BUDGET- STUDENT EXPECTED FAMILYCONTRIBUTION = STUDENT FINANCIAL AID ELIGIBILITY

STEP 4: PACKAGING FINANCIAL AID
Once a student's financial aid eligibility has been determined, the Financial Aid Office will first include all grant funds that the student is eligible to receive in the award package. If there is remaining need and the student indicated that s/he would accept work, the community college will package Federal Work Study if funds are available. Federal Stafford Loans and Perkins Loan will not be packaged automatically. Students requesting loans will need to submit a Loan Request Form.  Requests will be approved on a case-by-case basis. Students applying before the priority deadline will be given first consideration for SEOG, Federal Work Study, and Perkins Loans.

(*Information from www.icanaffordcollege.com)

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How Much Debt is Too Much Debt?

A survey monkey on a local community college Web site revealed that over 70% of students on a waiting list for their nursing program would be willing to pay $25k - $35k to purchase a slot in an accelerated program leading to an associate's degree in nursing. Though this is approximately 5x the standard tuition for a student completing a community college nursing program, the individuals surveyed knew that with the money they would make as a registered nurse, they would likely be able to pay off their loans quickly, maybe even before they would have even graduated from the traditional community college program! This program is not yet available, but we can be sure that when it does become available that each seat will be filled. So does this make good financial sense? For most individuals–most likely.

Let's look at another example: A local vocational college offers an 18 month LVN program that costs $16k. The program is on the ETPL so the client's contribution is $10k. The client takes out a private loan with a 5% interest rate that starts accumulating immediately. The client's spouse pays his/her out of school expenses. The student graduates, passes the licensing exam, and begins working after 2 months. His/her educational and private debt has risen. S/he is making $24/hr and experiences minor difficulty paying off the loans.

Was this a good investment? If this individual stays in control of the accrued debt and pays it down as quickly as possible, taking out debt to become an LVN is probably okay for this person, especially if they find a steady job quickly and stick with the profession for awhile. If this individual has continued support and can then enroll in an LVN to RN program at a community college and can work part-time, s/he could graduate in approximately 1 1/2 year and be earning 70k. If the individual commits to a career ladder path and achieves it, then the initial investment was well worth the debt.

However, the situation outlined above is best-case scenario for assuming the debt because the individual had financial support from the spouse and chose an LVN program that was less expensive than most private programs. Without that support, the individual's debt could have easily mounted to $40k or more if s/he had dependents, and that would have made assuming the debt for the program impractical. Without additional financial support, keeping up with living expenses and paying off educational debt would likely make working part-time to attend RN training unrealistic. Clients must carefully examine all factors (including establishing a realistic LVN-RN transition in-line with local training access issues) when deciding whether to take on educational debt.

Unfortunately, some private schools may try to convince students that it is safe to take on large amounts of debt with advertisements claiming "Pharmacy is the career of the future". Pharmacy is a high demand career–for pharmacists. It is nearly impossible to go from having being a certificate prepared pharmacy technician to doctoral degree prepared pharmacist–students must assess whether debt for an entry level occupation is appropriate when embarking on a career ladder path and whether that path is realistic for their situation.

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Do Employers Offer Tuition Reimbursement and Debt Forgiveness Programs?

Many employers offer their employees tuition reimbursement up to a certain amount each year to be used for continuing education units. This allotment is not generally applicable toward debt.

Tuition reimbursement is sometimes offered to incumbent workers who are pursuing career ladder advancement. Some healthcare employers offer "20-40" programs to incumbent workers that allow the workers to be paid their full wage even though they are attending school part-time. Strict rules apply and these programs are often competitive. Individuals that participate in these programs are expected to sign a contract to stay with the employer for a specified number of years or pay back the money they "earned" while going to school. If the employee drops out of the program, s/he may be subject to financial penalties as well. This would likely not be offered to a new graduate who is an incoming employee. Click here to see a list of similar programs offered by local employers.

Debt forgiveness programs vary by employers, but it is rare for incoming workers to have total debt forgiveness as a sort of hiring bonus or condition of employment. Most often, a contract is involved that would offer something such as $2000-$10,000 payment toward educational debt for every year the employee stays with the company after year 1, or something of that nature.

Tuition reimbursement and/or debt forgiveness, if offered, would likely only be available to individuals working in occupations with a critical or impending critical shortage such as: Registered Nurse, CLS, Diagnostic Imaging professions, Respiratory Therapist, Pharmacist. Tuition reimbursement is not typically offered in the dental occupations.

Students should not count on receiving any educational debt reduction assistance from employers when pursuing a training program.

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Financial Aid Resources

*Loans and Grants*

FinAid.com for an overview of FA options and scholarships

California Community College Financial Aid:www.icanaffordcollege.com

Federal Student Information Center for questions about Federal student financial aid:
1-800-4-FEDAID (1-800-433-3243)

California Student Aid Commission for questions and information about Cal Grant A, B, and C: Phone:(916)445-0880 or Web: www.csac.ca.gov/

FAFSA on the Web - A web version of the Free Application for Federal Student Aid http://www.fafsa.ed

AFSA for questions about Federal Perkins (NDSL) repayment (310) 847-5197

*Scholarships*

FASTWEB A free online scholarship research service: www.fastweb.comESS.com

Marin Education Fund Healthcare Scholarship

State of California Scholarships

Human Resources and Services Administration Debt Forgiveness

Pacificare Scholarships

Hispanic Scholarship Fund

Employer Career Advancement Programs

Santa Clara Valley Medical Center 20/20 Program

Kaiser Permanente

Sutter Health Network (Includes information for all Sutter-affiliated medical facilities, such as Palo Alto Medical Foundation and Mills-Peninsula Health System.)

Washington (Fremont) Hospital System

Stanford/Lucile Packard Childrens Hospital

Catholic Healthcare West (Includes Dominican Hospital-Santa Cruz, Sequoia Hospital-Redwood City, Saint Francis-San Francisco, and Saint Mary's Memorial-San Francisco)

El Camino Hospital

Natividad Medical Center (Salinas)

Good Samaritan / San Jose Regional Medical Center (HCA Facilities)