Rocking Out Packaging
Transcript of Rocking Out Packaging
Freestyle Jazz (totally adlibbed)
Most popular financial aid questions:– What’s a Stanford loan?– Can I get a copy of my reward letter?– Do I have to do my FASFA every year?– I have to do paperwork to get my money?!– Can I get more financial aid to buy a car?• Or laptop?• Or to pay for my trip?
And I say HEY! What’s going on?
Have you ever told a student…– You need to go sign your EMPN?– Have you done your loan entrance?– Let’s see if we have your ISIR…– It looks like you have a CFLAG.– You’re ISIR is rejected.– It’s because you’ve exceeded your COA...– Do you have any means-tested benefits?
We are actually just as confusing as students.
We Don’t Need No Education
• Today we will learn– Definition of packaging– Funds we typically package– Estimated Financial Assistance & its affect– Steps to package awards– Packaging categories & sequence– Packaging models– Overawards– Hands-on example– Notifying students of their awards
Actually yes, you do and we have objectives!
So what IS packaging?
• Per the FSA Handbook*– Packaging is the process of awarding aid without
exceeding the student’s financial need– More simply: it’s how you decide what students
are awarded (in what combination)
*Source: 1011 FSA Handbook Volume 3, page 3-143
Funds we typically package
• Federal programs– Pell, SEOG, Perkins, Federal Workstudy, Direct
Loans, PLUS Loans, Graduate PLUS Loans, TEACH, Iraqi & Afghanistan Service Grant
• State programs– TPEG, TEXAS Grant, TEG, BOT, CAL, Texas
Workstudy, Set-Aside Funds
• Institutional programs
Estimated Financial Assistance
• Estimated Financial Assistance (EFA) is taken into consideration when packaging
• Examples include (but not limited to)– Pell (first source of aid)– Other federal, state, institutional grants– Subsidized & Perkins loans– Work study– Unsubsidized loans*– PLUS loans*– Private loans*
* Indicates funds that can replace all or part of the EFC as long as the COA is not exceeded.
Other Examples of EFA• ROTC living allowances• Scholarships (including athletic & ROTC)• Employer reimbursement of tuition & fees• Tuition and fee waivers • Fellowships and assistantships• Americorps Funds• Exceptions to EFA:– Iraq & Afghanistan Service Grant– Prepaid tuition plan– Federal veteran benefits
Source: 1011 FSA Handbook Volume 3, page 3-145
Steps to Packaging
• Determine the student’s Cost of Attendance (COA) budget & Expected Family Contribution (EFC)
• Award Federal Pell Grant• Calculate the student’s financial need• Package campus-based, state, federal, and
institutional funds• Package or refer students to other
supplemental sources of assistance
Packaging Steps: STEP 1
A typical COA consists of*– Tuition & Fees– Books & Supplies– Room & Board– Transportation– Personal Expenses
Determine the COA & EFC
* COA amounts are determined by the institution & could include PJ adjustments
EFC comes from…?
Packaging Steps: STEP 2
• Pell Grant awarded based on EFC – Pro-rated based on enrollment status and EFC
Award Pell Grant
Packaging Steps: STEP 3
Cost of Attendance-- Expected Family Contribution-- EFA__________________________
Initial Need-- PELL award (if any)
__________________________Remaining Need to package other funds
Calculating student’s remaining need
Packaging Steps: STEP 3Calculating students’ non-need eligibility
Cost of Attendance-- PELL-- EFA-- Need-based aid awarded________________________________
Room for non-need based aid
Packaging Steps: STEP 4
• Package other aid programs listed above according to your school’s packaging philosophy/policy– Keep in mind that each school is different!
Package Campus-based, Federal, State, Institutional
• Responsibility for paying for college rests with the student and their family
• Federal Pell Grant is the foundation of undergraduate student aid packages
• Families can borrow from some aid programs to replace all or a portion of their EFC
• Scholarships cannot be substituted for the EFC• Must take expected financial assistance (EFA)
Goals of an Administrator
• Provide as many students as possible with resources to meet their financial need
• Distribute aid in an equitable manner• Provide assistance that will be the most
beneficial to the student• Manage financial aid funds• Recruit and retain students• Meet areas of national need
Sometimes these are competing goals!
• Schools can organize their packaging categories based – Enrollment status– Classification – Academic program or major field of study– Application date– Need Based vs. Non-Need Based– Residency Criteria
• Packaging philosophy must be detailed in the school’s policy and procedures
• Schools designate the order in which it awards funds from various programs– Again, this can vary from school to school– It can depend on the categories designated– This should be noted in the policy and procedure
manual for your institution
What gets awarded 1st? 2nd?
Six Basic Packaging Models
• First-Come, First-Served• Gift Aid First• Self-Help Concept• Special Targeted Groups• Equity Concept– Absolute Dollar Equity– Fixed Percentage Equity
• Individualized Packaging Don’t worry, you’ll get it!
Kinda like the Beatles for rock music… the foundation
First Come, First Served
• Financial aid awards based on the order in which completed applications are received by the aid office until funds are exhausted
• Benefits:– Rewards students who get their stuff done early
• Drawbacks:– May not have funds available for students that
need it most
We are the champions my friends…
• Gift aid is awarded first and self help aid is awarded to meet any remaining need
• Benefits:– Decreases likelihood of loan debt
• Drawbacks:– Limited gift aid funding
HELP! I need somebody. HELP!
• Self-help assistance is awarded after the family contribution and before any consideration for gift aid
• Benefits:– Places same burden on all students– Allows gift aid to those who do not have same
access to self-help
• Drawbacks:– Increases likelihood of higher loan debt
HELP! I need somebody. HELP!
• Separate packaging criteria for specific groups of students in addition to specific criteria required by law or regulation
• Benefits:– Easier to tie packaging philosophy to institutional
• Drawbacks:– Tougher to defend – watch the “bait and switch”
• Absolute Equity– All students are funded up to an institutional
maximum fixed dollar amount with gift aid before their remaining need is met with self-help.
• Fixed Percentage Equity– An institutional maximum percentage level of NEED
or COST for all gift aid is used rather than a fixed dollar amount.
• Benefits:– Provides for an equitable distribution
• Drawbacks:– Difficulty in managing overawards and maintaining
that equitable distribution
Everybody get together try and love one another…
• Packaging based on the FAA’s evaluation of a student’s individual costs, resources and needs
• Benefits:– Each financial aid packaged is customized– Personal touch with each student
• Drawback:– Time consuming– High subjectivity
Which Should You Use?
• This depends on your institution• Most institutions do not use one specific
model…– A variation of one or more of these models is used
by institutions to fit in with that school’s objectives
Like your music preference…
Things to Consider
• Should we package PLUS loans?• Should we package private loans?• Should we package loans at all?• Which comes first, the loan or work study?• Which comes first, the grant or the loan?
There is no one answer!
Mmmm Mmmm Mmmm Mmmm…
• Overawards occur when:– Aid exceeds a student’s need or COA
• How does this happen?– EFC changes (due to verification or updates)– COA changes (possibly due to enrollment)– Additional EFA comes in (late scholarship,
exemption payment)• This is the student’s responsibility to report to us
• When overawards happen, we make adjustments
Packaging Example: Self Help
Sally is attending Rock Star College (RSC). She is a dependent senior. RSC employs a self-help packaging model and awards work study prior to loans.
ROCK STAR COLLEGECOA $20,000EFC $500Scholarship $2,500Pell Grant $4,800
AWARD MAXIMUMSPerkins $1,500Work Study $3,000Institutional Grant $3,000Stafford $5,500
Packaging Example: Self Help• Cost of Attendance• EFC• Need• Scholarship (EFA)• Pell • Remaining Need• Work study• Perkins• Stafford Loan• Remaining need before grants• Institutional Grant• Unmet Need• Anything Else????
20,000(500)19,500(2,500)(4,800)12,200(3,000)(1,500)(5,500)2,200(2,200)0Remaining unsub eligibility?
• What if after you have packaged, you are informed that the student is receiving another $500 scholarship?– Does this fit in the COA as is?– Does it fit within the need? • If not what would you reduce?
Packaging Example: Self Help
Notifying Students of Awards
• Institutions are required to inform students:– Amount of award(s)– Terms and conditions of award– Manner and timing of payments
• Institutions have the option of confirmation or notification– Confirmation – Student formally accepts awards– Notification – Student not required to accept
award, but must notify school if they do not want aid
Notifying Students of Awards
• What if there aren’t enough funds?– Caveat may be included on award notification
stating that the award is subject to the availability of funds and may be revised if funds not available or eligibility changes
Repeating the Chorus
• Today we learned– Definition of packaging– Funds we typically package– Estimated Financial Assistance & its affect– Steps to package awards– Packaging categories and sequence– Packaging models– Overawards– Hands-on example– Notifying students of their awards
Nah-nah-nah-nanananah! HEY JUDE!