Session FF-08

AWARDING AID

Linda CoffeyU.S. Department of Education

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What Is Packaging?

• 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 Title IV academic year defined payment periods developed cost(s) of attendance have ISIR with official EFC

•to determine Pell Grant eligibility and need

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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 1000= Need $19,000

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Cost Of Attendance• Tuition and Fees• Books and Supplies• Transportation• Room and Board• Personal Expenses

• Loan Fees• Dependent Care• Disability Related

Expenses• Study-Abroad

Expenses

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Estimated Financial Assistance (EFA)

• All grant aid• All educational Loans• Scholarships• Net earnings from

need-based employment

• VA educational benefits (Exception for

Chapter 30)

• Employer tuition reimbursement

• Tuition and fee waivers

• Fellowship and assistantships

• Any educational benefit paid because of postsecondary enrollment

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Packaging• 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•$14,000 - $13,000 = $1,000

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Packaging• Combination of student aid and EFC must

not exceed student’s COA• If financial aid from any source becomes

available after packaging, awards must be reduced until total package does not exceed COA

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Title IV Aid Programs• Pell Grant• Academic Competitiveness Grant• National SMART Grant• TEACH Grant• Campus-Based Aid

FSEOG Federal Work-Study Perkins Loan

• FFEL/DL

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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, EFC, and ED’s Pell payment/disbursement schedules

No other aid is considered in determining Pell eligibility

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Beyond the Foundation

COA $20,000-EFC 1,000-Pell 3,781=Remaining Need

$15,219

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

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Academic Competitiveness Grant ACG

• High school graduate, from rigorous high school curriculum

• U.S. Citizen • Federal Pell Grant recipient in same award

year• First or second academic year student in a

two or four year degree program• Full-time enrollment• Cumulative G.P.A. of at least 3.0 for second

academic year

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National SMART Grant• U.S. citizen• Federal Pell Grant recipient in same

award year• Third or fourth academic year student in

an eligible bachelor’s degree program• Full-time enrollment• Majoring in an eligible major• Cumulative GPA of at least 3.0 prior to

each disbursement

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TEACH Grant• Undergraduate and Master’s Degree

programs of study• Student must meet specific academic

qualifications• Not need based• No minimum enrollment status is required• Maximum award amount per year based

upon enrollment status

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FFEL/DL• Undergraduate and graduate students• Requires at least half-time enrollment• Requires determination of Pell Grant

eligibility• Requires determination of subsidized

eligibility prior to awarding unsubsidized funds

• Has annual and aggregate limits

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Campus-Based Aid• FSEOG, FWS, and Perkins Loans

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• Must award 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 part-time employment• No minimum or maximum award• May look at willingness to work• Must pay at least federal 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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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 education loans

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Exceptions For Montgomery GI Bill & 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 all other Title IV aid 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 Grant

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Complete Aid Package

Cost Of Attendance- Expected Family Contribution- Estimated Financial Assistance= Need

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Sample Aid PackageCOA $20,000

- EFC 2,205= Need $17,795

- Pell $2,481- Stafford $3,500- FSEOG $1,500- ACG $ 750 - FWS $2,500- Scholarship $5,000

= Unmet Need $2,064

Estimated Financial

Assistance (EFA)

$15,731

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Packaging Case Studies

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Thomas At Art & Design Community College• Thomas 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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Thomas At ADCC#1 #2

COA 18,00018,000EFC 1,0001,000Need 17,00017,000

Pell Grant 3,7813,781ACG 750750FSEOG 1,0001,000Art Scholarship 1,0001,000FWS 2,5000Subsidized Loan 3,5003,500Merit Scholarship 02,000Total Aid 12,53112,031

Remaining Need 4,4694,969

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George At 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 At XYZ State University#1 #2

COA 14,900 14,900EFC 1,800 1,800Pell Grant 2,981 2,981Chapter 30 VA 9,600 0Need 519 10,119

Subsidized Loan 519 3,500Remaining Need 0 6,619

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George At XYZ State University#2 #3

COA 14,900 14,900EFC 1,800 1,800Pell Grant 2,981 2,981Chapter 30 VA 9,600 9600Subsidized Loan 3500 0Remaining Need -2,981 519

Campus-based Aid 519

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Scarlett At University 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 in her third academic year. She is living at home with her parents & nine brothers.

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Scarlett At UAS#1 #2

COA 25,00025,000EFC 00Need 25,00025,000

Pell Grant 4,7314,731FSEOG 500500National SMART 4,0004,000Subsidized Loan 3,5003,500FWS 2,0000Academic Award 1,5001,500NASA Scholarship 4,5004,500Total Aid 20,73118,731

Remaining Need 4,2696,269

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Contact InformationYour feedback and comments are appreciated.

Linda CoffeyTraining Officer816-268-0431linda.coffey@ed.gov