Transcript Document

BUDGETING AND PACKAGING
OF FINANCIAL AID
NYSFAAA NOVICE TRAINING
SCOTT ATKINSON
DIRECTOR OF ENROLLMENT SERVICES
JUNE 2014
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.
BUILDING THE COA BUDGET
• Required considerations when building the
COA, the aid administrator must:
o
o
o
o
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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
STANDARD BUDGET COMPONENTS
• Tuition
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& Fees
Room and Board
Books and Supplies
Equipment Rental/Purchase
Personal Expenses
Transportation
Educational Loan Fees
ADDITIONAL COMPONENTS
• Non-standard educational costs as
documented by the student or required for
the student’s program:
o
o
o
o
o
o
o
Professional Credential Fees
Personal Computer
Disability-Related Expenses
Dependent Care
Consortium Study
Study Abroad Program
Co-op Program
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.
PROFESSIONAL JUDGMENT
• Some examples of how professional judgment
can be employed to adjust the COA:
o
o
o
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Special dietary needs
Optional fees (unless paid to a third party)
Optional projects
Exceptionally high travel costs
EXCEPTIONS
• The following groups of students must
have other than standard COA budgets:
o
o
Less than half time
- exclude personal expenses
Correspondence study and Incarcerated
- tuition, fees, books and supplies only
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.
PACKAGING
DEFINITION:
The process by which need based and nonneed based aid is awarded within the
parameters of the Cost of Attendance
Budget.
PACKAGING REQUIREMENTS
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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
PACKAGING
The basic premise of Needs Analysis…
Cost of Attendance
 Expected Family Contribution
= Financial Need
ENTITLEMENT AID
• Must be packaged first
o
o
o
Federal Pell Grant
State Grant
Other
OTHER RESOURCES
• Estimated Financial Aid (EFA) from other
sources, not within the institution’s
purview to award
o
o
o
State aid
Outside scholarships
Tuition waivers
NEED-BASED
• Awards packaged by the institution to
cover remaining need
o
o
o
Federal Campus Based Aid
Federal Subsidized Stafford Loan
Institutional Grants and Scholarships
COA-EFC-EFA=Remaining Need
NON-NEED BASED AID
• Packaged to cover any unmet need and
Expected Family Contribution (EFC)
o
o
o
o
o
Federal TEACH Grant
Federal Unsubsidized Stafford Loan
Federal PLUS
Private Alternative Loans
Federal Graduate PLUS
COA-EFA=Non-Need Based eligibility
QUICK EXAMPLE
• Cost of Attendance
• Expected Family Contribution
• Need
$15,000
- 3,000
$12,000
QUICK EXAMPLE CONT.
Federal Pell Grant
Elk’s Club Scholarship
Federal Subsidized Stafford Loan
Federal SEOG
Federal Perkins Loan
Unmet Need
Non-Need Based Aid
o Federal Unsubsidized Stafford Loan
o Federal PLUS
• Family Responsibility (COA-EFA)
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•
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-$2,680
- 2,000
- 4,500
- 750
- 2,000
$
70
$2,000
$1,000
$
70
OVERAWARDS
• DEFINITION:
When either need-based aid
exceeds calculated need
AND/OR total aid exceeds COA.
Over-awards must be resolved.
CORRECTING OVERAWARDS
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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
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:
1. Grants
2. Federal subsidized loans
3. Work
SAMPLE #1:
SLIDE 2
PUBLIC FOUR-YEAR UNIVERSITY
Total Estimated Cost of Attendance (COA)
Expected Family Contribution (EFC)
Need (COA-EFC)
Federal PELL Grant
Federal SEOG Grant
State Grant
University Grant
Federal Perkins Loan
Direct Subsidized Stafford Loan
Direct Parent Loan
Federal Work-Study (FWS)
Total Aid
$20,181
$367
$19,814
$5,380
$450
$1,483
$2,000
$1,200
$4,500
$1,986
$2,900
$19,899
SAMPLE #1:
SLIDE 3
PUBLIC FOUR-YEAR UNIVERSITY
• Grant aid = $9,313, or 46% of COA
• EFC may be covered by:
o
Additional parent PLUS
o
Direct Unsubsidized Stafford Loan
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
SAMPLE #2:
SLIDE 2
PRIVATE NON-PROFIT FOUR-YEAR COLLEGE
Total Estimated Cost of Attendance (COA)
Expected Family Contribution (EFC)
Need (COA-EFC)
Institutional Scholarship
PELL Grant
FSEOG
Federal Work-Study (FWS)
Federal Perkins Loan
Federal Direct Loans (maximum $3,500 subsidized
+maximum $2,000 unsubsidized
State Merit Scholarship
State Need-Based Grants
Total Aid
Unmet Need
$38,025
$1,116
$36,909
$13,000
$4,580
$1,000
$2,200
$2,000
$5,500
$2,374
$4,864
$35,518
$1,391
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.
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.
SAMPLE #3:
SLIDE 2
COMMUNITY COLLEGE, TWO-YEAR
Total Estimated Cost of Attendance (COA)
Expected Family Contribution (EFC)
Need (COA-EFC)
PELL Grant
FSEOG
State Need-Based Grant
State Merit Scholarship
Federal Work-Study (FWS)
Federal Subsidized Loan
Total Aid
Unmet Need
$15,535
$1,770
$13,565
$3,980
$500
$400
$700
$3,000
$3,500
$12,080
$1,485
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
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…
RESOURCES
• “Developing the Cost of Attendance, ” Monograph A
NASFAA Series, June 2007, Number 20.
• Volume 3, Chapter 2, “Cost of Attendance (Budget),”
2013-2014 Federal Student Aid Handbook, USDE, FSA.
• Volume 3, Chapter 7, “Packaging Aid,” 2013-2014
Federal Student Aid Handbook, USDE, FSA.
• Volume 4, Chapter 3, “Overpayments and Overawards,”
2013-2014 Federal Student Aid Handbook, USDE, FSA.
CONTACT INFORMATION
J. Scott Atkinson
Director of Enrollment Services
The College at Brockport
State University of New York
350 New Campus Drive
Brockport, NY 14420
Phone: (585) 395-5847
Fax: (585) 395-2041
E-Mail: [email protected]
Web site: www.brockport.edu/finaid