TASFAA NAOW Workshop 2010
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Transcript of TASFAA NAOW Workshop 2010
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TASFAANAOW Workshop 2010
Packaging Financial Aid
Martin R. HernandezDirector of Financial Aid
Paul Quinn College
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What is Packaging?
Packaging is a process by which the financial aid office awards a combination of aid from several sources to meet part or all of a student’s financial need.
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Packaging Goals of Financial Aid Administrator
Provide as many students as possible with resources to meet their financial need
Distribute resources in an equitable manner Provide assistance that will be the most
beneficial Attract students to the school
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Resources
Resources include (but are not limited to): Pell Grant (first source of aid) Scholarships Other Federal, State and Institutional Grants Subsidized Stafford and Perkins Loans Need-based employment Waivers of tuition and fees Fellowships or assistantships
Source: FSA Handbook 2009-10, Vol. 3, Pages 79 - 147
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Resources
Resources include (but are not limited to): VA Benefits Americorps Funds Unsubsidized Stafford Loans* PLUS Loans* Private Loans**indicates resources that may exceed need, but may not exceed COA.
Source: FSA Handbook 2009-10, Vol. 3, Pages 79 - 147
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Additional Guidelines
Enrollment criteria Classification Annual and Aggregate Maximums Annual Minimums Need Based vs. Non-Need Based Academic Criteria Residency Criteria
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Steps in Packaging
Determine the cost of attendance (COA). Calculate financial need Determine eligibility for individual funds Develop package using funds for which
student qualifies Refer to supplemental sources of assistance
as needed
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Step 1- Determining the Student’s Cost of Attendance (COA) Tuition & Fees Books & Supplies Room & Board Transportation Miscellaneous/Personal Dependent Care Loan Fees Cost of approved study-abroad program
Source: FSA Handbook 2009-10, Vol. 3, Chapter 2
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Step 2 – Calculating the Student’s Financial Need
Cost of Attendance
-EFC
Financial Need
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Step 3 – Determine Eligibility for Individual Resources Determine Pell Grant eligibility first FSEOG
Generally awarded to neediest students (Pell Grant recipients)
State Grants Examples: Texas Grant, TEG Criteria set by the state
Institutional Grants & Scholarships - criteria set by the institution
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Step 3 – Determine Eligibility for Individual Resources Work-Study
Examples: FWS, TCWSP Awarded within need and according to
institutional policy Perkins Loan
Generally awarded to neediest students and according to institutional policies
Subsidized Stafford Loan Awarded within need, maximums determined
by federal regulations
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Step 4 – Develop Package
Develop package using funds for which the student qualifies
Institution’s award packaging policy can influence the resulting package
Total of package cannot exceed COA
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Step 5 – Other Supplemental Assistance Unsubsidized Stafford
PLUS Loan
Private Loans
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Five Basic Packaging Techniques
First-Come, First-Served Special Targeted Groups Self-Help Concept Equity Concept
Absolute Dollar Equity Fixed Percentage Equity
Packaging to Cost of Attendance
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Packaging Techniques
First-Come, First-Served Based on the order in which completed
applications are received by the aid office until funds are exhausted.
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Packaging Techniques
Targeted Groups Separate packaging criteria for specific groups
of students in addition to specific criteria required by law or regulation. (Good for institutional scholarships)
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Packaging Techniques
Self-Help Self-help assistance awarded after the family
contribution and before any consideration for gift aid.
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Packaging Techniques
Equity Concept Absolute Equity
Students funded up to an institutional maximum fixed dollar amount with gift aid before their remaining need is filled with self-help.
Fixed Percentage Equity An institutional maximum percentage of NEED
or COST for all gift aid is used.
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Packaging Techniques
Packaging to Cost of Attendance Student’s FA need is met as much as possible
according one or a combination of the previous techniques
Unmet COA is filled using remaining unsubsidized Stafford loan eligibility, PLUS and/or Private Loans.
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Packaging Techniques
Many institutions do not use a specific model by itself. Variations of the models can be used to best fit the institutional objectives.
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Award Notification
Institutions are required to inform the student of: the amounts terms and conditions of his/her award manner and timing of payments
Signature of acceptance by the student is no longer required. However, many institutions continue this practice.
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Packaging Example
Holly B. NeedyIncoming first-year student, AY 10/11COA = $20,000 EFC = $500Qualifies for state residencyHas PTA scholarship of $2000Eligible for Pell Grant of $5500Maximum awards: State Grant - $2500,
Stafford Loan - $3500, Work Study - $2500,Institutional grant to fill remaining gap in gift aid.
Package this student with the “FIXED PERCENTAGE OF NEED” equity model with a maximum of 70% gift aid (scholarship considered part of gift aid).
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Packaging Example
Determine need
COA – EFC = Financial Need
$20,000 - $500 = $19,500 Financial Need Determine gift aid
Financial Need * Gift Pct = Max gift aid
$19,500 * 70% = $13,650
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Packaging Example
Need 19,500 Max Gift Aid 13,650 Pell Grant 5,000 PTA Scholarship 2,000 State Grant 2,500 Institutional Grant 4,150 Gift Aid Awarded 13,650 Remaining FA Need 5,850 Work Study 2,500 Sub Stafford Loan 3,350 Total Self-Help 5,850 Unmet FA Need 0 Total Package 19,500
Can Holly get anything else?