3. Definition of packaging Funds typically packaged Estimated Financial Assistance (EFA) & its affect Steps to package awards Packaging categories & sequence Packaging models Over-awards Hands-on example Notifying students of awards

4. 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 and with what combination of aid

5. Federal programs State programs Institutional programs  Pell  SEOG  Perkins  Federal Work Study  Direct Loans  PLUS Loans  Graduate PLUS Loans  TEACH Grant  Iraq & Afghanistan Service Grant  TPEG  TEXAS Grant  TEG  BOT  CAL  Texas Work Study  Graduate PLUS Loans  Set Aside Funds

6. Estimated Financial Assistance (EFA) is counted as part of student’s aid package Examples of EFA:  ROTC living allowances  Scholarships (including athletic & ROTC)  Employer reimbursement of tuition & fees  Tuition and fee waivers  Fellowships and assistantships  Americorps Funds

7. Exceptions to EFA rules:  Iraq & Afghanistan Service Grant  Prepaid tuition plan  Federal veteran benefits

9. 1.Determine the student’s Cost of Attendance (COA) budget & Expected Family Contribution (EFC) 2.Award Federal Pell Grant 3.Calculate the student’s financial need 4.Package campus-based, state, federal, and institutional funds 5.Package or refer students to other supplemental sources of assistance

10. STEP 1: DETERMINE THE COA & EFC. A typical COA consists of*  Tuition & Fees  Books & Supplies  Room & Board  Transportation  Personal Expenses EFC comes from…? * COA amounts are determined by the institution & could include PJ adjustments.

11. STEP 2: AWARD PELL GRANT Pell Grant awarded based on EFC  Pro-rated based on enrollment status and EFC range

12. STEP 3: CALCULATE STUDENT’S REMAINING NEED Cost of Attendance --Expected Family Contribution --EFA _____________________________ Initial Need --PELL award (if any) _____________________________ Remaining need for other need based aid

13. Calculating student’s non-need eligibility Cost of Attendance --PELL --EFA --Need-based aid ________________________________ Room for non-need based aid

14. STEP 4: PACKAGE CAMPUS-BASED, FEDERAL, STATE, AND INSTITUTIONAL AID Package other aid programs according to your school’s packaging philosophy/policy Keep in mind that each school is different!

15. STEP 5: PACAKGE OR REFER STUDENTS TO OTHER ASSISTANTCE Alternative loans

17. 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 EFC Must take expected financial assistance (EFA) into account prior to awarding aid

18. 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!

19. Schools can organize their packaging categories based on the following:  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

20. What gets awarded 1st? 2nd? School designates the order in which it awards funds from various programs  Varies from school to school  It can depend on the categories designated  This should be noted in the policy and procedure manual for your institution

22. First-Come, First-Served Gift Aid First Self-Help Concept Special Targeted Groups Equity Concept  Absolute Dollar Equity  Fixed Percentage Equity Individualized Packaging

23. Financial aid is awarded based on the order in which completed applications are received by the aid office until funds are spent. Benefits:  Rewards students who get their FAFSA and other requirements done early Drawbacks:  May not have funds available for students that need the most help

24. 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

25. Self-help assistance is awarded after subtracting the family contribution and before any consideration of gift aid Benefits:  Places same burden on all students  Allows gift aid for those who do not have same access to self-help Drawbacks:  Increases likelihood of higher loan debt

26. 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 goals Drawbacks:  Tougher to defend – be consistent

27. 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 over-awards and maintaining that equitable distribution

28. 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  Highly subjective

29. 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

31. Over-awards occur when aid exceeds a student’s need or COA How does this happen?  EFC changes (due to verification or PJ updates)  COA changes (possibly due to enrollment)  Additional financial assistance comes in (late scholarship, exemption payment) This is the student’s responsibility to report to us When over-awards happen, we make adjustments

33. Sally is attending Happy Campus College (HCC). She is a dependent senior. HCC employs a gift-aid first packaging model and awards work study prior to loans. HAPPY CAMPUS COLLEGE COA $20,000 EFC $500 Scholarship $3,500 Pell Grant $5,325 AWARD MAXIMUMS FSEOG$500 Institutional Grant $2,500 Work Study$3,000 Direct Loan$7,500

34. - Cost of Attendance20,000 - EFC(500) Need19,500 - Pell(5,325) - EFA (Scholarship)(3,500) - Remaining Need10,675 - SEOG(500) - Work Study(3,000) - Unmet NeedZERO Other aid eligibility?$500 in unsubsidized loan - Remaining Need before loans 4,675 - Institutional Grant(2,500) - Subsidized Loan(4,675)

35. 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?

37. 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 aid, but must notify school if they do not want aid

38. 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 are not available or eligibility changes.

39.  Shopping Sheet

40. Definition of packaging Funds typically packaged Estimated Financial Assistance (EFA) & its affect Steps to package awards Packaging categories & sequence Packaging models Over-awards Hands-on example Notifying students of awards