Financing Child Care in the United States - Ewing Marion Kauffman ...

FINANCIAL AID, UNIVERSITY OF
CALIFORNIA AT SANTA CRUZ
(CALIFORNIA)
DESCRIPTION
Financial aid policy allows student parents who incur child
care costs to become eligible for a higher level of
financial aid.
WHEN ESTABLISHED
The precise year this policy was established is unknown.
It has been in place on the campus for at least 10 years.
ANNUAL AMOUNT
It is estimated that only 1 or 2 percent of all students
who receive financial aid at the University of California at
Santa Cruz are student parents who report child care
expenses. Funds to support the child care portion of a
financial aid package at the university are drawn from a
combination of state and federal funds as well as student
educational fees.
SERVICES FUNDED
Up to $550 per month for infants and up to $450 per
month for each child 1 through 6 years old is added to
the standard monthly budget when determining need for
financial aid. Students must provide documentation of the
actual child care costs they incur. Students may claim
expenses for any form of legal child care.
HOW FUNDS DISTRIBUTED
expects to incur for dependent care are included in the
handbook as allowable costs that can be included
when determining the student’s financial need.
• The child care deduction will not always result in an
increased financial aid award. In many cases there is a
cap on the total amount of financial aid a student may
receive, and low–income students often reach this cap
prior to adding child care costs to the list of allowable
expenses.
• Although a child care expense deduction can help to
increase a financial aid award, the deduction does not
result in a dollar–for–dollar repayment of child care
expenses.
OTHER SITES WITH SIMILAR STRATEGIES
Since the federal government sanctions this practice in
its official financial aid handbook, it is likely that many
colleges and universities include child care costs when
determining need for financial aid.
CONTACT
Ann Draper
University of California Santa Cruz
201 Hahn Student Services Building
Santa Cruz, CA 95064
Phone (831) 459 4358
Fax (831) 459 4631
E–mail ann@cats.ucsc.edu
Eligible student parents receive a larger financial aid
package. If the child is less than 6 years old, 50 percent
of the additional aid (i.e. the portion of the aid package
that is attributable to child care costs) is provided as
scholarship and 50 percent is provided as a loan. If the
child is 6 or older, 100 percent of the additional aid is
provided as a loan.
POPULATION SERVED
Student parents who attend the University of California at
Santa Cruz are the beneficiaries of this program.
STRATEGIC CONSIDERATIONS
• Each year the federal Department of Education
publishes The Student Financial Aid Handbook, which
is designed to help financial aid administrators
determine whether a particular student is eligible for
financial aid from the department’s student financial
assistance programs. The guidance provided by this
book typically governs policy for a wide range of
federal sources of financial aid. Although colleges and
universities decide how to spend their own financial aid
funds, they typically follow federal regulations in
awarding these funds, as well. Costs that the student
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