Agenda

1. Customer Service for Financial Aid ProfessionalsMary Dyer, Financial Education SpecialistFebruary 8, 2012

2. Agenda Customer Service for Financial Aid Professionals • Maine – A Profile • Retention & Default Rates – What We Know • Challenges for First-Generation, Low-Income Students • What Are Students & Families Saying? • Steps to Success • Best Practices • Additional Resources

3. Disclaimer Customer Service for Financial Aid Professionals • Given our extensive background in financial aid, college access and default prevention, we: • understand the challenges that you face (honest); • know that financial aid is often the forgotten office on campus; • recognize that there simply aren’t enough resources to implement all of the strategies that we will cover; • hope that you’ll be able to take back a few of these strategies in order to improve the overall experience for you and your students; • welcome the opportunity to offer additional training and advocacy on your campus!

4. Maine – A Profile Customer Service for Financial Aid Professionals • Did you know that: • Only 58% of Maine high school seniors completed the FAFSA in 2010-2011 • Maine ranks 40th in the nation for percent of population with a bachelor’s degree - 25% • In Maine - 22% of youth live at or below 150% of the poverty level • 40% of children in Maine receive MaineCare • 44% of students are eligible for free and reduced lunch

5. Maine – A Profile Customer Service for Financial Aid Professionals • Maine’s unemployment rate is 7.0% - • 5.4% in Cumberland County • 9.3% in Somerset County • Maine ranks 2nd in the highest student debt level among 2010 graduates at $29,983 (translates to a payment of $345 and total interest of $11,422) • For the first time in our nations history, student loan debt has exceeded credit card debt • Average Maine salary for bachelor’s degree earners is $38,653

6. Default Rates & Retention Rates Customer Service for Financial Aid Professionals • Here are some other interesting facts: • In a recent FAME study, nearly 80% of defaulted borrowers had withdrawn • Most attended only one year • High debt wasn’t the issue • FY 2009 Maine Cohort Default Rate – 7.7% • FY 2009 National Cohort Default Rate – 8.8% • Average Retention Rate – 71% FT, 52% PT (Maine) • Average Graduation Rate – 4 yr – 42%, 5 yr – 55%, 6 yr. 59% (Maine)

7. Challenges for First-Generation Students Customer Service for Financial Aid Professionals • First-Generation Students: • First-generation parents are less likely to be involved in activities that prepare students for college • Lack of knowledge and support from parents puts these students at an automatic disadvantage • First-generation parents believe that the school is not interested in their involvement • Students don’t view themselves as “college material”

8. Challenges for First-Generation Students Customer Service for Financial Aid Professionals Additionally…. • They acquire and interpret information differently (specifically regarding financial aid) • They have misperceptions about college affordability • They often underestimate the availability of financial resources • Nearly 90% of low-income first-generation students leave college within six years without graduating • First generation students are 50% less likely to go on to college

9. Impact of Automation Customer Service for Financial Aid Professionals • Changes over the last two decades: • Online Entrance and Exit Counseling • Loan request process often happens automatically or via an electronic application • Master promissory notes • Student information systems • Emails have replaced phone calls • Availability of online information 24/7 • These changes are considered a “good thing”…. • However - they have all reduced the level of personal interaction • There are now fewer touch points and opportunities to engage students

10. Common Areas of Confusion Customer Service for Financial Aid Professionals

11. What Are Students & Families Saying? Customer Service for Financial Aid Professionals • In 2011, FAME received nearly 5,000 inbound education calls through its 800# alone • Here is what they are saying: • Unable to access financial aid information (online and direct phone contact) • Limited one-on-one interaction (unable to meet with a financial aid counselor) • Confusion surrounding the college’s loan process and types of loans, as well as financing options (payment plans & private loans) • Delays in processing, such as verification and loan processing • Inconsistent professional judgment policies

12. Step One – Evaluate Customer Service for Financial Aid Professionals • Evaluate the financial aid process at your school to determine whether there are unnecessary steps/forms/requirements that could be eliminated • Review (or have a student review) all correspondence that you currently send to students (electronic and mail) to determine: • Is it a necessary communication? • Is the message effective and clear? • Are there things missing? Could it be enhanced?

13. Step One – Evaluate Customer Service for Financial Aid Professionals • Are you fully utilizing your FA system? • Can you do more online or electronically? • Review and update your website to ensure that important information is easy to find • Ask a student to review • Eliminate redundancy and unnecessary information • Create a list of FAQ’s • Utilize your phone system to help answer the common questions • Review (or create) your customer service plan

14. Step Two – Staff Support Customer Service for Financial Aid Professionals • Do they know they are important? • Provide regular training • Offer extensive training for new hires • Provide regular and planned updates • Complete annual performance reviews • Provide training and collaborate with other offices on ways to improve • Remember the internal customers • Offer an annual staff retreat, luncheon or appreciation day

15. Step Three – Customer Support Customer Service for Financial Aid Professionals • Listen to the customer with positive body language • Show empathy – this is new and even scary to many of them • Remember the IPhone – it’s all new to them! • Answer the questions they aren’t asking (but will next week) • Provide more information than requested • Project a positive attitude

16. Best Practices Customer Service for Financial Aid Professionals • Respond and act promptly – deliver on promises • Create a response time policy and stick to it • Know the rules regarding privacy and be sure that your physical location allows for it • Be an advocate for students • Work with other offices/answer questions you can • Connect students with support services • Create easy checklists for students • Explain changes ahead of time • Offer specialized counseling/communication for students who plan to withdraw. Consider a “return to school” approach

17. Best Practices Customer Service for Financial Aid Professionals • Provide staff with uninterrupted processing time • Offer extended hours during peak season • Assign individual counselors • Monitor student complaints • Find ways to connect staff with students – do you attend graduation or award banquets? • Utilize work-study students if possible – they are a valuable asset

18. Additional Resources Customer Service for Financial Aid Professionals • Utilize online training: • FAME -http://www.famemaine.com/files/Pages/education/counselors_and_advisors/Training_Counselors.aspx • NASFAA & NASFAAU http://www.nasfaa.org/mkt/training/core/2011-12_CORE_Modules.aspx • Department of Ed - http://www2.ed.gov/offices/OSFAP/training/index.html • Direct Loans - http://www.direct.ed.gov/dltraining.html

19. Questions? Customer Service for Financial Aid Professionals Finance Authority of Maine 5 Community Drive P.O. Box 949 Augusta, ME 04332 1-800-228-3734 education@famemaine.com www.famemaine.com

20. References Customer Service for Financial Aid Professionals • Project on Student Debt, An Initiative of the Institute for College Access & Success. (2010). Student debt and the class of 2010. Retrieved from projectonstudentdebt.org • U.S. Bureau of Economic Analysis. (2011). Regional economic accounts, annual state personal income: Per-capita income. Retrieved from www.bea.gov • U.S. Department of Education, National Center for Education Statistics. (2010). Digest of education statistics, college costs. Retrieved from http://nces.ed.gov/programs/digest • Maine Department of Education Data Center. (2011). School meal eligibility. Retrieved from www.maine.gov/education/sfs/data_tab.html • Maine Children’s Alliance. (2011). Maine kids count. Retrieved from http://mainechildrensalliance.org/assets/files/databooks/2011/mekidscount2011_password.pdf

21. References Customer Service for Financial Aid Professionals • Maine Center for Workforce Research and Information. (2011). Retrieved from http://www.maine.gov/labor/cwri/laus.html • Finance Authority of Maine. (2011). FAFSA completion data. Retrieved from www.famemaine.com • Finance Authority of Maine. (2008). [Cohort report, defaulted borrowers]. Unpublished raw data. • Compact for Higher Education (2004). Greater expectations: College as a right and responsibility for all Maine people. Retrieved from http://www.collegeforme.com/action _plan.pdf