/ Insights

Leading Through Uncertain Times: An Interview with Robert Heil

By: FAS Staff  

Robert Heil, CEO of Financial Aid Services, LLC (FAS) recently discussed five pivotal things about effectively leading during turbulent times. 

In a recent interview with Authority Magazine, as part of the “Five Things You Need To Be A Highly Effective Leader During Turbulent Times” series, Heil shared valuable insights and experiences that shed light on the essence of effective leadership when facing uncertainty and challenges. The five principles discussed are essential for any leader navigating uncertain and turbulent times. We invite you to read more about Robert’s experiences. Click here to read the full interview. 

Effective leadership is the key to overcoming challenges and achieving long-term success in today’s ever-changing business landscape. Gain valuable leadership insights in our latest eBook Challenges Deserve Solutions: How Financial Aid Offices are Overcoming Unprecedented Challenges with Innovative Partnerships. Download the free eBook and take the first steps toward becoming a highly effective leader in turbulent times. 

 

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Getting Your Student Loan Discharged

By: Gary Byers, FAS Sr. Consultant  

Borrower defense to repayment is a legal ground for discharging federal Direct Loans. According to the Department of Education , students and parents may have a borrower defense to repayment if your institution engaged in “certain misconduct related to the making of a federal loan or the educational services it provided which caused harm warranting a final discharge of your applicable federal Direct loans.  If the U.S. Department of Education (ED) approves your application for borrower defense, it will discharge any remaining balance on the federal student loans taken out to attend the school and may also refund loan payments you already made.” 

Below are six instances for which students may qualify for borrower defense: 

  • Substantial Misrepresentation  When an educational institution engages in substantial misrepresentation, it effectively deceives or misguides individuals regarding critical aspects such as educational offerings, financial obligations, or the future employability of graduates. This misleading information plays a pivotal role in the decision-making process, whether it involves enrolling, staying enrolled, or obtaining loans. 
  • Substantial Omission of Fact A significant omission occurs when an educational institution withholds or conceals crucial information that any reasonable person would find essential when deciding on enrollment, continued enrollment, or loan acquisition.  
  • Breach of Contract A breach of contract takes place when a mutual agreement exists between a student and their school, and the school fails to fulfill its promises as outlined in that agreement. This agreement typically arises in connection with a student’s decision to attend or continue their education, secure loans, or disburse funds related to a loan.
  • Aggressive and Deceptive Recruitment
    Aggressive and deceptive recruitment tactics come into play when a school employs various manipulative practices, including:
    • Coercing or pressuring individuals into making swift enrollment or loan-related decisions. 
    • Exploiting the limited knowledge or experience of prospective students regarding postsecondary institutions, programs, or financial aid. 
    • Dissuading individuals from seeking advice from others before making enrollment or loan-related choices. 
    • Obtaining contact information through deceptive means, such as misleading websites false employment claims, or fictitious institution rankings.
    • Employing threatening or abusive language towards individuals.
    • Persistently contacting individuals for enrollment purposes despite their explicit request to cease such communication. 
  • Judgment A judgment against an educational institution signifies that a court has ruled that the institution has violated the law. This judgment typically results from the institution’s actions or omissions related to loan origination or the provision of educational services tied to loans. Settlements, however, do not qualify as judgments.
  • Prior Secretarial Action Approval for a borrower defense discharge can occur when the U.S. Department of Education revokes a school’s provisional program participation agreement or denies recertification due to conduct that aligns with one of the borrower defenses outlined in points 1–4 above. This provides an avenue for relief in cases where a school’s behavior warrants such action. 

 

Based on the 2023 Borrower Defense Regulation, your application must be “materially complete” to be considered. If your application is not materially complete, your application will be denied. Just because your application is considered materially complete does not necessarily mean it will be approved.
To be materially complete, your application must contain the following information: 

  • A description of one or more acts or omissions by your school 
    • ED can only approve your application if—after reviewing your claims, your evidence, and your school’s claims and evidence—we can determine that your claims are more likely than not to be true.
    • Explain what your school did or failed to do that is covered by the kinds of misconduct that qualify for borrower defense discharge discussed above. 
  • The school or school representative who committed the act or omission
      • Include what school or representative of the school committed the misconduct.  
        • What exactly did the school say or represent to, or conceal or suppress from you? 
        • Who or what provided you with this information or concealed this information from you (include the person’s name and title, if known)? 
        • When and where did this conduct occur (the approximate date or time of year, and whether it was during a campus tour or interview, in a meeting, or over the phone)? 
        • How was the information communicated to you (for example via email, in person, through an advertisement)? 
        • How was the information deceptive or misleading, and how did you determine that the information was deceptive or misleading? 
        • Why was the information provided to you or concealed from you important to you when you enrolled—in what way did it influence your decision? 
        • How did this conduct harm you?
  • Approximately when the act or omission occurred Include when you experienced the misconduct that you allege. 
  • How did the act or omission impact your decision to attend the school, to continue attending the school, or to take out the loan for which you are asserting a defense to repayment How did the alleged misconduct affect your decision to enroll or to continue your enrollment at the school. 
  • A description of the detriment you suffered because of the school’s act or omission Explain what the result of the school’s misconduct was, specifically what harm you experienced because of the misconduct. 

For more information and to obtain a form, go to:  https://studentaid.gov/manage-loans/forgiveness-cancellation/borrower-defense 

 

Resumption of Student Loan Repayment  

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

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. 

A Focus on Language: Increasing Student Success through Readability

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 

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

 

 

 

 

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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.

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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.

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

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

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FAFSA, special circumstances, professional judgement

Understanding Your Options: Special Circumstances and Professional Judgments

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.

 

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Creating and Maintaining an Effective Financial Aid Appeals Process

By: Sean Hudson, Sr Consultant

In an ideal world, higher education would be accessible to all without financial barriers. However, until we reach that point, it is crucial for educational institutions to make education affordable for students. This is achieved through strategic packaging of financial aid at various discount rates and the utilization of Professional Judgements when the Free Application for Federal Student Aid (FAFSA) does not accurately reflect a student’s or family’s financial situation. By establishing a solid appeal process, we can further extend opportunities for students and parents to pursue their educational aspirations.

 

Increasing Demand for Appeals:

With the transition to Prior-Prior FAFSA years and the recent Higher Education Emergency Relief Fund (HEERF) funding, the number of Professional Judgements and appeal requests has surged. Educational institutions must adapt to meet this growing demand for financial assistance.

 

Strategic Approach to Appeals:

When dealing with appeal requests, it is vital to approach the process strategically. Begin by understanding the available budget and determining if a separate budget item for appeals exists. By collaborating with the Finance Office and potentially the Admissions Office, you can present a comprehensive statement and showcase the potential return on investment (ROI). Demonstrating how providing additional funding can lead to increased enrollment and revenue generation over multiple years is an effective strategy.

 

Developing an Effective Process:

To ensure transparency and streamline the appeal process, it is imperative to establish a clear and accessible written process. This process should be prominently displayed on the college website and include information on application requirements, necessary supporting documentation, the review timeframe, and communication methods for notifying students of the decision. Specify the review committee composition, without divulging individual names, to provide reassurance and credibility. Additionally, define the amount or range of funding available for appeals, balancing the students’ needs while considering the institution’s budgetary limitations. Clearly communicate whether the appeal grants are one-time disbursements or can be expected annually.

 

Leveraging Partnerships:

Collaborating with the Alumni Relations Office responsible for awarding Endowed Scholarships can optimize the appeal process. Utilize the appeal process to identify suitable recipients for specific donor scholarships, thereby saving appeal budget funds by redirecting them towards endowed scholarships.

 

Monitoring and Fiscal Responsibility:

To ensure efficient utilization of appeal funds, implement regular monitoring of the awarding process. Stay vigilant in identifying students who have secured full funding through other means. It is essential to allocate sufficient funds for the spring semester, unless the policy explicitly states that appeals are exclusively granted in the fall. Consider the previous year’s awarded funds and track them accordingly, while also monitoring new students who do not enroll to reallocate those funds for future appeals.

 

Maintaining Transparency and Managing Expectations:

Once you begin awarding funds through the appeal process, anticipate an increase in applications, as students often share information with their peers. Transparent communication and a well-defined process become even more critical in managing expectations and maintaining a fair and equitable system. Additionally, recognize that students who previously received Professional Judgements may become appeal applicants, particularly if the initial adjustment resulted in only a minimal increase in aid.

 

Unlocking Potential: Benefits of a Well-Designed Appeal Process:

A well-crafted appeal process can yield numerous benefits for educational institutions. It can effectively boost new student enrollment, contribute to student retention, increase revenue through enrollment growth, and enhance the institution’s reputation for prioritizing student well-being. Investing time and effort into developing a robust process, even if it requires revamping an existing one, will undoubtedly yield long-term rewards.

 

As the pursuit of accessible higher education continues, educational institutions must proactively adapt their financial aid processes to meet the needs of students and families. By implementing a transparent and effective appeal process, colleges and universities can create an environment that fosters educational opportunities, supports student success, and upholds their commitment to providing a quality education for all.

 

Are you looking for expert guidance and support in optimizing your institution’s financial aid processes? Contact FAS today!

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