Presentation on theme: "ILASFAA Annual Conference April 16-18, 2008 Basic Aid Packaging Amanda Fijal Associate Director of Financial Aid Loyola University Chicago."— Presentation transcript:
ILASFAA Annual Conference April 16-18, 2008 Basic Aid Packaging Amanda Fijal Associate Director of Financial Aid Loyola University Chicago
ILASFAA Annual Conference April 16-18, 2008 Cost of Attendance For most students, the cost of attendance includes three basic components: Tuition and fees; Books, supplies, transportation, and miscellaneous personal expenses; and Room and board. Certain additional allowances are available to qualifying students for: Dependent care; Disability-related expenses; Cooperative education programs; Study abroad; and Loan fees.
ILASFAA Annual Conference April 16-18, 2008 Cost of Attendance Aid administrators have flexibility with the allowable cost components when determining the cost of attendance for the Title IV programs. Once institutional policy is established, it must be consistently applied in determining eligibility. All exceptions to the policy must be clearly documented.
ILASFAA Annual Conference April 16-18, 2008 How Financial Need Is Determined COST OF ATTENDANCE - EXPECTED FAMILY CONTRIBUTION =FINANCIAL NEED
ILASFAA Annual Conference April 16-18, 2008 Types of Financial Aid Grants Scholarships Employment Loans
ILASFAA Annual Conference April 16-18, 2008 Federal Programs include: Federal Pell Grant - Need-based grant for tuition, fees, room, board, and/or living expenses. In 2008- 2009, students with an EFC below 4041 are eligible. Federal Supplemental Educational Opportunity Grant (FSEOG) - Need-based grant. Maximum award is based on availability of funds at institution.
ILASFAA Annual Conference April 16-18, 2008 Federal Programs include: Federal Academic Competitiveness Grant (ACG) – Need-based grant for Pell-eligible, U.S. Citizens in 1 st or 2 nd year who have completed a rigorous high school program. National Science and Mathematics Access to Retain Talent (SMART) Grant – Need-based grant for Pell-eligible, U.S. Citizens in 3 rd or 4 th year who are majoring in specific math, science, technology or foreign language majors.
ILASFAA Annual Conference April 16-18, 2008 Federal Programs include: Federal Work-Study (FWS) - Need-based employment that provides jobs both on- and off- campus. Students earn at least current minimum wage. Federal Perkins Loan - Need-based student loan with a low 5% interest rate. Maximum award is based on availability of funds at institution.
ILASFAA Annual Conference April 16-18, 2008 State of Illinois Programs Monetary Award Program (MAP) - Need- based grant for students with EFC, $9,000. Grant is restricted to tuition and mandatory fees, to a maximum of $4,968 Silas Purnell Illinois Incentive for Access (IIA) Program - One-time $500 grant awarded to freshman who have a $0 EFC
ILASFAA Annual Conference April 16-18, 2008 Federal Stafford Loans Subsidized - Based on financial need. The federal government pays the interest while the student is in school, during grace periods, and during authorized periods of deferment. Unsubsidized - Not need-based. The student is always responsible for interest payments.
ILASFAA Annual Conference April 16-18, 2008 Credit-Based Loans Federal PLUS Loan – Loan borrowed by parent of dependent undergraduate student. Repayment begins while in school. Alternative Student Loan – Loan borrowed by student, usually with credit-worthy co- signer. Repayment can begin while in school or after graduation.
ILASFAA Annual Conference April 16-18, 2008 What is Packaging? (the “official” definition) Packaging is the process by which the FAA seeks to meet a student’s financial need while ensuring equitable distribution of (limited) funds and compliance with program-specific eligibility criteria.
ILASFAA Annual Conference April 16-18, 2008 Six Basic Packaging Models Individual Model First Come-First Served Model Ladder Model Self-Help Model Equity Model Institution Specific Model
ILASFAA Annual Conference April 16-18, 2008 Individual Model Financial aid awards are made based on individual circumstances (student needs, costs, resources) –Pros: very customized packages developed for each student. Maximizes funds available. –Cons: time consuming! Individual packaging involves a manual review of each student file.
ILASFAA Annual Conference April 16-18, 2008 First Come - First Served Model Financial aid awards are made as applications are received until funds are exhausted. –Pros: packaging can begin early and can help ensure funds are maximized. –Cons: late applicants receive least desirable assistance (grants are exhausted, more loans are awarded).
ILASFAA Annual Conference April 16-18, 2008 Ladder Model After financial need is determined, aid is awarded in previously determined order, e.g.: 1.Federal Pell, ACG and/or SMART Grant 2.MAP Grant 3.Institutional Grant 4.Federal Work Study 5.Federal Stafford Loans –Pros: very easy to program and handle systematically –Cons: very standardized packages with little room for customization.
ILASFAA Annual Conference April 16-18, 2008 Self-Help Model Awards are made using the basic concepts of Ladder Model, except Work and Loan awards are made prior to institutional grants. –Pros: Maximizes institutional funds by lowering remaining financial need with self-help resources. –Cons: Students uninterested in self-help resources receive undesired resources; provides appearance of rationing.
ILASFAA Annual Conference April 16-18, 2008 Equity Model Students are awarded aid at the same level, such as awarding grant dollars based on a fixed percentage or up to a fixed maximum. –Pros: Packages are standard across the student population –Cons: packages reflect very little customization
ILASFAA Annual Conference April 16-18, 2008 Which model is the best? Like many things in financial aid, the best packaging philosophy is the one that fits your institution best. For example, a school with few institutional grants might use the Self-Help to maximize the funds that are available. A small institution might find individual packaging to provide the desired results. Analysis of your student population and the funds available will help to decide which is best (for this year anyway).
ILASFAA Annual Conference April 16-18, 2008 Case Study - Joe Student Joe is a dependent freshman student being packaged at a public 4 year institution. Joe plans to be employed off campus and does not want a Federal Work-Study award. His EFC is $5,835 and the budget is $25,040. The institution uses a Self-Help model to award financial assistance. A $4,000 University Grant is awarded to students with financial need.
ILASFAA Annual Conference April 16-18, 2008 Case Study - Joe Student Questions What is Joe’s financial need? $ What federal and state programs might Joe qualify for? / / / How would you complete his award? (include non-need based programs that can replace his EFC) Program: Award $
ILASFAA Annual Conference April 16-18, 2008 Case Study - Joe Student Answers What is Joe’s financial need? $19,205 ($25,040 - $5,835) What federal and state programs might Joe qualify for? Federal Work Study/Perkins Loan/Federal Stafford Loan (student is not Pell eligible and is unlikely to receive an SEOG award) How would you complete his award? (include non-need based programs that can replace his EFC) Program:Award: MAP$4,968 Subsidized Stafford Loan$3,500 University Grant$4,000 Federal PLUS Loan$7,234 (the Federal PLUS Loan can replace the remaining need, and the EFC)
ILASFAA Annual Conference April 16-18, 2008 Financial Aid - Award Letters Each college/university is required to inform each financial aid applicant of the following items: 1.Expected Cost of Attendance including: Tuition and fees Room and board Books and supplies Transportation Personal expenses Student loan fees 2.Financial aid awards offered from the college. Most institutions do this via the Financial Aid Award letter. There is not a required format for the award letter; each school customizes to include other information as needed.
ILASFAA Annual Conference April 16-18, 2008 STATE COLLEGE FINANCIAL AID OFFICE 1313 OAK STREET FRANKLIN, IL 62998 SCHOOL YEAR 2008/2009 FINANCIAL AID SUMMARY Shelby Taylor, 111-10-2222 1130 Red Lane Bentonville, IL 44444 BUDGETED ITEMS FOR FALL 2008 AND SPRING 2009: TUITION AND FEES7,600.00 ROOM AND BOARD5,200.00 BOOKS AND SUPPLIES1,000.00 TRANSPORTATION1,850.00 PERSONAL EXPENSES1,000.00 TOTAL OF BUDGETED ITEMS$16,650.00 ESTIMATED FAMILY CONTRIBUTION$00000.00 FINANCIAL NEED FINANCIAL AID OFFERED:FALLSPRINGTOTAL FEDERAL PELL GRANT2,366.002,365.004,731.00 IL MAP GRANT2,484.002,484.004,968.00 SUBSIDIZED STAFFORD1, 750.001,750.003,500.00 AMERICAN LEGION SCHOL.250.00250.00500.00 PRIVATE ALTERNATIVE LOAN1,000.001,000.002,000.00 TOTAL FINANCIAL AID OFFERED$15,449.00 UNMET NEED$ 951.00 ( ) I accept all of the financial aid offered. ( ) I decline the following financial aid but accept the remaining: ( ) I accept the financial aid but I do not want all of the student loans. Reduce the student loans as follows (indicate the total amount wanted for each loan): Student Signature:____________________________________ Date:____________________________ SIGN, DATE AND RETURN THIS FORM TO: FINANCIAL AID OFFICE, STATE COLLEGE, 1313 OAK STREET, FRANKLIN, IL 62998
ILASFAA Annual Conference April 16-18, 2008 Questions?