Packaging & Notification of Awards

1. Module 11 Packaging &Notification of Awards

2. Introduction • Financial aid packaging is the strategy used to distribute limited financial aid resources to qualified students to attend thepostsecondary school of their choice • Packaging combines various types of aid from federal, state, institutional, and private entities to meet student’s financial need

3. Self-Help Aid Self-help aid may be defined as: • Loans • Employment • Expected family contribution (EFC) • Noninstitutional grants

4. Packaging Categories School may establish packaging categories to: • Control distribution of financialaid using percentages, set dollar amounts, etc. • Reflect a school’s mission and philosophy, and take into account unique characteristics of the school’s student population

5. Packaging Sequence • Sequence of awarding financialaid from each program is up to school • Allows school to control packaging outcomes • Sequence must be followed consistently within categories

6. Packaging Award Amounts Packaging policy should: • Set award amount for each program • Specify portion of need school will meet if policy is not to meet full need • Set gap between need and financialaid package as flat amount or fixed percentage

7. Packaging Award Amounts Packaging policy should: • Specify whether minimum award amount set for Federal Perkins Loans and/or Federal Work-Study • Award only if need allows for more than established minimum award amount • Consider program maximums that increase each year (e.g., Title IV loan programs)

8. Summer Terms Important issues to consider when packaging aid for summer include: • Structure of the summer term for term-based programs • Enrollment status • Selecting the award year for a crossover payment period • Funds allocation for summer aid • Use of a scheduled academic year (SAY) as opposed to a borrower-based award year (BBAY)

9. Program-Specific Packaging Criteria • Reasonable portion for less-than-full-time and independent students • Federal Supplemental Educational Opportunity Grant (FSEOG) based on exceptional need in priority order • Federal Perkins Loans based on exceptional financial need

10. Program-Specific Packaging Criteria • Students with AmeriCorps benefits • Funding for children of certain deceased soldiers who served in Iraq or Afghanistan

11. Other Packaging Considerations • Students with federal veterans educational benefits • Students with Bureau of Indian Affairs grants • Students receiving vocational rehabilitation assistance

12. Six Basic Packaging Models • Individual student • First-come, first-served • Distinct student group • Gift aid first • Self-help • Equity

13. Packaging Model Variations • May include: • Increased self-help after first year • Lower self-help for low-income or disadvantaged students • Lower work-study for marginal students • Increased school-year work expectation as students progress academically • Must be in school’s policies and procedures, and consistently followed

14. Loan Fees • If borrowing a Federal Student Direct Loan (Direct Loan), actual or average loan fees must be added to COA • Once loan fees are added to COA, gross amount of loan is included in EFA when calculating student’s remaining need for other sources of aid

15. Overawards • Financial aid that exceeds student’s financial need • May occur when receipt of additional financial assistance, or changes to EFC or COA • Student’s responsibility to report additional financial assistance

16. Award Notifications • May be used to collect student’s acceptance or rejection of aid offered • School may request, but not require, student to sign and return award notification in order to continue processing student’s Title IV aid

17. Award Notifications • May be used to collect required written authorization(s) • Should be mailed as early as possible • Should explain appeal process

18. Rejection Letters • Inform student in timely manner • Explain reason(s) for decision • Explain appeal process • Suggest alternative sources of funding