# Presentation: 736682

## Session FF-08

**AWARDING AID**
- Linda Coffey
- U.S. Department of Education

## 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

## 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

## 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

## Cost Of Attendance

- Tuition and Fees
- Books and Supplies
- Transportation
- Room and Board
- Personal Expenses

- Loan Fees
- Dependent Care
- Disability Related Expenses
- Study-Abroad Expenses

## Estimated Financial Assistance (EFA)

- 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

## 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

## 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

## 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

## 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

## Beyond the Foundation

-  COA	$20,000-EFC	1,000-P_ell__	__3,781_=Remaining Need   		 	  $15,219

- After calculating any Pell eligibility, use your packaging policy to take into account other sources of assistance available to the student

## 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

## 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

## 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

## 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

## Campus-Based Aid

- FSEOG, FWS, and Perkins Loans
- Must make funds reasonably available to all students
- No minimum enrollment status is required

## 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

## 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

## 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

## 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

## Outside Aid Student May Receive

- State aid
- Scholarships (organizations, merit, etc.)
- VA educational benefits
- Employer tuition assistance
- Alternative education loans

## 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

## Complete Aid Package

-  Cost Of Attendance
- 	- Expected Family Contribution
- 	- _Estimated Financial Assistance_
- 	= Need

## 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

## Packaging Case Studies

## 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.**

## Thomas At ADCC

- 		#1	#2
- COA	18,000	18,000
- _EFC_	_1,000_	_1,000_
- 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 Scholarship_	_0_	_2,000_
- Total Aid 	12,531	12,031
- Remaining Need	4,469	4,969

**Notes:**
In package #1, the student took an FWS job.  Later, the student was awarded an outside merit scholarship, which caused an overaward of $110.  The FAO spoke with the student who decided to just decline the entire FWS award, as he really the time to study.  In both packages, there is room for a parent PLUS loan.

## 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.

## 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	_9,600_	_0_
- Need	519	10,119
- Subsidized Loan	_519_	_3,500_
- Remaining Need	0	6,619

**Notes:**
Package #2 gives the student a subsidized loan by following the Chapter 30 exclusion.	

## 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	_3500_	_0_
- Remaining Need	-2,981	519
- Campus-based Aid		519

**Notes:**
Even though remaining need is negative, package #2 has no overaward.   In package #3, by excluding the sub, the student has remaining need for campus-based aid.	

## Scarlett At University Of Aeronautical Studies

- 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 UAS

- 		**#1****	****#2**
- COA 	25,000	25,000
- EFC	_0_	_0_
- 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 Scholarship_ 	_4,500_	_4,500_
- Total Aid	20,731	18,731
- Remaining Need	4,269	6,269

**Notes:**
Package #2 could be for the student who did not want to work.  In that case, there is still room the parent to borrow a PLUS loan, additional FSEOG, or Perkins Loan.

## Contact Information

- Your feedback and comments are appreciated.

- Linda Coffey
- Training Officer
- 816-268-0431
- linda.coffey@ed.gov