1. PACKAGING New Aid Officers Workshop
Angela Parkoff
Assistant Director of Financial Aid
Texas A&M University

2. Learning Objectives 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

3. HOW IT WORKS

4. So what is packaging? 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. Funds we typically package
Federal programs
State programs
Institutional programs
Pell
SEOG
Perkins
Federal Work Study
Direct Loans
Parent PLUS Loans
Graduate PLUS Loans
TEACH Grant
Iraq & Afghanistan Service Grant
TPEG
TEXAS Grant
TEG
BOT
CAL
Texas Work Study
Set Aside Funds

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

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

8. STEPS TO PACKAGING

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

10. Packaging Step 1 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. Packaging Step 2 STEP 2: AWARD PELL GRANT
Pell Grant awarded based on EFC
Pro-rated based on enrollment status and EFC range

12. Packaging Step 3 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. Packaging Step 3 Calculating student’s non-need eligibility
Cost of Attendance
-- PELL
-- EFA
-- Need-based aid
________________________________
Room for non-need based aid

14. Packaging Step 4
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. Packaging Step 5
STEP 5: PACKAGE OR REFER STUDENTS TO OTHER ASSISTANTCE
Alternative loans

16. CATEGORIES
&
SEQUENCE

17. Packaging Guidelines
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. Goals of an Administrator
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. Packaging Categories
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. Packaging Sequence 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

21. PACKAGING MODELS

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

23. First Come, First Served
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
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
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. Targeted Groups
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. Equity Concept Absolute Equity Fixed Percentage Equity Benefits:
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. Individualized
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. Which should you use? 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

30. OVER-AWARDS

31. Over-awards 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

32. HANDS-ON EXAMPLE

33. Packaging Example
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 $5,365
AWARD MAXIMUMS
FSEOG $500
Institutional Grant $2,500
Work Study $3,000
Direct Loan $7,500

34. Packaging Example - Remaining Need - Cost of Attendance 20,000 - EFC
(500)
Need
19,500
- Pell
(5,365)
- EFA (Scholarship)
(3,500)
- Remaining Need
10,635
- SEOG
(500)
- Institutional Grant
(2,500)
- Work Study
(3,000)
- Remaining Need before loans
4,635
- Subsidized Loan
(4,635)
- Unmet Need
ZERO
Other aid eligibility?
$500 in unsubsidized loan

35. Packaging Example
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?

36. STUDENT NOTIFICATION

37. Notifying Students of Awards
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. Notifying Students of Awards
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. Notifying Students of Awards
Shopping Sheet

40. Wrapping Up 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

41. QUESTIONS?
Angela Parkoff
Texas A&M University