Up for discussion: Financial aid for tough times

Unemployment is up, stocks are down, and some parents are now finding it difficult to pay for their student’s education. So how is UC Davis responding to the current economic climate?

“We’ve set aside $500,000 specifically for those students undergoing special circumstances,” said Katy Maloney, interim director of Financial Aid.

When a family’s financial situation takes a turn for the worse, Financial Aid has a process for reviewing and potentially lowering the level of the family’s expected contribution toward the student’s education. Sometimes, this has led to additional financial aid offered as loans. This year, students facing such circumstances will be offered grants that don’t need to be repaid.

“This fund will help people who otherwise wouldn’t have qualified for free money,” Maloney said.

The Free Application for Federal Student Aid (FAFSA) form asks for the previous year’s income to determine the family’s expected contribution and financial aid awards, so some of the effects of the current economic downturn won’t show up in statistics for another year.

However, Maloney is already seeing a 6 percent increase in the number of students eligible for 2009-10 Pell grants, which are for students with the greatest financial need. UC Davis currently has 7,792 Pell recipients.

The money being set aside for special circumstances comes from the 33 percent of student fees that goes toward financial aid. Instead of using the $500,000 in the regular course of making awards, it will be used to assist those with special circumstances.

“This fund provides relief for students and parents facing tough situations,” Maloney said. “We’re trying to find ways to ensure that students not only can come to UC Davis, but that they are able to stay here.”

About 65 percent of UC Davis undergraduates receive some form of financial aid, which includes grants, scholarships, loans and work-study. Maloney estimates awards for the current academic year will total about $340 million.

Parents experiencing a dramatic change in their financial situation should contact the Financial Aid Office directly at (530) 752-2390 or undergradfinaid@ucdavis.edu.