Transcript Slide 1

ILASFAA Annual Conference
April 16-18, 2008
Basic Aid Packaging
Amanda Fijal
Associate Director of Financial Aid
Loyola University Chicago
Cost of Attendance
For most students, the cost of attendance includes three basic components:
• Tuition and fees;
• Books, supplies, transportation, and miscellaneous personal expenses;
and
• Room and board.
Certain additional allowances are available to qualifying students for:
• Dependent care;
• Disability-related expenses;
• Cooperative education programs;
• Study abroad; and
• Loan fees.
ILASFAA Annual Conference
April 16-18, 2008
Cost of Attendance
• Aid administrators have flexibility with the
allowable cost components when determining
the cost of attendance for the Title IV programs.
• Once institutional policy is established, it must
be consistently applied in determining eligibility.
• All exceptions to the policy must be clearly
documented.
ILASFAA Annual Conference
April 16-18, 2008
How Financial Need
Is Determined
COST OF ATTENDANCE
- EXPECTED FAMILY CONTRIBUTION
= FINANCIAL NEED
ILASFAA Annual Conference
April 16-18, 2008
Types of Financial Aid
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Grants
Scholarships
Employment
Loans
ILASFAA Annual Conference
April 16-18, 2008
Federal Programs include:
• Federal Pell Grant - Need-based grant for tuition,
fees, room, board, and/or living expenses. In 20082009, students with an EFC below 4041 are
eligible.
• Federal Supplemental Educational Opportunity
Grant (FSEOG) - Need-based grant. Maximum
award is based on availability of funds at institution.
ILASFAA Annual Conference
April 16-18, 2008
Federal Programs include:
• Federal Academic Competitiveness Grant
(ACG) – Need-based grant for Pell-eligible, U.S.
Citizens in 1st or 2nd year who have completed a
rigorous high school program.
• National Science and Mathematics Access to
Retain Talent (SMART) Grant – Need-based
grant for Pell-eligible, U.S. Citizens in 3rd or 4th
year who are majoring in specific math, science,
technology or foreign language majors.
ILASFAA Annual Conference
April 16-18, 2008
Federal Programs include:
• Federal Work-Study (FWS) - Need-based
employment that provides jobs both on- and offcampus. Students earn at least current
minimum wage.
• Federal Perkins Loan - Need-based student
loan with a low 5% interest rate. Maximum
award is based on availability of funds at
institution.
ILASFAA Annual Conference
April 16-18, 2008
State of Illinois Programs
• Monetary Award Program (MAP) - Needbased grant for students with EFC , $9,000.
Grant is restricted to tuition and mandatory
fees, to a maximum of $4,968
• Silas Purnell Illinois Incentive for Access
(IIA) Program - One-time $500 grant
awarded to freshman who have a $0 EFC
ILASFAA Annual Conference
April 16-18, 2008
Federal Stafford Loans
• Subsidized - Based on financial need. The
federal government pays the interest while
the student is in school, during grace periods,
and during authorized periods of deferment.
• Unsubsidized - Not need-based. The
student is always responsible for interest
payments.
ILASFAA Annual Conference
April 16-18, 2008
Credit-Based Loans
• Federal PLUS Loan – Loan borrowed by
parent of dependent undergraduate student.
Repayment begins while in school.
• Alternative Student Loan – Loan borrowed
by student, usually with credit-worthy cosigner. Repayment can begin while in school
or after graduation.
ILASFAA Annual Conference
April 16-18, 2008
What is Packaging?
(the “official” definition)
• Packaging is the process by which the
FAA seeks to meet a student’s financial
need while ensuring equitable distribution
of (limited) funds and compliance with
program-specific eligibility criteria.
ILASFAA Annual Conference
April 16-18, 2008
Six Basic
Packaging Models
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Individual Model
First Come-First Served Model
Ladder Model
Self-Help Model
Equity Model
Institution Specific Model
ILASFAA Annual Conference
April 16-18, 2008
Individual Model
• Financial aid awards are made based on
individual circumstances (student needs, costs,
resources)
– Pros: very customized packages developed
for each student. Maximizes funds available.
– Cons: time consuming! Individual packaging
involves a manual review of each student file.
ILASFAA Annual Conference
April 16-18, 2008
First Come First Served Model
• Financial aid awards are made as applications
are received until funds are exhausted.
– Pros: packaging can begin early and can help
ensure funds are maximized.
– Cons: late applicants receive least desirable
assistance (grants are exhausted, more loans
are awarded).
ILASFAA Annual Conference
April 16-18, 2008
Ladder Model
• After financial need is determined, aid is awarded in
previously determined order, e.g.:
1.
2.
3.
4.
5.
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Federal Pell, ACG and/or SMART Grant
MAP Grant
Institutional Grant
Federal Work Study
Federal Stafford Loans
Pros: very easy to program and handle systematically
Cons: very standardized packages with little room for
customization.
ILASFAA Annual Conference
April 16-18, 2008
Self-Help Model
• Awards are made using the basic concepts of
Ladder Model, except Work and Loan awards
are made prior to institutional grants.
– Pros: Maximizes institutional funds by lowering
remaining financial need with self-help resources.
– Cons: Students uninterested in self-help resources
receive undesired resources; provides appearance of
rationing.
ILASFAA Annual Conference
April 16-18, 2008
Equity Model
• Students are awarded aid at the same level,
such as awarding grant dollars based on a fixed
percentage or up to a fixed maximum.
– Pros: Packages are standard across the
student population
– Cons: packages reflect very little
customization
ILASFAA Annual Conference
April 16-18, 2008
Which model is the best?
• Like many things in financial aid, the best packaging
philosophy is the one that fits your institution best.
• For example, a school with few institutional grants might
use the Self-Help to maximize the funds that are available.
• A small institution might find individual packaging to provide
the desired results.
• Analysis of your student population and the funds available
will help to decide which is best (for this year anyway).
ILASFAA Annual Conference
April 16-18, 2008
Case Study - Joe Student
• Joe is a dependent freshman student being packaged at
a public 4 year institution.
• Joe plans to be employed off campus and does not want
a Federal Work-Study award.
• His EFC is $5,835 and the budget is $25,040.
• The institution uses a Self-Help model to award financial
assistance. A $4,000 University Grant is awarded to
students with financial need.
ILASFAA Annual Conference
April 16-18, 2008
Case Study - Joe Student
Questions
• What is Joe’s financial need?
$
• What federal and state programs might Joe qualify for?
/
/
/
• How would you complete his award? (include non-need based
programs that can replace his EFC)
Program:
Award
$
$
$
$
ILASFAA Annual Conference
April 16-18, 2008
Case Study - Joe Student
Answers
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What is Joe’s financial need?
$19,205 ($25,040 - $5,835)
What federal and state programs might Joe qualify for?
Federal Work Study/Perkins Loan/Federal Stafford Loan (student is not Pell
eligible and is unlikely to receive an SEOG award)
How would you complete his award? (include non-need based programs that can
replace his EFC)
Program:
Award:
MAP
$4,968
Subsidized Stafford Loan
$3,500
University Grant
$4,000
Federal PLUS Loan
$7,234
(the Federal PLUS Loan can replace the remaining need, and the EFC)
ILASFAA Annual Conference
April 16-18, 2008
Financial Aid - Award Letters
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Each college/university is required to inform each
financial aid applicant of the following items:
1.
Expected Cost of Attendance including:
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2.
Tuition and fees
Room and board
Books and supplies
Transportation
Personal expenses
Student loan fees
Financial aid awards offered from the college.
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Most institutions do this via the Financial Aid Award letter. There
is not a required format for the award letter; each school
customizes to include other information as needed.
ILASFAA Annual Conference
April 16-18, 2008
STATE COLLEGE
FINANCIAL AID OFFICE
1313 OAK STREET
FRANKLIN, IL 62998
SCHOOL YEAR 2008/2009 FINANCIAL AID SUMMARY
Shelby Taylor, 111-10-2222
1130 Red Lane
Bentonville, IL 44444
BUDGETED ITEMS FOR FALL 2008 AND SPRING 2009:
TUITION AND FEES
ROOM AND BOARD
BOOKS AND SUPPLIES
TRANSPORTATION
PERSONAL EXPENSES
TOTAL OF BUDGETED ITEMS
$
7,600.00
5,200.00
1,000.00
1,850.00
1,000.00
16,650.00
ESTIMATED FAMILY CONTRIBUTION
FINANCIAL NEED
$00000.00
FINANCIAL AID OFFERED:
FEDERAL PELL GRANT
IL MAP GRANT
SUBSIDIZED STAFFORD
AMERICAN LEGION SCHOL.
PRIVATE ALTERNATIVE LOAN
TOTAL FINANCIAL AID OFFERED
FALL
2,366.00
2,484.00
1, 750.00
250.00
1,000.00
SPRING
2,365.00
2,484.00
1,750.00
250.00
1,000.00
$15,449.00
UNMET NEED
$ 951.00
TOTAL
4,731.00
4,968.00
3,500.00
500.00
2,000.00
( ) I accept all of the financial aid offered.
( ) I decline the following financial aid but accept the remaining:
( ) I accept the financial aid but I do not want all of the student loans. Reduce the student loans as follows (indicate the total amount
wanted for each loan):
Student Signature:____________________________________ Date:____________________________
SIGN, DATE AND RETURN THIS FORM TO: FINANCIAL AID OFFICE, STATE COLLEGE, 1313 OAK STREET, FRANKLIN, IL 62998
ILASFAA Annual Conference
April 16-18, 2008
Questions?
ILASFAA Annual Conference
April 16-18, 2008