1. WASFAA 2011 Awarding and Packaging Presented by: Kathleen Clark, Chapman University School of Law and Wendy Olson, Whitworth University 2011 WASFAA Annual Conference

2. Agenda: Budget Awarding Components Awarding Goals Communicating Award Information 2011 WASFAA Annual Conference

3. Agenda: What would you like to discuss today? 2011 WASFAA Annual Conference

4. Building The Budget 2011 WASFAA Annual Conference

5. Cost of Attendance/ Student Expense Budget 2011 WASFAA Annual Conference “The cost of attendance is the cornerstone of establishing a student’s financial need, as it sets a limit on the total aid that a student may receive.” FSA Handbook, 2010

6. 2011 WASFAA Annual Conference Allowable Costs Determined by school, taking into account: ➔ Tuition and fees ➔ Books, supplies, transportation, personal, misc. ➔ Room and board ➔ Loan Fees ➔ ➔ Dependent care ➔ ➔ Study abroad expenses ➔ ➔ Disability expenses ➔ ➔ Employment expenses for co-op study

7. 2011 WASFAA Annual Conference Determining Budget Amounts Survey Students Survey Landlords in Surrounding Area Update Previous Year’s with Consumer Price Index (CPI) Use Information from Statewide Survey Other Ideas?

8. 2011 WASFAA Annual Conference Determining Federal Need $37,823Budget EFC- $7,823 Need$30,000 This clip art was actually titled “Calculating Need.”

9. 2011 WASFAA Annual Conference Award Components Federal/State Pell Grant FSEOG Stafford Loan Perkins Loan Federal Work Study PLUS Loan State Grant Other Items? Institutional Academic/Merit Talent Sports Need-Based Gift Aid Endowed & Restricted Institutional Loan Institutional Work

10. 2011 WASFAA Annual Conference Components’ Rules Federal/State Pell Grant FSEOG Stafford Loan Perkins Loan Federal Work Study PLUS Loan State Grant Other Items? Institutional (% or flat rate) Academic/Merit Talent Sports Need-Based Gift Aid Endowed & Restricted

11. 2011 WASFAA Annual Conference Awarding Goals Increase Enrollment Overall Increase Enrollment for Certain Populations Disadvantaged Students Athletes Specific Majors Specific Talents Other? Increase Net Tuition Revenue Increase statistics-SAT/GPA Other Goals?

12. 2011 WASFAA Annual Conference Financial Aid vs. Business Affairs Discount Rate – The revenue the school is willing to lose in order to sculpt their student enrollment. The basic equation is: gift assistance/tuition. Gift Aid$14,000/ Tuition$21,180 Discount66% What should gift aid include/exclude?

13. 2011 WASFAA Annual Conference Conflicting Needs Low Discount Rate High Quality Students Number of Students Desired

14. 2011 WASFAA Annual Conference Plans to Meet Goals % of Need Met with Gift Aid % of Tuition Met with Gift Aid Flat Dollar Maximum in Gift Aid % of Need Beyond Federal/State Met with Intuitional Gift Aid Needy Students Only Scholarship Awards Only Other?

15. 2011 WASFAA Annual Conference 4.0+ – 3.50 3.49 – 3.00 2.99 – 2.50 2.49 – 2.00 0 – $2000 45%40%20%15% $2001 - $4000 30%35%15%10% $4001 - $6000 30% 15%10% $6001 - $8000 30%25%10%5% $8001 – $10,000 25% 10%0% Leveraging Model Example – Includes factors that go into awarding gift assistance in order to optimize revenue and enrollment.

16. 2011 WASFAA Annual Conference Packaging Plans- Federal Need vs. Direct Costs Federal Need Total $30,000 Bill-Tuition, Fees, Room & Board $21,182 Merit$14,000 Stafford$3500 FWS$2500 Perkins$2500 Total$22,500 Unsub$2000 PLUS$4000 Total$28,500 Merit$14,000 Stafford$3500 FWS$2500 Perkins$1180 Total$21,180 Unsub$2000 PLUS$4000 Total$27,180

17. 2011 WASFAA Annual Conference Communicating the Award Electronic vs. Paper Advantages Disadvantages

18. 2011 WASFAA Annual Conference Communicating the Award What Must Be Included: Cost of Attendance? Expected Family Contribution? Types of Aid and Amounts Requirements to Continue to Receive Aid? Consumer Information? Active vs. Passive Acceptance. Other?

19. 2011 WASFAA Annual Conference Listing the Cost of Attendance &EFC on the Award Letter Shows the family what was used when determining the financial aid package. Gives them an idea of what it will cost to go to that college – outside of the bill. Lets them know how much they can borrow in additional PLUS. Gives the false impression that this is the true “out of pocket” expenses. With the inclusion of the EFC there can come confusion thinking this is what is directly owed.

20. 2011 WASFAA Annual Conference Timing The Award Letter as a Recruitment Tool Loans vs. Gift Aid Comparison Tool Enhance Other Recruiting Activities

21. 2011 WASFAA Annual Conference Discussion and Questions

22. 2011 WASFAA Annual Conference More Information: NASFAA FSA Handbook Other? Kathleen Clark katclark@chapman.edu Wendy Olson wolson@whitworth.edu