Just got rejected for requalification for cal grant...what are my options?

Paying for College
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<p>hey guys…this is my first post :)</p>

<p>I’m going to be a senior this year, and i’ve been getting cal grant B for all 3 previous years of my college career. This year, they said i couldn’t re-qualify because my family’s property asset is over 60k. I was a little confused, since this is a rental property, and we actually lose money each year from it. My counselor said it did not matter and that if the actual value of the property was more than 60k, then i would not re-qualify. This was weird since my sister who graduated from college in 09 received cal grant for all 4 years, and i have been receiving it for the past 3 years, and we have owned the same property for 20 years. I’m just in a state of shock right now. I’m still just a little confused as to why i’m being rejected. I’ve been relying on this cal grant for tuition my entire college career. My counselor said that loans will only cover about half the tuition cost next school year and that i need to come up with the rest of the money on my own. I really feel as if i got slapped in the face. I’ve been relying on the cal grant for 3 years and now i find out that not only am i getting cut, but loans aren’t even enough to cover just the tuition fee. I guess i’m in need of some advice. I feel as if my school’s financial aid department just pretty much threw me away. They weren’t really offering to do much except give me the bad news. I need some suggestions. Thanks.</p>

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<p>It sounds like you and your sis shouldn’t have been getting Cal Grants all these years IF the value of that property has always been declared as being worth more than $60k. </p>

<p>How have you been declaring its value in the past?</p>

<p>how much is the property worth? </p>

<p>If the property is worth more than $60k (minus mortgage???), then you won’t get that grant…you’re going to have to get a co-signer to get a loan…maybe Sallie Mae?</p>

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<p>Either the financial aid office caught a mistake and you didn’t qualify prior years or somehow the numbers changed in terms of your parent’s assets/income OR possibly numbers changed in how Cal Grant calculates the numbers OR Cal Grant has shifted the income/asset line once again this year. Considering how much California is struggling financially, entitlements are going to start shrinking and going away. Some have gone as far as to suggest that Cal Grant might disappear all together. So exactly what triggered and had you disqualified will take a bit of searching on your part and it may not lead to a reinstatement anyhow.</p>

<p>The second piece here is that you are probably in a bit of panic and/or shock. But keep in mind that California tax payers can not foot the bill for <em>every</em> student to have their tuition costs waived–the line has to happen somewhere. It can be frustrating when you are right on that line. However, it is <em>not</em> personal, nor did the financial aid office get personal about whether or not you qualify for a CG. It is strictly numbers and it isn’t something they can legally “overlook.” Just remember that no one in the FA office was out to get you or wanted to “throw you away.” They need to comply with CG rules as well.</p>

<p>If you are unable to secure a private loan (parent co-sign a Parent PLUS loan?) or earn enough in the summer plus working during the school year, then you will need to consider some other options. Take a year off and work. Wait a few years until you are independent. Have your parents get rid of the asset and wait a year for that to clear out of the FAFSA results. Etc. I am not sure what college you attend, so unsure if transferring would bring about lower costs in the long run.</p>

<p>The reality is that there are not many suggestions for extra money that you haven’t probably already considered. Since you only have one year left, maybe you could get several different relatives (grandparents, sisters, aunts, uncles, family friends) to each lend you some money to cobble together your final year.</p>

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<p><a href=“http://www.csac.ca.gov/pubs/forms/grnt_frm/ImportantFactsAboutYourRenewalCalGrant.pdf[/url]”>http://www.csac.ca.gov/pubs/forms/grnt_frm/ImportantFactsAboutYourRenewalCalGrant.pdf&lt;/a&gt;&lt;/p&gt;

<p>Here’s the thing that makes this odd: I’ve never seen anything about having to meet income and asset ceilings to renew a Cal Grant. The above says the following about qualifications for renewal on A, B, and C:

The asset ceiling is set at $60.5k for next year (dependent students):
<a href=“http://www.csac.ca.gov/facts/2011-12_incomeceilings.pdf[/url]”>http://www.csac.ca.gov/facts/2011-12_incomeceilings.pdf&lt;/a&gt;&lt;/p&gt;

<p>I cannot find anything that says you have to meet income and asset ceilings again. It makes sense one wouldn’t have to meet these again since income and assets can be quite a bit higher to have a need of only $100. However, logic says income and asset ceilings should continue to be met… but the renewal qualification of only $100 in need is what throws this off.</p>

<p>Something doesn’t quite add up with this. There’s a piece of information missing because I really don’t think it has to do with the assets being over $60k based on the qualifications for renewal.</p>

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<p>Kender,</p>

<p>You can make yourself crazy trying to find a way to get your fin aid office to work around this issue, or you can come up with your own plan for finishing your education. Sit down with your parents, and figure out just exactly how you can pay for your last year’s worth of credits. You may have to go to school part-time and work full-time. That’s OK. Lots of us have done it. This is not the end of the world. It is just a bump in the road.</p>

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<p>happymomof1:
I’m not the OP. That would be hungrybear.</p>

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<p>the financial aid office caught a mistake and you didn’t qualify prior years</p>

<p>Since the family has owned this rental property for 20 years, it’s likely that these two siblings never really qualified to receive Cal Grants every year.</p>

<p>If so, your family needs to look at it this way…they got a lot of tax-payer money that they shouldn’t have received, therefore they need to “suck it up” and pay/borrow for this one last year. They got 7 years of aid…and only have to pay for 1…that is still quite the deal. :)</p>

<p>It may not seem fair to you, but most people don’t have rental property assets that are or will be a valuable asset to your family.</p>

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<p>Here’s the thing I’m wondering, though: was skip logic ever applied? Would skip logic apply to a rental property even?</p>

<p>From what I’ve seen, because California allows for skip logic to happen, assets are only ever seen if verification is performed (but I admit I have no idea how rental properties are handled with this). If skip logic was appropriate, the assets are not considered (including for the asset ceiling). Or so it has been explained to me. And it does make sense when you consider that anyone who had skip logic and was not verified would not have assets considered despite the ceiling that’s in place.</p>

<p>Like I mentioned, something seems to be missing from the equation. Renewal wouldn’t be denied because of being over the asset ceiling. Income and asset ceilings are only for new Cal Grants.</p>

<p>I know, crazy California ;). Trust me, I know this far too well my state is more than a little nutty.</p>

<p>Anywho, I just can’t see how they slipped past with an asset of that amount all these years unless they did not report it or something of that nature. Wouldn’t not reporting it be seen as fraud if that’s what happened? And couldn’t that result in action to at the very least reclaim money that was falsely given?</p>

<p>I don’t know… just sort of thinking out loud :). Renewals are not difficult to get so someone getting denied is very interesting to me… particularly since the reason the OP gave contradicts the renewal fact sheet.</p>

<p>If the denial really was given because current assets exceed $60.5k and that was the only reason (not because the asset was held in previous years) and nothing else, then that does not fit with what one needs to be eligible for renewal. If it’s for never having been eligible in the first place… I’d be more worried about having a much larger bill collecting on money I shouldn’t have been given rather than how to finance the next year (although that is a legitimate worry for the OP as well).</p>

<p>I’m definitely interested to hear more from the OP and get further clarification.</p>

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<p>If it’s for never having been eligible in the first place… I’d be more worried about having a much larger bill collecting on money I shouldn’t have been given rather than how to finance the next year (although that is a legitimate worry for the OP as well).</p>

<p>I can’t imagine California going back and demanding that money for 7 years of Cal Grants if it was Calif’s mistake (and not fraud) because it could be argued that the students wouldn’t have gone to those UCs if they had been denied aid in the first place.</p>

<p>Since the property is 20 years old, it’s likely that it’s had a value of over $60k during the entire time of college education. Perhaps the asset was believed to be the primary residence (or misreported).</p>

<p>How long has Calif used skip logic? </p>

<p>Another possibility…if the parents’ income has risen to the point that assets are now looked at, that could also cause this.</p>

<p>OP…what is your parents’ income? If it’s under $70k, you should qualify for Blue and Gold.</p>

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<p>I can’t imagine them demanding it back either, but it seems like some institutions do according to posts from rather distraught students who suddenly owe their schools money after the fact so it’s just something I would worry about in the OP’s position if it were me. But I can be a touch paranoid ;). I can, however, see them going back a year if it has to do with not qualifying for this past year either. I’d like to think they’re just planning to cut losses, though, and not pursue it any further than ending the Cal Grant distributions if there was perceived fraud (on purpose or by mistake) of past FAFSAs.</p>

<p>Not sure how long skip logic has been used. I filled out my first FAFSA in 2009. It was definitely used then. I can’t find anything about when it was first used, though. But it is definitely being used now and because of it, assets are not considered when it’s applied despite the asset ceiling for Cal Grant. It is very shocking that it is allowed simply because of Cal Grant’s income ceiling requirement. Seems silly to me it’s suddenly thrown out the door just because skip logic allowed assets to be ignored.</p>

<p>

This would work if the actual reason was not the asset itself being greater than $60.5k (since asset and income ceilings don’t apply for renewal per the renewal fact sheet), but that the OP had less than the $100 minimum of need required to renew. Which just means the counselor gave incomplete information or the OP misheard.</p>

<p>I can’t tell from the OP’s post what type of campus they go to. It doesn’t specify if it’s a CSU, UC, or California private… CSU seems unlikely based on the “loans won’t cover half of tuition” comment. UC does seem like the likely one, but there are still privates that could be in the fee range of a UC. The fact the counselor mentioned nothing of Blue&Gold to the OP makes me wonder if they even are at a UC. That should be one of the first things brought up since there is only an income ceiling for Blue&Gold. That would be a rather large jump in income if they suddenly had greater than $80k, though.</p>

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<p>Thanks for all your responses!</p>

<p>Just to clarify, I am a transfer student that attends a UC.</p>

<p>I asked my counselor many of the questions that you guys have posted (why did i even receive cal grant when the family has owned the property for more than 20 years?), and my counselor replied that maybe i wasn’t suppose to have ever received the cal grant, or that they overlooked it and that i received it on accident all these years. Either way, my counselor said that the government is making them re qualify many students and that there is going to be many other students in my situation. The thing is, i turned in a form last year (first year at UC) regarding all property assets and their value, yet i still got the cal grant, and this year, i turned in the same form and right there on the spot she said i was going to be rejected for cal grant. I still dont understand how this property asset situation works out. We own rental property for 3 other apartments, and we lose money on it each year. Everything else regarding my family has stayed the same, including income.</p>

<p>I asked my counselor how i would find out the market value of the property, and she replied that i would have to get it appraised. She advised me not to since she was almost certain that the difference between the market price and mortgage was more than 60k. </p>

<p>I guess what angered me the most was the fact that after my second visit to my counselor, she seemed annoyed. She was trying to get me out of the office as soon as possible, when i was obviously distraught and worried. </p>

<p>Of course, i will continue to work during the summer and next school year, although that’s hardly going to dent the high tuition costs.</p>

<p>And no, she did not mention the blue and gold plan. My parents do indeed make less than 70k a year. Can anybody tell me more about this plan? Reading up on it, it seems as if this plan basically takes all forms of financial aid and makes sure it covers tuition costs. But, i missed the priority deadline for this year by 3 days (this is another story). Will i still be eligible for the blue and gold? Last year, i received work study, cal grant, loans, and pell grant.</p>

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<p>We own rental property for 3 other apartments, and we lose money on it each year. Everything else regarding my family has stayed the same, including income.</p>

<p>The fact that you “lose money” is irrelevant. We own rentals…they have VALUE.</p>

<p>Are you sure your family earns less than $80k once you ADD up their income PLUS the income of the rentals (even if they lose money).</p>

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<p>After checking my financial aid rewards from the 2010-2011 school year, it says that i am qualified for the blue and gold plan. Last year, my gift-aid rewards are as follows:</p>

<p>Cal grant B: 10,302
Cal grant B stipend: 1,551
Federal Pell Grant (01): 3,000
University Grant: 1,670</p>

<p>Now the big question is…since i no longer qualify for Cal grant, AND i missed the priority deadline date, will my tuition fees still be covered? I know the priority deadline covers university grants…does that mean my pell grant will cover all of tuition?</p>

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<p>Pell Grant is based on EFC.</p>

<p>What is your EFC?</p>

<p>The largest Pell grant is 5550…with an EFC of 0</p>

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<p>For the 2011-2012 year my EFC is 10195. I just checked my fafsa application and it says i will not be eligible for the pell grant :frowning: Last year it was 2558. I have no idea how this changed so dramatically.</p>

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<p>hungrybear - You asked for suggestions. Honestly, you should just move forward; you’ve only got one year left. It appears that you and your sister had a pretty nice outcome with the FA, all the way up until your final year, when the rental property issues surfaced. That’s a really hot run, which makes your family a big winner. Now for the 8th year, you’re going to be in the situation that perhaps should have applied all along. Be thankful for the gift, and finish up.</p>

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<p>*For the 2011-2012 year my EFC is 10195. I just checked my fafsa application and it says i will not be eligible for the pell grant Last year it was 2558. I have no idea how this changed so dramatically. *</p>

<p>Who put in the numbers for FAFSA? Your parents? Maybe they earned a lot more than you thought they did thru rent and income? Or maybe they didn’t report the rentals correctly in previous years?</p>

<p>Compare the numbers from last year’s FAFSA to this year’s FAFSA…what is different?</p>

<p>Do you know if the school made a change to your FAFSA?</p>

<p>*Honestly, you should just move forward; you’ve only got one year left. It appears that you and your sister had a pretty nice outcome with the FA, all the way up until your final year, when the rental property issues surfaced. That’s a really hot run, which makes your family a big winner. Now for the 8th year, you’re going to be in the situation that perhaps should have applied all along. Be thankful for the gift, and finish up. *</p>

<p>While I agree that it appears that this family got a LOT of aid that it should not have gotten with 7 years of education of 2 siblings…and they need to be very grateful for that…if the parents won’t co-sign or take out a Plus Loan, this kid will be short of money.</p>

<p>Frankly, if this were my household…either we (the parents) would take on the responsibility for this loan (since we should have been paying a higher EFC all along) or …if that weren’t financially possible, I would tell the older child that all 3 groups ((parents, child #1, and child #2) should be responsible for paying back that loan for the last year (since older child also benefited from the free money during her education). </p>

<p>Also</p>

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<p>Interesting thread. I, too, would be afraid to “scratch” at this one. Multiple rental properties and the OP was getting Pell from the feds and grants from the state??? Yikes.!!! I’d be scared to death the state or the feds would come looking for reimbursement. And yes, the ONLY way you have negative value on a rental is to owe more than the market value. AFter twenty years I’m hard pressed to imagine that these properties had zero value. I would not want anyone taking a close look at this situation. I agree that the OP and the family should count their blessings for the past seven years and the OP should just figure out to piece together senior year. Wow. I’d give my eye teeth not to have our rental properties considered in the financial aid equation.</p>

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<p>*Frankly, if this were my household…either we (the parents) would take on the responsibility for this loan (since we should have been paying a higher EFC all along) or …if that weren’t financially possible, I would tell the older child that all 3 groups ((parents, child #1, and child #2) should be responsible for paying back that loan for the last year (since older child also benefited from the free money during her education). *</p>

<p>That’s a really good idea. No matter what portion the parents choose to pay for the final year, the remainder should be divided among the siblings. The older sister had the benefit of the free cash for all 4 years, and it would only be fair for her to contribute half of the last year. That way both kids participate fully in the benefit. </p>

<p>OP, again, look at the bright side. Your family won big, and it’s very unlikely that the school will go back and try to reclaim the excess.</p>

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<p>Yup, step away from the finaid office. Neither you or your parents want to be under that microscope. Skip logic somehow had to be in place for the 6 or 7 previous years. Over $16,000 in grants the previous year, I could only wish. Because my H is retired our income one or two years when I was freelancing might have qualified for skip logic, but because we have rentals we cannot fill out the tax form that allows the skip. Something is really strange about this situation and OP you don’t want anyone looking at it with a microscope.</p>