Session 35

Awarding Aid

Devin Croft

Jamie Malone

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What Is Packaging?And how is awarding different…or is it???

• Finding the best combination of aid programs to meet the student’s financial need, using

– Statutory/regulatory limits

– Available resources at the school

– Institutional policies

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Prior to Packaging

• School must:

– Have developed Packaging policies

– Defined their Academic Year

– Defined their Payment Periods

– Developed a Cost of Attendance (Budget)

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Prior to Packaging• ISIR with official EFC

– To determine need• Understanding of available EFA• Determine individual student’s COA• Types of federal aid available at your institution

– Pell– ACG/SMART– Campus Based– Loans

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What Is Need?

• COA – EFC = Need

– COA varies by school and program

– EFC is taken from ISIR

– Need is filled with available aid programs and other resources

COA $20,000- EFC 0= Need $20,000

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Cost of Attendance/Budget• Tuition and Fees

– In state/out of state• Books and Supplies• Transportation• Personal Expenses• Room and Board• Dependent Care• Loan Fees• Miscellaneous

– Disability Related Expenses– Study-Abroad Expenses

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What Is EFA?• Estimated financial assistance includes

– Pell Grants– Educational Loans– Grants (including ACG/National SMART Grants)– Net earnings from need-based employment– Scholarships– Tuition and fee waivers– Fellowship and assistantships– VA educational benefits

• (Note: exceptions for Chapter 30 benefits)

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Estimated Financial Assistance• Basic Need

– COA - EFC = Need• $14,000 - 1000 = $13,000

• Need Based – COA - EFC - EFA = Need

• $14,000 - 1000 - 13,000 = 0

• Non-Need Based– COA - EFA = Need

• Unsubsidized or Plus Loan

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Estimated Financial Assistance

• Combination of student aid and EFC must not exceed student’s COA.

• If financial aid from another source becomes available after packaging, financial aid awards must be reduced so total amount does not exceed COA.

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Federal Programs• Pell• ACG• SMART• Campus Based

– Work-Study– SEOG– Perkins

• Loans

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Foundation of Aid Package

• Pell Grant

– Goes only to undergraduate students who have not received a bachelor’s or first professional degree

– Determined using student’s COA and EFC and ED’s Pell payment/disbursement schedules

– No other aid is considered in determining Pell eligibility

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Beyond the Foundation

After calculating any Pell eligibility, use your packaging policy to take into account other sources of assistance available to the student

COA $20,000- EFC 0- Pell 4,050= Remaining Need $15,950

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Academic Competitiveness Grant – ACG

• U.S. Citizen (does not include Title IV eligible non-citizens)

• Federal Pell Grant recipient

• First or second academic year student in a two or four year degree program

• Full-time enrollment

• No specific major required

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ACG continued…• 1st year students

– May not have been previously enrolled in a program of undergraduate study

– Have graduated from a rigorous secondary high school program after 1/1/06

• 2nd year students– Have graduated from a rigorous program of study after

1/1/05– Have at least a 3.0 GPA in an eligible program

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Student Eligibility Criteria Specific to National SMART

• U.S. citizen (does not include Title IV eligible non-citizens)

• Federal Pell Grant recipient

• Third or fourth academic year student in an eligible program

• Full-time enrollment

• Majoring in an eligible major

• Cumulative GPA of at least 3.0 on a 4.0 scale in student’s eligible program

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Campus-Based Aid

• Must make funds reasonably available to all students

• No minimum enrollment status is required

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FSEOG

• Only to undergraduate students who have not received a bachelor’s or first professional degree

• Need based

• Give to students with lowest EFC who will also receive Pell Grant in that award year

• Minimum award is $100

• Maximum award is $4,000

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Federal Work-Study

• Undergraduate and graduate students

• Need based

• No minimum or maximum award

• May look at willingness to work

• Must pay at least minimum wage

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Perkins Loan

• Undergraduate and graduate students

• Need based

• Give priority to students with exceptional need, as defined by school

• May look at student’s willingness to repay

• Has annual and aggregate loan limits

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FFEL/DL

• Undergraduate and graduate students

• Requires at least half-time enrollment

• Requires determination of Pell eligibility

• Requires awarding of subsidized funds before unsubsidized funds

• Has annual and aggregate limits

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Available Institutional Aid

• Both within aid office’s control and not

• Internal criteria and packaging policies

– Grants

– Loans

– Assistantships and fellowships

– Tuition and fee waivers

– Need-based employment

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Outside Aid Student May Receive

• State aid

• Scholarships (organizations, merit, etc.)

• VA educational benefits

• Employer tuition assistance

• Alternative educational loans

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Exceptions for Montgomery GI Bill and AmeriCorps Benefits

• Must exclude Chapter 30 VA benefits and AmeriCorps benefits as EFA when determining Subsidized Loan eligibility

• Must include Chapter 30 VA benefits and AmeriCorps benefits as EFA for Campus-based aid, ACG, National SMART, and Unsubsidized Loans– But, may exclude from EFA any portion of Subsidized

Loan amount amount of Chapter 30 or AmeriCorps benefits for Campus-based, ACG, and National SMART Grants

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Complete Aid Package

COA

- EFC

- Pell

- EFA

= Remaining Need

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Sample Aid Package

COA $20,000- EFC 0= Need $20,000

- Pell $4,050- Stafford $3,500- FSEOG $500- Perkins $4,000- FWS $1,500- Scholarship $5,000

= Unmet Need $1,450

Estimated Financial Assistance (EFA)

$18,550

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Packaging Case Studies

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Edgar and Art & Design Community College• Edgar is a dependent student

who graduated from high school in June 2006. He originally wanted to be a doctor but has decided to follow his heart and major in fashion design. He has decided to attend Art & Design Community College to get his AA prior to going on to a 4-year college.

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Art & Design Community College

COAEFCProject Runway ScholarshipPellACGInstitutional GrantFWSSub loanUnsub loanPlus

Package award balance

2625 3575

0 15000

1000 14000 4050 9950

750 9200

500 8700 2500 6200

15000 15000

0 3575 3575 0

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George and XYZ State University • After serving his country as a medic in the military,

George has decided to return to college. His career goal is to be a physical therapist. He has been volunteering at a local hospital since his discharge and is really excited about school. George has $9,600 in Chapter 30, Montgomery GI Bill VA benefits to use for school.

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George and XYZ State University

COA

EFC

Pell

Chapter 30 VA

Need

Sub loan

Remaining Need

Package #1 #2

1800 1800

2000 2000

14900 14900

0 8475

9600 -------

1500 11100

1500 2625

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George and XYZ State UniversityPackage

COA

EFC

Pell

Chapter 30 VA

Sub loan

Remaining Need

# 2 # 314900 14900

1800 1800

2000 2000

9600

2625 ------

9600

( 1125) 1500

No overaward Could be FWS

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Scarlett and the Univ. of Aeronautical Studies

• A high achiever since she won her state spelling bee as a 4th grader, Scarlett is determined to become an aeronautical engineer. She is a dependent, US Citizen, with a 3.98 GPA and is a junior this year. She is living at home with her parents & 9 brothers.

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University of Aeronautical Studies

COAEFCScholarship – SWAScholarship - GatesPellSMARTSEOGFWSSub loanUnsub loanPlus

Package award balance optional pkg.

25000 250000 25000700 24300

8500 15800

4050 11750

4000 7750500 7250

2500 47504750 00 00 0

25000

0

700

0

4050

4000

500

2500

5500

0

7750

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Additional Beginner’s Track Sessions• Session #35 - Awarding Aid • Session #36 - Disbursing Aid • Session #37 - IFAP, NSLDS, COD, FAA Access

to CPS On -Line • Session #38 - Financial Aid Professionals (FAP)

Portal and Beyond - How We Communicate With You?

• Session #39 - Uncover the Mysteries of How a Law Becomes Operational

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We appreciate your feedback and comments.We can be reached at:

Devin Croft303-844-3677x125devin.croft@ed.gov

Jamie Malone312-886-8731jamie.malone@ed.gov