Session # 12

Campus-Based
Allocation Formula

Dan Madzelan
In Today’s Session –

• Brief History of the Formula

• Detailed Explanation
• Ways to Better Target Funds to
Needy Students

2
 A (Very) Brief History

• Huff “Panel of Experts” (1977)

• Initial Implementation (1978)
• HEA Reauthorizations, 1980-
1998

3
 Institutional Allocation
• The Lesser of—

–Request for Funds, or

–The Greater of—

–Base Guarantee, or
–“Fair Share”

4
 Institutional Allocation

• Base Guarantee/Prior Expenditure

• Fair Share of Program Funds

–Institutional Need
•Financial Need minus
•All Federal Grants
•Some State Grants

5
 Allocation Formula
Base Institutional
Request Guarantee Need
Faber College 300,000 87,959 4,040,873
Univ of Cal, Sunnydale 650,000 314,230 8,310,455
Adams College 225,000 56,223 1,376,890
Arlen Community College 500,000 160,893 6,202,698
Walden College 15,000 8,413 977,407
Enormous State University 2,500,000 93,411 15,551,802
Huxley College 1,000,000 35,368 3,373,845
Coolidge College 200,000 67,424 1,003,154
Medfield College 110,000 76,079 3,162,876
Totals 5,500,000 900,000 44,000,000

6
 Allocation Formula
Relative Fair Share
Fair Share Shortfall Shortfall Increase
Faber College 137,757 49,798 0.0739471 44,368
Univ of Cal, Sunnydale 283,311 0 0.0000000 0
Adams College 46,939 0 0.0000000 0
Arlen Community College 211,456 50,563 0.0750824 45,049
Walden College 33,321 24,908 0.0369864 6,587
Enormous State University 530,175 436,764 0.6485681 389,141
Huxley College 115,017 79,649 0.1182746 70,965
Coolidge College 34,198 0 0.0000000 0
Medfield College 107,825 31,746 0.0471414 28,285
Totals 1,500,000 673,428 1.0000000 584,395

7
 Allocation Formula
Relative Fair Share
Shortfall (2) Shortfall (2) Increase (2)
Faber College 5,430 0.0767904 1,198
Univ of Cal, Sunnydale 0 0.0000000 0
Adams College 0 0.0000000 0
Arlen Community College 5,514 0.0779783 1,217
Walden College 0 0.0000000 0
Enormous State University 47,623 0.6734783 10,510
Huxley College 8,684 0.1228080 1,916
Coolidge College 0 0.0000000 0
Medfield College 3,461 0.0489450 764
Totals 70,712 1.0000000 15,605

8
 Allocation Formula
Base Fair Share
Guarantee Increase Allocation
Faber College 87,959 45,566 133,525
Univ of Cal, Sunnydale 314,230 0 314,230
Adams College 56,223 0 56,223
Arlen Community College 160,893 46,266 207,159
Walden College 8,413 6,587 15,000
Enormous State University 93,411 399,651 493,062
Huxley College 35,368 72,881 108,249
Coolidge College 67,424 0 67,424
Medfield College 76,079 29,049 105,128
Totals 900,000 600,000 1,500,000

9
FISAP Part II—
Sections D, E and F
• Enrollment and Tuition Revenue

• Pell, Academic Competitive, and

National SMART Grants
• Eligible Aid Applicants
–Dependent Undergraduates (2)
–Independent Undergraduates (2)
–Independent Grad/Professional

10
Institutional Need

11
 Institutional Need
FISAP Change for 2008-09

12
Institutional Need

13
Institutional Need

14
Calculating Institutional Need
Dependent Undergraduates w/o Degree Independent Undergraduates w/o Degree
Individual Category Individual Category
(a) EFC Need Need (c) EFC Need Need
Line 25 36 0 26,532 955,139 Line 25 8 0 26,532 212,253
Line 26 20 477 26,055 521,093 Line 26 14 37 26,495 370,925
Line 27 4 219 26,313 105,251 Line 27 3 28 26,504 79,511
Line 28 5 173 26,359 131,793 Line 28 5 31 26,501 132,503
Line 29 8 243 26,289 210,309 Line 29 10 25 26,507 265,066
Line 30 16 298 26,234 419,738 Line 30 6 32 26,500 158,998
Line 31 13 486 26,046 338,593 Line 31 9 33 26,499 238,488
Line 32 38 954 25,578 971,950 Line 32 7 246 26,286 183,999
Line 33 68 1,725 24,807 1,686,851 Line 33 7 606 25,926 181,479
Line 34 91 2,654 23,878 2,172,865 Line 34 6 896 25,636 153,814
Line 35 87 3,695 22,837 1,986,787 Line 35 10 1,186 25,346 253,456
Line 36 106 4,750 21,782 2,308,853 Line 36 4 1,383 25,149 100,595
Line 37 105 5,998 20,534 2,156,031 Line 37 13 1,627 24,905 323,760
Line 38 108 7,453 19,079 2,060,492 Line 38 11 1,738 24,794 272,730
Line 39 1,948 19,818 6,714 13,078,156 Line 39 102 5,624 20,908 2,132,579
Line 40 2,653 29,103,901 Line 40 215 5,060,156

15
 Calculating FSEOG Need
Dependent Undergraduates w/o Degree Independent Undergraduates w/o Degree
75% Cost Category 75% Cost Category
(a) EFC less EFC Need (c) EFC less EFC Need
Line 25 36 0 19,899 716,364 Line 25 8 0 19,899 159,192
Line 26 20 477 19,422 388,440 Line 26 14 37 19,862 278,068
Line 27 4 219 19,680 78,720 Line 27 3 28 19,871 59,613
Line 28 5 173 19,726 98,630 Line 28 5 31 19,868 99,340
Line 29 8 243 19,656 157,248 Line 29 10 25 19,874 198,740
Line 30 16 298 19,601 313,616 Line 30 6 32 19,867 119,202
Line 31 13 486 19,413 252,369 Line 31 9 33 19,866 178,794
Line 32 38 954 18,945 719,910 Line 32 7 246 19,653 137,571
Line 33 68 1,725 18,174 1,235,832 Line 33 7 606 19,293 135,051
Line 34 91 2,654 17,245 1,569,295 Line 34 6 896 19,003 114,018
Line 35 87 3,695 16,204 1,409,748 Line 35 10 1,186 18,713 187,130
Line 36 106 4,750 15,149 1,605,794 Line 36 4 1,383 18,516 74,064
Line 37 105 5,998 13,901 1,459,605 Line 37 13 1,627 18,272 237,536
Line 38 108 7,453 12,446 1,344,168 Line 38 11 1,738 18,161 199,771
Line 39 1,948 19,818 81 157,788 Line 39 102 5,624 14,275 1,456,050
Line 40 2,653 11,507,527 Line 40 215 3,634,140

16
Calculating Self-Help Need
Dependent Undergraduates w/o Degree Independent Undergraduates w/o Degree
Individual 25% of Category Individual 25% of Category
(a) Need Cost Need (c) Need Cost Need
Line 25 36 26,532 6,633 238,775 Line 25 8 26,532 6,633 53,061
Line 26 20 26,055 6,633 132,653 Line 26 14 26,495 6,633 92,857
Line 27 4 26,313 6,633 26,531 Line 27 3 26,504 6,633 19,898
Line 28 5 26,359 6,633 33,163 Line 28 5 26,501 6,633 33,163
Line 29 8 26,289 6,633 53,061 Line 29 10 26,507 6,633 66,326
Line 30 16 26,234 6,633 106,122 Line 30 6 26,500 6,633 39,796
Line 31 13 26,046 6,633 86,224 Line 31 9 26,499 6,633 59,694
Line 32 38 25,578 6,633 252,040 Line 32 7 26,286 6,633 46,428
Line 33 68 24,807 6,633 451,019 Line 33 7 25,926 6,633 46,428
Line 34 91 23,878 6,633 603,570 Line 34 6 25,636 6,633 39,796
Line 35 87 22,837 6,633 577,039 Line 35 10 25,346 6,633 66,326
Line 36 106 21,782 6,633 703,059 Line 36 4 25,149 6,633 26,531
Line 37 105 20,534 6,633 696,426 Line 37 13 24,905 6,633 86,224
Line 38 108 19,079 6,633 716,324 Line 38 11 24,794 6,633 72,959
Line 39 1,948 6,714 6,633 12,920,368 Line 39 102 20,908 6,633 676,529
Line 40 2,653 17,596,374 Line 40 215 1,426,016

17
Campus-Based Need:
Summary
Financial Need FSEOG Need
Dependents 29,103,901 Dependents 11,507,527
Independents 5,060,156 Independents 3,634,140
Pell Grants 1,315,575 Pell Grants 1,315,575
Leap Grants 35,483
Leap Grants 35,483
FSEOG Need 13,790,609
Institutional Need 32,812,999
Self-Help Need
Dependents 17,596,374
Independents 1,426,016
Self-Help Need 19,022,390

18
FISAP Part II, Section F

19
Distribution of EAAs, 2003-04
Dependent Independent
Income Category Ugrads Income Category Ugrads Grad/Prof
$0 to $2,999 1.03% $0 to $999 5.60% 7.73%
$3,000 to $5,999 0.56% $1,000 to $1,999 1.82% 2.43%
$6,000 to $8,999 0.79% $2,000 to $2,999 2.01% 2.68%
$9,000 to $11,999 1.10% $3,000 to $3,999 2.11% 2.72%
$12,000 to $14,999 1.41% $4,000 to $4,999 2.17% 2.65%
$15,000 to $17,999 2.32% $5,000 to $5,999 2.24% 2.56%
$18,000 to $23,999 7.87% $6,000 to $7,999 4.88% 4.75%
$24,000 to $29,999 8.82% $8,000 to $9,999 4.33% 3.93%
$30,000 to $35,999 7.82% $10,000 to $11,999 4.06% 3.66%
$36,000 to $41,999 6.83% $12,000 to $13,999 3.81% 3.41%
$42,000 to $47,999 6.37% $14,000 to $15,999 3.92% 3.22%
$48,000 to $53,999 6.06% $16,000 to $17,999 4.12% 3.03%
$54,000 to $59,999 5.61% $18,000 to $19,999 5.06% 3.00%
$60,000 and more 43.40% $20,000 and more 53.86% 54.25%
100.00% 100.00% 100.00%

20
Standard EFCs, 2003-04
Dependent Independent
Income Category Ugrads Income Category Ugrads Grad/Prof
$0 to $2,999 $477 $0 to $999 $37 $294
$3,000 to $5,999 219 $1,000 to $1,999 28 402
$6,000 to $8,999 173 $2,000 to $2,999 31 417
$9,000 to $11,999 243 $3,000 to $3,999 25 442
$12,000 to $14,999 298 $4,000 to $4,999 32 436
$15,000 to $17,999 486 $5,000 to $5,999 33 467
$18,000 to $23,999 954 $6,000 to $7,999 246 802
$24,000 to $29,999 1,725 $8,000 to $9,999 606 1,483
$30,000 to $35,999 2,654 $10,000 to $11,999 896 2,158
$36,000 to $41,999 3,695 $12,000 to $13,999 1,186 2,785
$42,000 to $47,999 4,750 $14,000 to $15,999 1,383 3,380
$48,000 to $53,999 5,998 $16,000 to $17,999 1,627 3,842
$54,000 to $59,999 7,453 $18,000 to $19,999 1,738 4,329
$60,000 and more 19,818 $20,000 and more 5,624 11,938

21
Campus-Based Programs:
Cost of Attendance, 2003-04
Undergraduates Graduate/Professional

Cost of Attendance Institutions Cost of Attendance Institutions

Up to $7,453 597 15.4% Up to $11,938 734 52.9%
$7,454 to $19,818 2,769 71.6% $11,939 and Up 654 47.1%
$19,819 and Up 501 13.0%

Up to $1,738 1 0.0%
$1,739 to $5,624 46 1.2%
$5,625 and Up 3,820 98.8%

22
Future Eligible Aid Applicant Grid

?
23
Future Eligible Aid Applicant Grid

24
Campus-Based Programs
Funding
• Follow the Students
• Provide More “Fair Share”
Funding
• Align Formula EFCs with Actual
EFCs

25
Contact Information
Your feedback and comments are
appreciated.

• Phone: 202-502-7816
• Email: dan.madzelan@ed.gov
• FAX: 202-502-7873

26
Faber College
Univ of Cal, Sunnydale
Adams College
Arlen Community College
Walden College
Enormous State University
Huxley College
Coolidge College
Medfield College

27