Packaging

who is a first time borrower

a student who has no outstanding balance of principal or interest on a direct or federal family education loan on july 1, 201 or on the date that the borrower obtains a direct loan after july 1, 2013

150% Direct subsidized loan limit

first time borrowers as of July 1, 2013, the law placed a time limit on a student's Direct subsidized loans. a student may receive Direct Subsidized loans for up to 150% of the published length of the student's current educational program at the point that the student has borrowed 150%, the student may no longer receive subsidized loan funds title IV grant and unsubsidized loan funds are still available. the student may recieve unsubsidized loan funds until he/she reaches the statutory aggregate loan limits

Federal Pell grant basics

foundation of a FSA package amounts can change annually. 2020-21 award year, grants range from 650-6345 for a full time student for one award year (unless qualifies for Year round pell). Maximum pell grant eligible EFC is 5711

YRP and Cross over payment periods

institutions have flexibility to assign crossover payment periods to either of the relevant award years, the law provides that an institution must make the assignment as it "determines is most beneficial to students" decision should be based on what is in the best interest of the student and maximizes the student's eligibility over the two award years and lifetime eligibility

In order for a school to use formula 1 for PG, school must have a program that

- a standard term program - 30 weeks of instructional time - defines full time as 12 credit hours or more - academic calendar includes 2 semesters/trimesters or 3 quarters

Calculating Eligibility for different types of aid

- formulas for need-based FA and non-need-based FA

To be considered standard terms

- semesters and trimesters may be between 14-21 weeks of instruction - quarters may be between 9-13 weeks of instruction - standard terms are not required to be substantially equal, not different by more than two weeks

Packaging depends on many variables

- student's cost of attendance, EFC, and financial need - FSA programs offered at your school and the regulatory limits on those programs - the amount of any aid the student is receiving from the school and/or other sources - the student's enrollment status - institutional policies

Hannah is attending central commercial college (CCC) to obtain her associates degree. Her COA for full time attendance for one year is 18,000$. full time COA is reduced by 900$ (personal expenses) for students attending less than half time. Her EFC for the 2020-21 award year is 547 Hannah will be attending 12 credits in the fall semester and 3 credits in the spring semester. calculate her pell payments for both the fall and spring semesters at CCC 1) determine enrollment status fall semester __________ spring semester ____________ 2) calculate pell grant COA fall semester ___________ spring semester ____________ 3) determine annual award fall semester _________ spring semester ____________ 4) determine payment periods how many payment periods are in the AY? ___________

1) Enrollment status fall se$ ster: full time spring semester: less than half time - 3c 2) COA fall semester: 18,000 spring semester: 18,000-900 = 900$ 3) determine annual award fall semester: 18000 spring semester: 900 4) determine payment periods how many payment periods are in the academic year? 2 semesters 5) determine payment period: fall semester = 18000 (annual award)/2 (semester or payment periods) spring semester = 900 / 2 spring amount student will receive: 450

requirements for schools that participate in DL program

1) cannot choose to only participate in unsubsidized loans. must also participate in the unsub loan program 2) schools may choose to also participate in Direct PLUS loans. not required. however, the fact that a school chooses not to participate in Direct PLUS loans is not grounds for offering additional Unsub loan funds to a dependent student 3) school that chooses to participate in Direct PLUS Loans and has undergraduate and graduate/professional students, may not limit Direct PLUS Loan borrowing only to parents or only to graduate/professional students 4) a school that offers graduate and professional degree programs and chooses to participate in the Direct PLUS Loan program, must also offer Direct unsub loans. because schools are required to first determine a student's eligibility for unsub loans before offering Direct PLUS Loans for graduate/professional students

5 steps in PG calculation (formula 1)

1) determine enrollment status: full time, three quarter time, half time, or less than half time 2) calculate Pell COA: based on full time, full academic year costs 3) determine annual award: student's enrollment status is full time, the annual award is taken from the full time PG payment schedule (Scheduled award). if students enrollment is 3/4 time, 1/2 time, or less than half time, the annual award is taken from the appropriate PG payment disbursement schedule 4) determine payment pd: payment pd is academic term 5) calculate payment for a payment period: take the annual award and divide it by the number of terms in the award year

Single year functionality MPN DL

1) domestic schools can use this option 2) foreign schools can use this option 3) confirmation process is not required for loans made in subsequent academic years 4) schools require specific pops of borrowers to complete a new MPN every year - NA 5) may borrowers choose to complete a new MPN each academic year - NA 6) borrowers can ask that their MPNs be closed

Multi Year functionality MPN DL

1) domestic schools can use this option 2) foreign schools cannot use this option 3) confirmation process required for loans made in subsequent academic years 4) schools require specific populations of borrowers to complete a new MPN every year 5) borrowers can choose to complete a new MPN each academic year 6) borrowers can ask that their MPNs be closed

formula 3 PG steps

1) enrollment status when using formula 3, for a program that contains standard terms, the minimum enrollment standards apply determine full time in the nonstandard term (formula for that) 2) pell COA if program is not equal to an academic year, prorate COA up or down to reflect one full academic year. Pell COA always based on costs for full time student for a full academic year 3) Pell COA proration compare the two fractions and multiply program COA by the lesser of the two fractions to determine Pell COA hours in academic year/hours to costs apply compared to weeks in academic year/weeks to which costs apply 4) annual award scheduled award is the maximum amount for a specific EFC and COA, that a student would receive when enrolled full time for a full academic year use student's COA and EFC to find Annual Award on Pell Payment Schedule appropriate to enrollment status. - do this for each payment period if the student's enrollment status is 3/4 time, 1/2, or less then half time, the annual award is taken from the appropriate part-time payment schedule 5) payment periods the payment period is nonstandard term payment period is the academic term 6) calculate payment for the payment period annual award X weeks of instructional time in nonstandard term/weeks of instructional time in defined academic year weeks of instructional time in the term/weeks of instructional time in the program's academic year definition single disbursement can't exceed 50% of the annual award

Required recalculations, (5)

1) federal pell grant must be recalculated if a student's EFC changes 2) pell must be recalculated if the student's enrollment status changes from one term to another 3) a student must start all credits for which pell is paid - if a student does not start all credits for which they are paid, the school must perform a mandatory pell recalculation and pay pell based on credits in which the student actually began attendance 4) term based schools must have procedures in place to know whether a student began attendance in all classes used to establish enrollment status. the award must be recalculated to reflect true enrollment status 5) if the school is unable to document that a student began attendance in any classes, the student is not eligible for any PG funds

Crossover payment periods

1) payment period includes 6/30 AND 7/1 2) aid may be paid from either award year 3) crossover payment period must be assigned to and paid from one award year - student MUST have valid SAR/ISIR for assigned year and have remaining eligibility 4) any aid drawn down for crossover period may pay all costs associated with the period (eve if paying from the next award year) 5) may use different award year for Pell than for other title IV aid 6) must use the same Pell Formula throughout the award year for all of the terms 7) an institution may make a payment which will result in the student receiving more than his or her Federal Pell Grant Scheduled Award for an award year, if the student meets the YRP requirements 8) institution has flexibility in how crossover payment period gets assigned 9) always assign crossover payment period as "header' or "trailer" or assign cross over payment on case by case basis to best meet needs of students 10) student must not recieve pell from two award years in the same payment period 11) school may assign two cross over payment periods to the same award year. ex. you could treat summer 2020 and summer 2021 as both being in the 2020-21 award year the decision about which award year to use is usually based on the student's remaining eligibility in the earlier award year. remember, the student may or may not be eligible to receive YRP

Optional recalculations (4)

1) regulations don't require recalculations within a term after the student has begun attendance in all credits 2) if a school does not establish a recalculation policy, a student who begins attendance in all credits is paid based on initial calculation, even if his enrollment status changes before the disbursement is made 3) schools may have a policy to recalculate for enrollment status changes within a term - must recalculate for all changes in enrollment - both up and down, or - school may establish a date after which no recalculations for enrollment status will be made 4) policy must be in writing and applied consistently to all students within the program

Julian institute defines its academic year as 30 weeks and two terms (fall/spring). each term is 15 weeks of instructional time; full time is 12 credits per term. julian offers two summer mini sessions with full time defined as 6 credits for each separate session. what type of pell grant formula to use for this student according to the school

15 weeks of instructional time - less than 30 weeks - formula 2 academic year as 30 weeks and two terms - fall and spring - formula 3 12 credits - 12 mini summer sessions - automatically formula 3 even if standard terms

Program length and limitation on subsidized loan eligibility (150% direct sub. loan limit)

4 year B-degree = 6 years of subsidized loan eligibility 2-year associates degree = 3 years of subsidized loan eligibility 1 year certificate program = 1.5 years of subsidized loan eligibility 10 week certificate program = 15 weeks of sub eligibility

(formula 1 and 3) Pell grant awards are based on

9 month expected family contribution on students valid SAR or ISIR academic year structure of the student's program of study cost of attendance for a full time student for a full academic year scheduled award amounts are specified on the PG payment schedules released annually by ED. term based programs, scheduled award for part-time students are based on enrollment status, using the appropriate part time char with the PG payment schedules

what is the difference between a loan period and an academic year

A loan period is the academic year or portion of an academic year (for example, a single semester or quarter) that the loan is requested for. academic year

AY

Academic year, reflecting minimum number of hours and a minimum number of weeks of instructional time length of program will limit the amount of FSA funds a student may receive over the course of the program. AY linked to the type of academic calendar that an academic program uses

Example of YRP and Cross over payment periods

Bob has Scheduled Award of 5,700 for 2020-21. attends two payment periods, during which he receives PG awards of 2,850 for each payment period. He begins attendance in the summer 2021 payment period (which his school treats as a trailer) as a half time student. without YRP, his pell eligibility would be exhausted for the award year. However, YRP, he is able to receive up to an additional 50% of his Scheduled Award (up to 2,850 for FT enrollment) in Pell funds for the summer payment period.

non-need based aid eligibility

COA - EFA = Non-need based eligibility

Need-based aid eligibility formula

COA - EFC - EFA = Need

COA

Cost of attendance, higher education act. components: tuition and fees, books and supplies, room and board, transportation, personal/miscellaneous expenses, computer, student loan fees, study abroad, CO-OP, Other special program fees, dependent care

EFA

Estimated financial cost - the amount of federal, state, institutional and private financial assistance a school estimates a student will receive - it is the aid received or expected to receive during a payment or period of enrollment

Types of aid FAFSA offers

Federal Pell Grant, Subsidized and unsubsidized federal direct loans. TEACH grant, Iraq and Afghanistan Service Grant, the children of fallen heroes scholarship, and Campus based programs, Federal supplemental educational opportunity grant (FSEOG), and the federal work study (FWS) program

Master Promissory Notes (MPNs), Single year functionality, multi-year functionality

Is the legal document used to make one or more Direct Loans for one or more academic years (up to 10 years). By signing an MPN, the borrower is agreeing to repay all loans made under the MPN. Schools may choose to use MMPN to make multiple loans for multiple academic years (Multi Year Functionality feature) or choose to require that each borrower sign a new notes for each academic year (single-year functionality feature not school specific, may be used across schools. example; student transfers from school A to school B, the previously MPN may be used to obtain loans while attending school B (if school B also uses the multi-year functionality feature of the MPN)

how do we define 150% of the published length of the student's current educational program? what is MEP

MEP - maximum eligibility period of the educational program. look at published length in years and allow a student to borrow for that length times 150%. ex. a student enrolled in 2 year, certificate program would have 2X150% or three years of subsidized loan eligibility

Audit or program review finding suggests that incorrect ________ _______ payments is a frequent audit or program review finding. mistakes using the wrong ________ formula, using the wrong _______, using wrong number of weeks/hours in the calcs, and paying _________ students

PG, PG, EFC, ineligible

What is the difference between term based programs and clock hour and credit hour with no term programs in regards to awarding pell grants

Pell grants are based on the 9 month EFC on the student's valid SAR or ISIR, the academic year of the student's program of study, and the cost of attendance for a full time student for a full academic year. Scheduled Award amounts are specified on the pell grant payment schedules released annually by ED. term based programs, determine pell awards based on the student's enrollment status and appropriate Pell payment schedule clock hour and credit hour with no term programs always use the full time payment schedule regardless of the student's enrollment status

EFA includes sources of support that a student receives as a result of being a student. that includes:

Pell grants, educational loans, grants and scholarships, tuition and fee waivers, not earnings from need-based employment, fellowships and assitantships, and employer tuition reimbursement

YRP

Year round pell may come into play when dealing with crossover payment periods. students may be eligible to receive up to 150% of their Scheduled Award in one award year. often in summer terms when it is treated as trailer or header and student had already exhausted their scheduled award for that award year YRP funds have the additional eligibility requirement that students MUST BE ENROLLED at least HALF TIME

initial calculation definition, 3 components.

an initial calculation is the first calculation that is made on or after the date the school has received an ED produced EFC and uses the enrollment status at the time of the initial calculation 1) institutional student info record ISIR with ED produced EFC 2) documented or projected enrollment 3) school calculates award

Pell grant calculations using formula 3 only if the school (eligibility requirements)

any term based school may use pell grant formula 3 - summer mini session with less than 12 hours as full time, MUST use Formula 3 for all terms in the award year even if standard terms for fall through spring - must be used for term based programs not eligible for formulas 1 or 2 - nonstandard term - may be used for any term based program - enrollment status may be different for nonstandard term COA proration may apply Payment per payment period determined using numbers of weeks in nonstandard term

Treatment of VA educational benefits

are not treated as EFA. Veterans educational benefits are not counted as income, are not reported as income on the FAFSA

Initial calc of FPG

based on a current documented enrollment status, which may be projected earliest date for the calc is the date of receipt of an ED produced, such as EFC, SAR or ISIR if no date is documented, the intiial calc is the later of - processed date of initial ISIR and the student's enrollment status as of that date or - the date the student enrolls

CFH scholarship

children of fallen heroes. parent or guardian died in service as a public safety officer may receive max. PG amount, regardless of the student's EFC as long as pell eligible. there is no ISIR match that can identify students who may be eligible for CFH scholarships

Payment periods

each academic year or program is broken up into payment periods (semesters) how payment periods are defined will impact how much and when a student may be disbursed vary according to the type of calendar structure in which the program is offered

Scheduled award

maximum federal PG a student with a given EFC and COA can receive if enrolled full time for a full academic year. awards for each EFC are found on the "Federal Pell Grant Program Payment and Disbursement Schedules" "Scheduled Award," which is the amount of a Pell a student receives. during an academic year for a given cost of attendance and EFC, assuming the student is enrolled FULL TIME for a FULL academic. year. a student may be eligible for up to 150% of a scheduled award in one award year the ability for a student to receive more than 100% of a scheduled pell award is sometimes called "Year Round Pell" YRP

AY for semester hours

minimum completion requirement - 24 semester hours. minimum instructional time requirement 30 weeks

Iraq and Afghanistan service grants

parent or guardian died of u.s. military service in Iraq or Afghanistan after sept. 11, 2001 may receive if - already eligible for Pell, the maximum PG regardless of EFC - if not pell eligible to an EFC that is too high, the Iraq and afghanistan service grant in the amount of the maximum PG must been younger than 24 years when the parent or guardian died, or have been 24 or older enrolled at a higher education inst. at the time of death students are identified through ISIR match between CPS and Department of Defense DoD

standard terms - payment periods

payment period is the term for all FSA programs students must be notified not just what types and amounts of aid they can expect to receive. must also be informed of when aid can be expected to be disbursed, in each payment period, policies and procedures must describe how you provide this info to students

Academic year and Academic calendar

plays a key role in the packaging process, because there are limitations to how much FSA a student may receive in the course of an academic year ex. full time student only receive one full pell grant scheduled award in the course of an academic year - DL may only receive up to one annual loan limit per academic year

Basic packaging

process of determining a student's eligibility for federal student aid without exceeding the student's financial need or the cost of attendance (COA)

Eligibility for Direct Loans

school must - student is eligible for a Federal Pell Grant before awarding any loans, and - a student is eligible for subsidized loans before awarding unsubsidized loans students must - meet all general Title IV eligibility requirements, and - be enrolled at least halftime

Formula 1 for Pell grant calculation is applicable if school is

standard term, credit hour programs, with 30 weeks of instructional time, for a program with a traditional academic calendar 2 semesters, or trimesters or three quarters, summer may not be standard term must have at least 30 weeks of instructional time in fall - spring must not have overlapping terms, must define full time enrollment for each term in the award year as at least 12 credit hours and must measure progress in credit hours

Credit hour programs with terms

standard terms in fall through spring (2 semesters/trimesters or three quarters) formulas 1 and 2 academic calendar is 2 semesters/trimesters or 3 quarters offered in fall through spring and any summer terms that have full time as at least 12 credits at least or less than 30 weeks of instructional time in fall through spring full time 12 credit hours for every term in the award year for summer mini session, less than 12 hours for full time, use formula 3. for all terms in the award year even if standard terms for fall through sprint formula 3: nonstandard terms or standard terms academic calendar may be offered any time frame academic calendar may be more or less or equal to 30 weeks of instructional time Standard term: full time 12 credit hours, nonstandard term: full time is calculated according to regulatory formula

Year Round pell YRP

students may be eligible to receive up to 150% of their scheduled award in one award year. YRP in summer terms, which are treated as header or trailer and the student already exhausted his or her Scheduled Award for that award year to be eligible for award in excess of 100% of the scheduled award, students must be enrolled at least half time, still subject to normal PG duration of eligibility and lifetime eligibility use LEU limits. will accelerate a student reaching the 600% LEU threshold

Annual Award

term based, credit hour programs, the annual award applies to a payment period based on student's true enrollment status (full, 3/4, 1/2, or less than 1/2) award is taken from corresponding payment schedule if full time, the Annual award = Scheduled award

Academic calendar

three types used for FSA, standard terms (semesters, quarters, and trimesters), 2) nonstandard terms 3) does not use any type

how is the time for which a student has already borrowed measured? SUP

time period is called student's subsidized usage period (SUP) calculated on a loan by loan basis we look at the time for which the loan were borrowed, not the dollar amount borrowed. we measure time in academic years. it only only the time for which the subsidized loan was borrowed, not the student's entire enrollment. SUP calculated: number of days in the loan period / number of days in the academic year

Federal Pell Grant eligibility restrictions. only one exception

undergraduates only - do not have a bachelor's or professional degree. baccalaureate or professional degree from a foreign school, unaccredited school, or unrecognizable school isn't eligible for a pell grant exception: students who are pursuing an initial teacher certification and are enrolled in certain post-baccalaureate teacher certification programs are eligible even though have received baccalaureate degree. these programs do not lead to a degree and are provided by schools that do not offer undergraduate degrees in education Concurrent awards at more than one school - a student may not receive a PG to attend two or more schools concurrently Involuntary civil commitment - students are not eligible to receive a FG if they are subject to involuntary civil commitment upon completion of a period of incarceration for a forcible or non-forcible sexual offense Incarceration (exception): local prisoners are eligible, but those state penal institutions are not. juvenile, not considered incarcerated