N Y S F A A A N O V I C E T R A I N I N GS C O T T AT K I N S O N

D I R E C T O R O F E N R O L L M E N T S E R V I C E SJ U N E 2 0 1 4

BUDGETING AND PACKAGING OF FINANCIAL AID

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 Use actual or average expenseso Maintain documentation for each

componento Update annually and timelyo Allow adequate costs for moderate livingo Standardize based upon categories of

students with similar attributes

STANDARD BUDGET COMPONENTS

• Tuition & 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 Professional Credential Feeso Personal Computero Disability-Related Expenseso Dependent Careo Consortium Studyo Study Abroad Programo 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 Special dietary needso Optional fees (unless paid to a third

party)o Optional projectso Exceptionally high travel costs

EXCEPTIONS

• The following groups of students must have other than standard COA budgets:

o Less than half time- exclude personal expenses

o 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 non-need based aid is awarded within the parameters of the Cost of Attendance Budget.

PACKAGING REQUIREMENTS

• 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 Federal Pell Granto State Granto Other

OTHER RESOURCES

• Estimated Financial Aid (EFA) from other sources, not within the institution’s purview to award

o State aido Outside scholarshipso Tuition waivers

NEED-BASED

• Awards packaged by the institution to cover remaining need o Federal Campus Based Aido Federal Subsidized Stafford Loano 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 Federal TEACH Granto Federal Unsubsidized Stafford Loano Federal PLUSo Private Alternative Loanso Federal Graduate PLUS

COA-EFA=Non-Need Based eligibility

QUICK EXAMPLE

• Cost of Attendance$15,000• Expected Family Contribution - 3,000•Need $12,000

QUICK EXAMPLE CONT.

• Federal Pell Grant -$2,680 • Elk’s Club Scholarship - 2,000 • Federal Subsidized Stafford Loan - 4,500 • Federal SEOG - 750 • Federal Perkins Loan - 2,000 • Unmet Need $ 70

• Non-Need Based Aid

o Federal Unsubsidized Stafford Loan $2,000

o Federal PLUS $1,000

• Family Responsibility (COA-EFA) $ 70

OVERAWARDS

•DEFINITION:

When either need-based aid exceeds calculated need AND/OR total aid exceeds COA. Over-awards must be resolved.

CORRECTING OVERAWARDS

• 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. Grants2.Federal subsidized loans3.Work

SAMPLE #1: SLIDE 2

PUBLIC FOUR-YEAR UNIVERSITY

Total Estimated Cost of Attendance (COA) $20,181Expected Family Contribution (EFC) $367Need (COA-EFC) $19,814

Federal PELL Grant $5,380Federal SEOG Grant $450

State Grant $1,483University Grant $2,000

Federal Perkins Loan $1,200Direct Subsidized Stafford Loan $4,500

Direct Parent Loan $1,986Federal Work-Study (FWS) $2,900

Total Aid $19,899

SAMPLE #1: SLIDE 3PUBLIC 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) $38,025Expected Family Contribution (EFC) $1,116Need (COA-EFC) $36,909

Institutional Scholarship $13,000PELL Grant $4,580

FSEOG $1,000Federal Work-Study (FWS) $2,200

Federal Perkins Loan $2,000Federal Direct Loans (maximum $3,500

subsidized+maximum $2,000 unsubsidized

$5,500

State Merit Scholarship $2,374State Need-Based Grants $4,864

Total Aid $35,518Unmet Need $1,391

SAMPLE #2: SLIDE 3PRIVATE 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 1COMMUNITY 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 2COMMUNITY COLLEGE, TWO-YEAR

Total Estimated Cost of Attendance (COA) $15,535Expected Family Contribution (EFC) $1,770Need (COA-EFC) $13,565

PELL Grant $3,980FSEOG $500

State Need-Based Grant $400State Merit Scholarship $700

Federal Work-Study (FWS) $3,000Federal Subsidized Loan $3,500

Total Aid $12,080Unmet Need $1,485

SAMPLE #3: SLIDE 3COMMUNITY 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 AtkinsonDirector of Enrollment Services

The College at BrockportState University of New York

350 New Campus DriveBrockport, NY 14420

Phone: (585) 395-5847Fax: (585) 395-2041

E-Mail: satkinso@brockport.eduWeb site: www.brockport.edu/finaid