Packaging Financial Aid F. Duane Quinn Financial Aid Specialist duane201@charter.net

Review Cost $24,000 F.C $ 8,000 Need $16,000

Review $24,000. cost

Review cost Need = $16,000 $24,000 $ 8,000. F. C.

Review cost $24,000 $ 8,000. F. C. Total aid = $16,000 grant = $11,000 meet full need $ 2,000 work $3,000 loan $ 8,000. F. C.

Three General Categories of Aid Merit Aid: Based upon a “quality” Colleges Web Searches Need Based Aid Family economic circumstances Most College Aid (Grants) Most Federal /State Aid (Grants , work, subsidized loans)

Three General Categories of Aid Non-need based aid Family / Student not show economic eligibility- but not require a “quality”. Entitlement aid. PLUS loans Unsubsidized student loans Vet. / Military benefits Tax credits

Absolute Merit Award Cost: $24,000 EFC: $28,000 Need $ 0 Merit Awards / Merit with Need Goal: Attract Students; Influence Choice Cost: $24,000 EFC: $28,000 Need $ 0

Merit Awards / Merit with Need Goal: Attract Students; Influence Choice $24,000. FC = 28,000 cost

Merit Awards / Merit with Need Goal: Attract Students; Influence Choice $24,000. cost Merit Grant $18,000

Merit Awards / Merit with Need Goal: Attract Students; Influence Choice $24,000. Unsubsidized Loan Up to $6,000. cost Merit Grant $18,000

Merit Awards / Merit with Need Goal: Attract Students; Influence Choice “It is hypocritical to advocate of more federal funding for needy students when we have funds available for students without need” George Allan No Need for No Need Journal of Student Financial Aid Fall, 1988 Riggs, Henry E. (1994). Are Merit Scholarships Threatening the Future of Private Colleges? Trusteeship, Vol. 2, No. 3, pp. 6-10.

Example Cost $24,000 F.C $ 8,000 need $16,000

Meet Full Need Goal: Provide Access and Choice cost $24,000 need = $16,000 $ 8,000. F. C.

Meet Full Need Goal: Provide Access and Choice cost $24,000 need = 13,000 $3,000 loan $ 8,000. F. C.

Meet Full Need Goal: Provide Access and Choice cost $24,000 need = $11,000 $ 2,000 work $3,000 loan $ 8,000. F. C.

Meet Full Need Goal: Provide Access and Choice Total aid = $16,000 cost $24,000 Grant $11,000 $ 2,000 work $3,000 loan $ 8,000. F. C.

Meet % of Need Goal: Maximize Awards and Resources Total Aid = $13,000 cost $24,000 Gap = 3000 Grant $8,000 $ 2,000 work $3,000 loan $ 8,000. F. C.

Preferential / Differential Goal: Institutional Goals are Primary Influence Enrollment Decisions Differential The interest of the Institution is above the interest of the student e.g.: Higher grants to high SAT scores Preferential The interest of the student is above the institutional interest. e.g.: Lower loans to students majoring in public service fields or low income

Leveraging: Merit within need FA Rank 4 FA Rank 10 $24,000 Need=$16,000 FC=$8,000

Leveraging: Merit within need FA Rank 4 Total Aid = 7,000 FA Rank 10 Total aid = $16,000 $24,000 Grant $16,000 Unmet need Gap -$9000 Work - $3000 Loans -$4000 Need=$16,000 FC=$8,000

When is Need…. Need??? Federal Methodology cost $24,000 Need = $16,000 $ 8,000. FAFSA FM.

When is Need….Need?? Institutional Methodology cost $24,000 Need = $12,000 $12,000 PROFILE IM FAFSA.

When is Need….Need?? IM FM $24,000 Need Need $16,000 $12,000 $12,000 $ 4,000 $ 8,000

And Just when You Think You Understand: Student Loans Unsubsidized Loan Interest accrues Not required to have need Maximums based upon year in school Subsidized Loan Interest paid awarded on need Maximums based upon year in school

Leveraging: Merit within need FA Rank 4 Total aid = $7,000 FA Rank 10 total aid = $16,000 $24,000 Grant $16,000 Unmet need Gap work Loans subsidized Need=$16,000 FC=$8,000

Leveraging: Merit within need FA Rank 4 Total aid = $7,000 FA Rank 10 Total aid = $19,000 $24,000 Grant $16,000 Unmet need Gap work Loans Need=$16,000 Loan unsubsidized FC=$8,000

Recap $16,000 $13,000 $16,000 $7,000 $12,000 $19,000

The Effect of Private Scholarships on the Financial Aid Package “Overawards”

The Financial Aid Package OUTSIDE SCHOLARSHIP $$$$$$ $ 3000. cost $24,000 grant = $11,000 meet full need $ 2,000 work $3,000 loan $ 8,000. F. C (FM).

The Financial Aid Package cost $24,000 grant = $11,000 meet full need $ 2,000 work $3,000 loan $ 8,000. $$$ F. C (FM).

The Financial Aid Package cost $24,000 grant = $11,000 meet full need $ 2,000 work $3,000 loan $$$$$ $ 8,000. F. C (FM).

The Financial Aid Package cost $24,000 grant = $11,000 meet full need $ 2,000 work $3,000 loan $ 8,000. F. C (FM).

The Financial Aid Package cost $24,000 unmet need “GAP” $3,000 grant = $8,000 $2,000 work $3,000 loan $ 8,000. F. C (FM).

The Financial Aid Package cost $24,000 unmet need “GAP” $3,000 $$$$ grant = $8,000 $2,000 work $3,000 loan $ 8,000. F. C (FM).

Overawards: Governed by FM, not IM Total aid = $12,000 FM Total aid = $16,000 $24,000 Need $16,000 Need $12,000 $12,000 $ 4,000 $ 8,000

How Do College’s Adjust Awards? Institutional Policy... will differ from school to school Must have a policy Available in writing to student at time of award

How Do Colleges Adjust? Reduce Institutional grant dollar for dollar. Some combination of all of these. Allow Outside scholarships to fill “gap”. 50% from “self-help” and 50% from Institutional grant.

Tips on Negotiation: There is a difference between an “appeal” and “negotiation”. Differences in awards from schools of similar cost can be questioned. The “ I would not join a club that would have me as a member” rule. Financial Aid Officers are human too!!!