Johns Hopkins University Awarding & Packaging Kevin Towns Associate Director Johns Hopkins University

Definitions Packaging The process of awarding various types of financial aid without exceeding a student’s financial need or cost of attendance Financial Need difference between the cost of attendance and the expected family contribution; the amount of demonstrated need for a student to attend Cost of Attendance (COA) The average cost to attend for an academic year Estimated Family Contribution (EFC) Number used to determine student’s eligibility for federal student aid Need is based on the COA of a school and the expected family contribution. The COA can vary from school to school, but the EFC is the same across all schools. For example, school As COA can be 60,000 and the student’s EFC can be 40,000 – that student has 20,000 of need. School Bs COA can be 30,000 and the student’s EFC will still be 40,000 – they do not have any need. Different awards a student is eligible for are based on the student’s need.

Cost of Attendance COA typically includes: Tuition and fees Room and board (housing and meals) Books Transportation Personal expenses Loan fees

Cost of Attendance COA can include: Universities can increase their COA if a student has additional expenses: School-provided health insurance Dependent care Higher living expenses (off-campus) Supplies (computer or other course requirements) Educational programs

Cost of Attendance

Determining financial Need Cost of Attendance Expected Family Contribution ________________________________ Financial Need

Types of Aid Need-Based Aid: Non-Need Based Aid: Federal Pell Grant, FSEOG, FWS, Direct Subsidized Loan and Iraq/Afghanistan Service Grant These awards cannot exceed a student’s financial need Non-Need Based Aid: Direct Unsubsidized Loan, PLUS Loans and TEACH Grants Can be awarded up to a student’s COA

Packaging Policies Schools must follow federal policies: Must have written, published procedures for awarding all financial aid Must notify student in writing of their award package and any time it changes Must follow awarding guidelines (eligibility, limits, etc.) Schools have flexibility when packaging non-Title IV aid

Who Is Responsible for Paying? Student and parents have the primary responsibility for paying educational costs Federal funds should be awarded to the neediest students Schools must have a commitment of equitable and consistent treatment of all applicants

Packaging Techniques Individual First-come, First-served A customized package based on individual costs, resources and needs First-come, First-served Financial aid awards are made in the order applications are received until funds are exhausted

Packaging Techniques Specialized for Target Groups Ladder A strategy using separate packaging criteria for specific groups of students Ladder Student need is met without resorting to self-help aid (aid that must be paid back)

Packaging Techniques Self-Help Absolute/Fixed-Percentage Equity Aid that must be paid back (loans) are awarded before consideration for gift aid Absolute/Fixed-Percentage Equity Students are funded up to a school’s predetermined amount/percentage of gift aid before remaining need is met with self-help aid

Award Limits Minimum Maximum Federal Pell Grant $0 $6,095 Federal Supplemental Education Opportunity Grant $100 $4,000 Federal Work Study No annual limit, cannot exceed financial need Federal Loans $5,500 1st year ($3,500 subsidized; additional $4,000 unsubsidized for independent students) $6,500 2nd Year ($4,500 subsidized; additional $4,000 unsubsidized for independent students) $7,500 3rd & 4th Year ($5,500 subsidized; additional $5,000 unsubsidized for independent students) $20,500 Graduate/Professional Perkins: Cannot award to Grad after 9/30/2016. Cannot award to UG after 9/30/2017

Questions? Remember, FAFSA is available starting October 1!!!!!!!!!!!