News and Announcements
Below are news and announcements you may find helpful in your financial aid process. In order to download the PDF forms, we recommend that you have the latest version of Adobe Acrobat Reader installed on your computer. You may download Acrobat Reader for free if you do not have it.
FAFSA Declaration of Assets
January 6, 2012
Some students and parents are unsure on what assets that should be included and what is not required on the Free Application for Federal Student Aid (FAFSA).
| Include these Assets | Do Not Include these Assets |
| Savings | Value of your family home or farm |
| Stocks & Bonds | Value of annuities |
| Mutual Funds | Life Insurance plans |
| Money Market Accounts | Non-Education IRAs |
| Real Estate Investments | 401(k) plans |
| Trusts | KEOGH or other retirement plans |
| Education Savings Accounts* |
* The value of all 529 college savings plans, prepaid tuition plans and Coverdell education savings accounts owned by a parent or by the parent’s dependent children must be reported as a parent asset on the FAFSA, regardless of who is listed as a beneficiary on the account. UGMA and UTMA accounts are considered assets of the student, and must be reported as an asset of the student on the FAFSA, regardless of the student's dependency status.
NOTE: You must report contributions to any tax-deferred pension or savings plan
Unique FAFSA Filing Situations
January 6, 2012
When completing the Free Application for Federal Student Aid (FAFSA), your students may find themselves in a situation that requires some additional direction:
Divorced or Separated Parents
The parent with whom the student lived with the most during the past twelve months should complete the FAFSA. If the student did not live with one parent more than the other, the parent who provided the most support in the past twelve months (or in the most recent year that parental support was received) should complete the FAFSA. Support includes food, shelter, clothing, insurance, etc., in addition to cash payments.
If parents who are separated file a joint tax return, only the parent with whom the student lived (as defined above) must report on the FAFSA their income, assets, taxes paid and household size. It does not matter if this parent is not the one who claimed the student on their tax return.
For financial aid purposes, a couple is considered separated only if there is physical separation. This means that a married couple who claims to be separated, but is still living together is considered married, and both parents must provide information on the FAFSA.
Stepparents
If a parent has remarried, both the parent and the stepparent must report information on the FAFSA. A prenuptial agreement does not exempt a stepparent from providing his or her information.
If the biological parent dies and the stepparent survives, the student becomes independent unless:
- The student is dependent on the surviving biological parent, or
- The stepparent legally adopted the student.
Adoptive Parents
For financial aid purposes, adoptive parents are the same as biological parents.
Foster Parents
For financial aid purposes, foster parents are not the same as biological parents. A student living with foster parents is a ward of the court and is considered an independent student.
The 2012-13 FAFSA is Available
January 3, 2012
The 2012–13 FAFSA (Free Application for Federal Student Aid) is available. We encourage students and their families to complete the FAFSA as soon as possible to meet the deadlines for student aid.
The FAFSA determines a student’s eligibility for most federal and state grant awards, work-study programs, some University aid and federal student loans.
The FAFSA is available online at www.fafsa.ed.gov. Completing the FAFSA online helps eliminate errors and offers a quicker processing time. Students can also choose to print out the form and send it to the U.S. Department of Education via U.S. Mail.
Have no Fear, the New FAFSA is Near!
December 15, 2011
On January 1, 2012, the 2012-13 FAFSA on the Web will be smarter and easier than ever, with a customized experience for every applicant. The simplified home page, the ability for applicants to access their IRS tax information, and FAFSA summary options, along with detailed information about the applicant’s selected schools, all add up to a smoother, more intuitive experience. Live interactive help is also accessible as the applicant uses the site.
Attention: Graduating Students!
November 28, 2011
All federal student loan borrowers are required to complete an Exit Counseling Tutorial upon graduation. The Exit Counseling Tutorial will review your rights, responsibilities and repayment terms. To complete this federal requirement, simply log onto https://studentloans.gov and click on Exit Counseling under the Tools and Resources section.
NOTE: You will need your Federal Student Aid PIN to complete the federal requirement.
Your financial future begins now! Good loan repayment habits will build good credit. Numerous options exist, including deferred repayment and income contingent repayment. Your loan servicer will work with you to select the option that is best for you.
Save Student Aid: Statement of Support
October 26, 2011
The nation’s economic woes are placing a tremendous burden on every sector of the economy. As the deficit grows, the Joint Select Committee on Deficit Reduction has been charged by Congress with finding $1.2 trillion dollars to cut from the federal budget by November 23, 2011.
There is serious concern that, as they have in the past, legislators may turn to federal financial aid programs for college students to achieve a share of these reductions. Congress has already removed $30 million from the Federal Pell Grant program in recent budget deals. At Santa Clara University, 820 of your fellow classmates receive Federal Pell Grant support.
Colleges and universities throughout the United States are urging Congress to look elsewhere for these cuts. We are encouraging faculty, staff, students, parents, alumni, neighbors and other members of our community to sign a petition created by Student Aid Alliance.
Help us save student aid by offering your support today.
2012-13 CSS/Financial Aid PROFILE®: Fees and Payment Information
October 17, 2011
The 2012-13 CSS/Financial Aid PROFILE® fees remain unchanged at $25 for the application and initial school report and $16 for each additional school report.
The CSS/PROFILE service provides fee waivers automatically to U.S. citizens (or eligible noncitizens) students from families with low incomes and limited assets. In an effort to reach as many qualifying students as possible, the CSS/PROFILE fee waiver process is fully automated based on the family and financial information given in the application.
Article provided courtesy of the College Board
Governor Brown Signs "California DREAM Act"
October 10, 2011
AB 131 allows students that meet the in-state tuition requirements (AB 540) to apply and receive financial aid at California colleges and universities. The types of financial aid these students would be eligible for include:
- Board of Governors (BOG) Fee Waiver;
- Institutional Student Aid (e.g., State University Grant, UC Grant);
- Cal Grant.
AB 131 will be begin on January 1, 2013
Scholarship Scams Warning
October 6, 2011
Do not be fooled! You can not believe everything you read or hear!
Many legitimate companies offer lists of scholarships for a fee ranging from $10 to $400 or charge an advance fee to compare a student's profile with a database of scholarship opportunities and provide a list of awards for which the student may qualify. They do not guarantee or promise scholarships or grants.
Of course, there are also those who would prey upon the unsuspecting. These are some tactics of which to be wary:
- guarantees of scholarship awards for an advance fee payment;
- money back guarantee requiring students to apply for each scholarship or grant they have listed and then offer proof they have been denied by each;
- notice of selection as a finalist for an award requiring an advance fee payment;
- request for the student's checking account information to confirm eligibility for an award. Protect yourself by staying informed.
These organizations present current, accurate information about scholarship scams:
National Fraud Information Center (NFIC)
File an online complaint at www.fraud.org, call their Hotline at 1-800-876-7060 or write:
National Fraud Information Center
PO Box 65868
Washington, DC 20035 USA
Federal Trade Commission (FTC)
To report suspected fraud, visit www.ftc.gov to use the online consumer complaint form, call 1-888-FTC-HELP or write:
Federal Trade Commission
CRC - 240
600 Pennsylvania Avenue, NW
Washington, DC 20580 USA
State Attorney General's Office
File your complain with the Consumer Protection Division in your state
Better Business Bureau (BBB)
Report business fraud, or ask for information about a company. Visit www.bbb.org.
U.S. Postal Inspection Service (USPIS)
For complaints involving mail fraud, visit www.usps.com/postalinspectors. To file an online complaint, call the Postal Crime Hotline at 1-800-654-8896 or write:
United States Postal Service
Office of Inspector General
Attention: Hotline
1735 North Lynn Street
Arlington, VA 22209-2020 USA
National Cohort Default Rate Jumps 25 Percent
September 13, 2011
The percentage of borrowers defaulting on their student loans within two years of entering repayment increased again this year reaching the highest level in twelve years, according to the latest default numbers issued by the U.S. Department of Education.
The fiscal year (FY) 2009 Cohort Default Rate (CDR) climbed to 8.8 percent, a 25 percent increase over the (FY) 2008 rate of 7 percent. The CDR has been creeping up from the historic low of 4.5 percent for the 2003 cohort and is now equal to the 1997 cohort.
The FY2009 CDR, the most recent data available, is a snapshot of the cohort of borrowers whose first loan repayments came due between October 1, 2008 and September 30, 2009, and who defaulted before September 30, 2010. During this time, more than 3.6 million borrowers from 5,900 schools entered repayment and more than 320,000 defaulted.
The CDR increased for every sector of higher education:
- Public institutions increased from 6 percent to 7.2 percent
- Private institutions increased from 4 percent to 4.6 percent
- For-profit institutions increased from 11.6 to 15 percent
On a call with reporters, the U.S. Department of Education's Deputy Undersecretary James Kvaal blamed the increase on borrowers struggling with unemployment in the weak economy and the increased enrollment in for-profit schools where default rates are higher.
"These hard economic times have made it even more difficult for student borrowers to repay their loans, and that's why implementing education reforms and protecting the maximum Pell grant is more important than ever," said U.S. Secretary of Education Arne Duncan in a statement.
Note: Santa Clara University's cohort default rate (FY) 2009 is 1 percent.
Article is provided courtesy of NASFAA
Change to Satisfactory Academic Progress policy
September 9, 2011
The U.S. Department of Education recently published new regulations in an effort to ensure program integrity at higher education institutions. These regulations were designed to ensure that only eligible students receive aid. In accordance with new federal regulations, our satisfactory academic progress policy has been updated for the 2011-12 academic year.
Release of Information and Privacy
September 9, 2011
The Financial Aid Office staff is not allowed to discuss your financial aid information with anyone other than you, the student. If you want the Financial Aid Office staff to be able to discuss your financial aid information with your parent(s), spouse or any other person(s), you will need to release your right to privacy at the Office of the Registrar.
Impact of Budget Control Act
August, 3 2011
President Obama signed the Budget Control Act into law on August 2, 2011. The act calls for cutting $1 trillion (or more) from the federal budget. To maintain full Federal Pell Grant funding, the act ended the in-school interest subsidies on graduate loans, ended the interest-rate reductions for on-time loan repayments and electronic billing. The Congressional Budget Office (CBO) estimates that these two cuts alone will save the government and taxpayers about $21.7 billion over 10 years.
Whether the Federal Pell Grant reprieve lasts remains to be seen – the maximum award could still be cut, as could funding to other student aid programs. Additional cuts of up to $1.5 trillion to the overall federal budget may still be forthcoming.
Impact on Student Aid Funding due to Budget Control Act
- Federal Pell Grants: While many programs faced cuts in this bill, the Federal Pell Grant program was provided with additional mandatory funding for both 2012 and 2013. Specifically, the package provides an additional $10 billion in mandatory funds for Federal Pell Grant in 2012 and $7 billion for 2013, amounts that should come close to preserving a $5,550 maximum award. Even with the additional mandatory funding provided in the debt reduction package, Federal Pell Grant will still face a $1.3 billion dollar shortfall for 2012.
- Interest Subsidy for Graduate Students: The Budget Control Act eliminates the in-school interest subsidy for graduate and professional students beginning July 1, 2012, a provision that would save $18.1 billion from 2012-21.
- Direct Loan Repayment Incentives: Repayment incentives were eliminated. The incentive for using automatic debit repayment provided borrowers with a 0.25 percent interest rate reduction and the up-front interest rebate incentive was equal to 0.5 percent of the loan amount and applied toward the 1 percent loan origination fee. For Federal Direct PLUS Loans, the up-front interest rebate was 1.5 percent applied toward the 4 percent origination fee. Borrowers were able to keep the rebate if they made their first twelve payments on time. The CBO projects the elimination of the origination fee rebates would yield $3.6 billion from 2012-21. The language prohibits the U.S. Department of Education from authorizing or providing repayment incentives on new loans disbursed on or after July 1, 2012.
