The Critical Leadership RoleThe Critical Leadership Roleof of Financial AidFinancial Aid

in in Strategic Enrollment ManagementStrategic Enrollment Management

PresentersPresenters• Pamela Britton .

Director, School Relations – College Loan Corporationpbritton@collegeloan.com

• Marian Smithson Higher Education Consultant, MS Consulting msconsulting@charter.net

• Brenda ThompsonAssistant Vice President Enrollment Management,West Virginia University

bthompso@wvu.edu

IntroductionIntroductionWhat will you learn from this session to take

back to your institution?

• New ways of thinking about the role the financial aid administrator can play in marketing, recruitment, persistence and degree completion.

An Enrollment Manager’s job is An Enrollment Manager’s job is the easiest on campus.the easiest on campus.

Everyone tells you how to do it!

What is Enrollment Management?What is Enrollment Management?

• Realignment of administrative reporting lines?

• Determining and achieving specific enrollment goals?

Realignment of Administrative Realignment of Administrative Reporting LinesReporting Lines

• Admissions and recruitment• Financial aid and scholarships• Housing and residence life• Career Planning• Retention Office• New Student Orientation

Determining and Achieving Determining and Achieving Specific Enrollment GoalsSpecific Enrollment Goals• Freshmen• Transfer• Ethnicity• Ability level• Income level• Gender• Nationality

Attracting StudentsAttracting Students• For colleges and universities to be successful in

attracting students, they must:– provide a quality educational experience with successful

job placement upon graduation;– be distinct from their competition;– be price competitive;– be responsive to their “customers.”

Strategic Enrollment Management is: Strategic Enrollment Management is: • establishing clear goals for the number and types of

students needed to fulfill the institutional mission; • promoting academic success by improving student access,

transition, persistence, and graduation; • determining, achieving, and maintaining optimum

enrollment; • enabling the delivery of effective academic programs; • generating added net revenue for the institution; • enabling effective financial planning;

Strategic Enrollment Management is: Strategic Enrollment Management is: (cont.)(cont.)

• increasing process and organizational efficiency; • improving service levels to all stakeholders

(e.g., prospective and current students, other institutional departments, other institutions, coordinating agencies);

• creating a data-rich environment to inform decisions and evaluate strategies;

• creating and continuously strengthening linkages with functions and activities across the campus.

Bontrager, 2005, SEM: Building Institutional Vitality in

AACRAO’s newsletter

Source: Chronicle of Higher Education Almanac, August 2005

Projected Change in Number of High School Graduates, 2005-06 to 2015-16

Race / Ethnicity Distribution – US Race / Ethnicity Distribution – US Distribution by Race/Ethnicity of Public High School Graduates, US, 1993-94 and 2001-02

(actual), and 2013-14 (projected)

0 500000 1000000 1500000 2000000 2500000 3000000

1993-94

2001-02

2013-14

White, non-Hispanic Black, non-Hispanic Hispanic Asian/Pacific Islander American Indian/Alaska Native

Source: Western Interstate Commission for Higher Education

Distribution by Race/Ethnicity of Public High School Graduates, United States, 1993-94 and 2001-02 (actual) and 2013-14 (projected)

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

White, non-Hispanic

Black, non-Hispanic

Hispanic Asian/PacificIslander

AmericanIndian/Alaska

Native

1993-94

2001-02

2013-14

Source: Western Interstate Commission for Higher Education

Race / Ethnicity Distribution - USRace / Ethnicity Distribution - US

Distribution by Race/Ethnicity of Public High School Graduates, Midwest, 1993-94 and 2001-02 (actual) and 2013-14 (projected)

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

White, non-Hispanic

Black, non-Hispanic

Hispanic Asian/PacificIslander

AmericanIndian/Alaska

Native

1993-94

2001-02

2013-14

Source: Western Interstate Commission for Higher Education

Race / Ethnicity Distribution - MidwestRace / Ethnicity Distribution - Midwest

Median family income by ethnicityMedian family income by ethnicity

$32,679

$33,946

$54,999

$47,194

$29,982

$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000

White

Black

Asian

Hispanic

American Indian

Source: US Census Bureau

College Participation Rates by College Participation Rates by Ethnicity - 2002Ethnicity - 2002

Source: Postsecondary Education Opportunity

66.7%

59.5%

58.7%

53.5%

61.2%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%

White

Non-White

Black

Hispanic

Other Race

2005 Standardized Test Scores2005 Standardized Test Scores

18.722.1

17

21.9

18.4 18.9

0

5

10

15

20

25

American Indian Asian-American Black Caucasian Mexican American Other Hispanic

SAT ACT

National averages: SAT - 1028 ACT - 20.9

982

1091

864

1068

916 932

0

200

400

600

800

1000

1200

American Indian Asian-American Black Caucasian MexicanAmerican

Other Hispanic

Source: College Board and ACT

While financial aid already plays a critical role in the strategic enrollment management of an institution, the importance of the role will only increase as the demographics of future college students change.

Financial Aid Leadership:Financial Aid Leadership:Impacting the Family’s Impacting the Family’s

Perception of AffordabilityPerception of Affordability

Importance of Affordability Importance of Affordability • Enrollment essentials per Whiteside/Mentz:

– The student must want to enroll.– The student must qualify for enrollment.– The student must be able to cover the cost of enrollment.

• Smithson: Enrollment may not occur unless the student perceives the college or university as affordable.

Whiteside/Mentz 2003, Winds of Change in SEM Monthly newsletter.

Importance of AffordabilityImportance of Affordability

• 2004 Eduventure survey of 50 enrollment management professionals: – 52% indicated ensuring affordability as one of their top

three current challenges and – 46% indicated ensuring affordability as one of their top

two emerging challenges.

Managing Collegiate Enrollments, Eduventure 2004

Value and AffordabilityValue and Affordability• The family’s view of the institution’s

affordability is driven by their perception of VALUE or net price in comparison to the QUALITY of the institution's educational offerings.– A large scholarship or aid offer alone will not change a student’s

mind. Recent interviews by Stamats with 60 families indicated most would NOT encourage their child to attend a less prestigious school because of a large scholarship offer.

Value and AffordabilityValue and Affordability• A family weighs VALUE in relation to what they

perceive they will have to cover once all discounts are applied. – Perceived value will differ by family economic

circumstances, as well as other factors. • Aid administrator needs to be aware of

competitors’ pricing / aid strategies to help position the institution competitively.

ImplicationsImplications• Developing the family’s perception of the

institution's affordability is a multi-pronged effort and is the product of – – the general image projected to the public;– the quality of its offerings and indicators thereof; – how effectively the institution maps out its discount

strategy; and – how well it sends its affordability message.

Implications cont’dImplications cont’d• The financial aid administrator has a critical

leadership role in –– ensuring affordability through strategic pricing, resource

planning and awarding of aid as well as – effective integration of the institution’s affordability

message in the institution’s communications to the student and parent.

- Right message at the right time.

Funnel Stages and Funnel Stages and AffordabilityAffordabilityTHE FUNNEL (and beyond)

Intellectual / Students: Emotional Emotional Emotional

Review info Apply to a few Decide on one Follow through Persist Retain ties

Image Earlybuilding funnel Mid funnelperiod Late funnel Retention / Alumni /

Entering class Completion DonorRelations

Funnel Introduce Sell and persuade Keep sold Support must: transition

Chart based on Scott Lomas article in NASFAA Student Aid Transcript, Vol. 15, No. 1, 2004

Early: Introduce AffordabilityEarly: Introduce Affordability• Straightforward statement of the institution’s.

affordability commitment (and whom it affects)• Early information to parents as they significantly

influence the possible choices.• No hidden secrets – make affordability information

easily accessible.• Make apples to apples comparison of net price to

competitor’s possible.

Early: Introduce AffordabilityEarly: Introduce Affordability• Resources re four-year cost outlook:

– financial guarantees, if appropriate– average % of year to year cost increases– average student loan debt

• Opportunities for saving money if courses are available or guaranteed:– full-time attendance resulting in four-year completion; or– regular summer school attendance to shorten time to

degree, even if part-time attendee.

Early: Introduce AffordabilityEarly: Introduce Affordability• Opportunities available for earning while learning:

– student employment opportunities– co-op and paid internship opportunities

• Availability of payment plan

GOAL: Move your institution into consideration because it is viewed as having VALUE and is AFFORDABLE.

Mid: PersuadeMid: Persuade• Partnership with family as basis for financial aid customer service • Self-identification of eligibility for major awards• Renewable awards / reasonable renewal criteria• Estimator service (the closer to actual the better)• Examples of packages by family financial strength• Examples of four-year financing• On-time aid offer (offer first, verify later)• Tools for comparing aid offer to direct costs

Mid (cont’d)Mid (cont’d)• Follow up calls after scholarship offers or aid award letters go

out, particularly for targeted populations• Outreach efforts in student’s community

– e.g. Texas A & M, University of Michigan outreach financial advisers– Financial aid visits to areas where students are high need or eligible

for special funds

GOAL: Motivate the student to select your institution and follow up by applying for admission and aid.

Late: Preserve the DecisionLate: Preserve the Decision• Student is admitted, has applied and received an aid offer

and sent a housing deposit. What can the aid administrator do to help preserve the student’s decision to attend?– Provide continued, positive communication.

• “Your aid is in order.”• “There are ways to check that all is okay.”• “You have alternatives for paying your balance.”• “We will be available to help you.”

Late: Preserve the DecisionLate: Preserve the Decision– include aid information at orientation and in pre-entry

communication;– make clear how and when student will receive aid in excess of

bill; – describe alternatives for dealing with family portion of balance

due; and– provide access to available job listings and job application

process in advance of start of classes.

GOAL: Reassurance of the right decision, including affordability concerns.

Support Enrollment EntrySupport Enrollment Entry• Concerns in first three weeks of term –

– confirmation that aid status is ok.– crediting of aid;– timing of releasing aid in excess of charges;– amount of excess aid;– locating a job and getting on payroll; and– time pressures due to class assignments so

resistance to spending time on $$ issues.

Support Enrollment EntrySupport Enrollment EntryGOAL: Student can head to the classroom. No financial

worries for the academic year unless significant change in financial situation.

Persisting to CompletionPersisting to Completion• As the student moves forward in his/her degree program:

– Guidelines for retention of aid clear and accessible via the web or other (also – reasonableness of renewal policies);

– Information re tuition increases targeted to aid population that describes alternatives;

– At minimum, annual statement of cumulative debt and projected post-graduation repayment;

– Resolution of student accounts with large unpaid balances before end of each term;

Persisting to CompletionPersisting to Completion– Distribute e-newsletter information updating student on

financial aid changes and smart consumer behavior;– Development of better than minimum wage jobs;– Training of all appropriate campus staff re financial aid

basics on an annual basis;– Work with departing students as to what needs to be done re

their finances so they can return.

GOAL: Continued perception the institution will remain affordable as student re-evaluates this annually.

Retention PuzzleRetention Puzzle

Institutional Assessment

Student Assessments

Institutional Interventions

Student Interventions

Who Are You?Who Are You?

• First-year retention rates

• Graduation rates• Student

achievement• Performance gaps• Financial aid

impact• Indebtedness

(loans and credit cards)

• Loan default rates

Institutional Assessment

Financial GuidanceFinancial Guidance

Source: USA Funds Retention Project - 2002

Students at 2-Year Campuses

Financial GuidanceFinancial Guidance

Source: USA Funds Retention Project – 2002

Students at Career and Proprietary Schools

Financial GuidanceFinancial Guidance

Source: USA Funds Retention Project – 2002

Students at 4-Year Campuses

Financial GuidanceFinancial Guidance

Source: USA Funds Retention Project - 2002

Faculty, Staff and Administrators at 4-Year Campuses

Financial GuidanceFinancial Guidance

Source: USA Funds Retention Project - 2002

Faculty, Staff and Administrators at 2-Year Campuses

Financial Aid and RetentionFinancial Aid and Retention

Source: Noel-Levitz, 2002

Academic Preparation

Who Are Your Students?Who Are Your Students? Entering risk factors Motivation risk

factors Integration risk

factors

Student Assessmen

ts

Conceptual Model of RetentionConceptual Model of Retention

Entering Student Variables

+ Student Motivation Variables

+ Student Integration Variables

= Student’s Likelihood to Persist

Entering Student VariablesEntering Student Variables• Academic history• Geo-demographic variables • Test scores• Initial impressions of institution• Enrollment factors• Financial aid information• Financial history• Financial literacy scores

Student Motivation VariablesStudent Motivation Variables• Freshman survey data• Academic and social motivation data• Placement tests• Academic plans/goals• Family support system• Sense of financial security• Receptivity to financial guidance

Student Motivation VariablesStudent Motivation Variables• Residence status• Predicted GPA• End-of-term grades• Affiliations• Credit hours attempted/completed• Academic status• Major• Residence hall assignment• Credit card debt• Student loan debt• Work hours

How Proactive Is Your How Proactive Is Your Institution?Institution?

Retention committee

Student success goals

Student tracking Student feedback

plan Staff training Faculty

development Faculty/staff awards Financial literacy

programs

Institutional

Interventions

Commitment to Student SuccessCommitment to Student Success• How do you show

students you’re serious about their success? Intrusive

advising Extended

orientation Student success

plans Mentoring Wellness Financial

guidance

StudentInterventio

ns

Student Success = Weaving the Student Success = Weaving the Pieces TogetherPieces Together

Institutional Assessment

Student Assessments

Institutional Interventions

Student Interventions

Financial LiteracyFinancial LiteracySuccessful access, retention and financial

literacy practices provide students with the tools they need to survive – before they know they

need them.

A Study of Best Practices in A Study of Best Practices in Financial LiteracyFinancial Literacy

• 100+ colleges and universities interviewed• Executive summaries

– Campus buy-in– Specific implementation strategies– Staffing– Results (quantitative and/or qualitative)– Recommendations

Source: USA Funds Best Practices Study, 2004

Financial Literacy – Financial Literacy – Implementation Implementation StrategiesStrategies

• Entrance counseling• Exit counseling• Student success courses• Seminars/workshops• Money management

counseling• Student orientation• High school outreach

• Student probation• TRIO programs• Training• Peer financial counseling• Career development• Financial aid awareness• Parent orientation

Financial Literacy – Financial Literacy – Target Target AudiencesAudiences

• First-year students• Second-year students• Third-year students• Graduating students• All students

• Parents• High school students• Student athletes• Staff• TRIO participants

Financial Literacy – Financial Literacy – Delivery Delivery UnitsUnits

• Academic affairs• Student affairs • Financial aid office• Lenders/guarantors• Career services• Student support services

Programs to Review OnlinePrograms to Review OnlineParticipantsBrigham Young UniversityUniversity of Arizona University of Georgia Iowa State University

Montana State UniversityOhio State UniversityTexas Tech UniversityWright State University

ProgramsFinancial Path to GraduationCredit Wise Cats Peer Financial Counseling Consumer and FinancialManagement Publications

Family Financial Literacy ProjectFreshmen Success SeriesRed to BlackWright Financial Path

QUESTIONS?QUESTIONS?

Special thanks to Dr. Lana Low for Special thanks to Dr. Lana Low for her contributions to this her contributions to this

presentation.presentation.