Understanding Multiple Award Period Processing

Multiple award period processing functionality enables you to process students for a subsequent award period without Packaging canceling awards for the initial award period or determining incorrect award amounts. It also enables you to use the same Financial Aid Item Type for the AAP and the NSAP. The ability to process awards in passive/active mode between award periods and the disbursement protection feature make this possible. An exception to this rule is subsequent awards—with aggregate area level limit rules—made to students because their NSLDS loan year has changed during the award year. You also cannot use the same Financial Aid Item Type for the AAP and NSAP for non-Direct Lending loans. In these cases, you must still use separate Financial Aid Item Types for each award period.

For example, you initially package a student for an award period, the AAP, and then at a later date you process the student for a subsequent award period, the NSAP. Normally, when you package the student for the NSAP, you do not want the awards for the AAP to change. Because Packaging employs passive/active mode processing, you can process the awards in the AAP as passive awards when awarding the NSAP. Packaging does not change passive awards; it preserves them, unlike active awards that are subject to change. However, Packaging still uses the award amounts of passive awards to determine remaining annual aggregate limits or other eligibility requirements and to update need summary balances.