1. Budgeting and Packaging of Financial Aid
NYSFAAA Novice Training
Scott Atkinson
Director of Enrollment Services
June 2014

2. Cost of Attendance Budgets
DEFINITION:
COA Budgets are standardized projections of reasonable direct and indirect education-related costs incurred by students of similar attributes for a defined enrollment period which MUST be used to determine eligibility for all Title IV aid programs.

3. Building the COA Budget
Required considerations when building the COA, the aid administrator must:
Use actual or average expenses
Maintain documentation for each component
Update annually and timely
Allow adequate costs for moderate living
Standardize based upon categories of students with similar attributes

4. Standard Budget Components
Tuition & Fees
Room and Board
Books and Supplies
Equipment Rental/Purchase
Personal Expenses
Transportation
Educational Loan Fees

5. Additional Components
Non-standard educational costs as documented by the student or required for the student’s program:
Professional Credential Fees
Personal Computer
Disability-Related Expenses
Dependent Care
Consortium Study
Study Abroad Program
Co-op Program

6. Professional Judgment
Professional Judgment may be used when an individual student has expenses that are reasonable and appropriate, but exceed amounts allotted in the standard budget.
Such adjustments to the COA under Professional Judgment must be properly documented and done on a case by case basis.

7. Professional Judgment
Some examples of how professional judgment can be employed to adjust the COA:
Special dietary needs
Optional fees (unless paid to a third party)
Optional projects
Exceptionally high travel costs

8. Exceptions
The following groups of students must have other than standard COA budgets:
Less than half time
- exclude personal expenses
Correspondence study and Incarcerated
- tuition, fees, books and supplies only

9. Pell Grant COA
Costs for Pell Grant Budgets are the same as those for standard budgets, and are always based on full time, ¾ time, ½ time, and less than ½ time.

10. Packaging DEFINITION:
The process by which need based and non-need based aid is awarded within the parameters of the Cost of Attendance Budget.

11. Packaging Requirements
Regulatory compliance
Defined institutional packaging policies
Development of COA Budgets
Offer best possible combination of awards
Fair and equitable distribution of awards
ISIR with official EFC
Balance total aid with COA
Rectify overawards
Student consumer information

12. Packaging The basic premise of Needs Analysis… Cost of Attendance
 Expected Family Contribution
= Financial Need

13. Entitlement Aid Must be packaged first Federal Pell Grant State Grant
Other

14. Other Resources
Estimated Financial Aid (EFA) from other sources, not within the institution’s purview to award
State aid
Outside scholarships
Tuition waivers

15. Need-Based Awards packaged by the institution to cover remaining need
Federal Campus Based Aid
Federal Subsidized Stafford Loan
Institutional Grants and Scholarships
COA-EFC-EFA=Remaining Need

16. Non-Need Based Aid
Packaged to cover any unmet need and Expected Family Contribution (EFC)
Federal TEACH Grant
Federal Unsubsidized Stafford Loan
Federal PLUS
Private Alternative Loans
Federal Graduate PLUS
COA-EFA=Non-Need Based eligibility

17. Quick Example Cost of Attendance $15,000
Expected Family Contribution - 3,000
Need $12,000

18. Quick Example cont. Federal Pell Grant -$2,680
Elk’s Club Scholarship - 2,000
Federal Subsidized Stafford Loan - 4,500
Federal SEOG
Federal Perkins Loan - 2,000
Unmet Need $ 70
Non-Need Based Aid
Federal Unsubsidized Stafford Loan $2,000
Federal PLUS $1,000
Family Responsibility (COA-EFA) $ 70

19. Overawards DEFINITION:
When either need-based aid exceeds calculated need AND/OR total aid exceeds COA. Over-awards must be resolved.

20. Correcting Overawards
Never reduce Federal Pell or other entitlement
Increase COA budget with documentation
Reduce anticipated disbursements
Adjust non-need based funding first
Eliminate Stafford/PLUS before Campus-Based
Campus-based $300 tolerance/threshold
Fully disbursed Stafford MAY remain unresolved
May result in an overpayment

21. Sample #1: slide 1 Public Four-Year University
Total Family Income $33,915
Family of 4 with 1 other family member in college
Second-year undergraduate student
Order of packaging to meet need:
Grants
Federal subsidized loans
Work

22. Sample #1: slide 2 Public Four-Year University
Total Estimated Cost of Attendance (COA)
$20,181
Expected Family Contribution (EFC)
$367
Need (COA-EFC)
$19,814
Federal PELL Grant
$5,380
Federal SEOG Grant
$450
State Grant
$1,483
University Grant
$2,000
Federal Perkins Loan
$1,200
Direct Subsidized Stafford Loan
$4,500
Direct Parent Loan
$1,986
Federal Work-Study (FWS)
$2,900
Total Aid
$19,899

23. Sample #1: slide 3 Public Four-Year University
Grant aid = $9,313, or 46% of COA
EFC may be covered by:
Additional parent PLUS
Direct Unsubsidized Stafford Loan

24. Sample #2: slide 1 Private Non-profit Four-Year College
Total Family Income $33,457
Family of 3 with 1 other family member in college
First-year undergraduate, living on campus
AGI = $32,866

25. Sample #2: slide 2 Private Non-profit Four-Year College
Total Estimated Cost of Attendance (COA)
$38,025
Expected Family Contribution (EFC)
$1,116
Need (COA-EFC)
$36,909
Institutional Scholarship
$13,000
PELL Grant
$4,580
FSEOG
$1,000
Federal Work-Study (FWS)
$2,200
Federal Perkins Loan
$2,000
Federal Direct Loans (maximum $3,500 subsidized
+maximum $2,000 unsubsidized
$5,500
State Merit Scholarship
$2,374
State Need-Based Grants
$4,864
Total Aid
$35,518
Unmet Need
$1,391

26. Sample #2: slide 3 Private Non-profit Four-Year College
Grant aid = $25,818, or 73% of COA
Self-help (EFC + loans + work +unmet need) = $12,207, or 27% of COA
Unmet need plus EFC may be covered by a parent PLUS loan.

27. Sample #3: slide 1 Community College, Two-Year
First-year undergraduate, living with parents Once FWS has been fully allocated, unsubsidized loans are offered (up to $2,000 for dependent undergraduates, or up to $6,000 for independent undergraduates. Early applicants are more likely to get campus-based funds (FSEOG, FWS, Perkins loans). Later applicants generally receive PELL Grant and Direct Loans, and are more likely to need unsubsidized loans.

28. Sample #3: slide 2 Community College, Two-Year
Total Estimated Cost of Attendance (COA)
$15,535
Expected Family Contribution (EFC)
$1,770
Need (COA-EFC)
$13,565
PELL Grant
$3,980
FSEOG
$500
State Need-Based Grant
$400
State Merit Scholarship
$700
Federal Work-Study (FWS)
$3,000
Federal Subsidized Loan
$3,500
Total Aid
$12,080
Unmet Need
$1,485

29. Sample #3: slide 3 Community College, Two-Year
Grants = $5,580 or 36% of COA
Self-help aid (EFC + loans + work + unmet need)
= $9,840, or 64% of COA.
Unmet need and EFC may be covered by:
Direct Unsubsidized Stafford Loan
Direct Parent PLUS Loan

30. Questions? Do you know the Cost(s) of Attendance at your school?
How was it determined?
Does your school have a written Packaging Policy?
Discussion…

31. Resources
“Developing the Cost of Attendance, ” Monograph A NASFAA Series, June 2007, Number 20.
Volume 3, Chapter 2, “Cost of Attendance (Budget),” Federal Student Aid Handbook, USDE, FSA.
Volume 3, Chapter 7, “Packaging Aid,” Federal Student Aid Handbook, USDE, FSA.
Volume 4, Chapter 3, “Overpayments and Overawards,” Federal Student Aid Handbook, USDE, FSA.

32. Contact Information
J. Scott Atkinson Director of Enrollment Services The College at Brockport State University of New York 350 New Campus Drive Brockport, NY Phone: (585) Fax: (585) Web site: