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Challenges Deserve Solutions Master Class Episode 2: Meeting Student Expectations
Higher Ed’s Landscape is changing. Students expect swift customer service, influenced by their experiences in the era of on-demand services. However, when it comes to financial aid in higher education, many institutions struggle to meet these expectations, causing frustration and anxiety among parents and students. The misalignment of expectations erodes trust in the institution, hampers enrollment contributing to low retention rates, and presents preventable challenges for the university. How can your institution meet the rising expectations?
Watch
Financial Aid Services, LLC (FAS) CEO Robert Heil’s Master Class episode on this topic and explore further insights in the Challenges Deserve Solutions eBook. Let’s work together to make higher education more accessible and student-friendly.
The Challenge
For students, a college degree represents a significant investment. They view it as a product that comes with a hefty price tag and expect to be treated as valued customers. In this context, speed is key. Unfortunately, the traditional financial aid process is often slow, methodical, and paper-intensive, failing to align with students’ need for efficiency.
Digital natives, today’s students want quick responses and 24/7 accessibility. Yet, many find it challenging to connect with financial aid professionals, with surveys showing that a significant portion of students have never met or interacted with aid administrators. This highlights a pressing need for more frequent and consistent touchpoints in the financial aid process.
Adding to students’ frustration is the fear of loans. Many have seen their parents and older siblings struggle with student loan repayment, making them acutely aware of the financial risks associated with higher education.
Financial challenges are a leading cause of dropout, with 42% of students citing them as the primary reason for leaving their studies. Furthermore, 38% of potential students decide not to enroll due to fears about student loans. Families often find the level of service provided by financial aid offices underwhelming compared to other customer service experiences.
The Solution
Financial Aid Services (FAS) offers a transformative partnership model that empowers financial aid teams. By strategically outsourcing processing and providing additional support, FAS ensures rapid responses to student queries, meeting their expectations for efficiency and accessibility.
This partnership doesn’t replace professionals but enhances their capabilities, allowing them to focus on counseling and advising students. It streamlines processes with online verification, freeing up staff time for personalized customer service and simplifying the experience for students and families.
What’s Next
Whether you are a seasoned professional or an aspiring leader in academia, this engaging and informative session provides a unique opportunity to gain a deeper understanding of the challenges facing higher education and discover innovative solutions to shape its future. Contact us to learn your options! Together, we can transform financial aid, empower students, and create a brighter future for higher education.
Retention: When It’s Not Just About Students
By: Dr. Dawn M. Patak, Senior Consultant, FAS
When “retention” is mentioned in higher education circles, our thoughts turn directly to students, but should we be looking in more than one direction? What about the retention of employees? When should our thoughts turn to the retention of higher education professionals? It seems, given the large amount of higher education media on the topic, that it’s past time to turn our thoughts to our administrative professionals as often as we do our students, especially financial aid professionals.
In November 2021, Inside Higher Ed woke up the higher education world with the news that financial aid staffing shortages were on the rise. In the past three years, we have seen financial aid position openings double across the nation. Why is this so concerning? What makes financial aid staffing shortages alarming? Are upper administration officials of colleges and universities really understanding what can happen when a financial aid office goes understaffed for just weeks, let alone months or years?
Financial aid administrators shoulder the responsibility of awarding, disbursing, and reconciling federal, state, and institutional aid funds for their students. They must understand and strictly adhere to regulations, both state and federal and institutional policies. Their role significantly impacts enrollment and retention. The efficient functioning of the financial aid office is critical for students and the institution. 85% of students receive some form of financial aid, inadequate financial aid staffing can swiftly lead to disruption in aid processing and other regulatory complications.
The importance of financial aid administration cannot be overlooked. Staffing shortages result in neglecting tasks, a compromised level of customer service, and a decrease in administrative capability that will ultimately impact compliance with Title IV regulations. These shortages also directly affect student enrollment and retention, as losing experienced financial aid administrators means a decrease in the knowledge base that students, families, faculty, and staff depend on. Students who are confused and frustrated with the financial aid process and receive subpar customer service due to a lack of human resources within the financial aid office may choose to attend alternative institutions. Retention of students depends upon many factors, including the retention of financial aid staff.
What can colleges and universities do to retain their financial aid administrators? Here are a few ideas that may help:
- Provide a seat at the table for your trusted voices in financial aid. This helps to facilitate communication around their jobs and what they need to be successful and allows them to assist in policy-making decisions that will ensure Title IV compliance for the institution.
- Examine the reasons for staff departures as soon as they begin. Are staff leaving for something as common as moving to a better opportunity or is it indicative of an underlying issue? It’s never too early to find out.
- Once a decrease in staffing begins, meet with the financial aid staff to assess staffing needs. Discuss ideas to determine if it’s feasible to shift workloads. It is also helpful to let everyone know what is expected of them during a time of staffing shortage.
- If you determine shifting workloads is not feasible, do not delay in hiring interim staffing. Leaving a staff depleted for even a few months may have long-lasting effects on student customer service and Title IV compliance.
Financial aid administrators have been under intense pressure for years to keep up with changing regulations and conflicting information. They are the most regulated office on campus. The challenges they face while balancing federal and state regulations, decreasing enrollment, and the need for increased financial aid education while responding to student and parent needs and concerns can be overwhelming at best. Adding staffing shortages into an already stretched environment can create negative long-term issues for students, faculty, staff, and administration.
Prepare for the Enrollment Cliff:
It’s imperative that higher education institutions recognize the urgency of retaining financial aid administrators. Their administrative capability, expertise, and dedication are indispensable not only for students but for the entire institution’s success. By taking proactive steps to address staffing shortages and support these professionals, colleges and universities can ensure continued compliance, enhance student experiences, and bolster overall retention efforts.
Remember, retention is mission-critical. To understand how you can equip your institution for success, reach out to your Financial Aid Services, LLC (FAS) team today. Together, we can navigate the challenges, support retention, and secure a brighter future for both your institution and your students.
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
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.
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.
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- 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.
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.
The Looming Enrollment Cliff
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.
Administrative Capability, a Mammoth Challenge in Financial Aid’s Staffing Crisis
By: Bob Covey-Robbins, Consultant
What does it mean for an institution of higher education to be administratively capable? Why is it important? Whose job is it to ensure that a school complies with administrative capability requirements?
Administrative capability is carefully evaluated when a school’s application for certification or re-certification is reviewed by the Department of Education. The school must demonstrate administrative capability. 34CFR§668.16 extensively outlines the conditions for administrative capability. In short, it means that the institution has the people, expertise, systems, technology, policies, and procedures to effectively manage Federal Student Aid programs.
The institution must designate someone to be responsible for administering FSA programs, but it also must ensure that the person is supported by an adequate number of staff needed to effectively administer the programs. There is no specific formula for determining the number of staff needed. It must be determined by the number of students applying for financial aid, the various financial aid programs the school administers, the technology used, and how much administration is automated.
Many schools are currently struggling to maintain an adequate number of staff to remain in compliance with the daunting number of Title IV statutory and regulatory requirements. According to a US Chamber of Commerce article, today, there are 2.9 million fewer people in the workforce than there were in February 2020, and even if every unemployed person were to gain employment, there would still be a labor shortage (Ferguson, 2022).
Has the financial aid office workload lessened with declining enrollment? Many would say that it has actually increased since the COVID-19 pandemic started. Expanding the modality of financial aid counseling to include remote advising, administering HEERF funds with its frequent changes in federal guidance and reporting requirements, and more recently, the addition of Fresh Start student loan default relief. The number of students seeking a Fresh Start at a school can bring a significant increase to the financial aid office workload.
Declining enrollment has led to decreases in operating budgets, making it even more difficult to retain valuable staff as more attractive employment opportunities arise outside of higher education administration. Creating entry-level financial aid office positions may add staff, but those staff need extensive training, supervision, and coaching as they become proficient in their new role. For many schools, the cost of new aid officer training programs offered by state, regional, and national associations is out of reach.
The harsh reality for many financial aid offices is that they are facing the perfect storm of increased demand for services, staffing vacancies, continuous audit pressures, shrinking budgets, and, ultimately, concern about maintaining the school’s eligibility to participate in federal student aid programs.
To provide the needed services to help families with financing higher education, while maintaining legislative and regulatory compliance, more schools are seeking interim staffing solutions. Services can range from filling a financial aid director’s role to outsourcing daily financial aid processing tasks. For many schools, using a trusted partner for interim staffing and outsourcing processing tasks provides a more cost-effective means to providing quality student service, while maintaining compliance and making a valuable contribution to the school’s enrollment management efforts.
Welcome to FAS’ Consulting Corner
Welcome to FAS’ Consulting Corner! In conjunction with launching our new website, we want to use this space to share relevant information with financial aid and student business services practitioners. It’s a safe and reliable place to get the latest news on what’s happening in financial aid and student finance all around the country. We’ll tackle issues from maintaining rigorous compliance standards and leveraging technology, to giving your students the best possible experience. Our consultants are thought leaders with a combined 1,600 years of experience in their respective fields. Higher Education is an industry that’s always in motion. There is always something new to talk about, so check back often. We’re adding fresh content all the time. Whether you’re considering services, need guidance or resources, or just want to connect with FAS, we’ve got something for you.