Start Early & Scale Smart: Maintain Momentum in FAFSA Cycles
By: Sean Hudson, FAS Consultant
For students, financial aid isn’t just paperwork—it’s the gateway to their education. For institutions, it’s a race against time to deliver funding and build trust. So, how can financial aid offices scale smartly and meet these expectations? It begins with starting early. Starting early is not just a best practice—it’s a necessity. Nearly 50% of all FAFSA completions occur within the first three months of the cycle. FAFSA cycles tend to lose critical momentum as they progress, with fewer students completing applications over time. By capitalizing on early momentum and avoiding the risks of delayed submissions, institutions can better meet student needs and plan for potential bottlenecks in the process.
To explore these ideas further, we spoke with Sean Hudson, a former Financial Aid Director and current FAS consultant , asking him to share insights on the importance of starting early, building trust, and scaling operations effectively in today’s higher education landscape.
Challenges in Financial Aid Operations
Financial aid offices face significant challenges, from staffing shortages to increasing regulatory demands, requiring creative solutions and adaptability.
How would you describe the current student experience during the financial aid process, especially during the busiest times of the year?
The current student experience during the financial aid process is less satisfactory now than ten years ago for many reasons. The primary reason is the reduction in staffing. Ten years ago, my office consisted of four counselors, two assistant directors, an associate director and a director. When I left my last position, I had two counselors and myself as the director. When 80% of students who applied for financial aid have never met with an administrator one-on-one, that isn’t an ideal experience for the student who may need support to make an informed decision.
What are the effects of working with a smaller staff?
A smaller staff has a cascading impact on the institution, students and their families. It means less time communicating with students. The newer technology such as chatbots and auto texting has helped, but it also takes away the human aspect. The title “Financial Aid Counselor” should be retired. As a former Director of Financial Aid, I miss the days of sitting across from a student, getting to know them and trying to figure out their best options. I even miss being pulled in to take sides when students and parents argue over if living on-campus is worth the investment.
What other factors are putting a strain on financial aid departments?
The level of reporting put on financial aid offices has steadily increased while the number of staff has, conversely, gone down. This leaves financial aid professionals figuring out how to do more with less and takes away the time available to communicate with students. Between Financial Value Transparency, Gainful Employment, FISAP, IPEDS, VA reporting, monthly and yearly Pell & Loan reconciliation, state aid processing, SAP, budget preparation—and implementing new regulatory changes—staff are stretched thin. With fewer people to manage the administrative burden, the risk of human error increases, putting institutions at higher risk of non-compliance and potential penalties.
The second big thing that has negatively affected the student experience was the failed rollout of the new FAFSA last year. The Department of Education was not forthcoming with colleges on the true realities of the issues. They sugar-coated the situation and gave schools an unrealistic timeline that we then conveyed to students. When the dates came and went, students started to distrust us. I have spoken to colleagues across the country, and they were trying their hardest to maintain dialogue with students, but they had little they could tell them for certain.
How are financial aid staff members responding to these issues?
I think financial aid offices are working their hardest to not let students feel isolated. I know it pains financial aid administrators to not give the same service we used to. We pride ourselves in helping families and walking hand-in-hand with them through the FA process, unfortunately that has become more difficult over the last several years.
Building Trust in Financial Aid
Building trust is essential in financial aid, as students and families need to feel confident not only in the process but also in the people guiding them through it. Starting early and prioritizing transparency are critical steps in creating this trust.
How does starting early, even without FAFSAs/ISIRs, improve that experience?
A lot of what we do is rapport building. We want to gain their trust. A student may not like the amount of aid they are receiving but if they think the process is fair, they will accept the results. I’m not saying we need to share every detail of our packaging philosophy, but providing as much transparency as possible is key.
Building trust will especially be helpful if the student is selected for verification or if we require additional action on their part. If we have a strong connection established, the family will not question if we ask them for additional documentation or to update the FAFSA. I want families to know that I would never ask them to do something unless it is necessary.
Starting the planning and outreach process early also strengthens these relationships. For example, students should know their financial aid counselors. Institutions can send email introductions or highlight staff on social media and websites, allowing families to put a face with a name. Hosting financial aid workshops, sharing deadlines proactively, and providing clear process information early are small steps that make a big difference. These efforts make the process more personal and help families feel supported.
Institutions often aim to have 50% of their population awarded by a specific date. Why is starting early critical to meeting these timelines, and what happens if schools wait for FAFSAs/ISIRs to start processing?
Timing is critical in what we do because families are looking at college as an investment. They are scrutinizing the cost and focusing more on outcomes —what kind of job they can get after graduation and how much debt they will incur. It’s less about the school’s mission or the quality of facilities and more about return on investment. I read an Ellucian white paper that found 92% of students said they would enroll elsewhere if the financial aid process took eight weeks to complete. You can begin to see how starting early impacts student retention and enrollment.
Schools really need to sell the value, and that isn’t easy —it requires consistent, positive communication. When I worked at Canisius University, I had a graduate student ask me why they should get a degree in education from my school when they could go three miles away to a state school and pay a fraction of the cost. That’s not an easy question to answer, but it highlights the importance of engaging students early and showing value throughout the financial aid process.
The Future of Financial Aid
As higher education evolves, financial aid offices face new challenges—but successful institutions view them as opportunities to adapt in an increasingly competitive and dynamic landscape.
What do you think has caused the shift in how higher education is valued?
I think the COVID pandemic had a huge impact on how students view higher education. Remote learning made students (and parents) question the cost of living on-campus. Colleges struggled to get students back on-campus after COVID – let alone their employees!
Beyond the impact of the pandemic, higher education is being challenged to provide more tangible outcomes, such as job placement and manageable debt.
I spent my entire career working at Catholic colleges and over the last decade there has been a steady shift from clergy college presidents to lay presidents. There are just no Priests and Nuns left to replace them. The concern at Catholic colleges is the potential impact on the Catholic mission. Will potential students view the mission the same way with a lay president? This shift has put pressure on institutions to clearly articulate their value proposition and justify tuition costs.
What’s the best path forward for the new financial aid year?
I think to best way to summarize it is – If you wait until the ISIR arrives, you are already too late. Enrollment is a zero-sum game—if you enroll that student, I can’t. The earlier you engage with students, the better your chances of securing their enrollment.
The October 1st FAFSA begin date has been a huge help. It allows institutions to give awards earlier and with greater accuracy, setting students up for success. However, starting early isn’t just about FAFSA submissions—it’s about proactive communication and outreach. Sharing timelines, requirements, and award information builds trust and keeps students engaged. I’ve personally seen an increase in professional judgments, which can be time-consuming, but it’s a minor price to pay for the benefits of awarding early. Adjusting quickly to changing financial situations shows families that your institution is responsive and supportive, which can make all the difference in their enrollment decision.
Building Momentum for the Future
The challenges facing financial aid offices are real, from staffing shortages and compliance demands to the need for greater transparency and trust. But with the right strategies, these challenges can become opportunities. Starting early, engaging families proactively, and prioritizing personalized support are no longer optional—they are essential for meeting student expectations and achieving institutional goals.
Ready to transform your financial aid operations? Partner with Financial Aid Services to develop proactive strategies that enhance efficiency, build trust, and support your students every step of the way.
