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TASFAA NAOW Workshop 2010. Packaging Financial Aid Martin R. Hernandez Director of Financial Aid Paul Quinn College. What is Packaging? .

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Tasfaa naow workshop 2010

TASFAANAOW Workshop 2010

Packaging Financial Aid

Martin R. Hernandez

Director of Financial Aid

Paul Quinn College


What is packaging
What is Packaging?

  • Packaging is a process by which the financial aid office awards a combination of aid from several sources to meet part or all of a student’s financial need.


Packaging goals of financial aid administrator
Packaging Goals of Financial Aid Administrator

  • Provide as many students as possible with resources to meet their financial need

  • Distribute resources in an equitable manner

  • Provide assistance that will be the most beneficial

  • Attract students to the school


Resources
Resources

  • Resources include (but are not limited to):

    • Pell Grant (first source of aid)

    • Scholarships

    • Other Federal, State and Institutional Grants

    • Subsidized Stafford and Perkins Loans

    • Need-based employment

    • Waivers of tuition and fees

    • Fellowships or assistantships

      Source: FSA Handbook 2009-10, Vol. 3, Pages 79 - 147


Resources1
Resources

  • Resources include (but are not limited to):

    • VA Benefits

    • Americorps Funds

    • Unsubsidized Stafford Loans*

    • PLUS Loans*

    • Private Loans*

      *indicates resources that may exceed need, but may not exceed COA.

      Source: FSA Handbook 2009-10, Vol. 3, Pages 79 - 147


Additional guidelines
Additional Guidelines

  • Enrollment criteria

  • Classification

  • Annual and Aggregate Maximums

  • Annual Minimums

  • Need Based vs. Non-Need Based

  • Academic Criteria

  • Residency Criteria


Steps in packaging
Steps in Packaging

  • Determine the cost of attendance (COA).

  • Calculate financial need

  • Determine eligibility for individual funds

  • Develop package using funds for which student qualifies

  • Refer to supplemental sources of assistance as needed


Step 1 determining the student s cost of attendance coa
Step 1- Determining the Student’s Cost of Attendance (COA)

  • Tuition & Fees

  • Books & Supplies

  • Room & Board

  • Transportation

  • Miscellaneous/Personal

  • Dependent Care

  • Loan Fees

  • Cost of approved study-abroad program

    Source: FSA Handbook 2009-10, Vol. 3, Chapter 2


Step 2 calculating the student s financial need

Cost of Attendance

-EFC

Financial Need

Step 2 – Calculating the Student’s Financial Need


Step 3 determine eligibility for individual resources
Step 3 – Determine Eligibility for Individual Resources

  • Determine Pell Grant eligibility first

  • FSEOG

    • Generally awarded to neediest students (Pell Grant recipients)

  • State Grants

    • Examples: Texas Grant, TEG

    • Criteria set by the state

  • Institutional Grants & Scholarships - criteria set by the institution


Step 3 determine eligibility for individual resources1
Step 3 – Determine Eligibility for Individual Resources

  • Work-Study

    • Examples: FWS, TCWSP

    • Awarded within need and according to institutional policy

  • Perkins Loan

    • Generally awarded to neediest students and according to institutional policies

  • Subsidized Stafford Loan

    • Awarded within need, maximums determined by federal regulations


Step 4 develop package
Step 4 – Develop Package

  • Develop package using funds for which the student qualifies

  • Institution’s award packaging policy can influence the resulting package

  • Total of package cannot exceed COA


Step 5 other supplemental assistance
Step 5 – Other Supplemental Assistance

  • Unsubsidized Stafford

  • PLUS Loan

  • Private Loans


Five basic packaging techniques
Five Basic Packaging Techniques

  • First-Come, First-Served

  • Special Targeted Groups

  • Self-Help Concept

  • Equity Concept

    • Absolute Dollar Equity

    • Fixed Percentage Equity

  • Packaging to Cost of Attendance


Packaging techniques
Packaging Techniques

  • First-Come, First-Served

    • Based on the order in which completed applications are received by the aid office until funds are exhausted.


Packaging techniques1
Packaging Techniques

  • Targeted Groups

    • Separate packaging criteria for specific groups of students in addition to specific criteria required by law or regulation. (Good for institutional scholarships)


Packaging techniques2
Packaging Techniques

  • Self-Help

    • Self-help assistance awarded after the family contribution and before any consideration for gift aid.


Packaging techniques3
Packaging Techniques

  • Equity Concept

    • Absolute Equity

      • Students funded up to an institutional maximum fixed dollar amount with gift aid before their remaining need is filled with self-help.

    • Fixed Percentage Equity

      • An institutional maximum percentage of NEED or COST for all gift aid is used.


Packaging techniques4
Packaging Techniques

  • Packaging to Cost of Attendance

    • Student’s FA need is met as much as possible according one or a combination of the previous techniques

    • Unmet COA is filled using remaining unsubsidized Stafford loan eligibility, PLUS and/or Private Loans.


Packaging techniques5
Packaging Techniques

  • Many institutions do not use a specific model by itself. Variations of the models can be used to best fit the institutional objectives.


Award notification
Award Notification

  • Institutions are required to inform the student of:

    • the amounts

    • terms and conditions of his/her award

    • manner and timing of payments

  • Signature of acceptance by the student is no longer required. However, many institutions continue this practice.


Packaging example
Packaging Example

Holly B. Needy

  • Incoming first-year student, AY 10/11

  • COA = $20,000 EFC = $500

  • Qualifies for state residency

  • Has PTA scholarship of $2000

  • Eligible for Pell Grant of $5500

  • Maximum awards: State Grant - $2500,

    Stafford Loan - $3500, Work Study - $2500,

  • Institutional grant to fill remaining gap in gift aid.

    Package this student with the “FIXED PERCENTAGE OF NEED” equity model with a maximum of 70% gift aid (scholarship considered part of gift aid).


Packaging example1
Packaging Example

  • Determine need

    COA – EFC = Financial Need

    $20,000 - $500 = $19,500 Financial Need

  • Determine gift aid

    Financial Need * Gift Pct = Max gift aid

    $19,500 * 70% = $13,650


Packaging example2
Packaging Example

  • Need 19,500

  • Max Gift Aid 13,650

  • Pell Grant 5,000

  • PTA Scholarship 2,000

  • State Grant 2,500

  • Institutional Grant 4,150

  • Gift Aid Awarded 13,650

  • Remaining FA Need 5,850

  • Work Study 2,500

  • Sub Stafford Loan 3,350

  • Total Self-Help 5,850

  • Unmet FA Need 0

  • Total Package 19,500

  • Can Holly get anything else?


Thank you for your attention
Thank you for your attention!

Questions?

Martin R. Hernandez

214-379-5530

[email protected]


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