Chapter	3
Packaging	Aid
In	this	chapter	we	explain	how	to	package	a	student9s	aid	once	you9ve	received	the	student9s	FAFSA	form	information,
including	the	student	aid	index	(SAI),	and	have	calculated	the	student9s	aid	eligibility.	The	general	rule	in	packaging	is
that	the	student9s	need-based	aid	must	not	exceed	the	student9s	financial	need,	and	total	financial	aid	and	other	financial
assistance	(OFA)	must	not	exceed	the	student9s	cost	of	attendance	(COA).	If	you	discover	that	a	student9s	aid	package
exceeds	the	student9s	financial	need	or	COA,	you	must	attempt	to	adjust	the	aid	package	to	eliminate	the	overaward.	See
Volume	4,	Chapter	3	for	guidance	on	handling	overawards	and	overpayments.
Packaging	Overview
For	some	
Title	IV	programs,	eligibility	is	limited	to	students	who	have	financial	need.	Students	are	considered	to	have
financial	need	if	their	COA	exceeds	their	SAI.	These	<need-based=	programs	include	the	Federal	Pell	Grant,	Federal
Supplemental	Educational	Opportunity	Grant	(FSEOG),	Federal	Work-Study	(FWS),	and	Direct	Subsidized	Loan	programs.
The	total	aid	that	a	student	receives	from	need-based	programs	may	not	exceed	the	student9s	financial	need.	Pell	Grants
are	the	first	source	of	aid	for	students	with	financial	need.	A	student9s	eligibility	for	aid	from	the	other	need-based
programs	is	then	determined	by	subtracting	the	student9s	SAI	and	OFA	(including	the	student9s	Pell	Grant)	from	the	COA
(see	<Treatment	of	Negative	SAIs=	later	in	the	chapter	for	guidance	on	packaging	need-based	aid	for	students	with
negative	SAIs):
COA	3	SAI	3	OFA	=	remaining	need
For	other	
Title	IV	programs,	eligibility	is	not	based	on	the	student9s	financial	need.	These	<non-need-based=	programs
include	the	Teacher	Education	Assistance	for	College	and	Higher	Education	(TEACH)	Grant,	Direct	Unsubsidized	Loan,	and
Direct	PLUS	Loan	programs.	A	student9s	eligibility	for	non-need-based	aid	is	determined	by	subtracting	OFA	(including	any
need-based	aid)	from	the	COA:
COA	3	OFA	=	eligibility	for	non-need-based	aid
As	explained	later	in	this	chapter,	non-need-based	aid	may	be	used	to	replace	the	SAI.
Depending	on	individual	circumstances,	students	may	receive	only	need-based	aid,	only	non-need-based	aid,	or	a
combination	of	both	types	of	aid.	In	general,	the	total	amount	of	need-based	aid	cannot	exceed	the	student9s	financial
need	and	the	total	amount	of	all	aid	cannot	exceed	the	student9s	COA.	However,	there	are	some	exceptions	to	the	normal
packaging	process	under	certain	circumstances	or	for	certain	
Title	IV	programs,	as	we	explain	later	in	this	chapter.
The	COA	for	the	Campus-Based,	TEACH	Grant,	and	Direct	Loan	programs	is	based	on	the	student9s	enrollment	status	and
costs	for	the	period	for	which	the	aid	is	intended.	The	COA	used	for	the	Pell	Grant	Program	is	always	the	full-year	costs	for
a	full-time	student,	so	you	may	have	to	prorate	actual	or	average	costs	up	for	students	who	are	attending	less	than	an
academic	year	(or	who	are	part-time	in	a	term-based	program)	or	prorate	down	for	students	who	are	attending	for	periods
longer	than	an	academic	year	(see	Volume	7	for	more	information).
The	process	of	awarding	aid	without	exceeding	the	student9s	financial	need	(for	need-based	aid)	or	COA	(for	total	aid
received)	is	traditionally	called	packaging.	Packaging	is	a	process	that	varies	from	school	to	school,	depending	on	the
types	of	scholarship	and	other	aid	available	at	the	school,	and	the	characteristics	of	the	student	population.	Schools	may
have	different	packaging	philosophies,	but	they	generally	try	to	find	the	best	combination	of	aid	to	meet	the	financial
need	of	their	students.
To	help	you	package	federal	student	aid	with	your	other	aid	awards,	EDExpress	includes	a	packaging	module.	You	can
enter	information	about	your	school9s	student	aid	programs	and	set	up	factors	to	be	considered	in	packaging,	and	then
use	the	software	to	automate	the	packaging	process.	Most	schools	use	some	form	of	packaging	software,	whether
EDExpress	or	software	from	a	commercial	vendor.	You	are	not	required	to	use	EDExpress	to	package	Title	IV	awards,	and
you	do	not	have	to	report	the	student9s	aid	package	to	the	Common	Origination	and	Disbursement	(COD)	system.
No	Alternate	SAIs	for	Periods	Other	Than	Nine	Months
{"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250418120630Z00'00'", "moddate": "D:20250418120630Z00'00'", "source": "data/raw/Academic_Calenders_Cost_of_Attendance_and_Packaging.pdf", "total_pages": 57, "page": 40, "page_label": "41", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14.400185"}