Transcript D7 AwardingAndPackaging

WASFAA 2011
Awarding and
Packaging
2011 WASFAA
Annual Conference
Presented by: Kathleen Clark,
Chapman University School of Law
and Wendy Olson,
Whitworth University
Agenda:
Budget
Awarding Components
Awarding Goals
Communicating Award
Information
2011 WASFAA
Annual Conference
Agenda:
What would you like to
discuss today?
2011 WASFAA
Annual Conference
Building
The Budget
2011 WASFAA
Annual Conference
Cost of Attendance/
Student Expense
Budget
“The cost of attendance is
the cornerstone of
establishing a student’s
financial need, as it sets a
limit on the total aid that a
student may receive.”
FSA Handbook, 2010
2011 WASFAA
Annual Conference
Allowable Costs
Determined by school, taking into account:
➔ Tuition and fees
➔ Books, supplies, transportation,
personal, misc.
➔ Room and board
➔ Loan Fees
➔ ➔ Dependent care
➔ ➔ Study abroad expenses
➔ ➔ Disability expenses
➔ ➔ Employment expenses for co-op
study
2011 WASFAA
Annual Conference
Determining
Budget
Amounts
•Survey Students
•Survey Landlords in Surrounding Area
•Update Previous Year’s with Consumer Price Index (CPI)
•Use Information from Statewide Survey
•Other Ideas?
2011 WASFAA
Annual Conference
Determining
Federal Need
Budget
EFC
Need
2011 WASFAA
Annual Conference
$37,823
- $7,823
$30,000
This clip art was actually titled “Calculating Need.”
Award Components
Federal/State
Pell Grant
FSEOG
Stafford Loan
Perkins Loan
Federal Work Study
PLUS Loan
State Grant
Other Items?
2011 WASFAA
Annual Conference
Institutional
Academic/Merit
Talent
Sports
Need-Based Gift Aid
Endowed & Restricted
Institutional Loan
Institutional Work
Components’ Rules
Federal/State
Pell Grant
FSEOG
Stafford Loan
Perkins Loan
Federal Work Study
PLUS Loan
State Grant
Other Items?
2011 WASFAA
Annual Conference
Institutional
(% or flat rate)
Academic/Merit
Talent
Sports
Need-Based Gift Aid
Endowed & Restricted
Awarding Goals
•Increase Enrollment Overall
•Increase Enrollment for Certain Populations
•Disadvantaged Students
•Athletes
•Specific Majors
•Specific Talents
•Other?
•Increase Net Tuition Revenue
•Increase statistics-SAT/GPA
•Other Goals?
2011 WASFAA
Annual Conference
Financial Aid vs. Business Affairs
Discount Rate – The revenue the school is
willing to lose in order to sculpt their student
enrollment. The basic equation is: gift
assistance/tuition.
Gift Aid
$14,000/
Tuition
$21,180
Discount
66%
What should gift aid include/exclude?
2011 WASFAA
Annual Conference
Conflicting Needs
•Low Discount Rate
•High Quality Students
•Number of Students Desired
2011 WASFAA
Annual Conference
Plans to Meet Goals
• % of Need Met with Gift Aid
•% of Tuition Met with Gift Aid
•Flat Dollar Maximum in Gift Aid
•% of Need Beyond Federal/State Met with
Intuitional Gift Aid
•Needy Students Only
•Scholarship Awards Only
•Other?
2011 WASFAA
Annual Conference
4.0+ –
3.50
3.49 –
3.00
2.99 –
2.50
2.49 –
2.00
0–
$2000
45%
40%
20%
15%
$2001 $4000
30%
35%
15%
10%
$4001 $6000
30%
30%
15%
10%
$6001 $8000
30%
25%
10%
5%
$8001 –
$10,000
25%
25%
10%
0%
Leveraging Model Example – Includes factors
that go into awarding gift assistance in order
to optimize revenue and enrollment.
2011 WASFAA
Annual Conference
Packaging PlansFederal Need vs. Direct Costs
Federal Need
Total
$30,000
Merit
$14,000
Stafford
$3500
FWS
$2500
Perkins
$2500
Total
$22,500
Unsub
$2000
PLUS
$4000
Total
$28,500
2011 WASFAA
Annual Conference
Bill-Tuition, Fees,
Room & Board
$21,182
Merit
$14,000
Stafford
$3500
FWS
$2500
Perkins
$1180
Total
$21,180
Unsub
$2000
PLUS
$4000
Total
$27,180
Communicating the
Award
Electronic vs. Paper
Advantages
Disadvantages
2011 WASFAA
Annual Conference
Communicating the
Award
What Must Be Included:
Cost of Attendance?
Expected Family Contribution?
Types of Aid and Amounts
Requirements to Continue to Receive Aid?
Consumer Information?
Active vs. Passive Acceptance.
Other?
2011 WASFAA
Annual Conference
Listing the Cost
of Attendance
&EFC
on the
Award Letter
• Shows the family what was used when determining
the financial aid package.
• Gives them an idea of what it will cost to go to that
college – outside of the bill.
• Lets them know how much they can borrow in
additional PLUS.
• Gives the false impression that this is the true “out
of pocket” expenses.
2011 WASFAA
Annual Conference
• With the inclusion of the EFC there can come
confusion thinking this is what is directly owed.
The Award Letter
as a
Recruitment Tool
Timing
Comparison Tool
Loans vs. Gift Aid
Enhance Other Recruiting Activities
2011 WASFAA
Annual Conference
Discussion
and
Questions
2011 WASFAA
Annual Conference
More Information:
NASFAA
FSA Handbook
2011 WASFAA
Annual Conference
Other?
Kathleen Clark
[email protected]
Wendy Olson
[email protected]