1. Packaging Theory: The How, When and To Whom Behind Creating a Packaging Procedure Michele Kosboth – Director of Student Financial Planning, Lasell College Daniel T. Barkowitz, Director of Student Financial Aid, MIT

2. State of Diffusion: Defining Student Aid in an Era of Multiple Purposes (available at www.ihep.com) Encouraging access and choice for qualified needy students. Furthering persistence toward a degree. Promoting affordability for lower-income students. Promoting affordability for middle-income students. Rewarding student scholarship/merit. Targeting specific groups and priorities. Improving institutional financial aid administrative accountability. Managing institutional enrollment. Redistributing state taxpayer revenue.

3. In an era of increasing demand… How do you distribute the supply? Today’s Agenda –Types of Aid Packaging –Understanding Preferencing –The % Method –Where do we go from Here?

4. Purpose of financial aid Vision –Does the college have a vision? –Is Aid as a part of it? –Do you have a personal bias?

5. Need vs. Merit Aid: Need-Based –Pros and Cons Merit-Based –Pros and Cons

6. Merit within Need AKA Preferencing –Using some other measure to rank students and then prioritizing package based on that measure. –Examples: Admissions rank Major Likelihood of enrolling

7. Preferencing – Your Goals Equity and Access Recruitment driven –Just make the class? –Improve the academic profile? –Improve enrollment in a program or major? –Improve enrollment among a cohort group? Reward driven –Honors –Community Service –Leadership –Athletics (NCAA allowed?)

8. What do You Have to Work With? What is your discount rate? –Definition (institutional grant aid / total tuition [+ room and board?] revenue). –Do you know this number? –What has it been historically? –Where is your competition? –What can you afford? Enrollment. –What size is optimum? Where are you now? –Resident vs. Commuter blend.

9. How will you operate? Full need? –Private schools only? –Which need? Solving the IM/FM issue. –For all populations? –Gap? Maximum Eligibility? –Public or low grant schools only? –Package by date? –Limited funds – give what you can? Limit on grant? Gap? –Rationing of funds?

10. Another strategy Percent of need met by (institutional) grant. –Studies indicate that when comparing packages parents focus on the grant amount. Can you predict enrollment based on %age of need met by grant –Case example: Lasell College Add bonus for desirable traits.

11. Example of how this works

12. What will you do in future years? “Grandparent” to first year amount (dollars)? Use the same % of new need? A whole new calculation? Consider academic performance of 1 st year(s)?

13. What other strategies? % of remaining need (after self-help and gap) with grant. –Pros / cons. Fixed gap (based on populations?). Other models?

14. Test, try, and improve Write out the logic. Try modeling any changes on this year’s population to measure impact. Keep in mind your goals. Simulate packaging before you deploy!

15. Wrap Up. Thanks! Evaluation. Any last questions or comments? Contact us: Daniel BarkowitzMichele Kosboth barkowit@mit.edumkosboth@lasell.edu (617) 258-5612(617) 243-2378