INSTITUTIONAL FINANCE
The University of California is the world’s leading public research institution based in California State. It was established in 1868 and has ten campuses, five medical centers, and three national labs. (Ucop,2017)
The table below shows the cost of attending college in one of its satellite campuses, Berkeley;
Figure 1: Undergraduate Cost of Attendance (Source: University of California, Berkeley)
Financial Programs
The University of California presents a range of funding opportunities for students from different backgrounds. This funding ranges from loans, grants, and scholarships offered by the federal government, the state government, the University of California, and private institutions (Tuition and Financial Aid – UC, 2020).
Federal Grants and Scholarships
The federal government and state of California offers grants and scholarship awards based on students’ needs. These needs are determined during student application, which often entails declaring the family’s financial resources and projected costs of study.
At the University of California, such programs include the middle-class scholarship program. The middle-class scholarship provides funding for students to attend the University of California. This program covers between 10% and 40% of tuition fees and is offered for students whose family income is under $177,000 annually (Ucop, 2017).
Federal Loans
These loans are offered to eligible students who are U.S citizens, permanent residents, and eligible non-resident students regardless of their family income. These loans, unlike private institution loans, provide flexible payment options and loans forgiveness benefits. They also have fixed interest rates. Examples include Federal Student loans and Federal parent PLUS loans.
Institution-funded Awards
These are awards/grants or gifts offered at eligible students within the host campuses. An example includes the Blue and Gold opportunity plan, which covers systemwide tuition and fees for students whose family income is under $80,000 annually. These awards are free, and students do not repay.
Private Loans
Private institutions offer loans to students attending the University of California. These loans often have different terms, including eligibility criteria, interest rates, and payback periods.
Implication on Policy
Some financial aid types such as federal and state grants and awards are offered to influence programs that are considered of federal/state interest such as infrastructure development or medical health initiatives. Also, overcharging of interest rates by private lenders could impact the state to impose interest rate caps on all financial lenders.
Reference
Ucop.edu. 2020.https://www.ucop.edu/operating-budget/_files/rbudget/2016-17budgetforcurrentoperations.pdf
Tuition & financial aid | UC Admissions. (2020). Retrieved 23 May 2020, from https://admission.universityofcalifornia.edu/tuition-financial-aid/