Using Financial Aid to Meet Enrollment Goals

Pamela W. FowlerExecutive Director, Office of Financial Aid

University of Michigan

NeASFAA Spring Conference 2014

Role of Financial Aid

• Recruiting– Scholarships– Need-based aid packaging– Outreach

• Retention– Sufficient funding for expenses– Monitoring progress to degree

• After Graduation – Loan Repayment Options

Before you start

• What is not working?

• What is our goal?– Does everyone agree on the goal?

• Where are we now?– Get the data together so you have a clear

picture of where you began.– How much time will you have to show

improvement?

Recruiting

• Scholarships– Enrollment priorities

• Gifted and Talented• Diversity• Athletes

• Need-Based Aid Packaging– Matrix packaging– Grant/loan balance– No loans

• Outreach – information to students and parents

Outreach

• Recruiting low income students is not only an admission job

• To do so, you need staff and money devoted to this effort

• The best advising is done in person with the student and their parent

• Do you participate in Admission recruiting/conversion events?

• What message are you providing?

Matrix Packaging

• Use matrix packaging to direct aid– High Merit-High need– Low income– Underrepresented Minorities

• Must define these populations clearly

• Define how much money for each group

• Must track the success of these packaging strategies.

Merit vs. Need-Based Aid

• The case for merit– Elevates the profile of the institution

• Could result in more state funding, better donations from alumni and others

• If successful, institutional aid can be directed to low income students (assumes merit = low need)

• The case for need– Needy meritorious students get aid– Higher income students will attend anyway– Low income students attend at much lower

rates

Packaging Strategies for Low Income Students

• No loan packages

• No work packages

• Early notification of scholarships

• Meet full need or partial need?

• Alternative loans for low income students?

Retention

• Scholarships– One time vs. four-year awards

• Need-Based Aid– Realistic Budgets– Grant/loan balance– Access to private loans

• Satisfactory Academic Progress– Monitor progress toward degree to maintain

federal aid eligibility

Scholarships

• How much will it take to convince a low income student to attend?– Do they understand what it costs to attend?

• Will the funds be there for 4 years or more?

• What will the funds be replaced with if not available for 4 years?

Need-Based Aid

• Is the budget realistic? Do you have a solid basis for your budgets?

• Does the student understand what is included and what is not?

• Do students understand that budgets can be adjusted? Is this information easy to get to on your website? Do faculty know?

• Do students understand what you cannot cover with need-based aid?

Retention - Loans

• Access to private loans can be critical

• Keeping a lid on total borrowing

Satisfactory Academic Progress

• Is your policy rooted in reality?

• Is it encouraging students to succeed or to fail?

• Do you have the attention of academic advisors and faculty?

• Does the student understand it?

• Are there support services in place?

After Graduation

• Outstanding Balances– Do students leave with outstanding balances?

• Loan Repayment– More than exit counseling– Keep in touch– Offer to help along the way

Conclusion

• You need clear goals

• Develop a means to achieve the goals

• Use date to support what you are doing and if you are successful

• It takes money, aid, staffing, system work