Session 35

1. Session 35 AWARDING AID Linda Coffey Jamie Malone

2. 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

3. 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 • Understanding of available EFA • Determine individual student’s COA • Available aid resources at your school

4. 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

5. Tuition and Fees In state/out of state Books and Supplies Transportation Room and Board Personal Expenses Loan Fees Dependent Care Disability Related Expenses Study-Abroad Expenses Cost of Attendance/Budget

6. Pell Grants All other grants 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 Estimated Financial Assistance (EFA)

7. 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 (Unsubsidized or Plus Loan) • COA - EFA = Need • $14,000 - $13,000 = $1,000

8. 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

9. Title IV Aid Programs • Pell Grant • ACG • National SMART Grant • Campus-Based Aid • FSEOG • Federal Work-Study • Perkins Loan • FFEL/DL

10. 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

11. 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 1,000-Pell 3,360=Remaining Need $15,640

12. 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

13. 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

14. 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

15. Campus-Based Aid • FSEOG, FWS, and Perkins Loans • Must make funds reasonably available to all students • No minimum enrollment status is required

16. 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

17. 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

18. 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

19. 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

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

21. 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 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

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

23. Sample Aid Package COA $20,000- EFC 2,205= Need $17,795- Pell $2,060- Stafford $3,500- FSEOG $1,500- Perkins $1,000- FWS $2,500- Scholarship $5,000= Unmet Need $2,235 Estimated Financial Assistance (EFA) $15,560

24. Packaging Case Studies

25. 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.

26. Thomas at ADCC #1 #2 COA 15,000 15,000 EFC 1,000 1,000 Pell Grant 3,360 3,360 ACG 750 750 FSEOG 1,000 1,000 Art Scholarship 1,000 1,000 FWS 2,500 0 Subsidized Loan 3,500 3,500 Merit Scholarship 02,000 Remaining Need 1,890 2,390

27. 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.

28. George at XYZ State University #1 #2 COA 14,900 14,900 EFC 1,800 1,800 Pell Grant 2,560 2,560 Chapter 30 VA 9,6000 Need 940 10,540 Subsidized Loan 9403,500 Remaining Need 0 7,040

29. George at XYZ State University #2 #3 COA 14,900 14,900 EFC 1,800 1,800 Pell Grant 2,560 2,560 Chapter 30 VA 9,600 9600 Subsidized Loan 35000 Remaining Need -2,560 940 Campus-based Aid 940

30. 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 & 9 brothers. Scarlett at University of Aeronautical Studies

31. Scarlett at UAS #1 #2 COA 25,000 25,000 EFC 0 0 Pell Grant 4,310 4,310 FSEOG 500 500 National SMART 4,000 4,000 Subsidized Loan 3,500 3,500 FWS 2,000 0 Eng. Academic Award 1,500 1,500 NASA Scholarship 4,5004,500 Remaining Need 4,690 6,690

32. Jamie Malone Phone: (312) 730-1528 Email: jamie.malone@ed.gov Contacts We appreciate your feedback and comments. We can be reached at: Linda Coffey • Phone: (816) 268-0431 • Email: linda.coffey@ed.gov

33. Please provide any comments regarding this training or the trainers to: Jo Ann Borel Title IV Training Supervisor joann.borel@ed.gov 202-377-3930