Presentation on theme: "Budgeting and Packaging of Financial Aid"— Presentation transcript:
1 Budgeting and Packaging of Financial Aid NYSFAAA Novice TrainingScott AtkinsonDirector of Enrollment ServicesJune 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 expensesMaintain documentation for each componentUpdate annually and timelyAllow adequate costs for moderate livingStandardize based upon categories of students with similar attributes
4 Standard Budget Components Tuition & FeesRoom and BoardBooks and SuppliesEquipment Rental/PurchasePersonal ExpensesTransportationEducational Loan Fees
5 Additional Components Non-standard educational costs as documented by the student or required for the student’s program:Professional Credential FeesPersonal ComputerDisability-Related ExpensesDependent CareConsortium StudyStudy Abroad ProgramCo-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 needsOptional fees (unless paid to a third party)Optional projectsExceptionally high travel costs
8 ExceptionsThe following groups of students must have other than standard COA budgets:Less than half time- exclude personal expensesCorrespondence study and Incarcerated- tuition, fees, books and supplies only
9 Pell Grant COACosts 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 complianceDefined institutional packaging policiesDevelopment of COA BudgetsOffer best possible combination of awardsFair and equitable distribution of awardsISIR with official EFCBalance total aid with COARectify overawardsStudent 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 ResourcesEstimated Financial Aid (EFA) from other sources, not within the institution’s purview to awardState aidOutside scholarshipsTuition waivers
15 Need-Based Awards packaged by the institution to cover remaining need Federal Campus Based AidFederal Subsidized Stafford LoanInstitutional Grants and ScholarshipsCOA-EFC-EFA=Remaining Need
16 Non-Need Based AidPackaged to cover any unmet need and Expected Family Contribution (EFC)Federal TEACH GrantFederal Unsubsidized Stafford LoanFederal PLUSPrivate Alternative LoansFederal Graduate PLUSCOA-EFA=Non-Need Based eligibility
17 Quick Example Cost of Attendance $15,000 Expected Family Contribution - 3,000Need $12,000
18 Quick Example cont. Federal Pell Grant -$2,680 Elk’s Club Scholarship - 2,000Federal Subsidized Stafford Loan - 4,500Federal SEOGFederal Perkins Loan - 2,000Unmet Need $ 70Non-Need Based AidFederal Unsubsidized Stafford Loan $2,000Federal PLUS $1,000Family 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 entitlementIncrease COA budget with documentationReduce anticipated disbursementsAdjust non-need based funding firstEliminate Stafford/PLUS before Campus-BasedCampus-based $300 tolerance/thresholdFully disbursed Stafford MAY remain unresolvedMay result in an overpayment
21 Sample #1: slide 1 Public Four-Year University Total Family Income $33,915Family of 4 with 1 other family member in collegeSecond-year undergraduate studentOrder of packaging to meet need:GrantsFederal subsidized loansWork
22 Sample #1: slide 2 Public Four-Year University Total Estimated Cost of Attendance (COA)$20,181Expected Family Contribution (EFC)$367Need (COA-EFC)$19,814Federal PELL Grant$5,380Federal SEOG Grant$450State Grant$1,483University Grant$2,000Federal Perkins Loan$1,200Direct Subsidized Stafford Loan$4,500Direct Parent Loan$1,986Federal Work-Study (FWS)$2,900Total Aid$19,899
23 Sample #1: slide 3 Public Four-Year University Grant aid = $9,313, or 46% of COAEFC may be covered by:Additional parent PLUSDirect Unsubsidized Stafford Loan
24 Sample #2: slide 1 Private Non-profit Four-Year College Total Family Income $33,457Family of 3 with 1 other family member in collegeFirst-year undergraduate, living on campusAGI = $32,866
25 Sample #2: slide 2 Private Non-profit Four-Year College Total Estimated Cost of Attendance (COA)$38,025Expected Family Contribution (EFC)$1,116Need (COA-EFC)$36,909Institutional Scholarship$13,000PELL Grant$4,580FSEOG$1,000Federal Work-Study (FWS)$2,200Federal Perkins Loan$2,000Federal Direct Loans (maximum $3,500 subsidized+maximum $2,000 unsubsidized$5,500State Merit Scholarship$2,374State Need-Based Grants$4,864Total Aid$35,518Unmet Need$1,391
26 Sample #2: slide 3 Private Non-profit Four-Year College Grant aid = $25,818, or 73% of COASelf-help (EFC + loans + work +unmet need) = $12,207, or 27% of COAUnmet 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)$15,535Expected Family Contribution (EFC)$1,770Need (COA-EFC)$13,565PELL Grant$3,980FSEOG$500State Need-Based Grant$400State Merit Scholarship$700Federal Work-Study (FWS)$3,000Federal Subsidized Loan$3,500Total Aid$12,080Unmet Need$1,485
29 Sample #3: slide 3 Community College, Two-Year Grants = $5,580 or 36% of COASelf-help aid (EFC + loans + work + unmet need)= $9,840, or 64% of COA.Unmet need and EFC may be covered by:Direct Unsubsidized Stafford LoanDirect 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 InformationJ. 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:
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