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2017-18AUTHORIZED EVENTS

CREDENTIALEDTRAINING

PACKAGING AND NOTIFICATION OF AWARDS

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July 2017

NASFAA U Authorized Event Packaging and Notification of Awards

© 2017 NASFAA 1

Slide 1 © 2017 NASFAA

National Association of Student Financial Aid Administrators


Packaging and Notification of Awards

A NASFAA Authorized Event

2017–18


Lesson 1Introduction to Packaging


What Does Packaging Accomplish?

PackagingPackaging

Financial needFinancial need

Equitable distribution of

limited resources

Equitable distribution of

limited resources

Program compliance

Program compliance

Mission, goals, and objectives

Mission, goals, and objectives


© 2017 NASFAA 2


Financial Need

Evaluating Financial Need

Remaining Need

Remaining Eligibility

COA COA COA

EFC EFC

EFA EFA


Packaging Policies and Procedures

Policies and

Procedures

Ensure full expenditure of

funds Compliance with

requirements to provide

information

Consistencyin packaging

Consistency in handling

overawards

Consistency in responding

to appeals

Achievement of institutional

goals



© 2017 NASFAA 3


Quick Quiz:1. Financial aid packaging involves which of the following: Dividing the student’s expenses into institutional and

noninstitutional costs Employing strategies to distribute limited financial aid

resources to qualified students Maintaining compliance with program-specific

requirements and endeavoring to meet the mission, goals, and objectives of the school

Applying written policies and established procedures consistently

Page 3


Quick Quiz:2. The packaging process combines various types of Title IV

and non-Title IV aid from __________, __________, __________, and __________ entities to help meet the student’s financial need.

3. Each school should have written policies outlining its __________ and processes.

4. The basic financial need equation is __________.

Page 3


• What is your school’s educational mission statement? Do you think your school’s financial aid packaging philosophy aligns with the mission?

• Is your school able to meet the financial need of all students, some students, or no students? Why do you believe this is the case?

• Does your school’s financial aid office have written policies and procedures? Does it state what the packaging goals are? If not, how would you define the packaging goals?

Page 4


© 2017 NASFAA 4


Lesson 2 Packaging Guidelines


Reasonably Available Funds

Institutional Aid

Applies to campus-based funds

May not exclude otherwise eligible students or category of students when packaging

Not defined in law or regulations

Schools agree to this requirement through the PPA


Packaging Categories

Categories

Class standing Enrollment

status

Academic program or

majorGrade point average (GPA)

Application date

Residency


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• Control the distribution of financial aid using percentages, set dollar amounts, etc.

Student population

Diversity

Retention rates

Completion rates

Packaging Categories


Packaging Sequence

• Sequence of awarding financial aid from each program is up to the school

• School controls packaging outcomes• Sequence followed consistently within

categories

Grant aid FWS Loans


Packaging Award Amounts

Packaging policy should• Set guidelines for each program• Specify portion of need school will meet

– Set gap as a flat amount or fixed percentage• Specify minimum award amounts for campus-

based programs • Consider program maximums that increase each

year, such as loans


© 2017 NASFAA 6



Quick Quiz 1:1. What agreement does the school sign that says campus-

based funds will be made reasonably available to all eligible students?

2. “Reasonably available” is defined by the __________. Accrediting agency U.S. Department of Education (ED) State Department of Education Institution

3. Packaging categories provide a means for the school to control its __________, if the school assigns a percentage or dollar amount of funds to each category.

Page 10


Quick Quiz 1:4. Why might a school wish to establish minimum award

limits for Federal Perkins Loan and FWS?5. A school may establish categories that reflect the school’s

mission and philosophy and account for characteristics of the student population, such as _________, _________, and _________ rates.

6. What two approaches may a school use if there is a gap between need and a financial aid package?

Page 10


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• What are some strategies your institution uses to ensure campus-based funds are “reasonably available” to eligible students?

• What packaging categories would you use to distribute aid among your students? What steps would you take to prevent such categories from being discriminatory?

Page 11


• Does your institution provide more grant and institutional aid to incoming freshmen? What could be some possible problems with this practice? What strategies would you use to prevent it?

• What factors do you think keep schools from being able to meet fully the financial need of their students?

Page 11


Award Year

• Federally defined

July 1 to June 30July 1 to June 30


© 2017 NASFAA 8


Academic Year

Minimum Hours

Minimum Weeks in a

YearUndergraduate Program Type

Credit Hours 30 weeks

24 semester or trimester

Clock Hours 26 weeks 900 clock

36 quarter


Academic Year

Minimum Hours

Minimum Weeks in a

Year

Graduate/ Professional

Program Type

Credit Hours 30 weeks Defined by the school

Clock Hours 26 weeks Defined by the school


Summer Term Format

Considerations• Structure of the term• Enrollment status• Crossover payment period• Funds allocation• Use of SAY or BBAY


© 2017 NASFAA 9


Summer Term Format

• Select award year for a crossover payment period

June 30

Summer

July 1


Program-Specific Packaging Criteria

Criteria

Reasonable portion of

campus-based programs

Exceptional need and

priority order (FSEOG)

Federal Perkins Loan

(exceptional need)

TEACH Grant ProgramDirect Loans

Students with AmeriCorps

benefits

Recipients of IASGs



© 2017 NASFAA 10


Quick Quiz 2:1. The definition of an academic year for an academic

program which measures progress in semester credit hours must include at least _______ credit hours and _______ weeks of instruction. 24; 30 30; 30 30; 24 36; 24

2. The definition of an academic year for an academic program must be equal to the actual length of the program for a student enrolled full-time for one year. True False

Page 17


Quick Quiz 2:3. A school must award Federal Perkins Loans first to

students with: exceptional need, as defined by the institution after

Direct Subsidized Loan and/or Direct Unsubsidized Loan eligibility is considered.

exceptional need, as defined by regulation. an EFC that falls within the same range as the Federal

Pell Grant. the lowest EFCs.

Page 17


Quick Quiz 2:4. An institution must award a reasonable portion of campus-

based funds to independent students and to students enrolled less than full-time if: the institution’s allocation for campus-based funds

includes any Federal Perkins Loans. the institution allows students to graduate from a

program after being enrolled on a part-time basis. the proportion of independent and part-time students

enrolled at the institution exceeds 33 percent. the institution’s allocation for campus-based funds is

based directly or indirectly on the financial need of such students.

Page 17


© 2017 NASFAA 11


Quick Quiz 2:5. If a student is identified on the ISIR as being eligible for

the Iraq and Afghanistan Service Grant (IASG), the student must be awarded: the IASG only if the student has an EFC within the

eligibility range for a Federal Pell Grant. a Federal Pell Grant based on a zero EFC as long as

the student has an EFC within the eligibility range for a Federal Pell Grant.

a Federal Pell Grant based on a zero EFC regardless of the student’s EFC.

the IASG regardless of the student’s EFC.

Page 17


Learning Activity: Filling the Financial Need Gap

Page 18


Learning Activity: Filling the Financial Need GapFor each case study described on page 18, use the description of each school’s packaging policies to fill the financial need gap.

Page 18


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Learning Activity: Filling the Financial Need GapPhilip at Faraway College

1. How much is Philip’s total need?

2. How much need is FC responsible for meeting?

Page 18


Learning Activity: Filling the Financial Need GapPhilip at Faraway College

3. Is Philip eligible for Federal Perkins Loan?

4. Based upon Philip’s total aid eligibility, has FC followed its own policy? How much ofPhilip’s need is met?

Page 18

COA $24,550EFC 0Financial Need = $24,550Pell Grant - $5,920Institutional Grant - $1,000FSEOG - $500FWS - $2,500Subsidized Loan - $4,500Remaining Need = $10,130Perkins Loan


Learning Activity: Filling the Financial Need GapAntonia at Coastal University

1. How much is Antonia’s total need?

2. How much need is CU responsible for meeting?

Page 18


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Learning Activity: Filling the Financial Need GapAntonia at Coastal University

3. Is Antonia eligible for Federal Perkins Loan?

4. Based upon Antonia’s total aid eligibility, has CU followed its own policy? How much ofAntonia’s need is met?

Page 18

COA $18,458EFC - 8,599Financial Need = $9,859CU’s Gap - $2,000Institutional Grant - $500FWS - $3,000Direct Loan - $10,500Remaining Need = $0Perkins LoanNeed-based Aid


Lesson 3Packaging Models and Processes


Basic Packaging

Models

Individual student

First-come, first-

served

Distinct student

Gift aid first

Self-help

Equity


© 2017 NASFAA 14


Basic Packaging

Models

Individual student

First-come, first-

served

Distinct student

Gift aid first

Self-help

Equity


Basic Packaging

Models

Individual student

First-come, first-

served

Distinct student

Gift aid first

Self-help

Equity


Gift Aid First Packaging Model

Cost of attendance (COA)– Expected family contribution (EFC)– Federal Pell Grant– Estimated financial assistance (EFA)

= Remaining need for packaging

Grants and scholarships awarded first

Grants and scholarships awarded first

Self-help awarded to meet remaining needSelf-help awarded to meet remaining need


© 2017 NASFAA 15


COA $17,450EFC 900Need = 16,550

Federal Pell Grant $5,070Jazz Scholarship 1,200Remaining Need = 10,280

FSEOG 2,000FWS 2,500Direct Subsidized Loan 5,500Federal Perkins Loan 280mbnailUnmet Need = 0

Gift Aid First Example—Harry


Basic Packaging

Models

Individual student

First-come, first-

served

Distinct student

Gift aid first

Self-help

Equity


Cost of attendance (COA)– Expected family contribution (EFC)– Federal Pell Grant– Estimated financial assistance (EFA)

= Remaining need for packaging

Self-Help Packaging Model

Self-help aid awarded first

Self-help aid awarded first

Gift aid awarded to meet remaining need

Gift aid awarded to meet remaining need


© 2017 NASFAA 16


Self-Help Example—JaylaCOA $20,320EFC 0Need = 20,320Federal Pell Grant $5,920Symon Kowell Grant 3,000Remaining Need = 11,400FWS $1,500Direct Subsidized Loan 3,500Direct Unsubsidized Loan 2,000Federal Perkins Loan 1,500FSEOG 1,000Institutional Grant 1,900Unmet Need = 0


Basic Packaging

Models

Individual student

First-come, first-

served

Distinct student

Gift aid first

Self-help

Equity


• Assures certain level of gift aid assistance• Cannot be used to award FSEOG

Equity Packaging Model

Equity Models

Absolute Equity Concept

Fixed-Percentage

Equity Concept


© 2017 NASFAA 17


Absolute Equity Level =

TR + TGS

TC = Total COA for all students

TR =Total outside resources of all eligible students (EFC, Federal Pell Grant, state grant, external scholarships, etc.)

TG = Total grant money available to school for equity grant use

S = Number of eligible students to be packaged

Absolute Equity Level


Absolute Equity Target = $7,000EFC 7,500Equity Grant Eligibility = ($500)

COA $10,000EFC 7,500Need = 2,500

Equity Grant 0FWS 1,500Direct Subsidized Loan 1,000Unmet Need = 0Ex

ampl

e—Stu

dent

A


Absolute Equity Target = $7,000Federal Pell Grant 4,370EFC 1,505Equity Grant Eligibility = $1,125

COA $15,000EFC 1,505Need = 13,495Federal Pell Grant $4,370Equity Grant 1,125FWS 1,500Direct Subsidized Loan 4,500Remaining Need = $2,000

FSEOG $1,000Unmet Need = $1,000

Exam

ple—

Stu

dent

B


© 2017 NASFAA 18


Absolute Equity Target = $7,000Federal Pell Grant 5,920PTA Scholarship 1,500EFC 0Equity Grant Eligibility = ($420)

COA $14,000EFC 0Need = 14,000Federal Pell Grant $5,920PTA Scholarship 1,500Equity Grant 0FWS 1,500Direct Subsidized Loan 4,500Remaining Need = $580FSEOG $580Unmet Need = $0

Exam

ple—

Stu

dent

C


TC = Total COA for all students

TR =Total outside resources of all eligible students (EFC, Federal Pell Grant, state grant, external scholarships, etc.)

TG = Total grant money available to school for equity grant use

S = Number of eligible students to be packaged

Fixed-Percentage Equity LevelFixed-

Percentage Equity Level

=(TR + TG)

x 100%TC


Absolute Equity Target = $7,000EFC 7,500Equity Grant Eligibility = ($500)

COA $10,000EFC 7,500Need = 2,500

Equity Grant 0FWS 1,500Direct Subsidized Loan 1,000Unmet Need = 0Ex

ampl

e—Stu

dent

A $5,0007,500

($2,500)

$10,0007,5002,500

01,5001,000

0

Fixed %


© 2017 NASFAA 19


Absolute Equity Target = $7,000Federal Pell Grant 4,370EFC 1,505Equity Grant Eligibility = $1,125

COA $15,000EFC 1,505Need = 13,495Federal Pell Grant $4,370Equity Grant 1,125FWS 1,500Direct Subsidized Loan 4,500Remaining Need = $2,000

FSEOG $1,000Unmet Need = $1,000

Exam

ple—

Stu

dent

B

$7,5004,3701,505

$1,625

$15,0001,505

13,495$4,370

1,6251,5004,500

$1,500

$1,000$500

Fixed %


Absolute Equity Target = $7,000Federal Pell Grant 5,920PTA Scholarship 1,500EFC 0Equity Grant Eligibility = ($420)

COA $14,000EFC 0Need = 14,000Federal Pell Grant $5,920PTA Scholarship 1,500Equity Grant 0FWS 1,500Direct Subsidized Loan 4,500Remaining Need = $580FSEOG $580Unmet Need = $0

Exam

ple—

Stu

dent

C

$7,0005,9201,500

0($420)

$14,0000

14,000$5,920

1,5000

1,5004,500$580$580

$0



© 2017 NASFAA 20


Quick Quiz 1:1. Which of the following packaging models cannot be used

to award FSEOG funds? Self-help packaging model First-come, first served packaging model Individual student packaging model Gift aid first packaging model Distinct student group packaging model

Page 34


Quick Quiz 1:2. Match the packaging model to its key characteristic:

Packaging Model CharacteristicStudents are assured of a certain level of gift aidCustomized award package that takes into account students’ individual circumstancesAward using special criteria to target funds to students in designated groupsAward students in the order in which aid applications are receivedAfter EFC, Federal Pell Grant, IASG, and other EFA, gift aid is awarded before self-help aidAfter EFC, Federal Pell Grant, IASG, and other EFA, self-help aid is awarded before gift aid

Page 34


Quick Quiz 1:3. If a school packages aid using the self-help model, all

students or all students within a particular packaging category are expected to assume responsibility for a certain amount of __________ aid before __________ is awarded.

4. Fill in the formula for calculating the absolute equity level.5. Fill in the formula for calculating the fixed percentage

equity level.

Pages 34-35


© 2017 NASFAA 21


Quick Quiz 1:6. When awarding a new undergraduate Federal Perkins

Loan borrower for the 2017–18 award year, in what order must the school package a Federal Perkins Loan? Perkins, then Subsidized, and then Unsubsidized Perkins, then Unsubsidized, and then Subsidized Subsidized, then Perkins, and then Unsubsidized Subsidized, then Unsubsidized, and then Perkins

Page 35


Quick Quiz 1:7. Under either of the equity packaging concepts, a student is

guaranteed a certain amount of which type of aid? Campus-based aid Gift aid Self-help aid Work-study aid

8. A school may establish a single equity level for all students regardless of variations in individual student costs, or a different equity level for students with different COAs or COA ranges, or even for different categories of students. True False

Pages 35-36


• Does your school use one of, a combination of, or none of the packaging models outlined?

• Does your school use different packaging models for different categories of students (e.g., incoming freshmen versus continuing undergraduates)? Briefly describe your school’s packaging model(s) and compare them.

• Do you agree with your school’s undergraduate and/or graduate packaging model(s)? Why or why not? What would you do to change them?

Page 37


© 2017 NASFAA 22


• Does your school meet full financial need for some students and not others?

• If your school awards FSEOG and/or Federal Perkins Loans, what is your school’s definition of exceptional financial need for these programs? Is it different for each program? If so, how?

• Does your school package Direct Subsidized Loan, Direct Unsubsidized Loan, and/or PLUS up-front when packaging a student, or do you only include Direct Loans upon request after initial packaging? Do you agree with this practice?

Page 38


Learning Activity: Packaging Exercise—Jordan

Page 39


Learning Activity: Packaging Exercise—JordanFor the case study of “Jordan” described on page 39, use the information about Jordan and the description of each school’s packaging policies on pages 39-40 to fill in the Packaging Worksheet on page 40.

Pages 39-40


© 2017 NASFAA 23


Learning Activity: Packaging Exercise—Jordan

Page 40


Packaging Direct Loans and Loan Fees

Direct Loan BorrowersDirect Loan Borrowers

Must add actual or

average loan fees to COA

Subsidized, unsubsidized,

and PLUS

Nonfederal Loan

Borrowers

Nonfederal Loan

Borrowers

May include required loan fees in COA

Once loan fees are added to COA, gross loan amount also is included in EFA


COA and Need with Average LoanFeesCOA $17,525Average Subsidized and Unsubsidized Direct Loan Fees

+ 60

Revised COA = 17,585EFC 14,958Remaining Need = 2,627

Direct Loan Fees Example—DavidEstimating Direct Loan EligibilityEstimated Direct Subsidized Loan Eligibility $2,627

Estimated Direct Unsubsidized Loan Eligibility

+ 3,873

Total Estimated Direct Loans = $6,500

Revised COA (including Direct Loan Fees) $17,585

Estimated Subsidized and Unsubsidized Direct Loan 6,500

Estimated PLUS Eligibility = $11,085

Actual PLUS Loan Fee Percentage Assessed x 4.276%

Calculated Actual PLUS Fees = $473.99


© 2017 NASFAA 24


Direct Loan Fees Example—DavidRevising COA and Direct Loan AmountsRevised COA $17,585PLUS Fees (truncated to 2 decimal places; not rounded)

+ 473.99

Revised COA (includes all loan fees) = $18,058.99

EFC 14,958Revised Financial Need (not rounded) = $3,100.99

Awarding Actual Subsidized and Unsubsidized Direct LoansAward Direct Subsidized Loan $3,100.99

Award Direct Unsubsidized Loan + 3,399.01

Total = $6,500

Awarding Actual PLUSRevised COA $18,059Subsidized and Unsubsidized Direct Loans

6,500

Revised PLUS Eligibility = $11,559

Award Actual PLUS $11,559


Packaging TEACH Grants

• School choosespackaging order

• May replace EFC• Sequestration

applies


TEACH Grants Example—Safina COA $16,890EFC 1,036Need = $15,854

Federal Pell Grant 4,870Future Teacher Scholarship 4,000Remaining Need = $6,984

FSEOG 2,000FWS 2,500TEACH Grant 2,484Unmet Need = $ 0

TEACH Grant $2,484EFC + 1,036Revised TEACH Grant (to replace EFC) $3,520


© 2017 NASFAA 25


Packaging IASGs

EFC

is P

ell-E

ligib

le • Award full Federal Pell Grant

• EFC is not changed

• Award full Federal Pell Grant

• EFC is not changed

EFC

is n

ot P

ell-E

ligib

le • Award IASG up to full Pell Grant amount

• Cannot exceed COA

• Award IASG up to full Pell Grant amount

• Cannot exceed COA


Packaging IASG Example—LebronCOA $21,735Average Direct Loan Fees + 70Revised COA = $21,805

EFC 8,410Need = $13,395

IASG 5,511County Scholar Grant 2,450Remaining Need = $10,945 ($5,434)

Direct Subsidized Loan 4,500FWS 4,000FSEOG 2,445Unmet Need = $ 0 (-$5,511)


Establish average award for each type

of aid

Package students eligible for fewest types

of awards

Package remaining students with most restrictive aid first

Evaluate results

Adjust packaging parameters

Repeat until

desired outcome

Packaging Simulation


© 2017 NASFAA 26



Quick Quiz 2:1. Once Direct Loan fees are added to the student’s cost of

attendance, the __________ is included in the student’s estimated financial assistance when calculating his or her remaining need? net loan amount gross loan amount

Page 47


Quick Quiz 2:2. Under which of the following conditions might a student be

eligible for an IASG? Student’s parent died as a result of U.S. military service

after September 11, 2001 Student is an independent student Student is less than 24 years of age Student is enrolled at an institution of higher education Student has a Pell-eligible expected family contribution

Page 47


© 2017 NASFAA 27


Quick Quiz 2:3. If a fourth-year undergraduate student’s COA is $33,000,

his EFC is 17,000, and he wants—and is eligible—to borrow maximum Direct Subsidized Loan, Unsubsidized Loan, and parent PLUS eligibility prior to October 1, 2017, and if he is receiving no other EFA, then what is his revised COA after actual loan fees are calculated?

4. Which of the following Title IV aid programs can be used to replace the EFC? TEACH Grant Direct Subsidized Loan IASG PLUS

Page 47


Quick Quiz 2:5. If a student has a Pell-eligible EFC of 2,101 and his aid is

first disbursed on June 1, 2017, what is the maximum award amount if the student’s parent died as a result of U.S. military service in Iraq or Afghanistan after September 11, 2001? $5,920 Federal Pell Grant $5,511.52 Iraq and Afghanistan Service Grant $3,870 Federal Pell Grant $3,602.97 Iraq and Afghanistan Service Grant

Page 47


Quick Quiz 2:6. If a student does not have a Pell-eligible EFC and her aid

is first disbursed on September 15, 2017, what is the maximum award amount if the student’s parent died as a result of U.S. military service in Iraq or Afghanistan after September 11, 2001? $5,920 Federal Pell Grant $5,920 Iraq and Afghanistan Service Grant $5,511.52 Federal Pell Grant $5,511.52 Iraq and Afghanistan Service Grant

7. What are the five basic steps of a packaging simulation, in order?

Page 48


© 2017 NASFAA 28


Learning Activity: Packaging Direct Unsubsidized Loan and Graduate PLUS—Maria

Page 49


Learning Activity: Packaging Direct Unsubsidized Loan and Graduate PLUS—MariaFor the case study of “Maria” described on page 49, use the information about Maria and the description of her school’s packaging policies on page 49 to package her final, actual Direct Unsubsidized Loan and Graduate PLUS eligibility. Be sure to take into consideration the loan fees for both types of loans.

Page 49


Learning Activity: Packaging Direct Unsubsidized Loan and Graduate PLUS—Maria

Maria’s Final Award Package:

What are Maria’s actual Direct Unsubsidized Loan and PLUS award amounts after loan fees are taken into consideration?

Direct Unsubsidized Loan: Graduate PLUS:

Page 49


© 2017 NASFAA 29


Learning Activity: Packaging Direct Unsubsidized Loan and Graduate PLUS—MariaInitial Package

Calculating Unsubsidized Loan and Graduate PLUS Amounts

Page 49

COA $36,850Average Direct Unsubsidized Loan Fees + 185Revised COA = $37,035Direct Unsubsidized Loan Eligibility $20,500

COA $36,850EFC - 3,843Financial Need = $33,007


Learning Activity: Packaging Direct Unsubsidized Loan and Graduate PLUS—MariaCalculating Unsubsidized Loan and Graduate PLUS Amounts

Page 49

Revised COA $37,035Direct Unsubsidized Loan Eligibility - 20,500Estimated Graduate PLUS Eligibility = $16,535Actual Graduate PLUS Fees Assessed (4.276%) x .04276Calculated Graduate PLUS Fees = $707.04


Learning Activity: Packaging Direct Unsubsidized Loan and Graduate PLUS—MariaCalculating Unsubsidized Loan and Graduate PLUS Amounts

Page 49

Revised COA $37,035Calculated Graduate PLUS Fees + 707.04 Revised COA (rounded, includes all loan fees) = $37,742Direct Unsubsidized Loan Eligibility - $20,500Graduate PLUS Eligibility = $17,242


© 2017 NASFAA 30


Lesson 4Overawards, Appeals, and Award Notifications


Overawards

• Occurs when student’s aid exceeds need• Receipt of additional EFA reported by:

– Student – Other campus offices

• Adjustment to FAFSA data elements• Adjustment to COA


Overaward Resolution

• Pell grants are never adjusted• IASG adjusted only if exceeds COA and no

other aid• Campus-based programs allow an optional

tolerance of up to $300 – If overaward occurs after awarded– After adjustments to Direct Loans– Only unearned FWS may be adjusted


© 2017 NASFAA 31


Overaward Resolution

• Direct Loan Programs include no tolerance – Must adjust undisbursed loan funds and/or

future disbursements– Not required to return funds already disbursed

• TEACH grants adjusted if exceeds COA in combination with other aid– Non-need-based, but school may treat as EFA – Must treat as EFA if overawarded with other aid


Overaward Resolution Example

COA $12,450EFC 900Need = 11,550

Federal Pell Grant $4,965Remaining Need = 6,585

FSEOG 1,500FWS 2,000Direct Subsidized Loan Eligibility 3,085Unmet Need = 0XYZ Scholarship 1,200Overaward = (1,200)

$1,885


Award Appeals

• Optional• Written appeal process• Consistently applied• Submitted in writing• Notification of appeal results adjustments if

approved


© 2017 NASFAA 32


Award Notifications

COA EFC Financial need Unmet need

Aid awarded to meet need

How aid is disbursed

When aid is disbursed

Work-study hours and wage rate

Conditions to retain each

award

Subject to availability of funds

Other caveats

XYZ University Award Notification


Format of Award Notifications

Can be paperCan be electronic

or online

Should be sent well in advance of enrollment

Can be used to accept or reject awards


Financial Aid Shopping Sheet

• May be used voluntarily• Must be used if school

agrees to comply with Executive Order 13607, Establishing Principles of Excellence for Educational Institutions Serving Service Members, Veterans, Spouses, and Other Family Members


© 2017 NASFAA 33



Quick Quiz:1. What is an overaward and when does it occur? 2. If an overaward occurs for the loan period after origination,

but before disbursement of any Direct Subsidized Loan or Direct Unsubsidized Loan proceeds, the school must reduce or eliminate the overaward by doing which of the following? Making a downward adjustment to the borrower’s loan

amount Reducing or canceling aid over which the school has

control A combination of the above None of the above

Page 69


Quick Quiz:3. Which Title IV aid program is never adjusted to resolve an

overaward? Federal Pell Grant Iraq and Afghanistan Service Grant TEACH Grant Federal Work-Study

4. If the amount of a TEACH Grant in combination with a student’s other aid exceeds the student’s COA, the school can eliminate the overaward by taking one or a combination of which four actions?

Page 69


© 2017 NASFAA 34


Quick Quiz:5. If the Title IV overpayment cannot be eliminated by taking

one or a combination of the steps in #4 above, the school must adjust subsequent __________ payments in the same award year.

6. Is the school required to return Direct Loan funds disbursed directly to the borrower or applied to the student’s account before an overaward situation occurred? Yes No

Pages 69-70


Quick Quiz:7. A school can require a student to sign and return an award

letter notification in order to continue processing and disbursing the student’s Title IV aid. True False

8. A school is required to provide the Financial Aid Shopping Sheet to students if it elects to comply with Executive Order 13607. True False

Page 70


Learning Activity: Reviewing Your Institution’s Award Notification

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Learning Activity: Reviewing Your Institution’s Award NotificationUse the NASFAA Award Letter Evaluation Tool on pages 77-82 to evaluate whether your school’s award notification meets the minimum standards recommended by NASFAA’s Committee on Access and Choice. Be sure to note objectives where you are uncertain, or where some follow-up action is desirable.

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Learning Activity: Reviewing Your Institution’s Award Notification

1. How does your school’s award notification measure up?

2. What changes would you recommend to help ensure your notification is an informative resource for your students?

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• If the school packages students based on actual enrollment data and accurate information at the time of packaging, should the school be required to recalculate the student’s award based on changes that occur at a later date? Yes No Maybe

Under what circumstances may you set a policy to repackage students? To not repackage students?

• Would the fact that classes have already started change any of your answers to the above questions?

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• Do you think a student’s award package should be recalculated if a private scholarship or other estimated financial assistance is received after the award year is over?

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Question and Answer Segment


Thank you for attending!

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© 2017 National Association of Student Financial Aid Administrators

The National Association of Student Financial Aid Administrators (NASFAA)

provides professionaldevelopment for financial

aid administrators; advocates for public policies that increase

student access and success;serves as a forum on student financial aid issues; and is

committed to diversitythroughout all activities.

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