1. FALL 2007 Awarding Financial Aid Jerry Alan Donna Director of Financial Aid Salem College Winston-Salem, NC

2. FALL 2007 A few more acronyms! ACG – Academic Competitiveness Grant COA – Cost-of-Attendance EFA – Estimated Financial Assistance EFC – Expected Family Contribution FWS – Federal Work-Study ISIR – Institutional Student Information Report SMART – National SMART Grant

3. FALL 2007 What Is Packaging? ( And how is awarding different…or is it???) Finding the best combination of aid programs to meet the student’s financial need, using: –Statutory/regulatory limits –Available resources at the school –Institutional policies

4. FALL 2007 Prior to Packaging A school must: –Have developed Packaging Policies –Defined their Academic Year –Defined their Payment Periods –Developed a Cost of Attendance (Budget)

5. FALL 2007 Prior to Packaging Federal & Need Based Aid ISIR with official EFC –To determine need Understanding of available EFA (resources available) Determine individual student’s COA Types of federal aid available at your institution –Pell –ACG/SMART –Campus-Based Funds (Perkins Loan, FSEOG, FWS) –Loans

6. FALL 2007 What Is Need? COA – EFC = Need –COA varies by school and program –EFC is taken from ISIR –Need is filled with available aid programs and other resources when possible (not all schools can meet need). COA$20,000 - EFC0 = Need$20,000

7. FALL 2007 Cost of Attendance/Budget Tuition and Fees –In-state/out-of-state Books and Supplies Transportation Personal Expenses Room and Board Dependent Care Loan Fees Miscellaneous –Disability related expenses –Study-abroad expenses –Computer

8. FALL 2007 What Is EFA? Estimated financial assistance includes –Pell Grants –Educational Loans –Grants (including ACG/National SMART Grants) –Net earnings from need-based employment –Scholarships –Tuition and fee waivers –Fellowship and assistantships (unless compensation is via payroll) –VA educational benefits

9. FALL 2007 Estimated Financial Assistance Basic Need COA - EFC = Need $14,000 - 1000 = $13,000 Need Based COA - EFC - EFA = Need-Based Eligibility $14,000 - 1000 - 13,000 = 0 Non-Need Based COA - EFA = Non-Need Based Eligibility Unsubsidized or Plus Loan

10. FALL 2007 Estimated Financial Assistance Combination of student aid and EFC must not exceed student’s COA. If financial aid from another source becomes available after packaging, financial aid awards must be reduced so total amount does not exceed COA

11. FALL 2007 Federal Programs Pell ACG SMART Campus Based –Work-Study –SEOG –Perkins Loan Loans

12. FALL 2007 Foundation of Aid Package Pell Grant –Goes only to undergraduate students who have not received a bachelor’s or first professional degree –Determined using student’s COA, EFC and the U.S. Department of Education’s Pell payment/disbursement schedules –No other aid is considered in determining Pell eligibility –Goes only to undergraduate students who have not received a bachelor’s or first professional degree –Determined using student’s COA and EFC and ED’s Pell payment/disbursement schedules –No other aid is considered in determining Pell eligibility

13. FALL 2007 Beyond the Foundation After calculating any Pell eligibility, use your packaging policy to take into account other sources of assistance available to the student. COA$20,000 - EFC0 - Pell4,310 = Remaining Need$15,690

14. FALL 2007 Academic Competitiveness Grant - ACG U.S. Citizen (does not include Title IV eligible non-citizens) Federal Pell Grant recipient First or second academic year student in a two or four-year degree program Full-time enrollment No specific major required

15. FALL 2007 ACG continued… 1st year students –Must not have been previously enrolled in a program of undergraduate study –Must have graduated from a rigorous secondary high school program after 1/1/06 2nd year students –Must have graduated from a rigorous program of study after 1/1/05 –Must have at least a 3.0 GPA in an eligible program

16. FALL 2007 Student Eligibility Criteria Specific to the National SMART Grant U.S. citizen (does not include Title IV eligible non-citizens) Federal Pell Grant recipient Third or fourth academic year student in an eligible program Full-time enrollment Majoring in an eligible major (based on approved USDOE CIP CODE list) Cumulative GPA of at least 3.0 on a 4.0 scale

17. FALL 2007 Campus-Based Aid Must make funds reasonably available to all students No minimum enrollment status is required

18. FALL 2007 FSEOG – Federal Supplemental Educational Opportunity Grant Only to undergraduate students who have not received a bachelor’s or first professional degree Need based Give to students with lowest EFC who will also receive Pell Grant in that award year Minimum award is $100 Maximum award is $4,000

19. FALL 2007 Federal Work-Study Undergraduate and graduate students Need based No minimum or maximum award May look at willingness to work Must pay at least minimum wage ($5.85 as of July 24, 2007)

20. FALL 2007 Federal Perkins Loan Undergraduate and graduate students Need based Give priority to students with exceptional need, as defined by school May look at student’s willingness to repay Has annual ($4000) and aggregate ($20,000) loan limits

21. FALL 2007 FFEL – Federal Family Education Loan DL – Federal Direct Loan Undergraduate and graduate students Requires at least half-time enrollment Requires determination of Pell eligibility Requires awarding of subsidized funds before unsubsidized funds Has annual ($3,500, $4,500, $5,500) and aggregate limits ($23,000, $46,000, $138,500)

22. FALL 2007 Available Institutional Aid Funds both within Financial Aid Office’s control and those not in the control of the Financial Aid Office. –Athletics, academic departments, performance based scholarships (i.e. music, dance), Admissions, bookstore, etc Internal criteria and packaging policies –Grants –Loans –Assistantships and fellowships –Tuition and fee waivers –Need-based employment

23. FALL 2007 Outside Aid Student May Receive State aid Scholarships (organizations, merit, etc.) VA educational benefits Employer tuition assistance Alternative educational loans

24. FALL 2007 Exceptions for Montgomery GI Bill and AmeriCorps Benefits Must exclude Chapter 30 VA benefits and AmeriCorps benefits as EFA when determining Subsidized Loan eligibility Must include Chapter 30 VA benefits and AmeriCorps benefits as EFA for Campus-based aid, ACG, National SMART, and Unsubsidized Loans –But, may exclude from EFA any portion of Subsidized Loan amount  amount of Chapter 30 or AmeriCorps benefits for Campus-based, ACG, and National SMART Grants

25. FALL 2007 Complete Aid Package COA -EFC -Pell -EFA =Remaining Need

26. FALL 2007 Sample Aid Package COA $20,000 - EFC 0 = Need $20,000 -Pell $4,310 -Stafford $3,500 -FSEOG $500 -Perkins $4,000 -FWS $1,500 -Scholarship $5,000 = Unmet Need $1,190 Estimated Financial Assistance (EFA) $18,810

27. FALL 2007 Packaging Case Studies

28. FALL 2007 Edgar and Art & Design Community College Edgar is a dependent student who graduated from high school in June 2006. He originally wanted to be a doctor but has decided to follow his heart and major in graphic design. He has decided to attend Art & Design Community College to get his AA prior to going on to a 4-year college.

29. FALL 2007 Art & Design Community College COA EFC Project Design Scholarship Pell ACG Institutional Grant FWS Sub loan Unsub loan Plus Package Award Balance 15,000 0 15,000 1,000 14,000 4,310 9,690 750 8,940 500 8,440 2,500 5,940 3,500 2,440 0 2,440 2,440 0

30. FALL 2007 George and XYZ State University After serving his country as a medic in the military, George has decided to return to college. His career goal is to be a physical therapist. He has been volunteering at a local hospital since his discharge and is really excited about school. George has $9,600 in Chapter 30, Montgomery GI Bill VA benefits to use for school.

31. FALL 2007 George and XYZ State University COA EFC Pell Chapter 30 VA Need Sub loan Remaining Need $14,900 $14,900 1,800 1,800 2,000 2,000 9,600 xxxx 1,500 11,100 1,500 3,500 0 7,600 Package #1 Package #2

32. FALL 2007 George and XYZ State University Package #2 Package #3 COA $14,900 $14,900 EFC 1,800 1,800 Pell 2,000 2,000 Chapter 30 VA 9,600 9,600 Sub loan 3,500 ------- Remaining Need (2,000) 1,500 No overaward

33. FALL 2007 Scarlett and the Univ. of Aeronautical Studies A high achiever since she won her state spelling bee as a 4 th grader, Scarlett is determined to become an aeronautical engineer. She is a dependent, US Citizen, with a 3.98 GPA and is a junior this year. She is living at home with her parents & nine brothers.

34. FALL 2007 University of Aeronautical Studies Package Award Balance Optional Balance COA$25,000 $25,000 $25,000 $25,000 EFC 0 25,000 0 25,000 Scholarship – SWA 700 24,300 700 24,300 Scholarship – Gates 8,500 15,800 0 24,300 Pell 4,310 11,490 4,310 19,990 SMART 4,000 7,490 4,000 15,990 SEOG 500 6,990 500 15,490 FWS 2,500 4,490 2,500 12,990 Sub loan 4,490 0 5,500 7,490 Unsub loan 0 0 0 7,490 Plus 0 0 7,490 0

35. FALL 2007 Questions? Jerry Alan Donna Salem College, Winston-Salem, NC PH 336-917-5577 EMAIL donna@salem.edu