1. Packaging and Notification of Awards A NASFAA Authorized Event Presented by [Name of Presenter/Association] [Location] [Date], 2016

2. Lesson 1 Introduction to Packaging

3. What Does Packaging Accomplish?
Financial need
Equitable distribution of limited resources
Program compliance
Mission, goals, and objectives

4. Evaluating Financial Need
COA
COA
COA
EFC
EFC
EFA
EFA
Financial Need
Remaining Need
Remaining Eligibility

5. Packaging Policies and Procedures
Ensure full expenditure of funds
Compliance with requirements to provide information
Consistency in packaging
Consistency in handling overawards
Consistency in responding to appeals
Achievement of institutional goals

7. Lesson 2 Packaging Guidelines

8. Institutional Aid Reasonably Available Funds
Applies to campus-based funds
May not exclude otherwise eligible students or category of students when packaging
Not defined in law or regulations
Schools agree to this requirement through the PPA

9. Packaging Categories Categories Class standing Enrollment status
Academic program or major
Grade point average (GPA)
Application date
Residency

10. Packaging Categories Student population
Control the distribution of financial aid using percentages, set dollar amounts, etc.
Student population
Diversity
Retention rates
Completion rates

11. Packaging Sequence
Sequence of awarding financial aid from each program is up to the school
School controls packaging outcomes
Sequence followed consistently within categories
Grant aid
FWS
Loans

12. Packaging Award Amounts
Packaging policy should
Set guidelines for each program
Specify portion of need school will meet
Set gap as a flat amount or fixed percentage
Specify minimum award amounts for campus-based programs
Consider program maximums that increase each year, such as loans

14. Award Year
Federally defined
July 1 to June 30
July 1 to June 30

15. Undergraduate Program Type
Academic Year
Minimum Hours
Minimum Weeks in a Year
Undergraduate Program Type
Credit Hours
30 weeks
24 semester or trimester
36 quarter
Clock Hours
26 weeks
900 clock

16. Graduate/ Professional Program Type
Academic Year
Minimum Hours
Minimum Weeks in a Year
Graduate/ Professional Program Type
Credit Hours
30 weeks
Defined by the school
Clock Hours
26 weeks
Defined by the school

17. Summer Term Format Considerations Structure of the term
Enrollment status
Crossover payment period
Funds allocation
Use of SAY or BBAY

18. Summer Term Format Select award year for a crossover payment period
June 30
July 1
Summer

19. Program-Specific Packaging Criteria
Reasonable portion of campus-based programs
Exceptional need and priority order (FSEOG)
Federal Perkins Loan (exceptional need)
TEACH Grant Program
Direct Loans
Students with AmeriCorps benefits
Recipients of IASGs

21. Lesson 3 Packaging Models and Processes

22. Basic Packaging Models
Individual student
First-come, first- served
Distinct student
Gift aid first
Self-help
Equity

23. First-come, first- served
Basic Packaging Models
Individual student
First-come, first- served
Distinct student
Gift aid first
Self-help
Equity

24. Basic Packaging Models
Individual student
First-come, first- served
Distinct student
Gift aid first
Self-help
Equity

25. Gift Aid First Packaging Model
Cost of attendance (COA)
– Expected family contribution (EFC)
– Federal Pell Grant
– Estimated financial assistance (EFA)
= Remaining need for packaging
Grants and scholarships awarded first
Self-help awarded to meet remaining need

26. Gift Aid First Example—Harry
COA
$17,450
EFC ̶
900
Need =
16,550
Federal Pell Grant
$4,965
Jazz Scholarship
1,200
Remaining Need
10,385
FSEOG
2,000
FWS
2,500
Direct Subsidized Loan
5,500
Federal Perkins Loan
385
Unmet Need

27. Basic Packaging Models
Individual student
First-come, first- served
Distinct student
Gift aid first
Self-help
Equity

28. Self-Help Packaging Model
Cost of attendance (COA)
– Expected family contribution (EFC)
– Federal Pell Grant
– Estimated financial assistance (EFA)
= Remaining need for packaging
Self-help aid awarded first
Gift aid awarded to meet remaining need

29. Self-Help Example—Jayla
COA
$20,320
EFC ̶
Need =
20,320
Federal Pell Grant
$5,815
Symon Kowell Grant
3,000
Remaining Need
11,505
FWS
$1,500
Direct Subsidized Loan
3,500
Direct Unsubsidized Loan
2,000
Federal Perkins Loan
1,500
FSEOG
1,000
Institutional Grant
2,005
Unmet Need

30. Basic Packaging Models
Individual student
First-come, first- served
Distinct student
Gift aid first
Self-help
Equity

31. Equity Packaging Model
Assures certain level of gift aid assistance
Cannot be used to award FSEOG
Equity Models
Absolute Equity Concept
Fixed-Percentage Equity Concept

32. Absolute Equity Level TC = TR TG S Absolute Equity Level = TR + TG S
Total COA for all students TR
Total outside resources of all eligible students (EFC, Federal Pell Grant, state grant, external scholarships, etc.) TG
Total grant money available to school for equity grant use S
Number of eligible students to be packaged

33. Example—Student A Absolute Equity Target = $7,000 EFC ̶ 7,500
Equity Grant
($500)
COA
$10,000
Need
2,500
FWS
1,500
Direct Subsidized Loan
1,000
Unmet Need
Example—Student A

34. Example—Student B Absolute Equity Target = $7,000 Federal Pell Grant ̶
4,265
EFC
1,505
Equity Grant
$1,230
COA
$15,000
Need
13,495
$4,265
1,230
FWS
1,500
Direct Subsidized Loan
4,500
Remaining Need
$2,000
FSEOG
$1,000
Unmet Need
Example—Student B

35. Example—Student C Absolute Equity Target = $7,000 Federal Pell Grant ̶
5,815
PTA Scholarship
1,500
EFC
Equity Grant
($315)
COA
$14,000
Need
14,000
$5,815
FWS
Direct Subsidized Loan
4,500
Remaining Need
$685
FSEOG
Unmet Need $0
Example—Student C

36. Fixed-Percentage Equity Level=
(TR + TG) x
100% TC TC =
Total COA for all students TR
Total outside resources of all eligible students (EFC, Federal Pell Grant, state grant, external scholarships, etc.) TG
Total grant money available to school for equity grant use S
Number of eligible students to be packaged

38. Packaging Direct Loans and Loan Fees
Direct Loan Borrowers
Must add actual or average loan fees to COA
Subsidized, unsubsidized, and PLUS
Nonfederal Loan Borrowers
May include required loan fees in COA
Once loan fees are added to COA, gross loan amount also is included in EFA

39. Direct Loan Fees Example—David
COA and Need with Average Loan Fees
COA
$17,525
Average Subsidized and Unsubsidized Direct Loan Fees + 60
Revised COA =
17,585
EFC ̶
14,958
Remaining Need
2,627
Estimating Direct Loan Eligibility
Estimated Direct Subsidized Loan Eligibility
$2,627
Estimated Direct Unsubsidized Loan Eligibility +
3,873
Total Estimated Direct Loans =
$6,500
Revised COA (including Direct Loan Fees)
$17,585
Estimated Subsidized and Unsubsidized Direct Loan ̶
6,500
Estimated PLUS Eligibility
$11,085
Actual PLUS Loan Fee Percentage Assessed x
4.272%
Calculated Actual PLUS Fees
$473.55

40. Direct Loan Fees Example—David
Revising COA and Direct Loan Amounts
Revised COA
$17,585
PLUS Fees (truncated to 2 decimal places; not rounded) +
473.55
Revised COA (includes all loan fees) =
$18,058.55
EFC ̶
14,958
Revised Financial Need (rounded)
$3,100.55
Awarding Actual Subsidized and Unsubsidized Direct Loans
Award Direct Subsidized Loan
$3,100.55
Award Direct Unsubsidized Loan +
3,399.45
Total =
$6,500
Awarding Actual PLUS
Revised COA
$18,059
Subsidized and Unsubsidized Direct Loans ̶
6,500
Revised PLUS Eligibility =
$11,559
Award Actual PLUS

41. Packaging TEACH Grants
School chooses packaging order
May replace EFC
Sequestration applies

42. TEACH Grants Example—Safina
COA
$16,890
EFC ̶
1,036
Need =
$15,854
Federal Pell Grant
4,765
Future Teacher Scholarship
4,000
Remaining Need
$7,089
FSEOG
2,000
FWS
2,500
TEACH Grant
2,589
Unmet Need $
$2,589 +
Revised TEACH Grant (to replace EFC)
$3,625

43. Packaging IASGs EFC is Pell-Eligible
EFC is not Pell-Eligible
Award IASG up to full Pell Grant amount
Cannot exceed COA
EFC is Pell-Eligible
Award full Federal Pell Grant
EFC is not changed

44. Packaging IASG Example—Lebron
COA
$21,735
Average Direct Loan Fees + 70
Revised COA =
$21,805
EFC ̶
8,410
Need
$13,395
IASG
5,419
County Scholar Grant
2,450
Remaining Need
$10,945 ($5,526)
Direct Subsidized Loan
4,500
FWS
4,000
FSEOG
2,445
Unmet Need
$ (-$5,419)

45. Packaging Simulation Establish average award for each type of aid
Package students eligible for fewest types of awards
Package remaining students with most restrictive aid first
Evaluate results
Adjust packaging parameters
Repeat until desired outcome
Packaging Simulation

47. Lesson 4 Overawards, Appeals, and Award Notifications

48. Overawards COA $12,450 EFC ̶ 900 Need = 11,550 Federal Pell Grant
$12,450
EFC ̶
900
Need =
11,550
Federal Pell Grant
$4,965
Remaining Need
6,585
FSEOG
1,500
FWS
2,000
Direct Subsidized Loan Eligibility
3,085
Unmet Need
XYZ Scholarship
1,200
Overaward
(1,200)

49. Overaward Resolution COA $12,450 EFC ̶ 900 Need = 11,550
$12,450
EFC ̶
900
Need =
11,550
Federal Pell Grant
$4,965
Remaining Need
6,585
FSEOG
1,500
FWS
2,000
Direct Subsidized Loan Eligibility
3,085
Unmet Need
XYZ Scholarship
1,200
Revised Direct Subsidized Loan
$1,885

50. Award Appeals Optional Written appeal process Consistently applied
Submitted in writing
Notification of appeal results adjustments if approved

51. XYZ University Award Notification
Award Notifications
COA
EFC
Financial need
Unmet need
Aid awarded to meet need
How aid is disbursed
When aid is disbursed
Work-study hours and wage rate
Conditions to retain each award
Subject to available funds
Other caveats
XYZ University Award Notification

52. Format of Award Notifications
Can be electronic or online
Can be paper
Can be used to accept or reject awards
Should be sent well in advance of enrollment

53. Financial Aid Shopping Sheet
May be used voluntarily
Must be used if school agrees to comply with Executive Order 13607, Establishing Principles of Excellence for Educational Institutions Serving Service Members, Veterans, Spouses, and Other Family Members