Session 35

1. Session 35 Awarding Aid Devin Croft Jamie Malone

2. 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

3. Prior to Packaging • School must: • Have developed Packaging policies • Defined their Academic Year • Defined their Payment Periods • Developed a Cost of Attendance (Budget)

4. 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

5. 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

6. 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

7. 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)

8. 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

9. 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.

10. Federal Programs • Pell • ACG • SMART • Campus Based • Work-Study • SEOG • Perkins • Loans

11. 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

12. 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

13. 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

14. 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

15. 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

16. Campus-Based Aid • Must make funds reasonably available to all students • No minimum enrollment status is required

17. 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

18. 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

19. 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

20. 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

21. 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

22. Outside Aid Student May Receive • State aid • Scholarships (organizations, merit, etc.) • VA educational benefits • Employer tuition assistance • Alternative educational loans

23. 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

24. Complete Aid Package COA - EFC - Pell - EFA = Remaining Need

25. 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

26. Packaging Case Studies

27. 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.

28. COA EFC Project Runway Scholarship Pell ACG Institutional Grant FWS Sub loan Unsub loan Plus Art & Design Community College Package award balance 15000 15000 0 15000 1000 14000 4050 9950 750 9200 500 8700 2500 6200 2625 3575 0 3575 3575 0

29. 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.

30. COA EFC Pell Chapter 30 VA Need Sub loan Remaining Need George and XYZ State University Package #1 #2 14900 14900 1800 1800 2000 2000 9600------- 1500 11100 1500 2625 0 8475

31. Package COA EFC Pell Chapter 30 VA Sub loan Remaining Need # 2 # 3 14900 14900 1800 1800 2000 2000 9600 George and XYZ State University 9600 2625 ------ ( 1125) 1500 No overawardCould be FWS

32. 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. Scarlett and the Univ. of Aeronautical Studies

33. COA EFC Scholarship – SWA Scholarship - Gates Pell SMART SEOG FWS Sub loan Unsub loan Plus University of Aeronautical Studies Package award balance optional pkg. 25000 25000 25000 0 700 0 4050 4000 500 2500 5500 0 7750 0 25000 700 24300 8500 15800 4050 11750 4000 7750 500 7250 2500 4750 4750 0 0 0 0 0

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

35. Devin Croft 303-844-3677x125 devin.croft@ed.gov Jamie Malone 312-886-8731 jamie.malone@ed.gov We appreciate your feedback and comments.We can be reached at: