# Presentation: 270519

## Session 35

**AWARDING AID**
- Linda Coffey
- Jamie Malone

## 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
- Understanding of available EFA
- Determine individual student’s COA
- Available aid resources at your school

## 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/Budget

- 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

## Estimated Financial Assistance (EFA)

- 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

## 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

## 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
- ACG
- National SMART 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__	__3,360_=Remaining Need   		 	  $15,640

- 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

## 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 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

## Complete Aid Package

-  	COA
- 	-	EFC
- 	-	Pell
- 	-	_EFA_
- 	=	Remaining Need

## 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

## 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	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	_0_	_2,000_
- Remaining Need	1,890	2,390

**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	2,560	2,560
- Chapter 30 VA	_9,600_	_0_
- Need	940	10,540
- Subsidized Loan	_940_	_3,500_
- Remaining Need	0	7,040

**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	2,560	2,560
- Chapter 30 VA	9,600	9600
- Subsidized Loan	_3500_	_0_
- Remaining Need	-2,560	940
- Campus-based Aid		940

**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 & 9 brothers.

## 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 ****	**_**4,500**_**	**_**4,500**_
**Remaining Need****	****4,690****	****6,690**

**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.

## Contacts

**Jamie Malone**
**Phone: (312) 730-1528**
**Email: jamie.malone@ed.gov**

- We appreciate your feedback and comments.
- We can be reached at:

**Linda Coffey**
**   ****Phone: (816) 268-0431 **
**   ****Email: linda.coffey@ed.gov**

## 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

- Jo Ann Borel
- Title IV Training Supervisor
- joann.borel@ed.gov
- 202-377-3930