1. PACKAGING ABC Workshop 2016 Angela Parkoff Financial Aid Advisor

2. Learning Objectives Definition of packaging Funds typically packaged Estimated Financial Assistance (EFA) & its affect Steps to package awards Packaging categories & sequence Packaging models Over-awards Hands-on example Notifying students of awards

3. HOW IT WORKS

4. So what is packaging? Per the FSA Handbook  Packaging is the process of awarding aid without exceeding the student’s financial need  More simply: It’s how you decide what students are awarded and with what combination of aid

5. Funds we typically package Federal programs State programs Institutional programs  Pell  SEOG  Perkins  Federal Work Study  Direct Loans  Parent PLUS Loans  Graduate PLUS Loans  TEACH Grant  Iraq & Afghanistan Service Grant  TPEG  TEXAS Grant  TEG  BOT  CAL  Texas Work Study  Set Aside Funds

6. Estimated Financial Assistance Estimated Financial Assistance (EFA) is counted as part of student’s aid package Examples of EFA:  ROTC living allowances  Scholarships (including athletic & ROTC)  Employer reimbursement of tuition & fees  Tuition and fee waivers  Fellowships and assistantships  Americorps Funds

7. Estimated Financial Assistance Exceptions to EFA rules:  Iraq & Afghanistan Service Grant  Prepaid tuition plan  Federal veteran benefits

8. STEPS TO PACKAGING

9. Steps To Packaging 1.Determine the student’s Cost of Attendance (COA) budget & Expected Family Contribution (EFC) 2.Award Federal Pell Grant 3.Calculate the student’s financial need 4.Package campus-based, state, federal, and institutional funds 5.Package or refer students to other supplemental sources of assistance

10. Packaging Step 1 STEP 1: DETERMINE THE COA & EFC. A typical COA consists of*  Tuition & Fees  Books & Supplies  Room & Board  Transportation  Personal Expenses EFC comes from…? * COA amounts are determined by the institution & could include PJ adjustments.

11. Packaging Step 2 STEP 2: AWARD PELL GRANT Pell Grant awarded based on EFC  Pro-rated based on enrollment status and EFC range

12. Packaging Step 3 STEP 3: CALCULATE STUDENT’S REMAINING NEED Cost of Attendance --Expected Family Contribution --EFA _____________________________ Initial Need --PELL award (if any) _____________________________ Remaining need for other need based aid

13. Packaging Step 3 Calculating student’s non-need eligibility Cost of Attendance --PELL --EFA --Need-based aid ________________________________ Room for non-need based aid

14. Packaging Step 4 STEP 4: PACKAGE CAMPUS-BASED, FEDERAL, STATE, AND INSTITUTIONAL AID Package other aid programs according to your school’s packaging philosophy/policy Keep in mind that each school is different!

15. Packaging Step 5 STEP 5: PACAKGE OR REFER STUDENTS TO OTHER ASSISTANTCE Alternative loans

16. CATEGORIES&SEQUENCE

17. Packaging Guidelines Responsibility for paying for college rests with the student and their family Federal Pell Grant is the foundation of undergraduate student aid packages Families can borrow from some aid programs to replace all or a portion of their EFC Scholarships cannot be substituted for EFC Must take expected financial assistance (EFA) into account prior to awarding aid

18. Goals of an Administrator Provide as many students as possible with resources to meet their financial need Distribute aid in an equitable manner Provide assistance that will be the most beneficial to the student Manage financial aid funds Recruit and retain students Meet areas of national need Sometimes these are competing goals!

19. Packaging Categories Schools can organize their packaging categories based on the following:  Enrollment status  Classification  Academic program or major field of study  Application date  Need Based vs. Non-Need Based  Residency Criteria Packaging philosophy must be detailed in the school’s policy and procedures

20. Packaging Sequence What gets awarded 1st? 2nd? School designates the order in which it awards funds from various programs  Varies from school to school  It can depend on the categories designated  This should be noted in the policy and procedure manual for your institution

21. PACKAGING MODELS

22. Six Basic Packaging Models First-Come, First-Served Gift Aid First Self-Help Concept Special Targeted Groups Equity Concept  Absolute Dollar Equity  Fixed Percentage Equity Individualized Packaging

23. First Come, First Served Financial aid is awarded based on the order in which completed applications are received by the aid office until funds are spent. Benefits:  Rewards students who get their FAFSA and other requirements done early Drawbacks:  May not have funds available for students that need the most help

24. Gift Aid Gift aid is awarded first and self help aid is awarded to meet any remaining need Benefits:  Decreases likelihood of loan debt Drawbacks:  Limited gift aid funding

25. Self Help Self-help assistance is awarded after subtracting the family contribution and before any consideration of gift aid Benefits:  Places same burden on all students  Allows gift aid for those who do not have same access to self-help Drawbacks:  Increases likelihood of higher loan debt

26. Targeted Groups Separate packaging criteria for specific groups of students in addition to specific criteria required by law or regulation Benefits:  Easier to tie packaging philosophy to institutional goals Drawbacks:  Tougher to defend – be consistent

27. Equity Concept Absolute Equity  All students are funded up to an institutional maximum fixed dollar amount with gift aid before their remaining need is met with self-help. Fixed Percentage Equity  An institutional maximum percentage level of NEED or COST for all gift aid is used rather than a fixed dollar amount. Benefits:  Provides for an equitable distribution Drawbacks:  Difficulty in managing over-awards and maintaining that equitable distribution

28. Individualized Packaging based on the FAA’s evaluation of a student’s individual costs, resources and needs Benefits:  Each financial aid packaged is customized  Personal touch with each student Drawback:  Time consuming  Highly subjective

29. Which should you use? This depends on your institution Most institutions do not use one specific model…  A variation of one or more of these models is used by institutions to fit in with that school’s objectives

30. OVER-AWARDS

31. Over-awards Over-awards occur when aid exceeds a student’s need or COA How does this happen?  EFC changes (due to verification or PJ updates)  COA changes (possibly due to enrollment)  Additional financial assistance comes in (late scholarship, exemption payment) This is the student’s responsibility to report to us When over-awards happen, we make adjustments

32. HANDS-ON EXAMPLE

33. Packaging Example Sally is attending Happy Campus College (HCC). She is a dependent senior. HCC employs a gift-aid first packaging model and awards work study prior to loans. HAPPY CAMPUS COLLEGE COA $20,000 EFC $500 Scholarship $3,500 Pell Grant $5,365 AWARD MAXIMUMS FSEOG$500 Institutional Grant $2,500 Work Study$3,000 Direct Loan$7,500

34. - Cost of Attendance20,000 - EFC(500) Need19,500 - Pell(5,365) - EFA (Scholarship)(3,500) - Remaining Need 10,635 - SEOG(500) - Work Study(3,000) - Unmet NeedZERO Other aid eligibility?$500 in unsubsidized loan - Remaining Need before loans 4,635 - Institutional Grant(2,500) - Subsidized Loan(4,635) Packaging Example

35. What if after you have packaged, you are informed that the student is receiving another $500 scholarship?  Does this fit in the COA as is?  Does it fit within the need?  If not what would you reduce?

36. STUDENT NOTIFICATION

37. Notifying Students of Awards Institutions are required to inform students:  Amount of award(s)  Terms and conditions of award  Manner and timing of payments Institutions have the option of confirmation or notification  Confirmation – Student formally accepts awards  Notification – Student not required to accept aid, but must notify school if they do not want aid

38. Notifying Students of Awards What if there aren’t enough funds?  Caveat may be included on award notification stating that the award is subject to the availability of funds and may be revised if funds are not available or eligibility changes.

39. Notifying Students of Awards  Shopping Sheet

40. Wrapping Up Definition of packaging Funds typically packaged Estimated Financial Assistance (EFA) & its affect Steps to package awards Packaging categories & sequence Packaging models Over-awards Hands-on example Notifying students of awards

41. QUESTIONS? Angela Parkoff Financial Aid Advisor Texas A&M University aparkoff@tamu.edu