EstimatedimpactofatuitionadjustmentonUCstudentsandfamiliesandtheroleof
financialaid
FinancialaidhelpsstudentsandtheirfamiliescoverthetotalcostofattendingtheUniversityofCalifornia.Thatgoes
beyondtuitionandfees.Itincludeshelpwithhousing,food,booksandothereducationalexpenses.Lastyear,UC
undergraduatesreceivedmorethan$540millioninUC,federalandstategrantstohelpcovertheircostoflivingwhile
attendingtheuniversity.ThisreducestheamountthatstudentswouldotherwisehavetoborroworearnthroughparttimejobstofinancetheirUCeducation.
One-thirdofallnewtuitionrevenueissetasidetofundUC’srobustfinancialaidprogram.Becauseofthis,California
undergraduateswhocurrentlyreceiveneed-basedgrantswillhaveanytuitionadjustmentcompletelycovered.Infact,
mostofthesestudentswillseetheirfinancialaidawardsrisebymorethantheamountofanyincrease.That’sbecause
increasesintuitionandthestudentservicesfeealsoincreasethepooloffundsavailableforfinancialaid.Thechart
belowshowstheeffectthatatuitionadjustmentof$282,andastudentservicesfeeadjustmentof$54,wouldhaveon
typicalUCfamilies.Programsfundedbythestudentservicesfeeincludestudentmentalhealthservicesoncampuses.
Changesinfinancialaidwiththeproposedtuitionandfee
adjustment(estimatesforCaliforniaresidentundergraduates)
$1,374
$1,032
$500
$500
$500
$336
$336
$336
$336
$336
$336
Independent
$40,000
$80,000
$120,000
$140,000
$160,000
TuitionandFeeAdjustment
ParentIncomeLevels
UCGrant/CalGrant
MiddleClassScholarship
Whydoundergraduateseligibleforneed-basedfinancialaidreceiveadditionalaidthatcoverstuitionadjustments
andhelpspayforothereducationalcosts?
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FortypercentofCaliforniaundergraduatesreceiveCalGrants,whichautomaticallyincreasewhentuitiondoes.
One-thirdofeverydollarfromatuitionadjustmentissetasideforfinancialaid.Iftuitionrises,sodoesthepool
offinancialaidfunds.Thispoolisenoughtofullycoverthetuitionadjustmentforanadditionalone-quarterof
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studentsandallowstheuniversitytodistributeevenmoreaidtoitsstudentswiththegreatestfinancialneed.
Includingtheproposedadjustments,UCundergraduateswillreceivemorethan$540millionnextyear,$250
millionofwhichisdirectlyfromUC,forexpensesaboveandbeyondtuitionandfeessuchashousing,food,
booksandtransportation.NonresidentstudentsalsocontributetoUC’spooloffinancialaidfunds,which
supportsCaliforniastudents.
WhydoMiddleClassScholarshiprecipientshavetheirtuitionadjustmentcovered?
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Thankstohistoriclegislationaimedatmakinghighereducationmoreaccessible,theMiddleClassScholarship
programappliestoundergraduatestudentswithfamilyincomesupto$150,000.
MiddleClassScholarshipawardsareapercentageoftotaltuition,whichmeanstheawardsautomaticallycover
aportionofanytuitionadjustment.
Theprogramcontinuestobephasedinfrom75percentimplementationin2016-17to100percent
implementationin2017-18.Therefore,awardswillincreaseforallrecipientsnextyear,regardlessoftuition
changes.
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