1. MAP Payment Table Payment table idea has been around for decades. Payment table idea has been around for decades. Just a concept being explored Just a concept being explored FAAs need to weigh the pros and cons and FAAs need to weigh the pros and cons and Need to determine if timing is right Need to determine if timing is right Hope we don’t become Dazed and Confused! Hope we don’t become Dazed and Confused! ILASFAA Conference 2015 - In Concert

2. What would a Payment Table look like? T&F rounded by $60 to $3000; $150 to $6000; $300 to $12,000; then by $600 EFCs rounded by $100 to $3850, then by $200 MONETARY AWARD PROGRAM – PAYMENT TABLE T & F Category Expected Family Contribution 01-99100- 199 200- 299 300- 2899 2900- 2999 3000- 3099...8999 A1140 1283 13681283...0 B11401283 1425 1283...0 C1283 14251539 1425...0 D1425 1568159615681425...0 E1425 1568 16531568...0 F14251568 1710 1568…0 G 1710 17671710 …0 H1568 17101824 1710 …0 ………………………… AR4720 …4133 AS4720 …

3. What are the Pros and Cons? Pros Easier to explain awards with a table than formula Enable prospective students to see their awards Same EFCs, same award There are winners Cons Formula still exists (not a con unless you dislike the formula) Costs $7 million to implement (table would cost less if formula was updated - $50m would be nice!) Same EFCs, same award There are losers

4. How are MAP awards calculated now? 1. Budget–Resources=Maximum Eligibility (0 if =$9000) 2. Award = min(Maximum Eligibility, Max Award, T&F) If minimum is Maximum Eligibility, round in $150 intervals 3. Apply 5% reduction factor (award x 0.95)

5. How are MAP awards calculated now? 1. Budget = 03-04 T&F + $4875 living allowance 2. Adjust the Expected Family Contribution (EFC) Dependent EFC=Parent Contribution (PC)+Student Contribution (SC) Adjusted PC = ((PC/11000)+1.1) x PC ; Adjusted SC = max(SC,$1800) Adjusted EFC = adjusted PC + adjusted SC Adjusted Independent EFC = ((EFC/11000)+1.1) x EFC 3. Resources = Adjusted EFC + 80% Pell eligibility

6. How would a Payment Table change that? 1. Round 03-04 T&F amounts to fit into payment table rows (lower T&F) 2. Budget = rounded(03-04 T&F) + $4875 living allowance 3. Round EFC amounts to fit into payment table columns (lowers EFCs) 4. Adjust the Expected Family Contribution (EFC) Adjusted EFC = ((EFC/11000)+1.1) x EFC (EFC for dependents adjusted as a whole - NOT split into PC and SC) 5. Resources = Adjusted EFC + 80% Pell eligibility

7. Effects of Payment Table – Lose Eligibility 960 students lose MAP eligibility; all dependents at public universities and community colleges EFCs $3000 on up; half in $5000-$7000; nearly all SC>$1800 Dependent students who work a lot (Student Contribution is half or more of the EFC for 64%) Average parent AGI around $50,000 Average loss $1400; most < $3000 Mostly caused by change in Student Contribution adjustment

8. Example of Eligibility Loss (affects 970) FORMULA T&F: $4414 Budget: $4414 + $4875 = $9289 EFC: $6597 PC: $1583 SC: $5014 Adj PC: $1963 Adj SC: $5014 Adjusted EFC: $6977 Max Eligibility: $9289-$6977=$2312 Award: $2138 ($2312 rounded to $2250 and 5% reduction factor applied) PAYMENT TABLE RoundT&F: int($4414/150)x150=$4350 Budget: $4350 + $4875 = $9225 EFC: $6597 RoundEFC: $6400 Adjusted EFC: $10,752 Max Eligibility: $9225-$10,752=-1572 Award: $0

9. Effects of Payment Table – Decrease Eligibility MAP eligibility decreases for 25,700 students at public universities and community colleges 59% independents, 41% dependents 65% Zero EFCs, nearly all EFCs < 3000 Dependents avg parent AGI $23,200; independents avg $18,000 Average decrease $180; nearly all < $450 Most caused by rounding T&F; some due to Student Contribution adjustment

10. Example of Eligibility Decrease (affects 25,700) FORMULA T&F: $1858 Budget: $1858 + $4875 = $6733 EFC: $0 PC: $0 SC: $0 Adj PC: $0 Adj SC: $1800 Adjusted EFC: $1800 Pell: $4050, 80% of Pell: $3240 Adj EFC + 80% Pell: $5040 Max Eligibility: $6733-$5040=$1693 Award: $1568 ($1693 rounded to $1650 and 5% reduction factor applied) PAYMENT TABLE RoundT&F: int($1858/60)x60=$1800 Budget: $1800 + $4875 = $6675 EFC: $0 RoundEFC: $0 Adjusted EFC: $1800 Pell: $4050, 80% of Pell: $3240 Adj EFC + 80% Pell: $5040 Max Eligibility: $6675-$5040=$1635 Award: $1425 ($1635 rounded to $1500 and 5% reduction factor applied)

11. Effects of Payment Table – Gain Eligibility 3900 students gain MAP eligibility; nearly all dependents at public universities and community colleges EFCs $1000 on up; most in $3000-$5000 Half have zero Student Contribution; all SC < $1000 Average parent AGI $61,000 Average gain $1160; nearly all < $2000 Caused by change in Student Contribution treatment

12. Example of Eligibility Gain (affects 3900) FORMULA T&F: $5875 Budget: $5875+$4875=$10,750 EFC: $5790 PC: $5790 SC: $0 Adj PC: $9438 Adj SC: $1800 Adjusted EFC: $11,238 Max Elig: $10,750-$11,238=-$488 Award: $0 PAYMENT TABLE RoundT&F: int($5875/150)x150=$5850 Budget: $5850+$4875=$10,725 EFC: $5790 RoundEFC: $5600 Adjusted EFC: $9016 Max Elig: $10,725-$9016=$1709 Award: $1568 ($1709 rounded to $1650 and 5% reduction factor applied)

13. Effects of Payment Table – Increase Eligibility Eligibility increases for 17,300 mostly dependent students at public universities and community colleges Most EFCs $1000 - $5000; about half have no Student Contribution Average parent AGI $50,000 Average increase $840; nearly all <$2000 Mostly due to change in Student Contribution adjustment

14. Example of Eligibility Increase (affects 17,300) FORMULA T&F: $5403 Budget: $5403 + $4875 = $10,278 EFC: $4987 PC: $4970 SC: $17 Adj PC: $7704 Adj SC: $1800 Adjusted EFC: $9504 Max Elig: $10,278-$9504=$774 Award: $713 ($774 rounded to $750 and 5% reduction factor applied) PAYMENT TABLE RoundT&F: int($5403/150)x150=$5400 Budget: $5400 + $4875 = $10,275 EFC: $4987 RoundEFC: $4800 Adjusted EFC: $7392 Max Eligibility: $10,275-$7392=$2883 Award: $2708 ($2883 rounded to $2850 and 5% reduction factor applied)

15. To Summarize Easier for FAAs to explain; easier for students to understand But... About 960 dependent students who work a lot and come from families with average PAGI $50,000 would lose eligibility. About 3900 dependent students who don’t work a lot and have average parent AGI $61,000 would gain eligibility. Awards are lower (not by much) for 25,700 lower-EFC students Table would cost less if formula could be updated ($50m or so)

16. In Conclusion... Implement the table and Roll With the Changes? Wait until MAP appropriation increases? ($50 million would be nice! Simulation indicates using current T&F and Pell in formula would reduce cost of payment table to about $3 million.) Or do we just Let It Die? If you feel strongly one way or the other, please talk to someone on the Formula Committee or send me a message: Ellen.Greenan@isac.illinois.gov