FALL 2007

Awarding Financial Aid

Jerry Alan DonnaDirector of Financial AidSalem CollegeWinston-Salem, NC

FALL 2007

A few more acronyms!

• ACG – Academic Competitiveness Grant• COA – Cost-of-Attendance• EFA – Estimated Financial Assistance• EFC – Expected Family Contribution• FWS – Federal Work-Study• ISIR – Institutional Student Information Report• SMART – National SMART Grant

FALL 2007

What Is Packaging?(And how is awarding different…or is it???)

• Finding the best combination of aid programs to meet the

student’s financial need, using:

– Statutory/regulatory limits

– Available resources at the school

– Institutional policies

FALL 2007

Prior to Packaging

• A school must:

– Have developed Packaging Policies

– Defined their Academic Year

– Defined their Payment Periods

– Developed a Cost of Attendance (Budget)

FALL 2007

Prior to Packaging Federal & Need Based Aid

• ISIR with official EFC

– To determine need

• Understanding of available EFA (resources available)

• Determine individual student’s COA

• Types of federal aid available at your institution

– Pell

– ACG/SMART

– Campus-Based Funds (Perkins Loan, FSEOG, FWS)

– Loans

FALL 2007

What Is Need?

• COA – EFC = Need

– COA varies by school and program

– EFC is taken from ISIR

– Need is filled with available aid programs and other

resources when possible (not all schools can meet need).

COA $20,000- EFC 0= Need $20,000

FALL 2007

Cost of Attendance/Budget• Tuition and Fees

– In-state/out-of-state

• Books and Supplies

• Transportation

• Personal Expenses

• Room and Board

• Dependent Care

• Loan Fees

• Miscellaneous– Disability related expenses

– Study-abroad expenses

– Computer

FALL 2007

What Is EFA?

• Estimated financial assistance includes

– Pell Grants

– Educational Loans

– Grants (including ACG/National SMART Grants)

– Net earnings from need-based employment

– Scholarships

– Tuition and fee waivers

– Fellowship and assistantships (unless compensation is via payroll)

– VA educational benefits

FALL 2007

Estimated Financial Assistance

• Basic Need

COA - EFC = Need

• $14,000 - 1000 = $13,000

• Need Based

COA - EFC - EFA = Need-Based Eligibility

• $14,000 - 1000 - 13,000 = 0

• Non-Need Based

COA - EFA = Non-Need Based Eligibility

• Unsubsidized or Plus Loan

FALL 2007

Estimated Financial Assistance

• Combination of student aid and EFC must not exceed

student’s COA.

• If financial aid from another source becomes available after

packaging, financial aid awards must be reduced so total

amount does not exceed COA

FALL 2007

Federal Programs

• Pell• ACG• SMART• Campus Based

– Work-Study

– SEOG

– Perkins Loan

• Loans

FALL 2007

Foundation of Aid PackagePell Grant

– Goes only to undergraduate students who have not received a bachelor’s or first professional degree

– Determined using student’s COA, EFC and the U.S. Department of Education’s Pell payment/disbursement schedules

– No other aid is considered in determining Pell eligibility

– Goes only to undergraduate students who have not received a bachelor’s or first professional degree– Determined using student’s COA and EFC and ED’s Pell payment/disbursement schedules– No other aid is considered in determining Pell eligibility

FALL 2007

Beyond the Foundation

After calculating any Pell eligibility, use your packaging policy

to take into account other sources of assistance available to the

student.

COA $20,000- EFC 0- Pell 4,310= Remaining Need $15,690

FALL 2007

Academic Competitiveness Grant - ACG

• U.S. Citizen (does not include Title IV eligible non-citizens)

• Federal Pell Grant recipient

• First or second academic year student in a two or four-year

degree program

• Full-time enrollment

• No specific major required

FALL 2007

ACG continued…

• 1st year students

– Must not have been previously enrolled in a program of undergraduate study

– Must have graduated from a rigorous secondary high school program after 1/1/06

• 2nd year students

– Must have graduated from a rigorous program of study after 1/1/05

– Must have at least a 3.0 GPA in an eligible program

FALL 2007

Student Eligibility Criteria Specific to the National SMART Grant

• U.S. citizen (does not include Title IV eligible non-citizens)

• Federal Pell Grant recipient

• Third or fourth academic year student in an eligible program

• Full-time enrollment

• Majoring in an eligible major (based on approved USDOE CIP

CODE list)

• Cumulative GPA of at least 3.0 on a 4.0 scale

FALL 2007

Campus-Based Aid

• Must make funds reasonably available to all students

• No minimum enrollment status is required

FALL 2007

FSEOG – Federal Supplemental Educational Opportunity Grant

• Only to undergraduate students who have not received a

bachelor’s or first professional degree

• Need based

• Give to students with lowest EFC who will also receive Pell

Grant in that award year

• Minimum award is $100

• Maximum award is $4,000

FALL 2007

Federal Work-Study

• Undergraduate and graduate students

• Need based

• No minimum or maximum award

• May look at willingness to work

• Must pay at least minimum wage ($5.85 as of July 24, 2007)

FALL 2007

Federal Perkins Loan

• Undergraduate and graduate students

• Need based

• Give priority to students with exceptional need, as defined by

school

• May look at student’s willingness to repay

• Has annual ($4000) and aggregate ($20,000) loan limits

FALL 2007

FFEL – Federal Family Education LoanDL – Federal Direct Loan

• Undergraduate and graduate students

• Requires at least half-time enrollment

• Requires determination of Pell eligibility

• Requires awarding of subsidized funds before unsubsidized

funds

• Has annual ($3,500, $4,500, $5,500) and aggregate limits

($23,000, $46,000, $138,500)

FALL 2007

Available Institutional Aid

• Funds both within Financial Aid Office’s control and those not in the control of the

Financial Aid Office.

– Athletics, academic departments, performance based scholarships (i.e. music,

dance), Admissions, bookstore, etc

• Internal criteria and packaging policies

– Grants

– Loans

– Assistantships and fellowships

– Tuition and fee waivers

– Need-based employment

FALL 2007

Outside Aid Student May Receive

• State aid

• Scholarships (organizations, merit, etc.)

• VA educational benefits

• Employer tuition assistance

• Alternative educational loans

FALL 2007

Exceptions for Montgomery GI Bill and AmeriCorps Benefits

• Must exclude Chapter 30 VA benefits and AmeriCorps

benefits as EFA when determining Subsidized Loan eligibility

• Must include Chapter 30 VA benefits and AmeriCorps

benefits as EFA for Campus-based aid, ACG, National

SMART, and Unsubsidized Loans

– But, may exclude from EFA any portion of Subsidized Loan

amount amount of Chapter 30 or AmeriCorps benefits for

Campus-based, ACG, and National SMART Grants

FALL 2007

Complete Aid Package

COA

- EFC

- Pell

- EFA

= Remaining Need

FALL 2007

Sample Aid Package

COA $20,000

- EFC 0

= Need $20,000- Pell $4,310- Stafford $3,500- FSEOG $500- Perkins $4,000- FWS $1,500- Scholarship $5,000

= Unmet Need $1,190

Estimated

Financial

Assistance (EFA)

$18,810

FALL 2007

Packaging Case Studies

FALL 2007

Edgar and Art & Design Community College

• Edgar is a dependent student who graduated from high school in June 2006. He originally wanted to be a doctor but has decided to follow his heart and major in graphic design. He has decided to attend Art & Design Community College to get his AA prior to going on to a 4-year college.

FALL 2007

Art & Design Community College

COA

EFC

Project Design Scholarship

Pell

ACG

Institutional Grant

FWS

Sub loan

Unsub loan

Plus

Package Award Balance

15,000 15,000

0 15,000

1,000 14,000

4,310 9,690

750 8,940

500 8,440

2,500 5,940

3,500 2,440

0 2,440

2,440 0

FALL 2007

George and XYZ State University

• After serving his country as a medic in the military, George

has decided to return to college. His career goal is to be a

physical therapist. He has been volunteering at a local

hospital since his discharge and is really excited about school.

George has $9,600 in Chapter 30, Montgomery GI Bill VA

benefits to use for school.

FALL 2007

George and XYZ State University

COA

EFC

Pell

Chapter 30 VA

Need

Sub loan

Remaining Need

$14,900 $14,900

1,800 1,800

2,000 2,000

9,600 xxxx

1,500 11,100

1,500 3,500

0 7,600

Package #1 Package #2

FALL 2007

George and XYZ State University

Package #2 Package #3

COA $14,900 $14,900

EFC 1,800 1,800

Pell 2,000 2,000

Chapter 30 VA 9,600 9,600

Sub loan 3,500 -------

Remaining Need (2,000) 1,500

No overaward

FALL 2007

Scarlett and the Univ. of Aeronautical Studies

• A high achiever since she won her state spelling bee as a 4th grader, Scarlett is determined to become an aeronautical engineer. She is a dependent, US Citizen, with a 3.98 GPA and is a junior this year. She is living at home with her parents & nine brothers.

FALL 2007

University of Aeronautical StudiesPackage Award Balance Optional Balance

COA $25,000 $25,000 $25,000 $25,000EFC 0 25,000 0 25,000Scholarship – SWA 700 24,300 700 24,300Scholarship – Gates 8,500 15,800 0 24,300Pell 4,310 11,490 4,310 19,990SMART 4,000 7,490 4,000 15,990SEOG 500 6,990 500 15,490FWS 2,500 4,490 2,500 12,990Sub loan 4,490 0 5,500 7,490Unsub loan 0 0 0 7,490Plus 0 0 7,490 0

FALL 2007

Questions?

Jerry Alan DonnaSalem College, Winston-Salem, NC

PH 336-917-5577EMAIL donna@salem.edu