Helping Protect the Investment in Education: Promoting Student Success

Lisa Mitchell, Sallie MaeMaureen “Mo” Amos, Northeastern Illinois University

Mary Shaw, University of Saint Francis

Date: 04/03/2014

Session OverviewThe increasing cost and emotional pressure of attending college have created many challenges for students and families who are now looking for options to safeguard this investment and stay enrolled. Schools have many priorities each year, and student retention is always high on the list. Most retention initiatives involve various departments on campus, including financial aid. This is an interactive session on campus creativity to encourage retention. • Landscape, Trends & Research• Campus Initiatives to encourage retention & student success

– Northeastern Illinois University – University of Saint Francis Telling your Campus Story Discussion

Recent Media Headlines

The Student Loan Debt Crisis: Welcome to the $1 Trillion Club

Higher education crises and how to beat themFrom student loans to graduation rates, higher education is a mess

Is College Worth It?

How Much College Debt is Too Much?

Can U.S. Government Tell Colleges In Poor Financial Shape From Those That Are Not?

America’s Most Dangerous Colleges

Total Education Spend

1) Total education spend includes “all-in” cost of attendance (e.g., in AY09-10, total spend of $387B was comprised of $203B in tuition and fees, $122B in room and board, $17B in books and supplies, and $45B in transportation/other costs). 2) Grants include federal, state, institutional, and private/employer. 3) Includes private loans based on MeasureOne data. 4) Fall enrollment – degree granting - AY1213 estimated.

$88 $102 $108 $110 $103

$77$98

$111 $113 $116$12

$17$20 $21 $21

$168

$167

$175 $180 $191$10.3

$6.8

$6.0 $6.4 $7.2

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20.421.0 21.0 20.6

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Total Postsecondary Education Spend

State/ Federal Loans Grants Ed. Tax Benefit/ Work Study Family Contribution Private Student Loans Enrollment

$430$420$438

$355

$391

1

2 3 4

*Sources: Department of Education, College Board, McKinsey & Company team analysis, MeasureOne, National Student Clearinghouse

Strongly Agree Somewhat Agree

Agreement with Value of College, Year-Over-Year

Source: “How America Pays for College,” August 2013

*Not asked in 2008 or 2009

College is a large investment for families in the future of their students

– Average one year cost • Public: $12,110• Private: 23,840

– Roughly 4 in 10 students seeking a bachelors degree fail to graduate

• 58.8% of students seeking a graduate degree finish within 6 years

– Failing to graduate is costly• 29% of students with student loans dropped out of college in

2009.

• Non-graduate borrowers are 4 times more likely to default on their student loans.

The Cost of Failing to Graduate

Parents have many concerns when sending their kids away to college, especially as students are vulnerable to disruptions that may keep them from graduating

*Combined “Extremely Concerned” and “Somewhat Concerned” ratings.Q: For each of the following factors, please rank on a scale of 1-5 how concerned you are (or were when your child first began college or first lived away from home) that the factor will negatively affect your child’s ability to be successful in college. 1= not at all concerned and 5=extremely concerned. N=620

Consider the Facts

The leading cause of fires on campus is cooking by students unfamiliar with fire safety practices – cooking fires account for 88% of all university housing fires

(www.usfa.fema.gov)

Most homeowners policies have high deductibles. Insurance companies recommend a deductible of at least $500 for a traditional homeowners insurance policies and many offer

discounts if you raise your homeowners insurance deductible to $1,000. (http://publications.usa.gov/epublications/12ways/12ways.htm)

Accurate statistics on bike thefts are hard to pinpoint, but one study suggests that a four-year student bicyclist has a 53% chance of losing their bike to theft

(www.nationalbikeregistry.com)

More than 22,000 burglaries are reported annually related to college students, including 12,000 residence hall burglaries (www.ope.ed.gov)

Each year, fire departments respond to over 3,800 fires in dormitories, fraternities, sororities, and barracks (www.nfpa.org)

Social events, study groups, overnight guests, friends of roommates, parties and more are commonplace at college – and all present opportunities for accidents.

In the US, there are approximately 13.45 million full-time students. Using health stats from Fall 2012 ACHA-NCHA II, we can see some of the potential impacts of various health issues.

Thousands of Students are Impacted by Medical Withdrawals Each Year

Refund policy awareness and university financial policies is low

– Personal risks:• Almost 2/3 of parents had no idea how their school would handle a

refund for their child’s medical withdrawal.• Less than 1/3 of parents recalled being told about the school’s refund

policy.• 60% of parents of incoming students would consider purchasing tuition

refund insurance during school registration.

– Property risks:• 53% of parents were unaware of their child’s college or university policy

for replacing a students stolen or damaged personal property.• 54% of parents said they might be willing to consider purchasing student

property insurance for $12 per month.

– Parents are interested and willing to consider protection programs.

There is Room for Improvement in Helping Families Understand the Risks they Face

Growing trend of Student Benefits and Insurance programs focused on helping:

• Attract new students

• Retain existing students

• Provide valuable protections for the student and their family

Promoting Student Success

Campus Wide Initiatives• Site & Special Programs

– Summer Transition Programs– FINAID Boot Camp

• Academic Departments– Grant Writing for Select Populations to Recruit

• Undergraduate Retention Intervention Team– FINAID SAP Warning– First Year Experience

Up & Coming

• Reorganization of Academic Advising Center– Meta Major Concept– “It’s a Major Deal” fair to promote early

declaration of major– Tracking SAP statuses & use of academic plans

• Pilot off-campus housing initiative• Student Engagement

– Curricular via research with faculty– Co-curricular via student organizations

Personalized Details

• Determining a Student’s Investment Range• Financial Aid Services

– Involved in Registration Events– Initiate Personal Contact ( letter/phone call prior)– Discuss Enrollment– Review and Breakdown

– Financial Award Options– Student’s Anticipated Bill– Things to Finalize & Make Choices

Start Term – On the Right Foot• Orientation – Check-In and Bill Plans• Summer Academy & Study Zone

– Specific types of students– Specific academic challenges

• Early Alerts• Tuition Holds/Balance reports• Entrances required for all students

• Relocation of Departments– Registrar, Advising, & Financial Aid Services– Provides Integration of Appointments

• Withdrawals – Required to meet with a Counselor• Degree Changes• Medical Concerns/Leave of Absences• Tuition Appeal Process

• Satisfactory Progress Met Notice

Continue – On the Right Foot

Leave On a High Note

• Happy Student – Happy Alumni• Exit Counseling –Required for all students• Personalized sessions offered• Opens the door for questions• Encourage students to contact FAS

– Servicing Questions/Problems– Loan Repayment Issues