Money Matters – Financial Aid Issues Affecting Student Success

1. Money Matters – Financial Aid Issues Affecting Student Success Jo-Ann Craig Director, Financial Aid Cape Fear Community College

2. Retention Research • 40 years • 20 years focusing on aid • Similar findings: aid impacts retention (duh!)

3. “Starting Right: A First Look at Engaging Entering Students” • 2007 Pilot of the Survey of Entering Student Engagement (SENSE) • Administered during fourth and fifth weeks of fall term • 22 colleges participated

4. Results “I was able to access the information I needed to complete the enrollment process (admissions, registration, financial aid, etc.)” 32% strongly agree 2% strongly disagree

5. Results(cont’d) Interaction with the Financial Aid Office: • “Chaos” • “Disorganization” • “I had no idea, it was very confusing” • “When you finally get everything, you feel like you got that ‘A’”

6. “Advisors need to be able to understand the policies and procedures that affect students’ financial aid as well as have a clear understanding of how to refer effectively those students in financial need.” Charlie L. Nutt National ACademic ADvising Association

7. Major Financial Aid Issues Affecting Student Success • “Digital Divide” • Complexity • Satisfactory Academic Progress • Debt Level/Financial Literacy

8. Digital Divide Use of Internet expedites the financial aid process: • Applications processed faster • Applicants learn of eligibility faster • Applicants receive e-mail updates • Applicants have wealth of scholarship information at their disposal

9. Household Income Level $20,000 or Less $75,000 or More % of K-12 Students Using the Internet 40 74 Computer & Internet Use by Students in 2003

10. Computer & Internet Use by Students in 2003(cont’d) Parents’ Educational % of K-12 Students Level Using the Internet Never graduated from 37 high school   Graduate degree 73

11. Bridging the Divide • “College Goal Sunday” Events • Increased access to computers and the Internet • Collaboration between high schools and colleges

12. FAFSA

15. How Do I Apply for Federal Student Aid? • Step 1 – Get Free Information and Assistance • Step 2 – Get PIN • Step 3 – Gather all Information • Step 4 – Complete the FAFSA • Step 5 – Review your SAR • Step 6 – Submit Verification Documents • Step 7 – Ensure Receipt of Documents • Step 8 – Contact Financial Aid Office with Questions

16. Student Aid Application Process Fall -Spring Senior Year of High School Winter-Spring Senior Year of High School 2-6 Weeks After Submitting FAFSA March – April Senior Year of High School Student Receives SAR Apply to College Submit FAFSA Student Receives Aid Eligibility Department of Education Processes FAFSA Colleges Receive/Review Applications & Admit Student Schools Receive SAR & Process Aid Package

18. Satisfactory Academic Progress The qualitative and quantitative measure of a student’s progress toward program completion

19. SAP Policy Requirements • Same as or more strict than standards for students NOT receiving aid • Qualitative measurement • Quantitative measurement • Maximum time frame for completion: 150% • Appeal process

20. SAP Policy at CFCC • Must maintain a cumulative 2.0 GPA (Qualitative) • Must successfully complete 67% of all credits ever attempted (Quantitative) • First semester = Warning of Possible Loss of Financial Aid Eligibility • Second semester = SUSPENSION of Financial Aid Eligibility

21. Appeal Process In writing Can appear before committee Appeal Committee Membership Staff Faculty Student NO Financial Aid Staff SAP Policy at CFCC(cont’d)

22. Why Do Students Fail to Meet SAP Guidelines? • Academic Challenges • Personal Challenges • Financial Challenges • Medical/Mental Challenges • Military Service Challenges • Social Adjustment Challenges

23. Student Doesn’t Meet SAP Guidelines… Now What? • Does the Financial Aid Office have an obligation to help? • Is the Financial Aid Office equipped to help? • What can be done?

24. Debt Level/Financial Literacy • Up to 3 in 5 first-year college students max out their first credit card within their first year on campus • Nearly 60% of first year students report that “financial problems” interfere with their school work • 29% report “financial problems that are very distracting and troublesome” • Almost 3 in 4 college students believe it is acceptable to use credit cards for living expenses

25. Debt Level/Financial Literacy • 64% of undergraduates don’t know the interest rate on their credit cards • Bankruptcies for those under 25 years of age increased from 15,000 in 1995 to 150,000 cases in 2000

26. Financial Literacy Key Concepts • ·        Money Management • ·        Income vs. expenses • ·        Spending and credit • ·        Value of savings and investing

27. Financial Literacy Training Timing isn’t Everything • No “perfect” time • Start with assessment of current practices • Assess your students

28. Financial Literacy Training Existing Programs • A class in financial literacy; some award academic credit • Imbedding subject material in freshman year curriculum • Subject material is required in financial aid presentations made to all new students • Adding presentations/workshops to Orientation

29. Debt Level/Financial Literacy • Here at CFCC…

30. What Do I Do With ALL of This Information? Talk with: • Financial aid director • Student government leaders • Retention committee members • Counseling staff members • Student Development leaders (Registrar, Enrollment Manager)

31. Jo-Ann Craig Director, Office of Financial Aid Cape Fear Community College 411 North Front Street Wilmington, NC 28401 jcraig@cfcc.edu 910-362-7057