The Influence of Financial Aid Policy and Process on Retention

John W. Dysart
President
The Dysart Group, Inc.

As you think about the very complicated subject of retention, understand that there are often some simple things you can do to promote student satisfaction and retention. Let?s focus our thoughts on just some issues related to financial aid. Changes in financial aid policy and procedure are not necessarily complicated, do not require faculty committee discussions, are not expensive, but can make a real difference. See if your Financial Aid Office is doing the following:

Proactively Encourage People to Apply for Financial Aid

The role of an effective Financial Aid Office is not just to package those returning students who apply for financial aid. It is also the responsibility of the Office to solicit applications for financial aid. At minimum, written reminders should be sent every two weeks to currently enrolled aid recipients who have not applied for financial aid to encourage them to do so. The written reminders should be supplemented with text messages and email. This process should begin the first week in January each cycle and continue through the summer. Be prepared to use telephone outreach for the students and families who have not responded to the written and electronic reminders. Every Financial Aid Office should have a specific communication plan for currently enrolled students to ensure that they reapply in a timely manner. Senior institutional leaders must review the plan and every-one should be willing to evaluate the success of the plan and make adjustments and enhancements annually.

Establish Weekly Financial Aid Reports

I am surprised by the number of Financial Aid Offices that do not produce weekly progress reports to track success through the Financial Aid Funnel. If we agree that financial aid is important for both retention and recruitment, then it makes sense that colleges and universities create a tracking mechanism to evaluate the success of the Financial Aid Office in securing applications for financial aid, awarding aid applicants in a timely manner and collecting required supporting documents to facilitate disbursement.

Every week, the Office should report the total number of enrolled students who receive aid and are eligible to return. Out of that total, how many have actually applied for financial aid? Out of the number of returning students who have applied for financial aid, how many have been packaged? Out of the number of returning students who have been packaged, how many have submitted all required documents and are ready for disbursement?

This report, produced weekly beginning in January and ending with the beginning of classes in September, should be shared with senior leadership. The President should be able to see how well the Financial Aid Office is performing in support of retention objectives. The chief financial officer should be interested because the financial aid process impacts cash flow.

Begin Financial Aid Packaging in January

Notifying currently enrolled students of their eligibility for financial aid is important, but early awards can really have a positive impact on retention.

– Students awarded financial aid early in the Spring term can be confident about how they can afford to return.

– Early packaging affords opportunities for financial planning. Families who learn they will owe money for the Fall term in February have seven months to save, identify alternative loans or establish reasonable payment plans. When students and families and not packaged until the summer, there is insufficient time to make other financing arrangements.

– Early packaging also means that students have plenty of time to file financial aid appeals if necessary.

Intervene When Currently Enrolled Students Do Not Re-Apply for Financial Aid

Utilize the tracking mechanisms to monitor financial aid recipients who do not reapply for aid. This might be an indication that the student is thinking about transferring to another college or dropping out. Contacting these students while they are still enrolled in the Spring term might allow time to address concerns.

Every office on campus can make a beneficial contribution to the college retention plan. Perhaps the Financial Aid Office can be the first on your campus to change policy and procedures to facilitate retention.