2023 | Page 3 of 5

Resumption of Student Loan Repayment  

September 7, 2023

By: Sean Hudson, Sr. Consultant FAS

In March 2020, the Federal Government suspended Federal Student Loan payments to help borrowers struggling with the impact of the COVID-19 Pandemic. This provided relief to over forty million borrowers experiencing a reduction in income or even job loss due to the Pandemic. It also helped families overcome the sudden increase in the cost of basic needs, such as food, fuel, and housing. Now that the Pandemic has waned, borrowers must prepare for Federal Student Loan repayments to begin again. Are borrowers prepared? Colleagues at Default Prevention Companies and Loan Servicers all state that borrowers are confused about what resumption means as repayment looms.

When Does Repayment Begin?

The first question for borrowers is when does repayment really begin? Borrowers are unsure if it is August, September, or October. The current administration previously announced the student loan payment pause—which has been extended eight times—would finally end 60 days (about 2 months) after the Supreme Court ruled that the administration’s student loan forgiveness program would not be allowed (June 30, 2023). To add to the confusion the administration is offering a 12-month grace period on reporting missed student loan payments to the three credit agencies. Some students see this as another deferment, which it is not. Then, will they need to reapply for the payment plan they were on prior to the pandemic? If they had auto-debt set-up, will they need to re-elect that option? The Federal Government also changed some of the loan services during the pandemic, meaning some borrowers are now working with different companies.

One of the other major concerns is the re-incorporation of student loan payments into borrower’s monthly budgets. Will borrowers be able to afford their payments when they have become accustomed to not having this debit each month? Borrowers changed their lifestyles and spending habits. How many borrowers will struggle with payments? How many will go into default? How will this impact the US economy when borrowers have less money to spend on other things?

Understanding the Repayment Plan

Even for Financial Aid Administrators, the changes will be disorienting. What income-based repayment options do students have? Prior to the pandemic, we had the Income-Contingent Repayment Plan (ICR), Income-based Repayment Plan (IBR), Pay As You Earn (PAYE) Repayment Plan, and REPAYE. Now the Administration has introduced the Saving on Valuable Education (SAVE) Plan. Which one best fits borrowers/which ones do they qualify for? The Administration will replace REPAYE with the new SAVE Plan, automatically enrolling REPAYE borrowers. SAVE offers the lowest repayment amount and is accessible to all borrowers, eliminating the need for loan consolidation to join specific IBR Plans.

What will be the impact?

How does the loan payment pause impact borrowers previously on income-based repayment plans that had loans forgiven after a set number of payments? Do borrowers need to pay for an extra three years? The current Administration confirms that the COVID pause will be included in the repayment period, so no extra three years of payments are required.

To help borrowers, default management companies and the Federal Loan Servicers started contacting students months ago informing them of the restart of payments. I was told that extra staff will be brought on to help with the influx of questions that borrowers will have as the restart nears. Borrowers are being warned that it may take multiple attempts to speak with a representative at their service, so they should start early. Do not wait until October to start looking at repayment options. Borrowers are encouraged to log into the StudentAid.gov site or their Servicer’s website to utilize online tools as much as possible.

Guarding against fraud

There is a concern that borrowers will be defrauded by debt relief companies and criminals posing as servicers. I even received a letter from a fraud company offering to help me with the repayment of my loans. The letter had a seal in the corner that made it look like a legitimate Federal document. I was told that these frauds have steadily increased over the summer as we near the payment restart. Borrowers need to know who their Federal Servicers are and only discuss their information with people they can trust. I have been reaching out to my friends and family warning them of the scams.

Simplifying Loan Repayment

Finally, I wish the government would have used this opportunity to simplify loan repayment and follow other countries in the world like Australia that have an easy-to-understand income-based plan as the standard repayment plan. Since IBR seems to be the future, let us move in that direction and avoid the multiple repayment plans that just cause more confusion. I hope the early and ongoing efforts of the Federal Government, Federal Loan Servicers, Loan Default Management Companies, organizations such as NASFAA (National Association of Student Financial Aid Administrators), and colleges/universities make for a positive transition back to repayment for the millions of borrowers!

A First-Year’s Guide to Navigating Financial Aid

August 31, 2023

By: Sharon Hasan, FAS Senior Consultant

As students begin or settle into the exhilarating First Year Experience, they will find themselves inundated with an array of topics and tips – hacks and tricks that promise to shape their academic paths. From shopping for essentials to mastering the art of building community, each piece of advice holds its significance in our pursuit of knowledge. While everything on the list has value, I found the term BUDGET only when it addressed time management.

With the cost of higher education steadily rising, a strategic approach to how financial aid is discussed should be a more central essential than ever. 83.8% of first-time, first-year undergraduate students receive financial aid in some form. Paying for college is a committed process, If I were to write a list of the top most important factors that shape the first-year academic career, it would be:

Shop Smart:

The pursuit of knowledge doesn’t require emptying your wallet. Federal regulations require schools to provide detailed information regarding books so that families can research prices and purchase books before stepping foot on campus. Before you rush to buy books and supplies, explore different options, and compare prices. Armed with detailed information provided by schools, you can make informed decisions and potentially alleviate the need for excessive borrowing.

Seek Alternatives:

The financial journey need not follow a predetermined path. Consider alternatives such as attending a community college before transferring to a four-year institution or taking advantage of summer sessions to expedite your degree. Opportunities like becoming a resident assistant or working on campus can also help defray costs. opt to work on campus using Federal Work-study or campus employment.

Harness Scholarly Resources:

Beyond textbooks, colleges offer a treasure trove of resources. Avail yourself of on-campus services, tap into tutoring and mental health support, and make the most of advising opportunities. Research scholarships and financial aid options while you’re enrolled, setting the stage for a more secure financial future.

Borrow Wisely:

Pre-planning can reduce or eliminate the need to borrow money. If borrowing becomes inevitable, remember the golden rule – borrow only what you truly need. Prudent borrowing minimizes the burden of debt after graduation, allowing you to step confidently into your post-college life.

Keep the Bigger Picture in Mind:

In the whirlwind of initial excitement, it’s easy to focus on the present semester. Yet, paying for college is a journey spanning a year. As you allocate your financial resources, consider the long-term commitment and plan strategically.

As the academic year unfolds, let us embrace not only the pursuit of knowledge but also the mastery of financial empowerment. Just as we enrich our minds, let us also nurture our financial acumen, paving the way for a prosperous and fulfilling educational voyage. Remember, the choices we make today have the power to shape our financial freedom tomorrow.

Financial Aid Services CEO Robert Heil Featured in eCampus News: Navigating Higher-Ed Enrollment Cliff

August 25, 2023

Financial Aid Services, LLC (FAS) is proud to announce that CEO, Robert Heil, has been acknowledged for his valuable insights in the eCampus News article titled “4 Things to Track in the Looming Higher-Ed Enrollment Cliff.” The article outlines critical considerations for higher education institutions as they navigate the challenges posed by declining enrollment rates.

Heil’s expertise in addressing the complex issues faced by colleges and universities in the changing landscape of higher education centers on the need for comprehensive solutions in the face of declining college-going rates and the shifting perceptions of the value of higher education.

Heil emphasizes that institutions cannot rely solely on traditional marketing strategies to overcome the impending enrollment cliff. Instead, he advocates for the implementation of innovative strategies, such as creating new pathways for high school students to experience campus life earlier, offering dual enrollment programs, and forming transfer agreements with community colleges. Heil’s insights underscore the importance of aligning immersive experiences with academic and extracurricular programs to drive growth and positively impact enrollment rates.

“Campuses cannot simply market their way around the cliff,” said Heil. “A comprehensive solution is required, which means programs and operational excellence are equally important.”

The article concludes that the challenges posed by the enrollment cliff are indeed surmountable through strategic approaches such as creating new pathways, empowering teams, and forging partnerships. Heil’s contributions to the article exemplify his dedication to developing holistic solutions that drive positive outcomes for students and institutions alike.

Read the full article here.

About Financial Aid Services
Financial Aid Services (FAS) has served higher education for over 30 years. Located in Atlanta, Georgia we provide 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. With clients in 49 states, FAS has successfully completed over 2,300 engagements nationwide. Our consultants bring unparalleled expertise in the management of financial aid and student business services. Visit www.FinancialAidServices.org for more information.

A Focus on Language: Increasing Student Success through Readability

August 24, 2023

By: Alex Skarr, Senior Associate Consultant, FAS

Summertime in financial aid is the critical point when offices are reaching out to students with instructions on how they can complete their financial aid process with the school. Whether it involves completing the FAFSA, undergoing entrance counseling, or submitting verification documents, the clarity of communication from aid offices is paramount as aid administrators, we want to offer comprehensive guidance when communicating with our students, but the challenge often lies in maintaining readability. Increasing the focus on the readability of office communications can help simplify the enrollment process for new students and decrease customer service wait times for current students.

Challenges of Readability in Financial Aid Communications

Existing research on the readability of financial aid application instructions from 300 randomly selected institutions across the U.S. looked at the current state of financial aid communications. The research found that over 41% of financial aid application instructions were written at a 14th-grade level (Taylor, 2019). With the U.S. average reading level below 8th grade, a large portion of the population will find it challenging to comprehend financial aid communications. A lack of readability in financial aid communications can affect students in multiple ways. When the instructions on completing required financial aid processes are too complex, Students might bypass the process altogether. In 2018, more than half a million eligible students chose not to file a FAFSA, leading to over two billion dollars of unclaimed Federal Pell Grant money. By forgoing the financial aid process, students may drop out of the enrollment process altogether.

Confusing emails may also increase student questions, whether in person or by email. Having increased in-office visits can mean increased wait times for students with time-sensitive situations, and your staff will have less time to do the type of proactive counseling that increases student success.

Strategies for Enhancing Readability in Communications

So, what can aid administrators do to help? Here are a few suggestions to increase the readability of your office communications:

Student Feedback: Before sending out mass communications consider seeking student input. Their insights can pinpoint any points of confusion allowing your team to quickly access areas of improvement.
Readability Checker: Utilize a readability score checker. I typically use the one found at https://readabilityformulas.com/free-readability-formula-tests.php. This provides a readability score on many different scales.
Consistent Language: Ensure that your staff uses consistent language across the board.
Clear Actionable Steps: Give clear, actionable next steps to ensure students know how to progress through the financial aid process.

The clearer your communications, the higher the likelihood that students will be able to progress through the financial aid process at your institution. This means less individualized follow-up required from your counselors, a smoother billing and disbursement process, and less student frustration from aid being held up due to outstanding requirements.

ISAC FAFSA SYMPOSIUM

Alexander Skarr will be presenting insights from his dissertation on enhancing student success through readability in financial aid communications.

Presentation: A Focus on Language: Increasing Student Success through Readability

Tuesday, November 7, 2023 | Palos Hills, Illinois

Contact Us

At Financial Aid Services, we know that financial aid administrators are being called to do more than ever before. But by taking the time to ensure that your communications are clear, concise, and readable, you can help your office increase student satisfaction, reduce student wait times, and ensure that students truly understand the financial aid process.

Alexander Skarr

Senior Associate Consultant

Alex Skarr, a Senior Associate Consultant at Financial Aid Services, is also a doctoral candidate in the Higher Education Administration program at the University of West Georgia. Drawing from past roles at institutions like Clayton State University, Georgia State University, Quincy University, and the Illinois Student Assistance Commission, Alex brings a wealth of experience to the realm of financial aid communication enhancement.

Oh no, not I, I will Survive.

August 17, 2023

By: Sharon Hassan, FAS Consultant

Recently a friend treated me to see Diana Ross in concert. It was a much-needed outing. One of many songs she sang was the 1978 Gloria Gaynor hit, ‘I Will Survive’. One may ask how does this relate to financial aid? Where am I going with this? So glad you asked.

In the Challenges Deserve Solutions: Rethinking the Financial Aid Services Model article Robert Heil, CEO of FAS candidly addressed the enrollment cliff. “College enrollment is dropping, headed for a widely foretold ‘enrollment cliff’ due to a wide array of economic factors that will take a broad set of collective actions to address.” The root causes of this downward trend can be attributed to a diverse range of economic factors, which demand a united and comprehensive approach to finding effective solutions.

As consultants, we often work with clients who have already experienced the “enrollment cliff.” Enrollment is down. Area colleges and universities are attracting the students you used to get. Revenue is down. Expenses continue to increase. Post-COVID staffing is a challenge. Even the old faithful question the purpose of coming into an office every day. If we are completely honest, coming into an office every day was already an issue especially for millennials and other groups years before the pandemic.

The decline in college-aged students was predicted over 20 years ago. Yet, as colleges experienced the scenarios listed above, many said, “Oh no, not I, I will survive.” Even after hundreds of colleges closed before the pandemic, some continued to say, “Oh no, not I, I will survive.” So, what can you do? Is it too late?

Sadly, for some schools it is. However, for most there are opportunities to make changes now, that will positively affect your trajectory and set you on a path to success– however, that is defined for you. Essential to-do’s that can make a significant difference:

Make time to honestly assess where you are.

Allocate time to assess your current position objectively. Identifying strengths and weaknesses is crucial for charting a path forward.

Don’t wait until you are in trouble to seek help.

Hiring experienced consultants can provide invaluable guidance and support. Whether it’s training, interim staffing, or establishing efficient remote processing, expert assistance can be a game-changer.

Consider hiring FAS consultants to help.

- Training
- Interim Staffing
- Processing-remote

Pay attention to the data.

Pay close attention to data analytics. They offer essential insights into trends, challenges, and areas of improvement, empowering you to make informed decisions.

Acknowledge and address competition.

Competition is a real factor in today’s educational landscape, presenting itself in various forms. Acknowledge this reality and develop strategies to stand out and remain relevant.

Never think you are immune to challenges.

Never assume your institution is immune to challenges. Staying humble and proactive will help you adapt and respond effectively to unforeseen obstacles.

Make thriving your goal instead of just surviving.

Shift your mindset from merely surviving to thriving. Aim to create an environment where your school not only meets expectations but surpasses them, delighting your alumni, students, faculty, and staff.

Your alumni, students, faculty, and staff expect you to thrive.

What’s Next?

Our team believes that challenges deserve solutions. We know how many challenges affect financial aid departments at higher education institutions. The good news? These challenges have solutions; new solutions, real solutions, and game-changing solutions. They come from empowering your existing team and optimizing your practices, and they create a better student experience—leading to satisfied students and better student outcomes.

Throughout the survey, campus leaders identified several recurring themes that form the framework for a better model for financial aid operations. We look forward to sharing those findings in our upcoming eBook this spring.

For a more detailed account of what FAS can do for your institution, reach out here to start a conversation, and watch out for our eBook for more information.

NACUBO annual meeting sessions and hey takeaways

4 Key Sessions and Takeaways from NACUBO 2023 Conference

July 21, 2023

By: Nicole Verrett, Vice President of Client Engagement & Martin Smith, Vice President of Campus Partnerships

During the 2023 NACUBO conference, we had the opportunity to attend many sessions that delved into the current challenges facing higher education. We will focus on four key sessions that stood out, highlighting their major takeaways from this year’s conference that will be invaluable for institutions as they navigate the challenges and opportunities that lie ahead in the 2023-2024 school year.

Break the Pandemic-Enrollment Cliff Doom Loop

This session addressed the pressing challenge faced by higher education institutions in regaining pre-pandemic enrollment levels. Attendees, including CFOs from various campuses, shared creative solutions that can prove instrumental in overcoming this hurdle. One notable strategy discussed was aligning technology investments with campus initiatives to enhance overall efficiency. Moreover, catering to the needs of underserved students emerged as a crucial aspect to drive enrollment growth.

Key Takeaway: Embracing Change to Enhance Efficiency

In the face of the enrollment cliff, higher education campuses must do more than rely on marketing alone to overcome the challenges. A comprehensive approach is crucial, with a focus on both program offerings and operational excellence. Robert Heil, CEO of FAS (Financial Aid Services), highlights four critical factors that demand increased attention as institutions brace for the enrollment cliff: College Going Rates, Centralizing Pathway Programs, Loss of Pricing Power, and the imminent Staffing Crisis affecting financial aid and student business operations. Embracing these necessary changes presents opportunities for growth and empowers institutions to navigate the obstacles posed by the evolving workforce landscape.

Higher Ed Workforce Challenges: Opportunity, Chaos, or Something in Between?

This session delved into the ongoing struggles of employee recruitment and retention in the higher education sector. Attendees gained insights into effective strategies employed by chief business officers and chief human resource officers to attract and retain talent in this highly competitive job market. One emerging solution discussed was outsourcing financial aid operations to streamline processes and improve overall efficiency.

Key Takeaway: Staffing Challenges Deserve Solutions

Higher education institutions across the nation are grappling with significant staffing challenges, especially in today’s competitive job market. Recruitment and retention of employees has become top priorities for campus leaders. As highlighted in our latest eBook “Challenges Deserve Solutions.” The National Association of Student Financial Aid Administrators (NASFAA) in March 2022, polled 500 institutions with a vast majority of universities today stating that they cannot find enough qualified applicants to fill open roles. To tackle this issue effectively, institutions should strategically align with like-minded partners to mitigate operational and staffing challenges

The Charter of a Post-Pandemic CFO: Supporting the Mission through Strategic Staffing

The third session emphasized the critical role that post-pandemic chief financial officers play in ensuring their institutions thrive despite economic uncertainties and declining enrollment numbers. Business officers must confront and embrace data to identify under-resourced areas of their institutions and unlock investments strategically. Additionally, leveraging the relationship between student employment and student success can further support institutional efficiencies and financial sustainability.

Key Takeaway: Collaboration and Data-Driven Decisions

CFOs need to collaborate closely with Financial Aid Officers (FAO) to navigate through upcoming changes effectively. By creating streamlined systems and processes, institutions can adapt to the evolving higher education landscape. Furthermore, data-driven decisions will be instrumental in overcoming financial challenges and breaking the stigma of the “budget blocker.”

Building Bridges to Help Our Students: Partnering Student Accounts and Financial Aid

This session centered around student support services, highlighting the need for optimizing Financial Aid Officers (FAO) and Student Business Services (SBS) with one-stop shops and comprehensive office assessments. Ensuring the best possible support for students remains a top priority for higher education institutions.

Key Takeaway: Prioritizing Student Support

Students come first, always. In our latest comprehensive report, the norms expected by today’s students have been formed by their experience as voracious consumers in a marketplace defined by a multitude of on-demand eCommerce and entertainment experiences. Institutions must prioritize student support services to enhance the overall experience of their students. By building bridges between Student Accounts and Financial Aid, institutions can create a seamless support system that caters to the needs of their student population.

The NACUBO conference provided us with great insights into the challenges and opportunities within higher education and how FAS can further support institutions. The key takeaways from these sessions will undoubtedly guide institutions and stakeholders in navigating the ever-evolving landscape of higher education. By embracing innovative solutions, collaborating, and making data-driven decisions, we can collectively support the success of both institutions and students on their educational journey. Challenges deserve solutions, and with the lessons learned at NACUBO, we are better equipped to overcome them.

Thriving Amidst Challenges: Solutions for Higher Education Financial Aid Services

July 6, 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.

Media Contact

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.