Financial Aid for Enrollment Management

Financial Aid for Enrollment Management October 2007 Savannah, GA

Introductions David B. Gray President

OrganizationalModels Traditional Model Traditional structure – admissions reports to Dean of Students, Registrar reports to Provost, FA reports to someone else Tendency to create “silos”. People work on their job without interaction or concern for other areas

OrganizationalModels Enrollment Management Model EM model combined Admissions, Registrar & Financial Aid into one division. Hope they would work together to meet enrollment goals. Generally, the offices continue to function as always, only the reporting line has changed. Lots of variations- university printing, IT, housing, groundskeeping, Bursar, etc.

One Stop Model EM model evolved into the One Stop Shop. Same offices – admissions, registrar & FA. Staff is required to understand each area. Staffing Higher level skills. Resulting in higher salaries Triage approach - rely on generalist rather than specialist. Training on multiple office policies and procedures, automated systems, phones, student service, etc. OrganizationalModels

One Stop Model (cont.) Systems requires integrated systems Staff access to various modules Staff training on each module and updates Department needs internal technical staff OrganizationalModels

One Stop Model (cont.) Phones Enormous number of calls Requires sophisticated phone system Need report statistics on # of calls, wait times, drops and ability to listen to calls for QA Dedicated staff OrganizationalModels

One Stop Model (cont.) Space Combining 3 offices - large waiting area w/ numerous private areas Area designed for Triage and layers of generalists OrganizationalModels

OrganizationalModels Non stop – Self Help Model Students access services on line, no need to call or visit office 80-20 rule 80% of students require 20% of staff time 20% of students require 80% of staff time Move the routine 80% to self service - web based applications Remaining students have significant issues Changes office needs Less student traffic and fewer phone calls Staff will encounter only complex situations Complexity of issues reduces need for generalist Less need for open space More staff training

OrganizationalModels Student Financial Services Model Combining of Financial Aid and Bursar Selective Private Colleges Many of the same issues as the One Stop Staffing skills, need for automation and access, training, space Be Careful – Federal regulations prohibit the same person from awarding and disbursing aid. Maintain checks and balances.

OrganizationalModels • Any Organizational Structure Can Succeed and any can fail. It depends on the people involved and their willingness to work together and to communicate regularly. • If staff are territorial and do not want to work together, changing the org structure will not improve this situation. • AACRAO SEM Conference end of October, New Orleans • NACUBO Student Financial Services – Blending Bursar and Financial Aid

Item # 1 GACRAO Timely processing of financial aid applications and awarding of aid.

Item # 1 GACRAO Good practices include:  Good communications (print and online) about the federal aid application process, including filing a FAFSA online using an electronic PIN signature. Friendly, well-informed financial aid or enrollment services staff that provides front counter/window and phone services addressing frequently asked questions and explaining steps in the financial aid process.  Consistent, well-communicated statements by the financial aid, business, and registration offices of the financial aid application filing deadlines, necessary documents, tuition payment deadlines, tuition payment options for late filers, and the registration timetable.

Item # 1 GACRAO Good practices include: • Reasonable expectations of the turnaround time for processing financial aid applications, awarding aid, and processing loans. • Effective and efficient document and file management systems for managing the financial aid operation. • Automated systems managed by trained staff that adheres to a timetable for updating systems and new year processing to ensure adequate time for set up, testing, and the kick-off of early financial aid processing.

Item # 1 GACRAO Good practices include: • Adequate number of trained financial aid professionals and support staff to support the financial aid operation. • Well-documented, up-to-date policies and procedures for processing and awarding student aid. • Effective and efficient application review and awarding workflow.

Item # 1 GACRAO Symptoms of a problem: • Long lines at the financial aid office of discontented aid applicants waiting for aid awards to make tuition payments. • High volume of phone calls to the financial aid office from aid applicants asking about the status of their financial aid application, loan application, and appeal for reinstatement of aid eligibility. • Mounds of paper and files throughout the office, and complaints from students of duplicate requests for documents. • Demands to speak to the President from irate students and parents.

Item # 3 GACRAO Timely return of federal unearned aid debited to student accounts, and no excess federal cash remaining in control accounts related to federal student aid.

Item # 3 GACRAO Good practices include: • Good communications with federal aid recipients regarding the financial consequences of withdrawing from the institution before the end of the term, because unearned aid must be returned. • Public announcements throughout the year of the 60% date after which there is no return of aid required if a federal aid recipient withdraws during the term. • Written policies and procedures of the Return of Title IV Funds (i.e., return of unearned federal aid for students that withdrew from the institution within the term prior to the 60% point in the term).

Item # 3 GACRAO Good practices include: • Communications and collaboration on the procedures among key administrators in records, student accounts, accounting, and financial aid. • Customized weekly reports to identify federal aid recipients that “officially” withdraw, and timely calculation of unearned federal funds. • Customized end of term reports to identify federal aid recipients that “unofficially” withdrew, determination of withdrawal date, and timely calculation of unearned federal funds.

Item # 3 GACRAO Symptoms of a problem: • Academic culture that encourages students to withdraw from a course, rather than take a failing grade that would affect a student’s grade point average. In addition, lenient academic policies regarding repeat course-taking. • Lax enforcement of procedures to confirm attendance prior to disbursement of financial aid. • Concern that the financial aid office is unableto properly identify students (i.e., aid recipients) that are considered“official” and “unofficial” withdrawals, per federal regulations, or is simply not requesting the data.

Item # 3 GACRAO Symptoms of a problem: • Audit findings that the institution did not (or incorrectly) calculate federal return of Title IV unearned funds and/or the business office did not return the funds to the federal aid programs and/or lenders within the timeframe required by federal regulations. • Concerns that there are poor cash controls and the school may be holding excess federal cash.

Item # 6 GACRAO No audit findings on the management of student aid.

Item # 6 GACRAO Good practices include: • Changes in federal student aid laws, regulations, sub-regulations, and ED guidance are monitored for applicability to the institution’s participation in student aid programs. Changes are made in a timely manner, as appropriate. • Policies, procedures, and practices are reviewed internally annually, or as issues are identified at the national, regional, or state levels. • Corrective actions are taken when manual processes or automated system errors are discovered.

Item # 6 GACRAO Good practices include: • Good communications with the financial aid director about strategic developments and decisions that in any way may influence or affect the administration of student aid or affect the execution of the terms and conditions of the institution’s Program Participation Agreement with ED, including changes in key administrators, changes to the academic calendar, addition of locations, and addition of academic programs. • Ongoing opportunities for professional development of key administrators that manage the financial aid operations and manage student aid accounts.

Item # 6 GACRAO Symptoms of a problem: • Material findings of inadequate controls in the financial aid office managing the determination of student eligibility for federal financial aid, award amounts, disbursement of funds, and/or calculation of return of unearned aid. • Material findings of inadequate controls in the business office managing federal student aid accounts and related cash control accounts, holding of excess cash, and/or untimely return of unearned aid. • Large student account receivables because of poor communications with students and their understanding of the tuition refund policy and return of Title IV (federal) unearned funds policy.

Item # 6 GACRAO Symptoms of a problem: • Concerns of mismanagement of student aid funds. • Untimely reporting to external agencies of financial aid disbursements that are used to establish the school’s authorization for funding or reimbursement of student aid funds. • Repeat annual audit findings that question an institution’s administrative and financial capabilities (as defined by federal regulations) that have the potential of very serious consequences when ED reviews the audit.

Item # 7 GACRAO Academic program and enrollment expansion is supported by financial aid operation and services.

Item # 7 GACRAO Good practices include: • Participation of financial aid director in enrollment management discussions and strategic initiatives. • Participation of financial aid director in an ex officio status in academic committee discussions regarding new programs development and approval. • Allocation of adequate resources to support expansion of services, increases in financial aid application volume, increases in amount of student aid managed, and development of policies and procedures to support non-traditional programs, among other things.

Item # 7 GACRAO Good practices include: • Obtain Accrediting agency and ED approval for new programs. • Update ED’s Program Participation Agreement with new program information. • Monitor and report program changes that involve length of term and number of credits.

Item # 7 GACRAO Symptoms of a problem: • New courses and academic programs are offered in “short” terms or non-traditional calendars; thus, requiring (by federal regulations) a different treatment of determining financial aid and most likely manual processing and no preparations for alternative handling made by the financial aid office. • Staff responsible for compliance in financial aid is unaware of new or changes to existing academic programs.

Item # 7 GACRAO Symptoms of a problem: • Complaints that there is an inadequate number of staff, staff training, and/or system support to manage any expansion. Staff is already overwhelmed. • Concerns surface that the implementation period to coordinate and establish effective business procedures to manage growth is too short or lacks the necessary collaboration of offices to get the work done.

Item # 9 GACRAO Collaboration with other administrative offices and continuous or strengthening relationship between the financial aid and business office administrators.

Item # 9 GACRAO Good practices include: • Good communications and regularly scheduled meetings among administrators. • Clear performance expectations that are evaluated regularly and reinforce collaboration and building partnerships to optimize allocation of resources and ensure compliance with federal regulations. • Departmental reviews of policies and procedures on an annual basis. Identify and address the areas needing improvement. • Annual planning sessions for departmental directors responsible for the financial aid operation. • Directive leadership.

Item # 9 GACRAO Symptoms of a problem: • Common Indicators, e.g., students’ complaints, administrators’ complaints, audit findings, or a lack of administrative coordination to ensure proper support of delivery of financial aid in compliance with regulations. • Offices and staff work in “silos”, with little or no collaboration and exchange of information. • Inconsistent or poor level of student service, students bounce between offices for assistance.

Item # 9 GACRAO Symptoms of a problem: • Constant extensions of timelines for completion of work. Frequent excuses of miscommunications or misunderstandings among administrators. • Unclear or unwritten guidelines and procedures for staff to follow.

Item # 11 GACRAO Automated technology system with well-trained staff and adequate support to meet performance expectations and utilize full functionality of the financial aid module.

Item # 11 GACRAO Good practices include: • Prioritize training among the top deliverables when installing a new administrative computer system. • Identify at least two staff members who have demonstrated that they can easily learn and utilize computer applications and support the ongoing development of the functional and technical knowledge of how to set up, maintain, and use the administrative computer system. • Provide adequate support from the Information Technology Office to ensure the proper management and operation of the financial aid module. • Periodic training of staff on upgrades and system changes.

Item # 11 GACRAO Symptoms of a problem: • Concerns that financial aid functions in the administrative computer system are underutilized and poorly understood by the financial aid staff. • Concerns that financial aid office workflow is driven by manual operations and external software applications (not the administrative computer system). • Concerns that no one, or only one, staff person has a working knowledge of the administrative computer system’s set up and operations. If that person leaves, the financial aid operation is not equipped to process and deliver aid.

Thank you for your time. David Gray Direct line: (770) 988-9447 ext. 115 EmailAddress: DGray@FinancialAidServices.org

Financial Aid for Enrollment Management