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WANTED: to Graduate

WANTED: to Graduate. HELP!. Financial Aid’s Role in Retention. 2013 RMASFAA Training Committee. Introduction. You ( RMASFAA members ) voted for it ( RMASFAA blog ); we ( RMASFAA Training Committee ) presented on it! THANK YOU for your participation!. 2013 Training Committee.

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WANTED: to Graduate

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  1. WANTED:to Graduate HELP! Financial Aid’s Role in Retention 2013 RMASFAA Training Committee

  2. Introduction • You (RMASFAA members) voted for it (RMASFAA blog); we (RMASFAA Training Committee) presented on it! • THANK YOU for your participation! 2013 Training Committee

  3. Why do Students Withdraw? Illness Family GPA LOST Life Unable to Balance Job Students who are undecided or who have a less job specific major are more likely to drop out* *Source: Harvard. (2011)

  4. Why Should Financial Aid Offices be Concerned? • Movement to tie state funds to graduation rates or other performance indicators *Source: NCSL. (2012)

  5. FAO Concern: Graduation Rates Total Public and Private (2009) Three-Year Graduation Rates for Associate Students Six-Year Graduation Rates of Bachelor’s Students RMASFAA States Colorado: 39.3% Kansas: 34.4% Montana: 24.4% Nebraska: 30.3% N. Dakota: 37% S. Dakota: 60.7% Utah: 36.4% Wyoming: 53.9% U.S. Average: 29.2% RMASFAA States Colorado: 53.3% Kansas: 53.2% Montana: 45.2% Nebraska: 55.1% N. Dakota: 46.9% S. Dakota: 44.8% Utah: 51.5% Wyoming: 55.4% U.S. Average: 55.5% Source: NCES, IPEDS Graduation Rate Survey

  6. FAO Concern: Student Pipeline Rates9th Grade to College Grad Total Public and Private, Two-Year and Four-Year (2008) RMASFAA States Colorado: 22.2% Kansas: 22.0% Montana: 16.1% Nebraska: 24.9% N. Dakota: 24.6% S. Dakota: 29.5% Utah: 20.8% Wyoming: 25.5% U.S. Average: 20.5%

  7. FAO Concern: Default Rate • Borrowers who do not graduate default on their loans at a higher rate than those do. • The average default rate for those borrowers with no degree is more than 4 X the rate for those with a Bachelor’s degree* • Loan default = no Title IV, bad credit reports, collection agency contact, IRS income tax offset, negative impacts on ability to get jobs *Source: Nguyen, M. (2012)

  8. Retention ProblemsvsFinancial Aid SolutionsThe MONEY Issue

  9. The MONEY Issue?? • Stating “financial reasons” on withdrawal surveys might be easier than listing more personal or difficult reasons. • Financial aid or cost are much more important for “first purchase” than “repurchase” decisions. * • Degrees of dissatisfaction and satisfaction (the latter involving esteem, relationships, etc.) are the real drivers/influencers to re-enrollment behavior. * *Source: Scannell, J. (2011)

  10. The MONEY Issue?? • Financial issues may be more of a “tipping point” when students are already concerned with: • Academic performance • Campus relationships • Family issues • Work situations • Assuming is always the main driver to improved retention rates is not enough *Source: Scannell, J. (2011)

  11. The MONEY Issue?? • Higher performing students are more likely to transfer out regardless of a financial aid package. * • Thus college cost is not a variable in student selection process for higher performing students.* 4.0 GPA 0 EFC VS. *Source: Herzog. (2008)

  12. The MONEY Issue • Increasing financial aid packages creates only modest improvements in retention • A$1,000 increase in gift aid results in a 2-4% increase in student retention on average.* • Is a marginal benefit worth a large-scale and costly expansion? *Source: Crockett, K, Heffron, M., & Schneider, M. (2011)

  13. The MONEY Issue • College is expensive • Cost of living has continued to go up • Families may plan for year one, but not for later years • Parent unable/unwilling to help

  14. The MONEY Issue • Many families experiencing catastrophic financial situations • More PLUS loans being denied* • Previously looked at whether applicant had an adverse credit history for an account in the past 90 days • Now looks for delinquent accounts during last 5 years • Foreclosures, bankruptcies, wage garnishments, repossessions, tax liens, past due payments. *Source: Vergakis, B. (2013)

  15. The MONEY Issue • Use endowed funds to respond to increased need among returning students instead of only targeting to academic success • Academically successful students are more likely to be retained anyways* • Create grant programs with set criteria so new and continuing students can see stability • Have funds that can be used on a case by case basis to holistically assess need and retention *Source: Scannell, J. (2011)

  16. The MONEY Issue • Do a cost/benefit analysis • Identify which populations are most at risk financially. • Where do breakpoints occur at various levels of unmet need? *Source: Scannell, J. (2011)

  17. Retention ProblemsvsFinancial Aid SolutionsThe OTHER Issues

  18. The REMEDIAL Issue • Students not ready academically for college, put in remedial classes* • >50% of students entering 2 yr colleges and almost 20% of those entering 4 yr colleges are placed in remedial classes.** • Drains money intended to pay for college courses • Students may go into debt over these courses • Reduces student’s chances of success in college *Source: Elliott, S. (2013) **Source: Complete College America. (2013)

  19. The REMEDIAL Issue “The evidence is clear very few students who have this cycle ever graduate from an institution of higher education”* • According to ED, students who are more likely to withdraw are:** • Students who take any remedial course • Students with a GPA below 2.75 * Source: Elliott, S. (2013) ** Source: U.S. Dept. of Education (2002)

  20. The ACADEMIC Issue • Providing additional in-person counseling • Requiring that certain steps in the financial aid process be completed in person. • Require loan counseling for any student whose grade point average falls below a certain point.

  21. The IDENTITY Issue • Retention requires a degree of connection between student and institution • Withdrawal is failure to make that connection. • Students “… who experienced lower social and academic integration into campus life during their first year of postsecondary education were more likely than others to leave within 3 years”* • Students are at higher risk of withdrawal if they begin attending higher education during any semester other than fall* * Source: U.S. Dept. of Education (2002)

  22. The IDENTITY Issue • Enhancing connections between financial aid office with academic faculty, advisors, and advocacy offices • Let other offices know that the financial aid office may have solutions • Offer presentations to faculty groups and departments • Allow others to report students they are concerned about (financial reasons). • Assign a financial aid counselor liaison for each department on campus • Communication can be initiated by either office

  23. The NEWBIE Issue • Nationally,1st Gen students less likely to attend & persist in college* • Only 26% of 1st Gen students who graduated from high school and enrolled in college, earned a BA within 8 yrs of enrollment (68%)* *Source: Musslewhite& Reeve, (2012)

  24. The NEWBIE Issue • Additional diversity amongst these students* • Low income and more likely to be from the lowest income quartile • Age • Level of parent education (none above Associate’s) • Minority; more likely to be Black or Hispanic *Source: Musslewhite& Reeve, (2012)

  25. The NEWBIE Issue • Participation in Pre-Collegiate & Bridging Programs (TRIO programs) • Upward Bound, Talent Search, Black Issues Forum, Lorenzo de Zavala session, etc… • These types of programs are shown to work for First Generation & minority populations • At CSU a $2,500 annual Partnership Award (renewable) is awarded to incoming freshman who have participated in one of the above mentioned programs

  26. The NEWBIE Issue • Colorado State University First Generation Award • $4,000 per year, renewable up to 5 years • Student’s parents must NOT have received a bachelor’s degree • Must demonstrate financial need • Must demonstrate potential for academic success • Outreach and Support Programs Department • Provides University connection

  27. The NEWBIE Issue • Colorado State University (CSU) • Recipient of the Educational Policy Institute’s 2011 Outstanding Student Retention Program award • Commitment to Colorado • Promises grant funds at least equal to the amount of annual tuition and fees for Pell grant eligible CO residents • Promises grant funds equal to half the amount of annual tuition for CO resident students whose families earn CO’s median household income or less • More information: http://www.sfs.colostate.edu/commitment-to-colorado • Student Support Grant • Holistic grant that helps students in financial need nearing graduation stay in school. • Amount of grant is different for each student and based on multiple factors determined by the financial aid counselor.

  28. The COMMUNICATION Issue • Social media/networking for financial aid outreach • Everybody’s doing it…. Set up a Facebook page or a Twitter account to get the word out to these Millennials and Social Media-friendly parents • Have school’s main Social Media site (official) send out status reports and tweets of important financial aid events and deadlines • Have the main site “share” your page’s status updates

  29. The IGNORANCE Issue Lack of student and family knowledge of financial aid programs and the financial aid office A 2012 report states that: “College students are generally mentored by their parents and ignore experts (especially online experts).”* *Source: Millennial Branding & StudentAdvisor.com, (2012)

  30. The IGNORANCE Issue • Start early! Educate! • Increasing outreach to middle schools for family financial planning • More financially ready students & families

  31. The IGNORANCE Issue • Financial literacy campaign for new and continuing students • Classroom workshops • On-line programs • Publications • Emails • Require completion of an annual program • Peer-to-peer counseling/presenting

  32. OUT REACH Example • Cecil Community College (MD) • Campaign to increase financial aid awareness • Informational workshops • Targeted mailings • Phone calls to students eligible for financial aid but had not enrolled • Campaign resulted in financial aid participation rate increase of 33 - 39% in two years • Retention rates of financial aid recipients increased slightly at 1% • College expansions • Increase staff & computer support in learning centers • Retooled career & job placement services *Source: Center for Community College Student Engagement.(2006)

  33. OUT REACH Example • “Life Coaching” • Programs available for a price available online (ex: universitylifecoach.com) • Stresses goal setting, action planning, resourcing & accountability • Price can be hundreds of dollars, not reasonable for a cash-strapped college student • Offer programs on campus available to students

  34. OUT REACH Example • Salish Kootenai College • Takes students on financial aid probation due to academic probation, and provides one academic quarter of intensive intrusive advising & skill building • Provides academic help when students may not know how (or be willing) to ask for it • Provides connection with faculty in academic major • Improved persistence rates were shown for these students

  35. OUT REACH Example • Kansas State University • Offers free financial counseling to students to help with budgeting and managing debt • Met with 220 “clients” on campus Fall 2012 semester, and hope to reach 400 for 2012-2013 year • Offers group financial presentations covering budgeting, credit, student loan repayment and financial planning • For 2011-2012, 94 presentations were given that reached 3,800 individuals • For 2012-2013, 73 presentations have been given thus far

  36. OUT REACH Example • Sitting Bull College (ND) • Holds Health & Financial Fairs each semester, bringing in local area services to educate student • Holds Student Summit each semester to allow students to ask question and visit with representatives from various departments on campus

  37. The BOTTOM LINE • Students who are the most high risk may also be the least responsive to retention efforts* • May not be cost (or time) effective to target this group • Students who are high risk for withdrawal remain high risk throughout their college enrollment* *Source: Singell, L.D. & Waddell, G.R. (2010)

  38. Group Discussion Specific aid? Targeting specific groups or case-by-case? Campus Connections? Outreach? What is your office doing to aid in retention? What works and what doesn’t?

  39. References Ackerman, R., & Schibrowsky, J. (2007-2008). A business marketing strategy applied to student retention: A higher education initiative. Journal of College Student Retention: Research, Theory & Practice, 9(3), 307-336. Allen, J., Robbins, S. B., Casillas, A., & Oh, I.-S. (2008, November). Third-year college retention and transfer: Effects of academic performance, motivation, and social connectedness. Research in Higher Education, 49(7), 647-664. doi: 10.1007/s11162-008-9098-3 Bowen, W. G., Chingos, M. M., & McPherson, M. S. (2009). Crossing the finish line. Princeton, NJ: Princeton University Press. Carnevale, A.P.; Jayasundera, T.; and Cheah, B. August 2012. Executive Summary: The College Advantage: Weathering the Economic Storm. Georgetown University Center on Education and the Workforce. Carnevale, A.P.; Rose, S.J.; and Cheah, B. August 2011. The College Payoff: Education, Occupations, Lifetime Earnings. Georgetown University Center on Education and the Workforce. Retrieved from: http://www9.georgetown.edu/grad/gppi/hpi/cew/pdfs/collegepayoff-complete.pdf. Carnevale, A.P.; Smith, N.; and Strohl, J. June 2010. Executive Summary: Help Wanted: Projections of Jobs and Education Requirements Through 2018. Georgetown University Center on Education and the Workforce. Center for Community College Student Engagement. (2006). Act on Fact: Using Data to Improve Student Success. Austin, TX: The University of Texas at Austin, Community College Leadership Program. Complete College America. Spring 2012. Remediation: Higher Education’s Bridge to Nowhere.. Retrieved from: http://www.completecollege.org/docs/CCA-Remediation-final.pdf. pp. 2-3. Crockett, K., Heffron, M., Schneider, M. (2011). Targeting Financial Aid for Improved Retention Outcomes. Noel-Levitz and American Institutes for Research. Retrieved from: http://www.air.org/files/LA_PELL_STUDY_report_1011.pdf Dalton, D., Moore, C. A., & Whittaker, R. (2009, Spring). First-generation, low-income students: Strategies for success at Lyndon State College. The New England Journal of Higher Education, 23(5), 26-27.

  40. References cont. Dillon, E., & Smiles, R. V. (2010, February). Lowering student loan default rates: What one consortium of historically black institutions did to succeed. Washington, DC: Education Sector. Domonell, K. (2013). Sequestering Minority Education. University Business 3/26/2013. Ellitot, S. (2013). Indiana legislature bill aims to boost college readiness by typing financial aid to state exams. Retrieved from: http://www.indystar.com/article/20130124/NEWS05/130124042/Bill-aims-boost-college-readiness-by-tying-financial-aid-state-exams?gcheck=1&nclick_check=1 Gross, J. P. K., Cekic, O., Hossler, D., & Hillman, N. (2009). What matters in student loan default: A review of the research literature. Journal of Student Financial Aid, 39(1), 19-29. Harvard Graduate School of Education. (2011). Pathways to Prosperity Study. Henderson, S., Tatum, J. (2009). Beyond Leveraging: Financial Aid’s Role in Executing SEM Recruitment and Retention. 19th AACRAO Enrollment Management Conference. Univeristy of Michigan-Dearborn. Retrieved from: http://handouts.aacrao.org/sem19/finished/T0215p_J_Benfield%20Tatum.pdf Herr, E., & Burt, L. (2005). Predicting student loan default for the University of Texas at Austin. Journal of Student Financial Aid, 35(2), 27-49. Herzog. (2008) Journal of Student Financial Aid. 37(3) Millennial Branding and StudentAdvisor.com. (2012). Millennial Branding and StudentAdvisor.com Release New Study on Student Career Development. Retrieved from: http://millennialbranding.com/2012/11/student-career-development-study/ NCHEMS Information Center for Higher Education Policymaking and Analysis, http://www.higheredinfo.org/ National Association of Student Financial Aid Administrators Graduate/Professional Issues Committee. (2005). Debt management strategies: For graduate and professional students. Student Aid Transcript, 16(1), 20-23. National Conference of State Legislatures (NCSL). (2012). Performance Funding for Higher Education. Retrieved from: http://www.ncsl.org/issues-research/educ/performance-funding.aspx

  41. References cont. Nguyen, M. February 2012. Degreeless in Debt: What Happens to Borrowers Who Drop Out. Retrieved from: http://www.educationsector.org/publications/degreeless-debt-what-happens-borrowers-who-drop-out O'Neal, S., & Kent, C. (2002). Take one small step: Traveling the path to default reduction. Student Aid Transcript, 13(4), 8-15. Pinto, M. B., & Mansfield, P. M. (2006). Financially at-risk college students: An exploratory investigation of student loan debt and prioritization of debt repayment. Journal of Student Financial Aid, 35(2), 22-32. Sallie Mae. (2008). 2007 Survey of Parents of College-Bound Freshmen. Retrieved from: http://www.rmasfaa.org/docs/exchange/200803/rme6.html Scannell, J. (2011). The Role of Financial Aid and Retention. Retrieved from: http://www.universitybusiness.com/article/role-financial-aid-and-retention Singell, L. D., & Waddell, G. R. (2010, September). Modeling retention at a large public university: Can at-risk students be identified early enough to treat? Research in Higher Education, 51(6), 546-572. doi: 10.1007/s11162-010-9170-7 Smith, M. (2008). Right on the money: Training students in financial literacy. Student Aid Transcript, 19(3), 6-10. Steiner, M., & Teszler, N. (2005, January). Multivariate analysis of student loan defaulters at Texas A&M University. Round Rock, TX: Texas Guaranteed Student Loan Corporation. Time Ideas. (2012). 8 Ideas to Improve Higher Education. Retrieved from: http://ideas.time.com/2012/10/18/8-ideas-to-improve-higher-education/#slide/tie-funding-to-graduation-rates/?&_suid=13594909150780032817017170189644 USA Today. (2013). Which colleges offer the best value? Retrieved from: http://www.9news.com/news/article/314987/339/Which-colleges-offer-the-best-value- U.S. Department of Education. (2000, October). Ensuring student loan repayment: A national handbook of best practices. Washington, DC: Office of Student Financial Assistance.

  42. References cont. • U.S. Department of Education. (2002, November). Short-term enrollment in postsecondary education: Student background and institutional differences in reasons for early departure, 1996-98. Washington, DC: National Center for Education Statistics. • U.S. Department of Education. (2010). Default prevention and management. Washington, DC: Federal Student Aid. • Vergakis, B. (2013). Feds’ loan changes hamper black college enrollment. Associated Press. Retrieved from: http://news.yahoo.com/feds-loan-changes-hamper-black-162929184.html • Wilmsen, E. (2011). Educational Policy Institute honors CSU with 2011 Outstanding Student Retention Program award. Today @ Colorado State. Retrieved from: http://www.today.colostate.edu/story.aspx?id=5727

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