MANUAL PACKAGING COMPLIANCE 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. Eligibility Financial Need= for Pell: Cost of Attendance Maximum - Expected Family Contribution (EFC) eligible EFC is determined - 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. assistance) Cost of Attendance Estimate of a student’s education expenses for the period of enrollment Components 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 EFC: 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 Spouse C) Independent Student with dependents other than a Spouse Reminder: Adjust the Budget Duration to 4 months when you package a student for one semester (Spring admit). Resources/ 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 Resources/ 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 Resources/ 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. Packaging • 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 Assistance 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 records Percentage of remaining eligibility 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% Result: 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 VCU. 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 screens • 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 Questions????
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