FAQ for USC Financial Aid

Colleges and Universities A-Z University of Southern California
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<p>Every year the same financial aid questions are asked over and over. I thought I would start a thread to consolidate those answers in one thread. Feel free to add information, ask more questions, and correct anything here about which I am mistaken. Especially correct my mistakes, please!</p>

<p>First question:
- alamemom, what qualifies you to answer questions about financial aid?</p>

<p>Nothing. I am unqualified.</p>

<p>- Then why should we listen to you?
You shouldn’t.</p>

<p>Verify and double-check everything you see here with the source or with USC Financial Aid. I will try to include links whenever possible, and make it clear when I am only offering an opinion. All of my knowledge on the subject comes only from my personal experiences as an undergraduate student and a graduate student going through the financial aid process (at other universities), and as a parent of a current USC student who receives financial aid. I have found the book: **“Paying for College Without Going Broke” by Kalman A. Chany from the Princeton Review Series **to be invaluable. I recommend everyone hoping to receive need-based aid get a current copy.</p>

<hr>

<p>FAQ for USC Financial Aid
USC Financial aid information: USC</a> Financial Aid</p>

<p>- How do I apply for financial aid?</p>

<p>You must fill out the CSS/Profile CSS/Profile</a> - student financial aid application and the appropriate FAFSA FAFSA</a> - Free Application for Federal Student Aid by the deadlines. For Fall 2010 admission, use the 2010-2011 FAFSA. California residents must also submit GPA verification for Cal Grant (most California high schools do this automatically – check with your high school registrar to be sure).</p>

<p>You must also submit (FAX or mail) copies of parent and student tax returns as soon as they are filed. Those not required to file taxes must submit a non-filing statement form. Parent: <a href="http://www.usc.edu/admission/fa/private/docs/1011/NFSP201011.pdf%5B/url%5D"&gt;http://www.usc.edu/admission/fa/private/docs/1011/NFSP201011.pdf&lt;/a> Student: <a href="http://www.usc.edu/admission/fa/private/docs/1011/NFSS201011.pdf%5B/url%5D"&gt;http://www.usc.edu/admission/fa/private/docs/1011/NFSS201011.pdf&lt;/a> </p>

<p>- What are the deadlines?</p>

<p>File the CSS/Profile and FAFSA on or before February 2, 2010. USC</a> Financial Aid - Applying & Receiving Financial Aid - Undergraduate - New Students The Cal Grant GPA verification must be received by the California Student Aid Commission on or before March 2, 2010.</p>

<p>Tax returns are due as soon as possible. You will not receive a financial aid package until you submit your tax return copies.</p>

<p>- My parents say they won’t have their taxes done by February 2nd. How can I file the FAFSA and CSS/Profile?</p>

<p>DO NOT MISS ANY DEADLINES. The CSS/Profile and FAFSA can be filled out and submitted on-time using your best estimates. After filing your taxes you will go back to the form, update it, re-submit it, and FAX in copies of your tax returns. If at all possible, this would be the year to get the taxes done early. Encourage your parents to get the book, “Paying for College Without Going Broke” by Kalman A. Chany from the Princeton Review Series, and read Chapter three. Parents should read through the book and take it along to any meetings with tax accountants to discuss some of the suggestions, especially those in Chapter 3 “Short-Term Strategies for Receiving More Financial Aid.”</p>

<p>- The financial aid forms are really complicated and confusing. Where can I get help?</p>

<p>The book : “Paying for College Without Going Broke” by Kalman A. Chany from the Princeton Review Series includes line-by-line instructions for filling out the FAFSA and the CSS/Profile. Get it. You high school may also have a “financial aid night” where they will go over the FAFSA. </p>

<p>- I heard that applying for aid will reduce my chances of admission. Is this true?</p>

<p>No, it isn’t true. USC is need-blind in admissions for domestic students. Applying for aid will not hurt your chances for admission.</p>

<p>-*** I still don’t believe you. I am not applying for aid because I don’t want them to reject me when they see I need $40,000 to attend.***</p>

<p>Again, USC is need blind. If you don’t apply for aid and ARE accepted, how will you pay? It will do you no good – even if you believe it will hurt your chances – to be accepted and then be unable to attend because of lack of money.</p>

<p>- I don't need aid this year, but I might in the future. I heard that if I don't apply for aid my first year, I can never apply for aid. Is this true?</p>

<p>USC is one of the few universities that accept applications for aid from all domestic students, even if they did not apply for aid their first year. You will be able to apply for and receive financial aid in future years even if you do not apply for aid your first year.</p>

<p>- My income is $XXXXX. How much aid will I receive?</p>

<p>I don’t know. USC Uses the CSS/Profile, the FAFSA and their own formula to determine your need. Income alone does not give the whole picture.</p>

<p>- Okay, my FAFSA EFC is $XXXX. Now can you tell me how much aid I will receive?</p>

<p>No. USC also uses the CSS/Profile which considers assets, such as home equity, that the FAFSA does not. Your USC-determined need may differ from your FAFSA-determined need.</p>

<p>- So if my parents own their home, I won’t get any aid?</p>

<p>Many homeowners receive financial aid. At most, just less than 6% of home equity is considered in financial aid calculations. I do not know if USC “caps” home equity. If anyone has a reliable source about whether USC caps home equity, please chime in.</p>

<p>- Does USC meet need?</p>

<p>USC guarantees to meet 100% of USC-determined need. They will determine your need using the CSS/Profile, the FAFSA and their own formula, so you may be expected to pay more than your FAFSA-determined EFC.</p>

<p>- I was awarded a USC scholarship! That plus my financial aid means I get a full ride, right?</p>

<p>Unfortunately, not in most cases. USC scholarships are considered resources in financial aid calculations. If, for example, a student has a USC-determined need of $40,000 and is awarded a Presidential scholarship of approximately $20,000. The scholarship is a resource and reduces the USC-determined need to $20,000. Aid will be awarded on the reduced amount.</p>

<p>- What about my outside scholarships? Are they worthless?</p>

<p>No, they are very valuable! Congratulations! In most cases* outside scholarships can be applied to the “self-help” portion of your need-based aid: Federal work/study and subsidized Federal Stafford or Perkins loans. After those have been fully replaced, outside scholarships will usually reduce your need- based USC grant. *There are exceptions – some students receive an overaward because of special circumstances and will have their grant reduced first. USC financial aid will be able to explain it fully if this occurs.</p>

<p>- Wow! I have a high EFC, but I got a HUGE USC grant! I am not complaining, but what happened – did they make a mistake?</p>

<p>A mistake is always possible, but it is more likely that you have a sibling who is also an undergraduate. When a family has more than one child in college in undergraduate programs, the EFC is spread between the students. It is not “split in half,” as each student will have a self-help portion that may include loans, work/study, and summer earnings, but it is a BIG financial benefit to have more than one in college at a time.</p>

<p>It is such a big benefit for families with relatively high EFCs that if students are within a year or two of each other it may be a good idea to take a “gap” year to maximize the number of years with two undergraduates.</p>

<p>It is VERY important to remember that the benefit disappears when the older sibling graduates – even if they continue in graduate school. There were some students last year who’s siblings graduated and they were shocked when their USC grants disappeared.</p>

<p>- Okay, I filed all my forms before the deadlines and FAXed in my tax returns. What kind of aid will I get?</p>

<p>USC uses the CSS/Profile and their own formula to award USC grants.</p>

<p>USC uses the FAFSA to distribute Federal aid. Federal aid includes (but is not limited to) Pell Grants, Perkins Loans, Stafford Loans, PLUS loans and Federal work/study. </p>

<p>Stafford subsidized loans: $3,500 Freshman year, $4,500 sophomore year, and $5,500 junior and senior years. There are no payments or interest on these loans until 6 months after you graduate or leave college. </p>

<p>Stafford unsubsidized loans: $2,000 per year. These loans accrue interest from the time they are disbursed, but no payments are due until 6 months after you graduate or leave college. If your parents are denied a Federal PLUS loan you are eligible for an extra $4,000/year Stafford unsubsidized loan.</p>

<p>Federal work/study: a job. If you are awarded work/study you will have to apply for jobs when you arrive on campus. The salary will be paid to you. If you need these funds to pay your tuition/room/board you may have to sign up for the monthly payment plan.</p>

<p>Pell Grants: When you file your FAFSA you will find out if you are eligible for a Pell grant.</p>

<p>PLUS loans: These are parent loans offered to help parents pay the expected contribution. They are available up to the cost of attendance minus any financial aid/scholarships awarded. Parents must qualify for these loans. PLUS loans are typically offered in the amount of your USC-determined expected family contribution.</p>

<p>- If my package includes loans and grants, do I HAVE to take the loans?</p>

<p>No, you can accept some parts of your financial aid package and choose not to accept others. Only take loans if you absolutely need them.</p>

<p>- My parents say they won’t pay a penny for me to go to USC. Can I just file as independent?</p>

<p>No. Financial aid is based on how much your parents *could *pay, not on how much they are *willing *to pay. </p>

<p>- The FAFSA says my parents have to pay $20,000. How do I make them give that money to me so I can go to USC?</p>

<p>The FAFSA is just a need-analysis from. Your parents are under no obligation to pay anything toward your education unless they want to.</p>

<p>-alamemom, I know you told me not to miss any deadlines, but I did. Now what do I do?
Get off of College Confidential and file the forms!</p>

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<p>If anyone else has financial aid information, please chime in. I will once again recommend the book : “Paying for College Without Going Broke” by Kalman A. Chany from the Princeton Review Series.</p>

<p>Good luck!</p>

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<p>This is great. Sticky the thread, moderators? Thanks alamemom!</p>

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<p>Good job alamemom! This definitely should be stickied! Thanks :)</p>

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<p>- Huh? What do you mean by “Home equity?” If my parent’s house is worth $200,000, USC will expect almost 6% of $200,000??? But we owe $250,000 on it! We can’t do that!</p>

<p>Home equity is the value of your home MINUS all mortgages. If your home is worth $200,000 and you owe $250,000, you do not have home equity, and it will not be assessed for financial aid purposes.</p>

<p>If your home is worth $300,000 and you owe $250,000, your equity is $300,000 - $250,000 = $50,000. Your parents at most might be expected to contribute about $2,800 based on home equity. There are asset protection allowances based on family size, age of your parents, and other factors that would mean it is possible there would be no contribution from $50,000 of home equity.</p>

<p>- We live in an area where home prices have dropped dramatically, will USC believe me when I say my house is worth $100,000 less than it was four years ago?</p>

<p>USC is in California, and the financial aid officers live in California. California is one of the regions hit hardest by the drop in home values over the last few years. They are painfully aware of the drop in home prices. </p>

<p>- How do I prove what my home is worth? Do I have to have it appraised? Isn’t that expensive?</p>

<p>I know of no requirement to have your home professionally appraised. An easy way to estimate the current value of your home is to talk to a local real estate agent. Ask them for a list of recent sales of homes similar to yours is your area. An average of those sales is a good starting point. Please be sure you tell the real estate agent why you need the information! Do not mislead them into thinking you are selling your home and ask for a comparative market analysis. Many real estate agents will be happy to help out in the hopes that you will return when you DO plan to sell.</p>

<p>Keep the list of recent sales in your financial aid file. The financial aid forms ask for the purchase year and price, and USC will use that information too see if your value estimate is reasonable. If they ask about it later in the process you will have your recent sales list - from the time you filled out the forms - to send in.</p>

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<p>alamemom: great job. I would change one thing. You are qualified to answer questions after going through the process as a student and parent (and reading the book). </p>

<p>Having gone through it last year with my son (also a freshman at USC), I agree with all your comments.</p>

<p>For everyone: Like anything, verify with financial aid experts, if possible. And: just because your parents make $xxxxx in income, don’t say I will not get any aid. You won’t get anything if you don’t apply for aid. The worst that can happen is they say no, you get $0. You would get that anyway without applying. You never know.</p>

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<p>- I got a $500 local scholarship, do I have to tell USC?</p>

<p>Yes, you must inform them of all scholarships, even those paid directly to you. Most scholarship sponsoring agencies will send scholarship checks directly to your school, so in many cases this will not be an issue. </p>

<p>You do not, however, have to tell them right away. You might want to wait until all scholarships notifications have been received and all financial aid packages awarded. If you inform schools of a $2,000 outside scholarship before they have put your package together, they may consider it a resource and simply give you $2,000 less in a need-based grant. After you receive your acceptance and financial aid package in April, but before you confirm your enrolment, send all your school a list of your outside scholarships and copies of the award letters. Ask them (nicely) if they can reduce the self-help portion of your package with the scholarships.</p>

<p>***- Wait, if I get outside scholarships I will LOSE my subsidized Stafford loan and Federal work/study??? But I need those! ***</p>

<p>Your outside scholarships can *replace *your subsidized loans and work/study. If you win a scholarship for $2,000, that means you would USE that $2,000 and NOT take out $2,000 of your subsidized Stafford. Less debt is a good thing! When it replaces work/study, that means you have the $2,000 for your tuition, but you don’t have to WORK 10 hours a week - you can use that time to study (or party, or sleep, or check your facebook…). It is a *good thing *to have your self-help replaced. The only other option is to reduce your need-based grant, but that is FREE money! Keep the grant whenever possible.</p>

<p><a href=“http://www.usc.edu/admission/fa/grants_scholarships/undergraduates/outsideusc.html[/url]”>http://www.usc.edu/admission/fa/grants_scholarships/undergraduates/outsideusc.html&lt;/a&gt;&lt;/p&gt;

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<p>- My parents make $XXXXXX per year, but we have a lot of debt. After we subtract all the car loans, credit cards, and other loans, we only have a little bit left. I’ll get lots of financial aid, right?</p>

<p>Unfortunately, consumer debt will not result in more financial aid. The only debts considered in financial aid calculations are those against a reportable asset (such as a mortgage on a second home). Consumer debt is not considered.</p>

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<p>- My friend told me that transfer students get really bad financial aid when they transfer to four-year universities. Is this true at USC?</p>

<p>USC guarantees to meet 100% of USC-determined need* for all accepted students. This includes transfer students. You will receive the same aid you would have if you entered as a freshman. If you received a Cal Grant at your previous college, you will have to request to have it transferred to USC <a href=“CSAC - Unavailable”>CSAC - Unavailable; .</p>

<p>**The USC-determined need is figured using the CSS/Profile, the FAFSA, and USC’s own formula and may differ from your FAFSA-determined need.*</p>

<p>- When are the financial aid deadlines for transfer students?</p>

<p>The deadlines appear to be the same for transfer students as freshman applicants [USC</a> Financial Aid - Dates & Deadlines](<a href=“http://www.usc.edu/admission/fa/dates.html]USC”>http://www.usc.edu/admission/fa/dates.html)</p>

<p>- But my application for admission wasn’t even due until February 1st! I thought the financial aid deadline would be later, too - I already missed the deadline! What do I do?</p>

<p>Get off of College Confidential and file the forms!</p>

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<p>This is fantastic topic!</p>

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<p>- Is financial aid at USC “first-come-first-served?” If I file my FAFSA and CSS/Profile on time but near the deadline, will I get less aid than those who filed January 2nd?</p>

<p>No, if you file the FAFSA and CSS/Profile before the deadline, you will get the same aid regardless of when you submitted (as long as it is by the deadline). It is a good idea to start the forms well in advance of the deadline so if you need more information or if your computer crashes you will still be on time. If you haven’t already, file NOW for a FAFSA PIN - it may take a few days to get it.</p>

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<p>When I fax the copies of my parents’ tax returns, do I send the copies to USC? Would I need to do that with the other schools i applied to?</p>

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<p>

Yes, FAX them to USC financial aid. (USC does not use the CSS IDOC service.)</p>

<p>I do not know if your other schools will require tax returns. Check the financial aid websites carefully.</p>

<p>Good luck!</p>

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<p>Thanks Alamemon></p>

<p>Should parents report the student grants and scholarship aid given by USC in 2009 to the IRS in the AGI? Fafsa line 44d-and 92d. Is this the rule or there are exceptions?</p>

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<p>Yes, you will need to report the scholarships and grants. USC will be reporting them to the IRS. Log into your Oasis account <a href=“https://camel2.usc.edu/OASIS/Login.aspx[/url]”>https://camel2.usc.edu/OASIS/Login.aspx&lt;/a&gt; and click “1098T (ECSI)” which appears at the bottom of the “Financial Information” box on the right. Once you are in the ECSI system click on “Tax Information” and you can print out your 1098T for your tax returns. That will give you the total scholarships and grants to report (box 5), as well as qualifying charges (box 2) for your taxes to see if you qualify for any of the education tax credits.</p>

<p>If the scholarships and grants amount is greater than the qualifying charges amount, your student may have to pay income taxes on the difference.</p>

<p>*Our 1098T for 2009 has not yet appeared, so keep checking!</p>

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<p>I know I need to finish the fafsa and the css profile by feb 2, but do my parents need to finish their tax returns by feb 2? Or can they estimate from the 2008 tax return and then send the 2009 tax return to USC when it’s done?</p>

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<p>Your parents can use estimates from their 2008 returns. Once they have done their 2009 returns, you can go back to the FAFSA site and amend it with new numbers, and resubmit.
This cannot be done with the CSS Profile though, in this case you can correct the numbers by hand on a copy and send that to USC.
It’s normal and common to do the preliminary FAFSA and Profile with the previous year’s estimates.
Later on, USC will request copies of the 2009 returns.</p>

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<p>If I submit the fafsa and css profile by feb. 2, but haven’t sent in my parents and my tax return or edited the fafsa, does that mean it is late? If I edit my fafsa after the USC deadline of feb. 2, will that change count?</p>

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<p>

No, it won’t be late. The deadline for the FAFSA and CSS/Profile is Feb. 2nd, and both may be submitted using your best estimates. The tax return copies are due “By March 2nd, or as soon as possible thereafter,” but if your parents are unable to file by then, it will be okay. Filing your taxes as early as is possible is an advantage because you will want to know your financial aid package before you have to decide where you will attend. If your parents wait to file until April 15th, it is not a problem in terms of receiving your financial aid - you can submit the tax return copies and receive your full financial aid package, but you may not know the details until after the May 1st deadline to submit your commitment deposit. If this occurs, contact all the schools you are considering to ask for an extension until all your financial aid packages are received. Most schools will grant those extensions.</p>

<p>

Updating your FAFSA after February 2nd is fine, and yes, that change will count.</p>

<p><a href=“http://www.usc.edu/admission/fa/applying_receiving/undergraduates1/newstudents.html[/url]”>http://www.usc.edu/admission/fa/applying_receiving/undergraduates1/newstudents.html&lt;/a&gt;&lt;/p&gt;

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<p>so does everyone get this notification or is it like a certain group with more potential to get in or what?</p>

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<p>

You do not mention what “notification” you are referring to, but all applicants receive correspondence about financial aid. Receiving a brochure, letter or email about financial aid does not indicate anything about admissions decisions.</p>