Session FF-08

1. Session FF-08 AWARDING AID Linda Coffey U.S. Department of Education

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

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 Books and Supplies Transportation Room and Board Personal Expenses Loan Fees Dependent Care Disability Related Expenses Study-Abroad Expenses Cost Of Attendance

6. 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 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 • 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 • Academic Competitiveness Grant • National SMART Grant • TEACH 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 3,781=Remaining Need $15,219

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 prior to each disbursement

14. 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

15. 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

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

18. 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

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. 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

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

22. 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

23. Complete Aid Package Cost Of Attendance - Expected Family Contribution - Estimated Financial Assistance = Need

24. Sample Aid Package COA $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

25. Packaging Case Studies

26. 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.

27. Thomas At ADCC #1 #2 COA 18,000 18,000 EFC1,0001,000 Need 17,000 17,000 Pell Grant 3,781 3,781 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 Scholarship02,000 Total Aid 12,531 12,031 Remaining Need 4,469 4,969

28. 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.

29. George At XYZ State University #1 #2 COA 14,900 14,900 EFC 1,800 1,800 Pell Grant 2,981 2,981 Chapter 30 VA 9,6000 Need 519 10,119 Subsidized Loan 5193,500 Remaining Need 0 6,619

30. George At XYZ State University #2 #3 COA 14,900 14,900 EFC 1,800 1,800 Pell Grant 2,981 2,981 Chapter 30 VA 9,600 9600 Subsidized Loan 35000 Remaining Need -2,981 519 Campus-based Aid 519

31. 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. Scarlett At University Of Aeronautical Studies

32. Scarlett At UAS #1 #2 COA 25,000 25,000 EFC 00 Need 25,000 25,000 Pell Grant 4,731 4,731 FSEOG 500 500 National SMART 4,000 4,000 Subsidized Loan 3,500 3,500 FWS 2,000 0 Academic Award 1,500 1,500 NASA Scholarship4,5004,500 Total Aid 20,731 18,731 Remaining Need 4,269 6,269

33. Contact Information Your feedback and comments are appreciated. • Linda Coffey • Training Officer • 816-268-0431 • linda.coffey@ed.gov