Campus-Based	Aid
You	should	consider	several	things	when	developing	a	packaging	policy.	For	instance,	some	schools	give	more	grant
assistance	to	beginning	students,	who	may	have	more	difficulty	adjusting	to	campus	life,	increasing	the	proportion	of
loans	and	work-study	in	subsequent	years.	For	the	Campus-Based	Programs	and	other	programs	where	the	available
funds	may	not	be	sufficient	to	meet	every	eligible	student9s	need,	some	schools	decide	to	give	a	higher	proportion	of	aid
to	the	neediest	students.	Other	schools	award	funds	as	an	equal	proportion	of	each	student9s	need.
Many	schools	use	software,	such	as	the	Packaging	module	in	EDExpress,	that	can	be	configured	to	implement	the	school9s
packaging	philosophy.	For	instance,	EDExpress	allows	you	to	specify	the	order	in	which	aid	sources	are	to	be	applied	to
the	student9s	unmet	need,	and	to	set	overall	percentage	limits	on	the	amount	of	gift	(grants	and	scholarships)	and	self-
help	aid	that	will	be	included	in	the	aid	package.
Use	Net	FWS	Earnings	When	Packaging
To	determine	the	net	amount	of	a	student9s	FWS	earnings	that	will	be	available	to	help	pay	for	the	student9s	costs,	you
must	subtract	estimated	taxes	and	job-related	costs	from	the	student9s	gross	FWS	earnings	(see	
Volume	6,	Chapter	2).
FSEOG	and	Pell	Grant	LEU
A	student	who	receives	a	Pell	Grant	at	any	time	in	the	award	year	may	be	awarded	an	FSEOG	for	that	award	year;	the
student	does	not	have	to	receive	a	Pell	Grant	in	the	same	payment	period	as	the	FSEOG.	For	example,	in	the	case	of	a
student	who	receives	a	Pell	Grant	only	for	the	fall	semester	due	to	reaching	their	lifetime	eligibility	used	(LEU),	the
student	may	be	awarded	an	FSEOG	for	both	the	fall	semester	and	subsequent	spring	semester.
Students	who	have	reached	or	exceeded	600%	of	their	Pell	Grant	LEU	may	still	be	eligible	to	receive	FSEOG.	However,
they	must	be	considered	in	the	second	selection	group	(see	<Selecting	FSEOG	recipients=	in	
Volume	6,	Chapter	6).
You	must	keep	documentation	of	the	eligible	SAI	that	was	calculated	for	the	student,	and	you	must	confirm	Pell	Grant
eligibility	prior	to	disbursement	of	the	FSEOG.	For	more	details	on	Pell	Grant	LEU,	see	Volume	7,	Chapter	8.
Packaging	TEACH	Grants
TEACH	Grants	are	not	considered	to	be	need-based	aid.	The	amount	of	a	student9s	TEACH	Grant,	in	combination	with	the
student9s	OFA	from	all	other	Title	IV	programs,	may	not	exceed	the	COA.	You	may	optionally	use	a	TEACH	Grant	to	replace
the	SAI	(see	the	<Substituting	for	the	SAI=	section	later	in	this	chapter).
Direct	Loan	Packaging	Considerations
Before	you	originate	a	Direct	Subsidized	Loan	or	Direct	Unsubsidized	Loan	for	an	undergraduate	student,	you	must
determine	the	student9s	eligibility	for	a	Pell	Grant.
Before	you	originate	a	Direct	Unsubsidized	Loan	for	an	undergraduate	student,	you	must	determine	the	student9s
maximum	Direct	Subsidized	Loan	eligibility.
You	may	originate	a	Direct	Subsidized	Loan	only	for	the	amount	of	the	student9s	financial	need	(that	is,	the	student9s
COA	minus	the	student9s	SAI	and	OFA).
A	student	may	qualify	for	a	combination	of	both	Direct	Subsidized	Loans	and	Direct	Unsubsidized	Loans.
The	parent	of	a	dependent	student	can	take	out	a	Direct	PLUS	Loan	to	pay	for	the	student9s	COA	(assuming	that	the
parent	meets	the	Direct	PLUS	Loan	eligibility	requirements).	There	is	no	fixed	loan	limit	for	Direct	PLUS	Loans,	but
Direct	PLUS	Loans	cannot	be	made	for	an	amount	that	exceeds	the	student's	COA,	less	other	financial	aid	received.
If	the	student	is	independent,	or	if	a	dependent	student9s	parent	is	ineligible	for	a	Direct	PLUS	Loan,	the	student	is
eligible	for	additional	Direct	Unsubsidized	amounts.
Direct	Unsubsidized	Loans	and	Direct	PLUS	Loans	can	be	used	to	replace	the	SAI,	as	well	as	to	cover	the	student9s
unmet	need.
Direct	Subsidized	Loans	are	available	only	to	undergraduate	students.