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JUST THE FACTS About Financial Aid 2018 - 2019 A brief guide to planning for the cost of a legal education. Accredited by the American Bar Association. Member of the Association of American Law Schools and The Order of the Coif.
3200 Fifth Avenue Sacramento, CA 95817 mcgeorge.edu
3200 Fifth Ave. Sacramento, CA 95817 go.mcgeorge.edu/financialaid 916.739.7158
TABLE OF CONTENTS
TABLE OF CONTENTS Financial Aid
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Programs & Procedures 2 Overview 2 Financial Aid Sources 2 Financial Aid Procedures 2 The Basic Steps for Financial Aid Step 1: File an Application Step 2: Financial Aid Information Step 3: Financial Aid Notification Step 4: Loan Applications
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Programs 5 Loan Programs 5 Federal Work-Study 5 Federal Unsubsidized Loans 6 Federal Graduate PLUS Loans 7 Federal Loan Repayment Options 8 Scholarships 8 Other Sources 10 Cost of Attendance
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Standard 2017-2018 Student 9-Month Budget & Awards Samples
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Ways to Reduce Borrowing
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Employment 17 Informational Sources
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Checklist 19
Disclaimer: McGeorge School of Law reserves the right to change fees, modify its services, or change its programs at any time and without prior notice.
FINANCIAL AID For most prospective law students, considering how to pay for a legal education begins about the same time as the decision to apply to law school. While this guide does not contain all of the financial aid information you will need or receive during the application process, it is a good start. Most law students use multiple sources of financial aid to cover educational expenses. Students are expected to provide part of their own support from resources such as savings, help from parents or other family members, summer and/or school year employment, and, in the case of married students, a contribution from the spouse’s earnings. The part-time program at McGeorge provides an opportunity to undertake law studies with a lighter course of study over a four (or three-and-a-half) year period. Students may be employed full-time. Many find they are able to earn living expenses and borrow only funds for tuition and books. McGeorge’s Financial Aid Office staff is available for advising and to answer questions as you work through the financial aid process. You are welcome to call or stop by the office anytime.
TRACY SIMMONS Assistant Dean of Admissions, Financial Aid & Diversity Initiatives tsimmons@pacific.edu
JOE PINKAS Director of Financial Aid jpinkas@pacific.edu
DEBORAH BERRY Senior Financial Aid Coordinator dberry@pacific.edu
DEADLINES The FAFSA will be available on October 1, 2017 at 12:01 a.m. The priority deadline is March 1, 2018 All forms can be obtained at go.mcgeorge.edu/financialaid 1 | Facts About Financial Aid
PROGRAMS & PROCEDURES
OVERVIEW Securing financial aid requires the applicant and McGeorge to take a number of steps. There are many sources of financial aid and each has its own requirements and application procedures.
FINANCIAL AID SOURCES Loans and employment opportunities are available both to students with demonstrated financial need and to students without such need. Three important sources of financial aid for many students are: 1. Federal Direct Ford Unsubsidized Loans 2. Federal Direct Graduate PLUS Loans 3. Federal Work-Study Funds Scholarships, earnings and family contributions provide additional funds for many students.
FINANCIAL AID PROCEDURES APPLICATION PROCEDURES The basic steps to apply for financial aid are: 1. If you do not already have one, obtain a FSA ID from the Department of Education at http://FSAID.ed.gov 2. File a completed Free Application for Federal Student Aid (FAFSA) with the federal processor. (FAFSA.gov) The FAFSA report provides an analysis of a student’s resources under federal guidelines. Since federal financial aid programs have more favorable terms than alternative loan sources, students are encouraged to file a FAFSA to have their eligibility determined for these programs. Having a completed FAFSA on file may open opportunities to receive additional scholarships and/or grants. SCHOOL CODE: 001329 Facts About Financial Aid | 2
BASIC STEPS FOR FINANCIAL AID
STEP 1 FILE AN APPLICATION File a Free Application for Federal Student Aid (FAFSA) with the federal processor. Forms are usually available after October 1. The Financial Aid Office suggests you complete a FAFSA on the web at www.fafsa.gov (school code 001329). Before submitting, make a copy and keep track of the date you submitted the completed form. • From the financial information provided by the applicant, the FAFSA processor calculates the amount a student (and spouse) is expected to contribute to educational costs. A report of this analysis is sent to the schools designated by the applicant. • INDEPENDENT OR DEPENDENT STUDENT STATUS: PARENTAL CONTRIBUTION: All graduate/ professional students qualify as independent students. In calculating “need” for federal student aid programs, parental financial information is not required. Evaluation of “need” is based upon the financial circumstances of the student (and spouse).
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STEP 2 FINANCIAL AID INFORMATION • A student’s need is determined by how much the student is expected to contribute (according to FAFSA analysis) and the student’s budget. • Student budgets for determination of need include living expenses, transportation, recreation and personal expenses as well as tuition, books and supplies. • Factors such as marital status, dependents, and special additional expenses may affect a student’s resources and, thus, the “need” factor upon which eligibility is determined for these programs.
STEP 3
STEP 4
FINANCIAL AID NOTIFICATION
LOAN APPLICATIONS
You will receive a Financial Aid Award packet shortly after you receive an offer of admission to McGeorge only if the Financial Aid Office has received a FAFSA report.
Loan Applications and Work-Study Allocations
• The Financial Aid Award packet designates the types and amounts of financial aid for which you are eligible at McGeorge during the coming academic year. • In general, eligible first-year students are allocated Federal Direct Ford Unsubsidized Loans and/or Federal Direct Graduate PLUS Loans.
After receiving your Financial Aid Award, separate application forms and documentation must be filed for each of the federal loans you select. Students who have not applied for federal programs may request information from the McGeorge Financial Aid Office for the non-federal student loans available through one of the alternative loan programs.
• Your Financial Aid Award packet will contain instructions for finalizing the various types of financial aid for which you are eligible. • The Financial Aid Award packet is designed to give you a complete summary of the financial assistance for which you are eligible during the coming school year.
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PROGRAMS
LOAN PROGRAMS FOR LAW STUDENTS (Law Students with or without demonstrated need)
• Loans available include, (1) Federal Direct Ford Unsubsidized Loans; (2) Federal Direct Graduate PLUS Loans; and (3) alternative loans. Each of these loans is described separately in the following pages. • Students may request a Federal Direct Ford Unsubsidized Loan, a Federal Direct Graduate PLUS Loan, or an appropriate combination. • Students eligible for federal loans may obtain no more than the amount of their student budget each year by using a combination of the Federal Direct Ford Unsubsidized Loan and Federal Graduate PLUS Loans. • The alternative loan programs each have sections on their website which provides details of the terms, repayment provisions, and eligibility criteria for their programs.
THE FEDERAL WORK-STUDY PROGRAM (Financial Need Required)
Students with demonstrated “need” may be eligible for Federal Work-Study allocation for employment up to 20 hours per week during the academic year (depending on funding). To be eligible, a student must be a U.S. citizen or eligible non-citizen. • Federal Work-Study positions are at McGeorge or at legally-related government or non-profit organizations. • Federal Work-Study positions have flexible working hours to accommodate academic demands.
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Required To Determine Eligibility For All Federal Loan And Work-Study Programs: Free Application for Federal Student Aid (FAFSA.gov)
PROGRAMS
FEDERAL DIRECT FORD UNSUBSIDIZED LOAN (No Financial Need Requirement)
Law students may obtain up to $20,500 each year from the Federal Direct Ford Unsubsidized Loan program. To be eligible, a student must be a U.S. citizen or eligible non-citizen. Federal Direct Ford Unsubsidized Loans are not interest free, but interest may be deferred during enrollment. Students may obtain no more than the amount of their student budget per year through a combination of Federal Direct Ford Unsubsidized or Federal Graduate PLUS Loans. Interest on a Federal Direct Ford Unsubsidized Loan may be deferred while attending law school and added to the principal amount following graduation. The interest rate is tied to the 10year treasury bill PLUS 3.6% with a 9.5% cap.
Required To Determine Eligibility: Free application for Federal Student Aid (FAFSA.gov) Although eligibility for the Federal Direct Unsubsidized Stafford Loan does not depend upon showing a calculated “need�, federal law requires a financial need analysis (i.e., FAFSA) in order to establish whether the student is eligible for a Federal Direct Unsubsidized Stafford Loan.
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PROGRAMS
FEDERAL DIRECT GRADUATE PLUS LOANS (No Financial Need Requirement)
Law students without demonstrated “need” may obtain a Graduate PLUS Loan up to the McGeorge cost of education minus any other loans or scholarships. To be eligible, a student must be a U.S. citizen or eligible non-citizen. Federal Direct Graduate PLUS Loans are not interest free, but interest may be deferred during enrollment. Students must pass a credit check, and may obtain up to the amount of their student budget per year through a combination of Federal Direct Ford Unsubsidized Loans and Federal Direct Graduate PLUS Loans. Interest on a Federal Graduate PLUS Loan may be deferred while attending law school and added to the principal amount following graduation. The interest rate is tied to the 10-year treasury bill PLUS 4.6% with a 10.5% cap.
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Required To Determine Eligibility: Free application for Federal Student Aid (FAFSA.gov) Although eligibility for the Federal Direct Graduate PLUS Loan does not depend upon showing a calculated “need”, federal law requires a financial need analysis (i.e., FAFSA) in order to establish whether the student is eligible for a Federal Direct Ford Unsubsidized Loan.
PROGRAMS
FEDERAL LOAN REPAYMENT OPTIONS The federal loan programs provide a variety of loan repayment options. These options may include Extended Repayment, Income Based Repayment, and Pay-asYou-Earn, which enables borrowers to substantially lower their monthly payments. To read more about the different repayment plans, visit studentaid.ed.gov.
PUBLIC SERVICE LOAN FORGIVENESS PROGRAM Through the College Cost Reduction and Access Act of 2007, Congress created the Public Service Loan Forgiveness Program to encourage individuals to enter and continue to work full-time in Government and Public Service. Under this program borrowers may qualify for forgiveness of the remaining balance due on their eligible federal loans after making 120 (10 years) on-time payments. To read more about this program please log onto studentaid.ed.gov. For additional information contact the Financial Aid Office at finaid@pacific.edu or call 916.739.7158.
SCHOLARSHIPS First Year Scholarships A number of scholarships are awarded each year to members of the first-year class based on criteria such as outstanding academic promise, diversity, and educational or employment background. Awards range from $2,500 up to the full cost of tuition and can be renewed for each year of the J.D. program as long as you meet the award renewal requirements.
Scholarship awards are determined during the admission process based upon information in the application materials. Students will be emailed about the different scholarship opportunities. Recipients are notified of an award in conjunction with the letter of acceptance or shortly thereafter. Scholarship and grants when combined cannot exceed the banded tuition rate.
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PROGRAMS
SCHOLARSHIPS, CONTINUED James Foundation Scholarships Students who have been residents of the Sacramento area for ten or more consecutive years are eligible to apply for James Foundation scholarships, which are awarded in varying amounts. Applications are available on the McGeorge website.
Scholarships for Continuing Students Substantial scholarship and grant funds are available for awards to continuing students and are fully described in the McGeorge Student Handbook. • Academic scholarships are awarded to continuing students whose academic performance during the preceding year placed them in the top 10% of the class. • McGeorge has a variety of endowed scholarships which provide funds for continuing students each year based on criteria including leadership in school activities, financial need, areas of interest, and academic performance. To read more about the endowed scholarships please visit the Financial Aid section of the McGeorge website: go.mcgeorge.edu/ financialaid. • Addalou Davis/PLSS Summer Program: The Public Legal Service Society at McGeorge, a student organization for those interested in pursuing a career in the public interest area, funds several summer fellowships to permit students to accept positions with public service agencies during the summer months.
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OTHER SOURCES
OTHER SOURCES OF FINANCIAL ASSISTANCE Students may wish to explore a number of sources of financial assistance that are independent of the law school. • Veterans educational benefits are available to eligible students. McGeorge participates in the Yellow Ribbon Program up to full tuition. • Students who participated in AmeriCorps may use their educational benefits for law school tuition. McGeorge will match the Segal Education Award for two years. • Explore and apply for every scholarship for which you think you may possibly qualify. Every year several 1st year students obtain scholarships independently before they come to orientation. Sources might include: Rotary, Soroptimists, religious foundations, hometown or county scholarships, (e.g. Marin County’s Buck Foundation or the Santa Barbara Foundation), local bar associations or their auxiliary spouse’s organizations. • Students contribute to their educational expenses through summer employment and limited employment during the school year. Contributions from students’ families help to reduce the amount of employment and loans required to meet educational costs.
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COST OF ATTENDANCE
STUDENT BUDGET Federal regulations allow each school to compute its allowable cost of attendance (student budget). The amount acts as a ceiling in determining the amount of needbased financial aid for which a student is eligible and as a ceiling for any non-needbased student loan programs. If a school sets an artificially low estimated cost of attendance, it could seriously limit a student’s eligibility for financial aid funds needed to meet actual, reasonable costs. McGeorge includes in its computation all reasonable costs for a professional student. While the cost of attendance will not support a student in luxury, neither will it require a student to live in poverty. We believe it will permit a reasonable standard of living during law school. Choices students make affect actual yearly costs. We hope students make choices that result in less spending–and less borrowing–than the budgeted amount. Some students have expenses which support an increase in the cost of attendance, such as costs for child care while a student or the student’s spouse is at work or at school. However, expenses for car payments and credit cards are not items that can be added to the cost of attendance.
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COST OF ATTENDANCE SAMPLE 1: STANDARD 2017-2018 STUDENT 9-MONTH BUDGET & AWARDS (Loans Only)* Full-Time
Part-Time
$49,720
$33,020
$100
$100
$49,820
$33,120
Full-Time
Part-Time
Books & Supplies
$2,350
$1,550
Transportation
$2,520
$2,520
Room & Board
$13,887
$13,887
$5,688
$5,688
Tuition (First Year) Fees
Living Expenses
Personal Expenses Federal Loan Fees
$1,301
$861
$25,746
$24,506
Full-Time
Part-Time
$75,566
$57,626
Federal Direct Unsubsidized Ford Loan
$20,500
$20,500
Federal Direct Graduate PLUS Loan
$55,066
$37,126
Total Cost of Attendance Amount you will need to borrow/fund:
*
The sample awards assume a student borrowed the full cost of attendance. However, you may borrow any amount up to the full cost.
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COST OF ATTENDANCE SAMPLE 2: STANDARD 2017-2018 STUDENT 9-MONTH BUDGET & AWARDS (Loans & Scholarships)*
Tuition (First Year) Fees
Living Expenses Books & Supplies
Full-Time
Part-Time
$49,720
$33,020
$100
$100
$49,820
$33,120
Full-Time
Part-Time
$2,350
$1,550
Transportation
$2,520
$2,520
Room & Board
$13,887
$13,887
Personal Expenses
$5,688
$5,688
Federal Loan Fees
$1,301
$861
$25,746
$24,506
Full-Time
Part-Time
$75,556
$57,626
Pacific Law Scholarship**
$24,860
$16,510
Federal Direct Unsubsidized Ford Loan
$20,500
$20,500
Federal Direct Graduate PLUS Loan
$30,206
$20,616
Total Cost of Attendance Amount you will need to borrow/fund:
*
**
The sample awards assume a student borrowed the full cost of attendance. However, you may borrow any amount up to the full cost. The Pacific Law Scholarship is a performance-based scholarship; recipients must maintain an annual GPA in the top half of the class.
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REDUCE BORROWING
WAYS TO REDUCE BORROWING Living in Sacramento is less expensive than in California’s metropolitan coastal areas. Additionally, small changes can make a real difference in limiting the amount borrowed–the amount which ultimately must be paid back with interest over a period of years. Cost saving examples include: • having a roommate • cooking at home rather than eating out • foregoing cable television • limiting social engagements to less expensive activities • driving a reliable used car (with a lower insurance premium) • working part-time • limiting the use of high interest credit cards Having a roommate with whom to share costs of rent and food can significantly lower academic year expenses. The example below shows how you could save $557 per month by having just one roommate and cooking most meals at home rather than eating out.
Expenses Rent & Utilities
(including telephone)
Food
Without Roomate
With Roomate
Per Month
Estimated Savings
$860
$585
$275
$218
$282
Per Month
$500
(frequent meals “out”)
(most meals “at home”)
$557
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REDUCE BORROWING
MORE IDEAS TO REDUCE BORROWING
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Ask for cash rather than gifts for birthdays and holidays. It may reduce your fun and the surprise of a gift, but where are you going to put the stuff anyway? Or ask for things you need: computer paper, clothing, a laptop, cooking utensils, a gift certificate for meals out.
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Drive a reliable economical used car, which has a lower insurance premium, and better-than-average gas mileage. Car insurance for a new, rather than used, car for a driver under 25 can cost $100 more per month.
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Loans from parents or other family members who are able to provide funds at low or no interest (with repayment deferred until after graduation) could significantly reduce total loan repayment amounts.
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Reconsider monthly clubs, i.e. Netflix, Spotify and satellite radio. You are going to be too busy to keep up and you will be obligated to pay for items you may not even want. Returning unwanted items within the time allowed is unlikely when every spare minute you have is spent studying.
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Pay off your credit cards and don’t buy things you can’t pay for with cash. Credit card interest ranges between 10% and 30%.
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Car pool. This not only saves on the cost of maintaining your car but saves on gasoline. And it helps the environment!
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In good weather, plan to ride a bike to school. Studying requires exercise to reduce stress. Riding a bike saves the cost of an expensive exercise club.
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REDUCE BORROWING
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Look beyond your first year to the cost of a bar review course for the bar examination after graduation. Pre-pay for a bar review course (at a lower cost) or, better still, try to get hired as a bar review representative. For a few hours a week at a table in the Student Center, you may get a free bar review course! The fees and interest rates for the bar exam loans are higher.
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Buy your casebooks new, but buy hornbooks used. Better still, use the hornbooks available in the Library, or share one with a study buddy.
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Buy binder and computer paper, pens, highlighters and other supplies in bulk and share the cost with your study group. Buying in bulk results in big savings!
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Gotta have ice cream? Buy cones and ice cream by the half gallon at the supermarket and share the cost with your roommate or study group. This is far less expensive than buying it by the cone. Check Groupon and Living Social.
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Try take-and-bake pizza instead of having home delivery! Take-and-bakes cost around $10.00 for a large rather than $23 plus a delivery charge and tip.
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Ever been “thrift shopping”? Google search “thrift shops in Sacramento” or “used clothing”. Thrift shops are everywhere and designer items can often be purchased for $2 instead of $200.
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EMPLOYMENT
TO WORK OR NOT TO WORK Work-study positions may be available on-campus in the library, computer lab, career development office, alumni, admission, marketing offices, and media resources department. Upper-division students may wish to seek legal employment off-campus under the work-study program or in a law office. Because McGeorge is located in the state capital, many of the various state departments with legal divisions hire students in work-study or in graduate legal assistant positions, which may carry benefits and reduce costs for health insurance. Many upper-division students are offered research positions with faculty. While these positions may pay less than off-campus employment, there are educational as well as resumĂŠ benefits.
PART-TIME PROGRAM The part-time program is structured to permit students to be employed full-time while pursuing a J.D. degree. Most students take 8-10 units per semester over the course of four years, including summer school. Summer school is an additional perunit cost. Some students complete an accelerated three-and-a-half-year program. With a lighter course of study, many students can limit borrowing to the cost of tuition and continue to meet their living expenses through employment income.
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INFORMATIONAL RESOURCES QUESTIONS ABOUT McGEORGE SCHOOL OF LAW: Financial Aid Admissions
916.739.7158 916.739.7105
TO ORDER YOUR CREDIT REPORT: Equifax 800.685.1111 equifax.com Trans Union 800.888.4213 transunion.com Experian 888.397.3742 experian.com It is recommended that students who plan to apply for Graduate PLUS loans, which require credit-worthiness, order a copy of their credit report to review its contents. You can get one free copy of your credit report each year at www.annualcreditreport.com.
ADDITIONAL FINANCIAL AID INFORMATION: mcgeorge.edu Click on Financial Aid then “Financial Aid Resources” finaid.org Comprehensive financial aid information. finaid.org/scholarships/ (Scholarship and fellowship databases.) finaid.org/questions/reference.phtml (An annotated bibliography of books about financial aid.) fastweb.com (A scholarship service based on profile information.)
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CHECKLIST
APPLICANT RECORD FOR FINANCIAL AID Date Submit application for admission Complete admissions file (CAS/LSAT Report) Submit FAFSA on the website to Federal Processor by priority deadline March 1, 2018.* (School Code - 001329) Receive offer of admission Accept admissions offer and pay first tuition deposit Receive Financial Aid Award package Accept awards on InsidePacific Complete entrance counseling per instructions in Award Packet Receive email from Financial Aid Office with instructions to complete Master Promissory Note(s) Receive financial aid *
If you are wait-listed, you should still complete the FAFSA.
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NOTES
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FINANCIAL AID OFFICE McGeorge School of Law, University of the Pacific 3200 Fifth Ave., Sacramento, CA 95817 TEL: 916.739.7158 FAX: 916.739.7162 EMAIL: finaid@pacific.edu WEB: go.mcgeorge.edu/financialaid
Rev. 8-2017