June 2023

Bridging the Gap: Communication and Student Interaction with Financial Aid

June 29, 2023

By: Sean Hudson, Sr. Consultant FAS

In the realm of education, effective communication with students is paramount to ensure seamless administrative processes and foster student success. Recognizing the diverse preferences of different generations when it comes to communication methods is key to optimizing these efforts. This blog entry delves into the significance of understanding generational communication preferences and explores the evolving landscape of student communication in the face of the COVID-19 pandemic.

Why does it matter?

As Financial Aid Directors, timely and efficient communication with students is vital to expedite processes such as file completion, verification, and aid disbursement. By effectively conveying the need for additional information or action, we can ensure that students are aware of their responsibilities and the importance of their responses. Timely file completion enables quicker aid disbursal, which in turn helps students manage expenses like purchasing books or paying bills. Thus, aligning our communication strategies with students’ preferred methods becomes imperative for successful outcomes.

Consistent Messaging for Effective Communication:

Maintaining consistent messaging across various communication channels is crucial, regardless of the method employed to connect with students. By standardizing the look, language, and subject lines of emails and letters, we can create a cohesive communication experience. At my previous institution, I introduced automated emails and letters with uniform headings and subject lines, which were sent at regular intervals for six weeks. If no response was received, a paper letter was automatically dispatched, with two letters sent within a month if necessary. Furthermore, advisors were alerted via email about students requiring follow-up calls. This multi-modal and automated process significantly improved our response rate and expedited file completion.

The chart below is from the journal article “Bridging the Gap: How the Generations Communicate” by Hannah Downs in the Concordia Journal of Communication Research 2019 Volume 6, Article 6.

Approximate Years for the Generations Baby Boomers 1946 – 1964 Generation X 1965 – 1980 Millennials 1981 – 1996 Does your preferred method of communication fit your generation? Do you agree with the data for the different generations? Do you see this at your institutions?

Embracing Technology and the COVID Impact:

The COVID-19 pandemic compelled us to explore alternative modes of communication and adapt our work practices. While webinars were familiar, platforms like Zoom and Teams Meetings opened up new avenues for virtual interactions. Remote desktop access allowed me to work seamlessly from home, and tools like Google Voice enabled me to call and text students through my computer, safeguarding their privacy. The rapid pace of technological advancements during this time was remarkable.

Contrary to initial concerns about reduced customer service, our transition to remote meetings proved highly successful. Most of our students were working full-time and juggling familial responsibilities, making it challenging for them to visit our office in person. The introduction of Zoom meetings proved to be a game-changer, offering face-to-face interactions without the hassle of commuting and parking. Even as we returned to campus, we continued offering remote meeting options while adjusting our office hours. This flexibility empowered my staff to conduct Zoom meetings with students from any location. The COVID crisis inadvertently fostered the development of new technologies for communication and collaboration.

Looking Ahead:

With the rapid evolution of communication technology, one wonders what the future holds. Will traditional methods like email and text messaging be replaced by newer, more innovative approaches? It is an intriguing question that only time can answer. As the digital landscape continues to shape the way we connect and communicate, it is essential for institutions to stay abreast of emerging trends and adapt their strategies accordingly.

About FAS:

Financial Aid Services (FAS) has been a trusted partner in higher education for over 30 years. Headquartered in Atlanta, Georgia, FAS offers a comprehensive range of consulting, staffing, processing, and assessment services to empower institutions in enhancing their financial operations, optimizing enrollment, and improving the student experience. With a highly experienced team averaging 28 years of expertise and a collective 1,600 years of higher education experience, FAS has successfully served over 1,800 institutions nationwide. By combining industry-leading knowledge with a focus on superior client outcomes, FAS delivers lasting results to clients and the students they serve.

Download eBook

Financial Aid Services Publishes Comprehensive eBook to Address Pressing Challenges Facing Student Financial Aid Operations

June 28, 2023

The “Challenges Deserve Solutions” eBook offers valuable insights into how financial aid offices in higher education are overcoming unprecedented obstacles with innovative partnerships.

ATLANTA (June 28, 2023) – Financial Aid Services (FAS), the leading provider of consulting and training, interim staffing, and outsourced processing services for financial aid and business service offices at colleges and universities in the U.S., announces the release of its comprehensive eBook: Challenges Deserve Solutions. The eBook delves into the complex world of financial aid operations and presents practical strategies and innovative approaches to challenges facing financial aid operations nationwide.

“When the gig economy meets up with today’s financial aid process, there is bound to be friction unless you discover how you can deliver quality, accuracy, speed, and personalization all at scale; and the encouraging part is that can be done,” said Robert Heil, CEO of Financial Aid Services. “Our comprehensive guide marks a momentous stride in our commitment to equip financial aid officers and institutions with the knowledge and tools required to conquer the complexities of the field. By offering actionable strategies and fostering innovative partnerships, we strive to ignite positive change and elevate the financial aid landscape for the betterment of students and institutions alike.”

FAS surveyed senior higher education leaders to guide the eBook and gauge the most significant issues in administering financial aid. Four major challenges emerged from the survey, including:

Compliance: Nearly half of the FAS survey responders cited managing the ever-changing environment of compliance as a major challenge and noted institutions are simply not able to keep up with the regulatory and compliance changes working with limited resources. FAS provides comprehensive coaching, training, and advisory services to enable teams to stay up to date with the latest regulatory changes and ensure compliance in every case.
Meeting Students’ Expectations: For a generation of students that grew up as digital natives, the financial aid experience can feel sluggish and create friction in their decision process. Partnering with FAS allows financial aid teams to streamline their processes by outsourcing application processing and leveraging additional on-site or remote support.
Tech Optimization: Few campus leaders expressed confidence in leveraging their technology stack. FAS equips institutions with experienced consultants who possess a combination of deep expertise in financial aid and are proficient in utilizing widely adopted student information systems and technology infrastructures.
Staffing Pressures: Staff vacancies and hiring challenges are impacting campuses nationwide. FAS addresses staffing challenges by creating new, flexible staffing solutions such as interim staffing or fractional leadership models, allowing financial aid professionals to focus their efforts on student engagement and future planning.

“Their best feature is their deep knowledge of the financial aid industry and the landscape,” said Robert Muhammad, Executive Director, Financial Aid Howard University, when asked about his institution’s decision to work with FAS.

From addressing compliance to staffing pressures, FAS’ Challenges Deserves Solutions eBook offers practical strategies and innovative approaches to overcoming some of the issues higher education leaders identified as common pain points.

“Working with FAS freed up time for our staff to provide better customer service for students and families on an individual basis,” said Paul Coscia, Assistant Vice President, Financial Aid Salem College. “The process is also much easier and quicker for families.”

To download the eBook, click here.

To learn more about FAS, visit https://www.financialaidservices.org. You can also visit FAS at the National Association of Student Financial Aid Administrators (NASFAA) Conference from June 29–July 2, 2023, in San Diego at booth #515.

About Financial Aid Services

Financial Aid Services (FAS) has served higher education for over 30 years. Located in Atlanta, Georgia, FAS provides consulting, staffing, processing, and assessment services to assist institutions with improving operational efficiency, student satisfaction, and regulatory compliance in financial aid and student business services. FAS’ accomplished team averages 28 years of experience and has a combined 1,600 years of higher education experience. With clients in 49 states, FAS has successfully served over 1,800 institutions nationwide. The company’s extensive experience combined with industry-leading expertise and focus on superior client outcomes, enables FAS to deliver lasting results to its clients and the students they serve. Visit https://www.financialaidservices.org for more information.

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media@financialaidservices.org

The Looming Enrollment Cliff

June 5, 2023

By: Robert Heil, CEO

You are likely aware of the impending enrollment cliff expected to hit higher education soon. The cliff is a demographic trend resulting from a decline in the number of high school graduates in the early 2000s, Now that those students are reaching college-age, the metrics are clear – many college seats available, not nearly enough students to fill them all.

Preparing for the looming cliff is a central topic in higher education meetings, conferences, and webinars. Too often, these meetings revolve around the conventional go-to topics: diversifying revenue streams, exploring non-traditional and graduate programs, targeting specific markets, increasing financial aid, improving recruitment strategies, and boosting retention rates. While these aspects are undoubtedly important, they have always been on the radar. These initiatives matter but haven’t these always been priorities? The question now is: What is it about the impending cliff that makes these new?

Campuses cannot simply market their way around the cliff. A comprehensive solution is required, which means programs and operational excellence are equally important. As I meet with college and university Presidents and their Boards, leaders in Washington DC, and in the EdTech sector, I noticed 4 factors that warrant more attention when preparing for the enrollment cliff.

College-Going Rates in Your Market is a Metric You Need to Know:

The college-going rate is the number of higher school graduates who enroll in college. It is critical that you know these rates throughout your markets. Everyone is aware of the national demographics. Not as many campuses are paying close attention to the college-going rates in their primary and secondary markets. Are those rates increasing or decreasing in your markets? What are the projections in the coming years? These rates will either increase or mitigate the severity of the cliff you experience.

Historically, higher education weathered these demographic storms by relying on an increase in the college-going rate. What makes this particular cliff so concerning is that we may not have the luxury of relying on higher college-going rates. The cliff reality could be made even steeper by a segment of students and families that are giving up or doubting the ROI of higher education. Career opportunities are drawing students into the world of work directly out of higher school.

Alternative online credentials are luring others away from traditional degree programs. COVID had a short and long-term impact on the learning experience. Unfortunately, more students and families now question the value of college and are exploring new routes to learning and career outcomes. This value question was under scrutiny already due to rising costs in tuition and student loan debt; however, it appears to have gained momentum post-COVID and could impact college-going rates. Keep reading. You can do something about this.

Pathways Need to Be Central to Your Strategy:

Creating opportunities for high school students to experience your campus earlier will create an advantage. More dual enrollment programs, weekend coding boot camps, literature events, athletic camps, gaming contests, performing arts programs, mock trial coaching events, and shark-tank business projects are just a few examples of where you might invest. Align those immersive experiences with academic or extra-curricular programs you are confident will drive growth for your campus.

Do not overlook transfer agreements with community colleges in your primary and secondary markets either. The development of pathway programs benefits everyone. You drive more demand while influencing the college-going rates in your primary and secondary markets.

Pathways are important priorities for legislatures at the state and federal levels; you may discover funding sources exist, too. You are not going to market your way around the cliff with simply more direct marketing and social media strategies. Pathway programs are key to the solution and benefit everyone.

You Will Lose Pricing Power:

NACUBO recently released their Tuition Discounting Study. The average institutional tuition discounting rate increased to a record 56.2% for first-time undergraduates. These rates already raise questions about how sustainable these discount rates are for most institutions. Unfortunately, the impending cliff will only add significant downward pressure on tuition pricing. While this may signal good news for students and families, it means noticeably less tuition revenue for many colleges and universities, making many campuses particularly vulnerable.

To combat this, make sure you are maximizing your financial aid strategy and operations. It is not just your leveraging strategy, but your financial aid operations and processes too. How timely are your award offers? What are your turnaround times on the key steps of the financial aid process? Wait time? Are you staffed appropriately? Does your process create a seamless and convenient experience for students and their families? When considering financial aid, it is not just about the money. A great experience speaks volumes about the value of your campus. No amount of marketing will offset a poor process or experience.

What Happens When the Enrollment Cliff Meets Higher Ed’s Staffing Crisis?

While COVID accelerated staff vacancies and hiring challenges, the root causes existed pre-pandemic. Today’s staff vacancies and hiring challenges show no signs of letting up anytime soon, pushing many campuses to re-imagine their operating models. This is particularly important for financial aid offices that influence the student experience and are on the front lines of combating the impact of the enrollment cliff. A 2022 survey conducted by The Chronicle and P3.EDU indicated 71% of campuses are outsourcing more of their operations to strategic partners.

Our most recent eCity and FAS (Financial Aid Services) industry survey mirrored equivalent results when asked about financial aid operations. The primary contributing factor is to create a model where the strategic partner can do what they do best and free up the financial aid staff to do what they do best. That is a model that benefits both the students and your campus. Staff retention is important to this conversation, too. If you want to retain your students- retain your staff. When you do lose staff members, rely on interim staffing to stem the tide until you can backfill those positions. This limits operational disruption and protects your compliance, enrollment goals, and student experience.

Challenges Deserve Solutions:

The enrollment cliff presents a significant challenge for colleges and universities, but it is not insurmountable. Our team believes challenges deserve solutions. It is a guiding principle at FAS. The good news? These challenges have solutions. They come from creating new pathways, empowering your existing team, and applying new operating models and partnerships alongside enrollment management strategies. Combined, these create a framework for a comprehensive solution that benefits students and your campus. The right solution always benefits both.

Want to learn more about what FAS can do for your institution? Reach out here to start a conversation and learn more about our services. You can watch our service videos or reach out for a 20-minute quick consultation.

FAFSA, special circumstances, professional judgement

Understanding Your Options: Special Circumstances and Professional Judgments

June 1, 2023

By: Diana Crump, FAS Consultant

Navigating special circumstances and Professional Judgments in financial aid can often feel overwhelming for professionals, given the unique nature of each case. However, it doesn’t have to be that way. When faced with a student who has special circumstances, having a clear understanding of your options empowers you to provide the utmost assistance to the student. By exploring the available avenues, you can ensure that you’re doing everything possible to support your students in their financial aid journey.

A student asks if they can get more financial aid because they are having financial difficulties. What can you do?

Talk to the student about their situation. Getting a thorough understanding of the student’s circumstances and checking their Free Application for Federal Student Aid (FAFSA) for the current Expected Family Contribution (EFC) is the first step.

If the student does not already have a zero EFC, and the request is the result of a job loss or reduction in income for the student or the parents of a dependent student, an EFC adjustment may be in order. In addition, one-time items that show as income on taxes, such as a Roth IRA conversion, can be considered for EFC adjustment.

If the request is due to unusual expenses, for categories such as medical or childcare, a cost of attendance (COA) adjustment may be helpful. This should be considered only after reviewing the Income Protection Allowance (IPA) for the appropriate expense category for that student to determine whether their expenses exceed the percentage already included in the IPA.

Dependent students have additional layers of complexity in the financial aid process due to the expectation of parent involvement. Some parents are absent or refuse to participate in the financial aid process, but when is a dependency override appropriate?

For 2022-23, if a student has unusual circumstances such as abuse, abandonment, or inability to locate the parents, a dependency override is appropriate. However, the FAFSA Simplification Act has broadened unusual circumstances warranting dependency override for the 2023-24 aid year. Unusual circumstances now include human trafficking; legally granted refugee or asylum status; parental abuse, abandonment, or estrangement; inability to locate parents; and student or parental incarceration; and other guidance has changed for 2023-24 as well. As always, the guidance is found in the Federal Student Aid Handbook, Application and Verification Guide, Chapter 5, Special Cases.

For dependent students whose situations do not include the unusual circumstances listed above, but who are self-supporting and have parents who refuse to participate in the financial aid process, the student can receive aid, but only dependent-level unsubsidized loans.

When speaking to a dependent student in a difficult situation, don’t forget to ask about housing. If the student has temporary or inadequate housing, you may be able to make the determination that they qualify as unaccompanied homeless youth, even if they did not answer yes to this question when they completed the FAFSA.

While professional judgments are made on a case-by-case basis, the key to all of them is documentation. Be sure to thoroughly document a student’s unique circumstances in compliance with the guidance provided in the FSA Handbook.

Understanding a student’s individual circumstances, and your own options for assisting them, can have a profound impact on whether a student is able to afford college. Don’t be afraid to use your professional judgment as a valuable tool to help your students.

Your institution could use an additional layer of support to give your students the individual attention they deserve. What can you do?

FAS supports your institution in navigating special circumstances and professional judgments with ease. Our experienced team of experts are ready to provide customized solutions tailored to your institution’s unique needs. Take the next step with FAS and enhance your financial aid processes and improve student outcome. Contact us today for a consultation. Together, we can make a meaningful difference in the lives of your students.

Bridging the Gap: Communication and Student Interaction with Financial Aid

Financial Aid Services Publishes Comprehensive eBook to Address Pressing Challenges Facing Student Financial Aid Operations

The Looming Enrollment Cliff

Understanding Your Options: Special Circumstances and Professional Judgments

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