Packaging Student Aid The Zookeepers Perspective

1
Packaging Student Aid The Zookeepers
Perspective

• Colleen MacDonald
• Director, Stanford GSB
• Frank Williams
• Financial Aid Supervisor/Associate Director,
• Grossmont Community College
• Bradley Soriano
• Financial Aid Officer/Loan Coordinator
• Point Loma Nazarene University 

2
2005/06 Cost of Attendance 222 billion
Scholarships, Grants, Other
Parent/Student Contributions
Federal Loans
Private Loans
Source Based on estimates by Octameron
Associates, Dont Miss Out, 29th Edition, by
College Board, 2004 Trends in Student Aid and
Sallie Mae. Includes tuition, room, board,
transportation and miscellaneous costs for two
and four year college degree granting programs.
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2005 Cost of Attendance 222 billion

• In 20 years, average tuition and fees have
  doubled for private institutions
• More than doubled for public institutions
• 04/05 to 05/06 increase for private tuition,
  fees, room, board almost 6, or 29,026
• For public institutions, increase is nearly 7 or
  12,127

Source College Board
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Tuition Fees
Books Supplies
The costs of going to college . . .
Room Board
Personal Expenses
Transportation
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The Financial Aid Equation
Budget or cost of attendance
- Expected Family Contribution (EFC)
Estimated financial need or
Eligibility for financial aid
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Need Varies Based on Cost
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COA Components

• Tuition and fees
• Room and board
• Books and supplies,
• Transportation,
• Miscellaneous personal expenses
• Loan fees
• Study abroad costs
• Dependent care expenses
• Disability-related expenses
• Cooperative education program costs

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Principles of Need Analysis

• Based on ability, parents have primary
  responsibility to pay for dependent childs
  education
• Students have a responsibility to contribute to
  educational costs
• Families should be evaluated in their present
  financial condition
• Familys estimated ability to pay educational
  costs must be evaluated in equitable and
  consistent manner, recognizing that special
  circumstances may affect familys ability to pay

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EFC Equation Dependent Students
Available Parent Income Assets
Available Student Income Assets
Expected Family Contribution
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EFC Equation Independent Students

• Available Student Income Assets
• Expected Family Contribution

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Types of Financial Aid

• Grants (gift aid)
• Scholarships (gift aid)
• Work earnings
• Educational Loans
• (student parent loans)
• Depending on circumstances, students may
  obtain all types of aid (and several different
  grants, scholarships, loans work-study)

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The Packaging Sandwich
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Federal Grants

• Pell Grant
• Supplemental Educational Opportunity Grants
  (FSEOG)
• Academic Competitiveness Grant (ACG)
• Science and Mathematics Access to Retain Talent
  (SMART) Grant

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State Grants

• Some are portable to other states
• Amount may depend of type of institution
• Need and/or merit based

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Scholarships

• Available from colleges, companies, religious
  and other organizations
• Usually require separate applications
• Some require transcript, essay, interview, or
  audition
• May be competitive

16
Student Work Earnings

• Federal Work-Study program during school year for
  students with financial need
• Regular work earnings during school year
• Summer jobs
• Studies show most students who work fewer than 10
  hours a week earn as good or better grades than
  non-working students

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Educational Loans . . .An investment in a
students future

• Stafford Loan
• subsidized
• unsubsidized
• Perkins Loan
• College/University Loan
• PLUS
• For parents of undergraduates
• For graduate or professional students
• Private Loan

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Packaging

• Typically similar packaging logic
• Depends on availability of funds
• Fair and Equitable
• Balance gift aid vs. self-help
• May be first-come, first-complete basis

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Basic Packaging Example

• Federal Grants
• State Grants
• Institutional Grants
• Student Employment
• Loans (lowest cost loans first)

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Special Considerations

• Outside Scholarship
• Forgivable Loans/Employer Sponsorship
• Reported gifts from others

21
Grossmont Community College Awarding Hierarchy

• Financial aid will be awarded in the following
  order until need is met
• 1. Cal Works Grant
• 2. Board of Governors Waiver (BOG)
• 3. Scholarships
• 4. EOPS/CARE Vouchers
• 5. Federal Pell Grant
• 6. Academic Competitiveness Grant (ACG)
• 7. Child Development Grant and Chafee Grant
• 8. Cal Grant B or C
• 9. Federal Work Study (FWS) to a maximum of
  3400
• 10. SEOG to a maximum of 1000
• 11. EOPS to a maximum of 600
• 12. CARE to a maximum of 800
• 13. New Horizons Grant
• 14. Stafford Loans

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Grossmont Community College Loan Policy

• All students must pass an Entrance and Exit
  Interview. Students will only be required to do
  an Entrance Interview when they apply for their
  first loan. Exit Interviews will be required
  every academic year.

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Grossmont Community College Loan Policy

• Students whose total borrowing is between 8750
  and 12,249 will be required to go through
  additional loan counseling with their Advisor
  prior to certification of any additional loans.

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Grossmont Community College Loan Policy

• Students whose total borrowing is 12,250 or
  greater must petition to the Financial Aid
  Supervisor/Associate Director and provide a
  budget worksheet with documentation of expenses
  and resources as well as a plan of repayment
  based on the students educational goal.

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Point Loma Nazarene University Packaging Case
Study

• Pell Grants 4,310-400 depending on EFC
• Cal Grants A B 9,708 Tuition Component plus
  1,551 Subsistence Component for Cal B
• SEOG 700
• Academic Competitiveness Grant (ACG) 750 1st
  year and 1,300 2nd year
• SMART Grant 4,000 3rd and 4th year
• Outside Scholarships Varies
• Academic Scholarships 4,000-15,000
• Departmental Scholarships Varies

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Point Loma Nazarene University Packaging Case
Study

• Tuition Remission Up to full tuition
• Multiple Child Discount 2000 increments for
  each addl child
• Pastors Child 25 for Nazarene/10 for
  non-Nazarene
• Missionarys Child 50 for Nazarene/10 for
  non-Nazarene
• Nazarene Church Scholarship and Matching Grant
  250 each
• Nazarene District Grant 2600-2900
• Hawaii Travel Discount 1200
• Federal Subsidized Stafford Loan 3500-5500
• Point Loma Diversity Grants up to 4000
• Point Loma Need Grants 800-3000

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Point Loma Nazarene University Packaging Case
Study

• Perkins Loans 1400 EFC lt 10001 and gt GL 1
• Federal Nursing Loan 1400 EFC lt 10001 and
  Nursing Major
• Federal Work Study 2500
• Federal Unsubsidized Stafford 3500-10500
• Parent PLUS We do not pre-package
• Alternative Private Loans We do not pre-package

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Case Study Stanford GSB Packaging

• 25 GSB Fellowship funds.
• 6,000 in Federal Perkins Loan funds.
• 8,500 in Federal Subsidized Stafford Loan funds.
  
• GSB will award up to maximum Federal Subsidized
  Stafford Loan eligibility, as long the amount is
  less than the cost of attendance but may exceed
  the calculated financial need.
• 12,000 in Federal Unsubsidized Stafford Loan
  funds.
• GSB will award up to maximum Federal Unsubsidized
  Stafford Loan eligibility, as long the amount is
  less than the cost of attendance but may exceed
  the calculated financial need.
• Remaining need met with PLUS Loan or Private Loan
  funds. Student will decide actual program through
  online institutional form.

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Evaluating Aid Packages

• Biggest is not always best unmet need must be
  considered.
• Are cost estimates realistic?
• Grant/Loan balance
• What are terms and conditions of loan offered?
• What is this going to look like over 4 years of
  program?

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THANK YOU!Please be sure to complete your
conference evaluation forms after the conference!

• Colleen MacDonald
• Director, Stanford GSB
• Frank Williams
• Financial Aid Supervisor/Associate Director,
• Grossmont Community College
• Bradley Soriano
• Financial Aid Officer/Loan Coordinator
• Point Loma Nazarene University