National Association of Student Financial Aid Administrators Presents … © 2013 NASFAA Packaging & Notification of Awards Module 11

Slide 11-2 © 2013 NASFAA Financial aid packaging is the strategy used to distribute limited financial aid resources to qualified students to attend the postsecondary school of their choice Packaging combines various types of aid from federal, state, institutional, and private entities to meet student’s financial need Introduction

Slide 11-3 © 2013 NASFAA Self-help aid may be defined as: Loans Employment Expected family contribution (EFC) Noninstitutional grants Self-Help Aid

Slide 11-4 © 2013 NASFAA School may establish packaging categories to: Control distribution of financial aid using percentages, set dollar amounts, etc. Reflect a school’s mission and philosophy, and take into account unique characteristics of the school’s student population Packaging Categories

Slide 11-5 © 2013 NASFAA Sequence of awarding financial aid from each program is up to school Allows school to control packaging outcomes Sequence must be followed consistently within categories Packaging Sequence

Slide 11-6 © 2013 NASFAA Packaging policy should: Set award amount for each program Specify portion of need school will meet if policy is not to meet full need –Set gap between need and financial aid package as flat amount or fixed percentage Packaging Award Amounts

Slide 11-7 © 2013 NASFAA Packaging policy should: Specify whether minimum award amount set for Federal Perkins Loans and/or Federal Work- Study –Award only if need allows for more than established minimum award amount Consider program maximums that increase each year (e.g., Title IV loan programs) Packaging Award Amounts

Slide 11-8 © 2013 NASFAA Important issues to consider when packaging aid for summer include: Structure of the summer term for term-based programs Enrollment status Selecting the award year for a crossover payment period Funds allocation for summer aid Use of a scheduled academic year (SAY) as opposed to a borrower-based award year (BBAY) Summer Terms

Slide 11-9 © 2013 NASFAA Program-Specific Packaging Criteria Reasonable portion for less-than-full-time and independent students Federal Supplemental Educational Opportunity Grant (FSEOG) based on exceptional need in priority order Federal Perkins Loans based on exceptional financial need

Slide © 2013 NASFAA Program-Specific Packaging Criteria Students with AmeriCorps benefits Funding for children of certain deceased soldiers who served in Iraq or Afghanistan

Slide © 2013 NASFAA Other Packaging Considerations Students with federal veterans educational benefits Students with Bureau of Indian Affairs grants Students receiving vocational rehabilitation assistance

Slide © 2013 NASFAA 1.Individual student 2.First-come, first-served 3.Distinct student group 4.Gift aid first 5.Self-help 6.Equity Six Basic Packaging Models

Slide © 2013 NASFAA May include: –Increased self-help after first year –Lower self-help for low-income or disadvantaged students –Lower work-study for marginal students –Increased school-year work expectation as students progress academically Must be in school’s policies and procedures, and consistently followed Packaging Model Variations

Slide © 2013 NASFAA Loan Fees If borrowing a Federal Student Direct Loan (Direct Loan), actual or average loan fees must be added to COA Once loan fees are added to COA, gross amount of loan is included in EFA when calculating student’s remaining need for other sources of aid

Slide © 2013 NASFAA Overawards Financial aid that exceeds student’s financial need May occur when receipt of additional financial assistance, or changes to EFC or COA Student’s responsibility to report additional financial assistance

Slide © 2013 NASFAA May be used to collect student’s acceptance or rejection of aid offered School may request, but not require, student to sign and return award notification in order to continue processing student’s Title IV aid Award Notifications

Slide © 2013 NASFAA May be used to collect required written authorization(s) Should be mailed as early as possible Should explain appeal process Award Notifications

Slide © 2013 NASFAA Inform student in timely manner Explain reason(s) for decision Explain appeal process Suggest alternative sources of funding Rejection Letters

Slide © 2013 NASFAA