How fee increases will impact students

A portion of the revenue from the new fee increase will go directly back into financial aid. Financial aid will therefore significantly increase, mitigating the impact of the fee increase on financially needy students and preserving access to the University for students.

In general, financially needy undergraduates from families with annual incomes of $60,000 or less who applied by the March 2 financial aid priority deadline will not pay any fee increases. UC will include a UC Fee Grant or Cal Grant that offsets increases in mandatory systemwide resident fees in the aid packages of such students.

In general, other financially needy students from families with annual incomes up to $90,000 will receive a grant to cover a portion of anticipated fee increases. Students can apply for a partial UC Fee Grant by filing the FAFSA before October 15, 2003.

Students from all income groups who encounter extraordinary financial difficulties will be considered on a case-by-case basis for a reassessment of their financial aid eligibility. Those who are determined upon review to have sufficient need will receive a UC Fee Grant to offset a portion of increases in mandatory systemwide fees.

The result: UC’s strong financial aid programs will cover fee increases for approximately 40 percent of all UC undergraduates.

Many middle- and upper-income parents also can get help to cover fee increases. Those who already benefit from federal tax credits such as the Hope and Lifetime credits (which currently range in value from $800 to $3,000) may see them increase slightly to cover a portion of the increase. Scholarships and parent loans also are available to families in all income groups.

UC students received more than $1.3 billion in financial aid in 2001-02, with more than half in the form of grants or scholarships. Two out of three UC students receive some form of financial aid. Grants, scholarships and fellowships, which are “free money” and do not need to be paid back, have increased dramatically in recent years. In 1990-91, UC students received less than $300 million in grant money, compared to nearly $730 million in 2001-02.

Undergraduate financial aid recipients are also expected to make a contribution to their educational expenses from earnings and borrowings. The goal of the University’s financial aid program is to keep the expected contribution manageable so students can make steady progress toward completion of their degree and meet their loan repayment obligations after graduation.