Awarding Financial Aid Jerry Alan Donna Director of Financial Aid Salem College Winston-Salem, NC

1. Awarding Financial Aid Jerry Alan Donna Director of Financial Aid Salem College Winston-Salem, NC

2. A few more acronyms! • ACG – Academic Competitiveness Grant • COA – Cost-of-Attendance • EFA – Estimated Financial Assistance • EFC – Expected Family Contribution • FWS – Federal Work-Study • ISIR – Institutional Student Information Report • SMART – National SMART Grant

3. 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

4. Prior to Packaging • A school must: • Have developed Packaging Policies • Defined their Academic Year • Defined their Payment Periods • Developed a Cost of Attendance (Budget)

5. Prior to Packaging Federal & Need Based Aid • ISIR with official EFC • To determine need • Understanding of available EFA (resources available) • Determine individual student’s COA • Types of federal aid available at your institution • Pell • ACG/SMART • Campus-Based Funds (Perkins Loan, FSEOG, FWS) • Loans

6. 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 when possible (not all schools can meet need). COA $20,000- EFC 0= Need $20,000

7. 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 Computer Cost of Attendance/Budget

8. 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 (unless compensation is via payroll) • VA educational benefits

9. Estimated Financial Assistance • Basic Need COA - EFC = Need • $14,000 - 1000 = $13,000 • Need Based COA - EFC - EFA = Need-Based Eligibility • $14,000 - 1000 - 13,000 = 0 • Non-Need Based COA - EFA = Non-Need Based Eligibility • Unsubsidized or Plus Loan

10. 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

11. Pell ACG SMART Campus Based Work-Study SEOG Perkins Loan Loans Federal Programs

12. 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 the U.S. Department of Education’s Pell payment/disbursement schedules • No other aid is considered in determining Pell eligibility • 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

13. 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 4,310= Remaining Need $15,690

14. 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

15. ACG continued… • 1st year students • Must not have been previously enrolled in a program of undergraduate study • Must have graduated from a rigorous secondary high school program after 1/1/06 • 2nd year students • Must have graduated from a rigorous program of study after 1/1/05 • Must have at least a 3.0 GPA in an eligible program

16. Student Eligibility Criteria Specific to the National SMART Grant • 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 (based on approved USDOE CIP CODE list) • Cumulative GPA of at least 3.0 on a 4.0 scale

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

18. FSEOG – Federal Supplemental Educational Opportunity Grant • 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

19. 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 ($5.85 as of July 24, 2007)

20. Federal 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 ($4000) and aggregate ($20,000) loan limits

21. FFEL – Federal Family Education LoanDL – Federal Direct Loan • 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 ($3,500, $4,500, $5,500) and aggregate limits ($23,000, $46,000, $138,500)

22. Available Institutional Aid • Funds both within Financial Aid Office’s control and those not in the control of the Financial Aid Office. • Athletics, academic departments, performance based scholarships (i.e. music, dance), Admissions, bookstore, etc • Internal criteria and packaging policies • Grants • Loans • Assistantships and fellowships • Tuition and fee waivers • Need-based employment

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

24. 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

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

26. COA $20,000 - EFC 0 = Need $20,000 Pell $4,310 Stafford $3,500 FSEOG $500 Perkins $4,000 FWS $1,500 Scholarship $5,000 = Unmet Need $1,190 Estimated Financial Assistance (EFA) $18,810 Sample Aid Package

27. Packaging Case Studies

28. 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 graphic design. He has decided to attend Art & Design Community College to get his AA prior to going on to a 4-year college. Edgar and Art & Design Community College

29. COA EFC Project Design Scholarship Pell ACG Institutional Grant FWS Sub loan Unsub loan Plus 15,000 15,000 0 15,000 1,000 14,000 4,310 9,690 750 8,940 500 8,440 2,500 5,940 3,500 2,440 0 2,440 2,440 0 Art & Design Community College Package Award Balance

30. 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.

31. COA EFC Pell Chapter 30 VA Need Sub loan Remaining Need $14,900 $14,900 1,800 1,800 2,000 2,000 9,600xxxx 1,500 11,100 1,5003,500 0 7,600 George and XYZ State University Package #1 Package #2

32. George and XYZ State University Package #2 Package #3 COA $14,900 $14,900 EFC 1,800 1,800 Pell 2,000 2,000 Chapter 30 VA 9,600 9,600 Sub loan 3,500 ------- Remaining Need (2,000) 1,500 No overaward

33. Ahigh 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 & nine brothers. Scarlett and the Univ. of Aeronautical Studies

34. University of Aeronautical Studies COA $25,000 $25,000$25,000 $25,000 EFC 0 25,0000 25,000 Scholarship – SWA 700 24,300700 24,300 Scholarship – Gates 8,500 15,8000 24,300 Pell 4,310 11,4904,310 19,990 SMART 4,000 7,4904,000 15,990 SEOG 500 6,990500 15,490 FWS 2,500 4,4902,500 12,990 Sub loan 4,490 05,500 7,490 Unsub loan 0 00 7,490 Plus 0 07,490 0 Package Award Balance Optional Balance

35. Questions?Jerry Alan DonnaSalem College, Winston-Salem, NCPH 336-917-5577EMAIL donna@salem.edu