1. Packaging Financial Aid
F. Duane Quinn
Financial Aid Specialist

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

3. Review
$24,000.
cost

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

5. 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.

6. 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)

7. 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

8. 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

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

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

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

12. 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

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

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

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

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

17. 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.

18. 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.

19. 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

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

21. 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

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

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

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

25. 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

26. 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

27. 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

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

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

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

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

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

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

34. 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).

35. 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).

36. 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

37. 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

38. 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.

39. 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!!!