PACKAGING by forrests

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         Scott Morrison
         Associate Director
         February 27, 2003
Financial Need
A student must have financial need to receive all SFA funds except
for unsubsidized Stafford, PLUS loans and Alternative loans.

Financial Need=                                        for Pell:
  Cost of Attendance                                   Maximum
- Expected Family Contribution (EFC)                   eligible EFC is
- Resources/estimated financial assistance             annually

                                                       For 2002-2003,
The difference between the student’s cost of           the maximum
attendance and the family’s ability to pay these       EFC that a
costs (EFC) as well as the other aid that the          student can
student receives (resources/estimated financial        have to qualify
                                                       for Pell is 3800.
          Cost of Attendance
         Estimate of a student’s education expenses
                 for the period of enrollment

Tuition and Fees
Normal assessment for a student carrying the same academic workload

Allowances for books, supplies, transportation, &
miscellaneous personal expenses
Can include a reasonable allowance for the documented rental or
purchase of a personal computer

Allowance for room and board
if living at home, cost determined by school; living on campus-standard
amount normally assessed; living off-campus-reasonable expenses for
room and board
Loan fees
           Cost of Attendance
Enrolled less than half time
Tuition and fees, allowance for books & supplies, transportation, and
dependent care expenses

Study Abroad
Allowance for reasonable costs associated with study abroad programs
approved for credit by the student’s home institution

Incarcerated students
Tuition and fees, required books and supplies; ineligible for loans; if in a
federal or state penal institution, ineligible for Pell

Professional judgment
Authority to use this policy to adjust cost of attendance on a case-by-
case basis to allow for special circumstances
The expected family
contribution-the amount a
family can be expected to
contribute toward a student’s
college costs.

                       EFC FORMULA:
                        The methodology for
                        determining the EFC is
                        found in Part F of Title IV of
                        the Higher Education Act of
                        1965 as amended
Source of Data used in
  EFC calculations:

   FAFSA information
 provided by the student
Three Regular (full-data) formulas:
  A)   Dependent Student:

  B)   Independent Student without
       dependents other than a

  C)   Independent Student with
       dependents other than a
Reminder: Adjust the Budget Duration to 4 months when you
    package a student for one semester (Spring admit).
Estimated Financial Assistance

Pell Grants
•Considered to be one of the first sources
of aid to the student

•If need is exceeded due to combination of
Pell and other non-need based aid, the
student is still eligible for a Pell Grant
based on the payment schedule
Estimated Financial Assistance

Campus-Based Programs
•Must take all resources into account when awarding
Campus-based aid

•If the total of the student’s EFC, resources, and campus-
based aid exceed cost of attendance, the campus-based
aid must be reduced to prevent an overaward

•Unsubsidized Stafford, PLUS, and alternative loans are
not considered to be resources to the extent that they
replace EFC
Estimated Financial Assistance

Stafford and PLUS loans
•Estimated financial assistance must be counted when packaging
a student’s Stafford or PLUS loan

•Estimated Financial Assistance for Subsidized Stafford loans
does not include:
       Americorps benefits
       Chapter 30 Montgomery GI Bill benefits
       These are not included in Estimated Financial Assistance when
       determining eligibility for Subsidized Stafford loans but are
       included in Estimated Financial Assistance when determining
       eligibility for Unsubsidized Stafford loans.

• The EFC is not part of the calculation for
  unsubsidized loans
• Unsubsidized Stafford loans are only
  constrained by the maximum loan limits and
  the difference between Cost of Education and
  Estimated Financial Assistance
• PLUS loans are limited only by Cost of
  Education minus Estimated Financial
  Take the case of Maria….

Maria is a freshman dependent student
Cost of attendance: $7000
EFC: 1500
Estimated financial assistance:   Pell $2300
                                  Tuition waiver $1000
                                  Perkins loan $1500

What is her Subsidized Stafford loan eligibility?

What is her “base” Unsubsidized Stafford loan eligibility?
    Take the case of Lyle….

Lyle is a junior year dependent student
Cost of attendance: $7000
EFC: 5250

What is his Subsidized Stafford loan eligibility?
What is his “base” Unsubsidized Stafford loan eligibility?
What is his Parent PLUS loan eligibility?
    Take the case of Peter….

Peter is a freshmen independent student
Cost of Attendance: $7000
EFC: 1800
Estimated Financial Assistance:
               Pell Grant: $2000
               Montgomery GI Bill (Chapter 30) benefits: $4200
What is his Subsidized Stafford loan eligibility?

What is his Unsubsidized Stafford loan eligibility?
Pell Issues
     Less than half-time COA

The budget on screen 312 should only include:
• Tuition and Fees
• Books
• Transportation
• Dependent Care (if applicable)
Pell Eligibility for Midyear
    Transfer Students
•Schools must be careful not to exceed the
Scheduled Award when awarding a student who
previously received Pell for the award year at
another school

•Schools need to have NSLDS data from at least 60
days after the end of the student’s enrollment at the
previous school, allowing time for the previous
school to report final changes to RFMS and for
those changes to be sent on to NSLDS
     Calculating payment

Schools must determine what percentage of
the Scheduled Award the student actually
received at the previous school

Because the school is determining the
relationship between the amount the student
received and the Scheduled Award used to
determine that amount, the school must use
the Scheduled Award reported by the previous
school in determining this percentage and
cannot correct it on the basis of its own
       Percentage of remaining

             To figure this percentage,
Divide the amount disbursed at the previous school
 by the student’s Scheduled Award at that school
      then Subtract this percentage from 100%
Maximum percentage of the Scheduled Award that
     the student may receive at the new school

The reason for using percentages is that a transfer student may
have different Scheduled Awards (usually the result of different
verification processes or Professional Judgment)
  Take the case of Lydia….

Lydia attends fall and winter terms at a school
using nonstandard terms. She then transfers to
VCU for the spring semester.

NSLDS shows that Lydia received $1003 in Pell
payments and had a $1700 Scheduled Award.

Lydia is eligible for a $2100 Scheduled Award at

To determine how much she can be paid, VCU
figures out what percentage of the scheduled
award she received at her first school.
  Take the case of Lydia….

$1003 / $1700 = 59% of Scheduled Award used at
first school

Subtracting this percentage from 100%--VCU
determines that Lydia is eligible for 41% of her
Scheduled Award at VCU.

41% X $2100 = $861

A student with a $2100 Scheduled Award would
normally receive $1050 for one semester (if full-
time). However, Lydia can’t be paid more than
$861 because she has received 59% of the
Scheduled Award at the first school.
Loan Issues
             Common Errors

• Awarding a Federal Stafford or PLUS loan after the
  loan period has ended

• Not updating Class Levels on appropriate SIS

• Not checking for “W”s at the time of awarding

Let’s look at some examples…
Example 1
Example 2
Example 2 con’t
Example 2 con’t
Example 2 con’t
Example 3
Example 3 con’t
Example 3 con’t
Example 3 con’t

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