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How it worksPackagingEver heard these?Most popular financial aid questions:Whats a Stanford loan?Can I get a copy of my reward letter?Do I have to do my FASFA every year?I have to do paperwork to get my money?!Can I get more financial aid to buy a car?Or laptop?Or to pay for my trip?

Or said these?Have you ever told a studentYou need to go sign your EMPN?Have you done your loan entrance?Lets see if we have your ISIRIt looks like you have a CFLAG.Youre ISIR is rejected.Its because youve exceeded your COA...Do you have any means-tested benefits?

We are actually just as confusing as students.Learning ObjectivesToday we will learnDefinition of packagingFunds we typically packageEstimated Financial Assistance & its affectSteps to package awardsPackaging categories & sequencePackaging modelsOverawardsHands-on exampleNotifying students of their awards

So what IS packaging?Per the FSA Handbook*Packaging is the process of awarding aid without exceeding the students financial needMore simply: its how you decide what students are awarded (in what combination)*Source: 1112 FSA Handbook Volume 3, Chapter 7, page 3-129Funds we typically packageFederal programsPell, SEOG, Perkins, Federal Workstudy, Direct Loans, PLUS Loans, Graduate PLUS Loans, TEACH, Iraqi & Afghanistan Service GrantState programsTPEG, TEXAS Grant, TEG, BOT, CAL, Texas Workstudy, Set-Aside Funds Institutional programsEstimated Financial AssistanceEstimated Financial Assistance (EFA) is taken into consideration when packagingExamples include (but not limited to)Pell (first source of aid)Other federal, state, institutional grantsSubsidized & Perkins loansWork studyUnsubsidized loans*PLUS loans*Private loans*

* Indicates funds that can replace all or part of the EFC as long as the COA is not exceeded.Other Examples of EFAROTC living allowancesScholarships (including athletic & ROTC)Employer reimbursement of tuition & feesTuition and fee waivers Fellowships and assistantshipsAmericorps Funds Exceptions to EFA:Iraq & Afghanistan Service Grant (for purposes of awarding other FSA)Prepaid tuition planFederal veteran benefitsSource: 1112 FSA Handbook Volume 3, Chapter 7, page 3-131Steps to PackagingSteps to PackagingDetermine the students Cost of Attendance (COA) budget & Expected Family Contribution (EFC)Award Federal Pell GrantCalculate the students financial needPackage campus-based, state, federal, and institutional fundsPackage or refer students to other supplemental sources of assistance

Packaging Steps: STEP 1A typical COA consists of*Tuition & FeesBooks & SuppliesRoom & BoardTransportationPersonal Expenses

Determine the COA & EFC* COA amounts are determined by the institution & could include PJ adjustmentsEFC comes from?

Packaging Steps: STEP 2Pell Grant awarded based on EFC Pro-rated based on enrollment status and EFC rangeAward Pell Grant

Packaging Steps: STEP 3Cost of Attendance--Expected Family Contribution--EFA_____________________________Initial Need--PELL award (if any)__________________________________Remaining Need to package other fundsCalculating students remaining needPackaging Steps: STEP 3Calculating students non-need eligibilityCost of Attendance--PELL--EFA--Need-based aid awarded________________________________Room for non-need based aidPackaging Steps: STEP 4Package other aid programs listed above according to your schools packaging philosophy/policyKeep in mind that each school is different! Package Campus-based, Federal, State, Institutional

Packaging Categories & SequencePackaging GuidelinesResponsibility for paying for college rests with the student and their familyFederal Pell Grant is the foundation of undergraduate student aid packagesFamilies can borrow from some aid programs to replace all or a portion of their EFCScholarships cannot be substituted for the EFCMust take expected financial assistance (EFA) into account Goals of an AdministratorProvide as many students as possible with resources to meet their financial needDistribute aid in an equitable mannerProvide assistance that will be the most beneficial to the studentManage financial aid fundsRecruit and retain studentsMeet areas of national needSometimes these are competing goals!Packaging CategoriesSchools can organize their packaging categories based Enrollment statusClassification Academic program or major field of studyApplication dateNeed Based vs. Non-Need BasedResidency CriteriaPackaging philosophy must be detailed in the schools policy and procedures

Packaging SequenceSchools designate the order in which it awards funds from various programsAgain, this can vary from school to schoolIt can depend on the categories designatedThis should be noted in the policy and procedure manual for your institutionWhat gets awarded 1st? 2nd? Packaging ModelsSix Basic Packaging ModelsFirst-Come, First-ServedGift Aid FirstSelf-Help ConceptSpecial Targeted GroupsEquity ConceptAbsolute Dollar EquityFixed Percentage EquityIndividualized Packaging

Dont worry, youll get it!First Come, First ServedFinancial aid awards based on the order in which completed applications are received by the aid office until funds are exhaustedBenefits:Rewards students who get their stuff done earlyDrawbacks:May not have funds available for students that need it most

Gift Aid Gift aid is awarded first and self help aid is awarded to meet any remaining needBenefits:Decreases likelihood of loan debtDrawbacks:Limited gift aid fundingSelf HelpSelf-help assistance is awarded after the family contribution and before any consideration for gift aidBenefits:Places same burden on all studentsAllows gift aid to those who do not have same access to self-helpDrawbacks:Increases likelihood of higher loan debtTargeted GroupsSeparate packaging criteria for specific groups of students in addition to specific criteria required by law or regulationBenefits:Easier to tie packaging philosophy to institutional goalsDrawbacks:Tougher to defend watch the bait and switchEquity ConceptAbsolute EquityAll students are funded up to an institutional maximum fixed dollar amount with gift aid before their remaining need is met with self-help.Fixed Percentage EquityAn institutional maximum percentage level of NEED or COST for all gift aid is used rather than a fixed dollar amount.Benefits:Provides for an equitable distributionDrawbacks:Difficulty in managing overawards and maintaining that equitable distributionIndividualizedPackaging based on the FAAs evaluation of a students individual costs, resources and needsBenefits:Each financial aid packaged is customizedPersonal touch with each studentDrawback:Time consumingHigh subjectivityWhich Should You Use?This depends on your institutionMost institutions do not use one specific modelA variation of one or more of these models is used by institutions to fit in with that schools objectives

Things to ConsiderShould we package PLUS loans?Should we package private loans?Should we package loans at all?Which comes first, the loan or work study?Which comes first, the grant or the loan?

There is no one answer!

Overawards & PackagingOverawardsOverawards occur when:Aid exceeds a students need or COAHow does this happen?EFC changes (due to verification or updates)COA changes (possibly due to enrollment)Additional EFA comes in (late scholarship, exemption payment)This is the students responsibility to report to usWhen overawards happen, we make adjustmentsHands-On ExamplePackaging Example: Self HelpSally is attending Spurs College (SC). She is a dependent senior. SC employs a self-help packaging model and awards work study prior to loans. SPURS COLLEGECOA $20,000EFC $500Scholarship $2,500Pell Grant $4,800AWARD MAXIMUMSPerkins $1,500Work Study$3,000Institutional Grant $3,000Stafford$5,500

Packaging Example: Self HelpCost of AttendanceEFCNeedScholarship (EFA)Pell Remaining NeedWork studyPerkinsStafford LoanRemaining need before grantsInstitutional GrantUnmet NeedAnything Else????20,000(500)19,500(2,500)(4,800)12,200(3,000)(1,500)(5,500)2,200(2,200)0Remaining unsub eligibility?

Packaging Example: Self HelpWhat if after you have packaged, you are informed that the student is receiving another $500 scholarship?Does this fit in the COA as is?Does it fit within the need? If not what would you reduce?Notifying Students of AwardsNotifying Students of AwardsInstitutions are required to inform students:Amount of award(s)Terms and conditions of awardManner and timing of paymentsInstitutions have the option of confirmation or notificationConfirmation Student formally accepts awardsNotification Student not required to accept award, but must notify school if they do not want aid

Notifying Students of AwardsWhat if there arent enough funds?Caveat may be included on award notification stating that the award is subject to the availability of funds and may be revised if funds not available or eligibility changes

Wrapping UpToday we learnedDefinition of packagingFunds we typically packageEstimated Financial Assistance & its affectSteps to package awardsPackaging categories and sequencePackaging modelsOverawardsHands-on exampleNotifying students of their awards????????????????????????????????????Erika CoxUniversity of Texas at San Antonioerika.cox@utsa.edu????????????????????????????????????Thank you!