UC Santa Barbara Policy 4430
Policies
Issuing Unit: Student Affairs Date: February 1, 1985
APPLICATION FOR
AND AWARDING OF FINANCIAL AID
I. PURPOSE AND SCOPE:
This procedure defines the purpose of the Santa Barbara Financial
Aid Program; provides an outline of application, review, and
notification; and includes brief descriptions of the types of aid
available. Certain types of financial aid described in this
procedure are available to both graduate and undergraduate students,
others to undergraduates only. Information concerning other finan
cial assistance available to graduate students, such as Fellowships
and Grants, may be obtained from the Graduate Division.
II. REFERENCES:
A. Policies and Procedures Governing Deferral of University of
California Educational Fee, issued by the Office of the Vice
President, Educational Relations, dated March 30, 1970.
B. Student Financial Aid Handbook, issued by the Office of Education
of the Department of Health, Education, and Welfare.
C. Assistant Vice President Shepard's memorandum regarding the
Regents' Scholarship Program, dated February 28, 1969.
D. Chancellor Cheadle's memorandum regarding the Chancellor's
Scholarship Program, dated June 23, 1972.
III. PROCEDURE:
A. Financial Aid Program:
The primary purpose of the University of California, Santa Barbara,
Financial Aid program is to provide monetary assistance to
students who would be unable to pursue their education at the
University without such help. In determining the type and
amount of assistance, it is assumed that the student and his
family will make a maximum effort to meet expenses. Financial
assistance provided through the programs administered by
Student Financial Services is intended to supplement the
resources of the applicant and his family.
B. Application:
1. The application, known as the Student Aid Application for
California (SAAC) is available from Student Financial
Services, usually in December of the year prior to the
academic year for which aid is requested. The SAAC allows
the student to apply for the aid directly from Student
Financial Services, the Pell Grant, and the several pro
grams administered by the California Student Aid
Commission in Sacramento.
2. In addition to the SAAC, a copy of either the student's or
parent's federal income tax form 1040 may be requested by
Student Financial Services.
3. Filing dates are published in the UCSB Financial Aid
Application Instructions. The postmark deadline for the
Regents' Scholarship is in early February and normally
coincides with the postmark deadline for initial Cal
Grants which are sponsored by the California Student Aid
Commission. March 15 is the postmark deadline for priority
consideration for UCSB need-based aid including all
scholarships except the Regents' Scholarship. Applications
postmarked after March 15 are subject to the availability
of funds.
C. Notification:
Award letters notifying applicants of the aid they are offered
are mailed in the spring quarter for on-time applicants. Late
applicants receive notification that they have missed the
priority funding deadline and will receive an award only if
funds become available during the year.
D. Revision:
A recipient's original offer of aid may be changed whenever the
resources available to meet the cost-of-education increase or
decrease.
E. Types of Awards:
Regent's Scholarships (basic application required by early
February deadline).
1. Students are eligible for Regents' Scholarships upon
graduation from high school or upon completion of the
sophomore year at any accredited institution.
2. Recipients of Regents' Scholarships are selected only on
the basis of demonstrated academic excellence and
exceptional promise.
3. All Regents' Scholarship applicants must submit an
autobiographical essay and booklist with their
application. (Details are outlined in the application.)
4. The dollar amount of each Regents' Scholarship award is
based on the student's financial need. Awards may be
honorary in nature or may carry a stipend to cover the
difference between family resources and the yearly
standard cost of education at the University. All Regents'
Scholars receive a one-time honorarium of $300,
irrespective of financial need; applicants without
significant financial need may specify on their
applications their desire to be considered for a Regents'
Scholarship with honorarium only.
5. The term of application for Regents' Scholars is four
years for students entering from high school; two years
for students appointed in the sophomore year.
F. A Regents Scholarship may be terminated at the discretion of
the Chancellor or his designated representative if the
recipient does not maintain at least a 3.0 grade point average
in courses taken at the University.
1. University of California, Santa Barbara Scholarships.
a. Various Scholarships are made possible by funds
provided by individual donors, private corporations
and agencies, alumni associations, and The Regents of
the University.
(1) Most UCSB Scholarships are open to all
undergraduate students on a competitive basis.
Although some are restricted by the donors to
recipients who meet given criteria (e.g., to
students majoring in education), students should
not apply for any specific scholarship, but
should indicate on the application form all the
listed qualifications which the can satisfy.
(2) Awards are granted on the basis of scholastic
achievement, financial need, and academic
promise.
b. Scholarship awards vary in amount. When established
financial need exceeds the amount awarded,
supplemental assistance may be offered in the form of
grants, loans, or part-time work under the Work-Study
Program.
c. With the exception of the Regents' award, all
scholarships are awarded for one year; financial
assistance for succeeding years will depend upon the
student's academic performance in the University and
his continued financial need following submission and
review for a new application. A 3.0 grade point
average in the University is generally required for a
recipient to be considered for awards after the first
year.
3. University of California Grant.
To qualify for the University of California Grant Program,
established in 1968 by the Regents of the University,
students must be enrolled in a minimum of 6 units for
undergraduate students or the half-time equivalent for
graduate students. Awards are based on financial needs.
4. Supplemental Educational Opportunity Grants (SEOG).
Eligibility for SEOG is limited to undergraduate students.
Awards are based on financial need.
5. Work-Study Program.
a. The Work-Study Program enables the University to
offer employment to financially needy students. Funds
for positions administered under this program are
provided on a percentage matching basis by the
federal governments and the University. The
percentage charged to the federal government cannot
exceed 80 percent.
(1) Jobs offered under the Work-Study Program are
not to be confused with those offered through
the Student Placement Center.
(2) Employment under the Work-Study Program is
limited to students having a demonstrated
financial need which is determined by filing of
the basic Financial Aid Application (SAAC).
b. Departments will be requested periodically to inform
Student Financial Services of any job openings
suitable for Work-Study employees. Applicants for
financial aid who are eligible will be referred to
departments for interviews; the decision to hire
Work-Study employees rests with departments.
c. See also UCSB Policies Manual, Policy 4460 and Policy
4465, related to the Work-Study Program.
6. Long-Term Loans.
a. Filing of the basic application enables the applicant
to be considered for any long-term loans for which he
may prove eligible. The National Direct Student Loan
(NDSL) receives primary use in this category.
b. A long-term loan is one in which interest of from 3
to 5 percent begins to accrue 6 to 9 months after
leaving school; repayment is made on a selected plan
(usually quarterly) over a period from 5 to 10 years.
In certain instances, deferment of repayment is made
for service in the Armed Forces, VISTA, or the Peace
Corps, and for the NDSL there is a forgiveness clause
for those who enter teaching or serve in the Armed
Forces.
c. Specific details about the individual loans may be
obtained from Student Financial Services.
d. American National Education Corp (ANEC) in Chicago
handles collection of the long-term loans. Students
are required to have an exit interview with Student
Financial Services when they are graduating or
leaving the University of California, Santa Barbara.
7. Educational Fee Deferment Loan.
On February 20, 1970, The Regents established the
Educational Fee, applicable to all registered students for
the academic year, as follows:
Undergraduates-- $100 per quarter.
Graduates-- $120 per quarter.
These fees have been increased from the original amounts
over the years. The Regents provided that, under specific
terms and conditions to be recommended by the President
and adopted by The Regents, California residents with
demonstrated financial need may defer payment of the
Educational Fee. Spring Quarter, 1983, was the last
quarter in which Educational Fee Deferment Loans were
issued.
a. Terms and Condition of Fee Deferment Loans
A student who defers the Educational Fee shall be
required to execute a promissory note to repay the
amount deferred, in accordance with the following
terms and conditions:
(1) Each student who has deferred payment of the
Educational Fee shall be required to begin
payment thereof 6 or 9 months subsequent to the
completion of his higher education; a student's
higher education may include graduate study not
to exceed 4 years. A student who terminates his
higher education shall be required to begin
payment 6 or 9 months subsequent to the date of
termination of his enrollment in an accredited
institution of higher education.
(2) The repayment period beginning as specified in
(1) above shall not exceed 10 years. The note
will bear interest at the rate of 3 or 4 percent
per annum during that period and the minimum
annual payment shall be $120 plus interest.
(3) In the case of a student who is under 18 years
of age, a co-signer shall be required, and said
co-signer shall ordinarily be a parent of the
student. A promissory note signed by a married
student shall require the co-signature of the
spouse.
(4) Students who defer the Educational Fee may elect
to postpone the repayment schedule in whole or
in part for a maximum of 4 years while serving
on active duty in the Armed Forces of the United
States or with the Peace Corps or VISTA.
(5) Payment of the entire amount of principal and
accrued interest may be made at any time at the
option of the person executing the note.
(6) In the event of death or total and permanent
disability, the unpaid indebtedness shall be
canceled.
(7) In the event of default of any amount due and
payable, the entire amount, including interest,
shall become due and payable.
8. Teaching Assistant Loan.
Teaching Assistants, or the various titles related by
function and financial circumstance to teaching assistants
(excluding readers), may borrow up to one month's salary
during the period between their arrival on campus (not to
exceed 30 days prior to the opening of classes) and
receipt of their first salary check. The loans are repaid
within three months and bear one percent per quarter
interest.
9. Non-University Assistance.
a. Cal Grant A:
(1) These funds are administered by the California
Student Aid Commission and can apply only to
compulsory fees charged by the University. These
scholarships (undergraduate) and fellowships
(graduate) are based on demonstrated need plus
academic and performance on SAT tests or Gradu
ate Record Examination.
(2) Eligibility for these awards and deadlines
concerning application are controlled by the
California Student Aid Commission. The
University of California, Santa Barbara assists
the student by providing the application forms.
(3) There are three categories of students served by
this program.
(a) Entering High School Student.
This student applies as a senior in high
school through his high school counselor in
October of the year previous to the
academic year in which he enters the
University. Application is available at the
high school.
(b) Continuing University of California, Santa
Barbara Student.
This student applies in the year previous
to the academic year in which he requires
assistance. Application is available at
Student Financial Services.
(c) Graduate Student.
This student applies in the year previous
to the one in which he requires assistance.
b. Pell Grant:
This federal program provides grant money for
educational expenses to qualifying students who have
not yet received a bachelor's degree. Maximum awards
depend upon the cost of education at the school the
student attends. Application is made on the Student
Aid Application for California (see III.B., page 2)
or the Application for Federal Student Aid.
c. Federally Insured Student Loan Program (FISL):
The FISL program is no longer in operation; it has
been decentralized. Individual states may now enter
into an agreement with the federal government to par
ticipate in the Guaranteed Student Loan (GSL)
program. Therefore, FISL's are no longer available to
students.
(1) Under the authorization of the Higher Education
Act of 1965 and subsequent amendments, students
borrowed from participating lending institutions
to help pay their educational costs. Loans made
under this program are insured by the federal
government.
(2) Any student may apply for a loan who (a) is
enrolled and in good standing or has been
accepted for enrollment at the University of
California, Santa Barbara; (b) is carrying at
least one-half of the normal full-time study
loan; and (c) is a citizen or national of the
United States or in the United States for other
than a temporary purpose. Eligible undergraduate
students may borrow up to $2,500 per academic
year, with a $7,500 maximum for all years
combined. Graduates may borrow up to $10,000,
including undergraduate amounts.
(3) Although a loan may be prepaid at any time
without penalty, compulsory repayment begins not
later than 9 months nor later than one year
after the date of graduation or withdrawal from
school. When compulsory repayment begins, the
student will be required to pay a minimum of
$360 per year. Repayment may be deferred while
the borrower is a member of the Armed Forces, a
full-time volunteer in the Peace Corps or VISTA,
or for any period during which he returns to an
eligible school to pursue a full-time course of
study. The borrower is encouraged to make at
least partial payments during such periods or
deferments in order to reduce the principal
amount of the loan.
(4) Prior to the beginning of the repayment period,
the federal government pays to the lender the
interest on loans. Such payments continue or
resume during periods of deferment. During the
repayment period, the student is responsible for
the total interest. Students who do not qualify
for the federal interest benefits may borrow,
but they must pay all of the interest.
(5) A prepaid insurance premium of one-fourth of one
percent calculated on the amount of the loan for
the term of the in-school note will be collected
from the borrower or deducted from the proceeds
of the loan by the lender. This premium is paid
only once, and no refunds or adjustments will be
made.
d. California Guaranteed Student Loan (CGSL).
(1) This loan is available through the California
Student Aid Commission for students who need to
borrow money for postsecondary education. It is
made to qualified undergraduates, graduates, and
professional students. A student must be
enrolled on at least a half-time basis and
making satisfactory academic progress.
Applicants must be a citizen or permanent
resident of the United States or an eligible
non-citizen. Applicants must not be in default
on an educational loan or owe a refund on a
state or federal educational grant.
(2) A student must be a California resident or an
out-of-state resident attending an eligible
California educational institution. Students who
do not meet either of these two requirements may
apply to their state of residency for a loan
administered by their state.
(3) The interest rate varies from 7 to 9 percent.
The interest rate that is in effect when a
student receives their first CGSL will lock that
student into that interest rate for all
subsequent loans. Undergraduates may borrow up
to $2,500 each school year to a maximum of
$12,500 for undergraduate studies. Graduate
students may borrow up to $5,000 each school
year to a maximum of $25,000 including
undergraduate loans.
(4) No loan payment will be required while the
student is attending school on at least a
half-time basis and for a six-month grace period
thereafter. Interest on the loan is paid to the
lender by the federal government while the
student is enrolled in school. When the student
ceases to be enrolled at least half-time, a
six-month grace period begins. The grace period
is provided to allow the student to obtain
employment and to make preparation to repay the
loan. Regular payments begin after the grace
period and usually extend from five to ten
years, unless the required minimum of $50.00 a
month repays the loan more quickly.
(5) Two fees are deducted by the lender from the
loan check. An origination fee, equal to 5
percent of the loan amount, is credited to the
federal government to pay part of the interest
cost. An insurance premium, of one percent of
the loan amount for each year during the
in-school period plus one year, is used by the
state to reduce the expenses of guaranteeing the
loan. The student pays all the interest during
the repayment period.
e. California Loans to Assist Students (CLAS).
(1) The California Student Loan Authority was
created by the California Student Loan Authority
Act of 1980. The Authority is empowered to sell
tax-exempt bonds for the purpose of creating
capital for student loans. The proceeds are used
to make funds available for the California Loans
to Assist Students (CLAS) Program. This loan
program makes long-term loans available to
parents of dependent undergraduate students,
graduate students, and qualified independent
undergraduates for paying postsecondary
educational expenses. The annual interest rate
is 12 percent.
(2) To be eligible to borrow on behalf of the
student, "parent" is defined as an undergraduate
student's mother, father, legal guardian, or
adoptive parent.
(3) Students for whom a parent is borrowing, as well
as graduate and independent undergraduate
students, must be enrolled on at least a
half-time basis in a UCSB degree program.
Half-time is defined as six units per quarter
for undergraduates and four units for graduates.
The student must be in good standing and
maintaining satisfactory academic progress. A
parent borrower for the student for whom the
parent is borrowing must be a California
resident or the student must be attending an
eligible California educational institution.
Graduate students and independent undergraduate
students must be residents of California or
attending an eligible California institution.
The borrower and the student on whose behalf the
loan is intended must be a citizen of the United
States, a permanent resident of the United
States, in the United States for other than a
temporary purpose, of the Trust Territory of the
Pacific Islands or Northern Mariana Islands.
Neither the borrower nor the student for whom
the loan is intended can be in default or
delinquent on any Guaranteed Student Loan,
National Defense/Direct Student Loan, or owe a
refund on a Pell Cal Grant, Supplemental
Educational Opportunity Grant of a Cal Grant,
unless satisfactory arrangements have been made
to repay the loan on the grant program.
(4) Parents of dependent undergraduate students may
borrow up to $3,000 for each school year for
each eligible student with a $15,000 maximum for
each eligible student. Independent undergraduate
students may borrow up to $2,500 each school
year of combined GSL and CLAS loans with a
maximum of $12,500 combined GSL and CLAS loans.
Graduate students, regardless of dependency
status, may borrow up to $3,000 each school year
with a $15,000 maximum of CLAS loans.
(5) A borrower is charged an insurance premium of
three-quarters percent per annum on the
declining loan principle over the anticipated
life of the loan. The lender deducts the premium
from the loan check and it is used by the state
to help reduce the cost of insuring the loan.
(6) Student borrowers attending school full-time may
have payments of loan principle deferred;
however, monthly interest payments of loan
payments may be required. For school borrowers
attending school less than full-time or for
parent borrowers, monthly payments of principle
and interest are required to begin within 60
days. Monthly principle and interest payments
are required over a five- to ten-year period,
unless minimum monthly payments of $50 repay the
loan more quickly. Under certain conditions,
student borrowers may defer monthly principle
payments after leaving school.
Please direct questions about these policies to Meta.Clow@vcadmin.ucsb.edu. For questions or comments regarding the format of the above information, please contact webcontact@ucsbuxa.ucsb.edu.
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Last Modified By: EBH, 7/09/98