Need Analysis for Graduate Students Was Aristotle Right? Presented by Joetta Bradica, Ed.D. Penn State College of Medicine

“To give away money is an easy matter and in any man’s power. But, to decide to whom to give it, and how large and when, and for what purpose and how, is neither in every man’s power-nor an easy matter. Hence it is that such excellence is rare, praise worthy, and noble.”-Aristotle

Let’s look at: What is IM? Why use it? Watch for: conflicting data, verification Packaging strategies Tools and Resources “Best Practices”

What is IM? A formula that approximates the family’s ability to pay, not necessarily their willingness to pay.

IM An institution controlled calculation that enables you to rank order the neediest students based upon institutional criteria Allows for modifications based upon institutional needs Institution determines the amount of detail that is to be considered

Why use IM? Fair and equitable tool that can be used to award institutional funds Allows for an objective assessment of family financial strength Only other choice is pure FM It’s a starting point – PJ is an option for exceptions

Data Collection Tools FAFSA Need Access CSS Profile Home grown systems Paper forms

Packaging Strategies Annual vs. Multi-year Unique target markets Merit vs. Need –Which is your priority? –Merit to address diversity issues and/or exceptional students?

Review Before you Begin Are your packaging strategies in line with your school’s mission and goals –Don’t overcomplicate your assessments –Determine the easiest way to assess while meeting the needs of your institution Review you IM awarding policies and formula annually Don’t be afraid to involve other administrative areas

Mine the data -Verification Watch for conflicting data and/or “hidden clues” that may require a more in-depth review –Home equity –Interest/dividend income –Depreciation –Farm and business supplement –Schedule L (loss/value of rental property: revenue from other real estate –Cars

What do you think? How do you treat parental information if it includes: –Non-custodial parent(s) –Step parent’s information –Siblings who are students –Cut off age to collect parental info? –Married students –Parents unwilling to provide information –International parents

Incarcerated or estranged parents Married students with a non-working spouse Assets Retirement Accounts –use or not use? Untaxed income not included in FM Adding items from the 1040 “back in” –Losses reported on schedule E –Specific credits

Tools and Resources – home value assessment toolwww.zillow.com – currency converterhttp:// – stock quoteswww.money.msn.com – currency converter & stock quoteshttp://finance.yahoo.com

Best Practices Do you use NSLDS? –Check for Pell or Perkins from undergrad –Check prior federal loan borrowing Are awards renewable and under what terms?

Thank You Audience Scenarios and Discussion