Financial Aid’s Role in GPS: Graduation and Persistence for Students VASFAA Spring Conference 2013...

Financial Aid’s Role in GPS: Graduation and Persistence for Students

VASFAA Spring Conference 2013

Hampton, Virginia

Presented by:Michael O’Grady

Financial Aid Services

Why should Financial Aid personnel care about “persistence?”

1) Accountability - Accountability - Accountability

2) Discretionary budget has a bull’s eye on it.

3) Huge waste of tax payers’ money when students don’t graduate

4) “Stop outs” are less likely to pay their student loans

5) Higher Education Act reauthorization proposals


Persistence/Retention

The New Pipeline

Source: Lumina Foundation

Non-Hispanic white population will increase by 10.2 million by 2020

African-American population will increase by 9.5 million by 2020

Hispanic population will increase by 24.1 million

Returning US service membersVASFAA Spring Conference 2013

31.1 %

12.6 %

17.6 %

% that have a college degree

Persistence’s Perfect Storm

Decreasing traditional college bound population

Worst economy since the Depression

Budget freezes on all levels

One out of four homeowners is in a negative equity position or no equity position

Filling seats and keeping students from a new demographic



Perfect Storm ContinuedBy 2020 65% of all jobs will require postsecondary education

In 1993 the average student loan debt load (in today’s dollars) was $14,500

In 2011 the average student loan debt load was $26,600

In 1999 the default rate was 5.6%, in 2010 the default rate was 9.1%

DE DC MD Spring Conference 2013


According to Thom Golden from Vanderbilt University, non-traditional students don’t enroll often due to: Concerns over affordability and Lack of clarity around eligibility

According to ACE- 1.8 million low-income students would received financial aid but didn’t apply

Financial constraints are the #1 reason given by 50% of students who drop out.

Financial Aid’s Role

Retention Funnel

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Recruiting students that don’t persist is extremely expensive and is a “lose-lose” proposition.

G

R

A

D

U

A

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E

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Freshmen Sophomores

Juniors Seniors



PERISTENCE QUIZ---

WHAT ARE THE TOP REASONS FOR DROP OUTS AND STOP OUTS???

Real reasons students leave higher education

From: The Cost of College Attrition at Four Year Colleges & Universities, EPI Policy Perspectives, Feb. 2013

DE DC MD Spring Conference 2013

COST OF ATTRITION

16.5 Billion Nationally $13,267,214 Average 4 yr Public $8,331,593 Average 4 yr Private

Source: Education Policy Insitute

INFLUENCES ON STUDENT SUCCESS AND RETENTION

Based on Vincent Tinto’s research, there are formal and informal systems that influence success


SYSTEMS IMPACT

Academic engagement Student Support Services Faculty and staff interactions Student Community

Financial aid staff can impact both formal and informal systems through intentional focus on debt burden, time to degree, and breaking through silos -using structure and culture to enhance outcomes.

VASFAAD Spring Conference 2013

PRACTICAL STRUCTURE

Short-term and standard course sequencing Students start together and stay together

(cohorts) Block scheduling of coursework Structured career-specific curriculum Remediation built into coursework Tutoring by faculty and peers Hands-on teaching and learning Integration of workplace experience Stable full-time staff


VASVAA Spring Conference 2013

CULTURAL

Student success and retention are consistent themes, and produce integrated solutions (collaboration)

Commitment to student success is an important consideration in hiring

Caring community– institutional and personal Staff and faculty members are committed to helping

students Maintain focus on quality and accountability Consistent advising and counseling Systemic and continuing efforts to improve student

graduation rates


SUCCESSFUL OUTCOMES

Shorter time to degree reduces costs/debt

Campus wide efforts needed Loan counseling integrated with

academic and career guidance through access to data

More intrusive counseling and outreach based on assessment of risk


PRACTICAL SUGGESTIONS

Reminders to FAFSA filers who do not refile before state deadlines

Package for full time attendance Project monthly debt by academic

program based on completion data Provide training to career and

academic counseling staff regarding aid limitations (Pell grant limits, aggregate debt)


A small private college of 1000 students in New York State with 43% of its students Pell eligible instituted an early identification and automated alert system to improve retention.

• Spring 2010 to Fall 2010 they retained 36 students more than the previous year

• Fall 2010 to Spring 2011 they retained 39 students more than the previous year.

• Spring 2011 to Fall 2011 they retained 59 students more. • Fall 2011 to Spring 2011 they retained 70 students more

than the previous year.

Total Net Revenue: More than $2 Million dollars.

Retention Pays

Model of Communication

Sender Encoder Decoder Receiver


“The Medium is the Message”…Marshal McLuhan

E-Mail Facebook Twitter Net Price Calculator Dynamic Award Letters


Snail Mail Direct Mail Phone Internet Campus Visits

GPS all the above through automatic communications.

Carlo Salerno

Include our discussion based on Chaperone/FinLit outreachDiscuss FAO priorities based on NASFAA research we did

College “Culture Shock” & Veteran’s PTSD/I Awareness

Introduced by 1954 by Kalvervo Oberg

Normally a student blames his or her “financial aid” as the reason for leaving school.

Difficulty in assimilating to new culture and environment

Anxiety, disorientation, uncertainty, confusion

Phases: Honeymoon Phase-Negotiation Phase--Adjustment Phase (things become “normal”)-Reverse Culture Shock


Carlo Salerno

Factors that affect persistence.

VETERANS AND POST TRAUMATIC STRESS DISORDER/INJURY (PTSD/I)

Re-entry issues for veterans often result in alcohol abuse, drug abuse, family or marital problems or suicide

Symptoms of PTSD may include anger and irritability, “spacey stare,” short attention span, confusion, trouble sleeping, and “self-medicating.”

What is your SAP policy regarding PTSD?

VASFAA 2013

VETERANS AND POST TRAUMATIC STRESS DISORDER/INJURY (PTSD/I)

One in five veterans will experience re-entry issues or possibly PTSD/I

Approximately 200,000 women served in Afghanistan and Iraq

23% to 33% of women veterans report experiencing “MST” of which 42% will acquire PTSD


Internal Champions/Task Force—Breakdown the Silos!!!

Admissions

Financial Aid

Multicultural Affairs

Veterans Affairs

Student Accounts

Psychological Services


Leveraging Technology for Better Customer Service

Transfer work-load to where interpersonal skills are needed

Reduce rote tasks 24/7 Institution can

become bilingual


Consistent brand management

Mitigates budget cuts Go Green Use analytics as your

GPS for default management

Staying Afloat

Diversify your staff - age, sex, and ethnicity Technology, Technology, Technology Leverage resources from the Department of Ed Benchmark with your peers constantly Acquire cross-cultural training


REFERENCES/CONTACT INFO

http://www.tgslc.org/pdf/Balancing-Passion-and-Practicality.pdf

http://www.tgslc.org/pdf/Graduate-High-Risk-Students.pdf

Contact us? [email protected]

703-906-7318 [email protected] 410-963-

5924






mailto:[email protected]

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Financial Aid’s Role in GPS: Graduation and Persistence for Students VASFAA Spring Conference 2013...

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