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Budgeting and Packaging of Financial Aid

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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

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:

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