As the threat of further fee increases at the University of California looms, it's easy to forget UC gives significant amounts of financial aid.

Studies show several UC campuses enroll a higher proportion of low-income students than any other top public or private university in the country. The university has historically made student access a high priority.

"California has sent the message for college access since the Master Plan (for Higher Education) was implemented in the early 1960s," said Bob Shireman, a senior fellow at The Aspen Institute who works in Oakland. "It has helped to create a widespread belief that college is available to everyone."

The university has raised fees by roughly 40 percent since December 2002 to cope with cuts brought on by the state's budget crisis.

UC cycles back into financial aid a third of every fee increase. But that fact routinely gets lost in the attention surrounding hikes. Educators and analysts worry news stories and student protests over fee increases lead to sticker shock.

"It can send the message to families there isn't the money for college when the reality is that (with) UC ... there's a good chance that the net price a low income student would pay wouldn't change much at all in the face of big tuition increases," said Shireman.

UC keeps the total that lower-income students must pay at a relatively constant level by directly increasing the aid they receive.

UC Berkeley professor of economics Aaron Edlin has proposed a more radical means of expanding financial aid in the face of state budget cuts. He says UC should raise its fees from roughly $5,400 to the level of an elite private university -- say $25,000 -- and then dramatically increase loans and grants to students from poor and middle-income families. That way, those who can afford to do so are paying the most, while lower-income students would continue to pay what they do now.

A study by The Century Foundation in New York found UCLA had the highest percentage of undergraduates who had received federal Pell Grants -- 35 percent -- in the 2001-02 academic year of any highly selective public or private U.S. university. Pell Grant recipients are a good gauge of low-income students: a National Postsecondary Student Aid Study found that 90 percent of recipients in four-year universities had families with incomes below $41,000.

An earlier study by The James Irvine Foundation found that of the nation's 40 top-ranked public and private universities in U.S. News & World Report, UCLA, UC Berkeley and UC San Diego had the highest percentages of students from lower-income families.

UC spends roughly $200 million on grants it gives to 37 percent of its undergraduates. Most of that money supplements state and federal aid the students are already receiving.

UC estimates the total cost of attending a campus at $19,000, including living expenses, fees and books. It asks parents to contribute according to their ability and students to work part time during the year and full time over the summer. The university also expects students to borrow.

"It's not surprising that we serve more low-income students than private universities," said Kate Jeffrey, director of student financial support at UC. "We not only have a strong aid program of our own, but we're in a state with a strong aid program -- the Cal Grant program."

The state's 3-year-old Cal Grant program will likely distribute more than $612 million in aid this academic year.

UC student regent Matt Murray agrees reasonable fees and a good financial aid program have led to UC's high percentage of low-income students.

But he is glad UC has not copied other major public universities and sought wealthy students from out of state who can pay the higher out-of-state annual fees of $19,740. Just 6 percent of UC undergraduates are from out of state compared with 35 percent at University of Michigan.

"There is only a finite number of spots," he said. "If you use out-of-state students as revenue sources, there are fewer in-state spots for lower-income students. UC has said 'We're committed to being affordable and accessible to California residents.'"

Earlier this year, former UC President Richard Atkinson suggested softening steep budget cuts by admitting more students from outside California. Everything is on the table, Murray said, but that would be a shame.

UC officials hope their generous financial aid policies continue in light of the state's budget crisis, but no one is promising anything.

"That has been our past practice for as far as we can remember," Jeffrey said.

Carrie Sturrock covers higher education. Reach her at 925-943-8155 or csturrock@cctimes.com.

Savvy students can obtain grants, loans

Need money for college? The time to apply for aid is fast approaching.

The application period for the all-important Free Application for Federal Student Aid, better known as the FAFSA, begins Jan. 1. This is the form that students must fill out to apply for all state and federal financial aid, including unsubsidized loans.

"If there's a big message to get out: Encourage even middle-income families to apply," said Kate Jeffrey, University of California's director of student financial support. "Maybe they don't end up qualifying for a grant, but they could qualify for a subsidized loan. Everyone qualifies for an unsubsidized loan, even Bill Gates, and those interest rates are cheap now. Anyone who has concerns about finances should apply."

The FAFSA also is a prerequisite for California's 3-year-old Cal Grant Program. The deadline for that grant, which doesn't have to be paid back, is March 2.

Students applying for Cal Grants also fill out a grade point average verification form. Both that and the FAFSA can be found in high school guidance offices. FAFSA forms also can be found at www.fafsa.ed.gov.

Cal Grants, which can be as much as $9,700, are good at all UC and California State University campuses, private colleges, community colleges and most vocational schools in California. To qualify, students must be California residents and have at least a 2.0 GPA.

The program has historically had trouble getting the word out about its free money. This year, it had $50 million left over -- which Gov. Arnold Schwarzenegger eliminated as part of his unilateral midyear budget cuts.