By Brad Scaggs, Associate Principal.
We know this recruitment cycle has been unlike many others. Yet, as I reflect on my career as a former financial aid administrator, I recall thinking those exact words on more than one occasion. First came the Great Recession of 2008-09 but institutions managed to help students and their families through economic hardship and kept them enrolled. Next, there was the move to prior-prior tax year as the basis for aid eligibility determination which was also paired with the surprise of an earlier FAFSA release, but we managed to update systems, processes, and rules and enrolled
students. Then came COVID, and again we found ways to keep students progressing toward their degree with remote classes, work, and emergency aid. I am likely forgetting other “the-sky-is-falling” events that schools overcame. The point is rethinking possibilities allowed institutions to thrive despite common sentiment.
Now, the newest challenge. The rollout of the new federal financial aid methodology, the Student Aid Index, has been anything but smooth. It has resulted in a later FAFSA opening, a return to pre- prior-prior year norms. The initial delay was bad, but then late recalculations of the Student Aid Index formulas for inflation, and delayed releases of ISIRs to schools made matters more difficult. The delays have left many enrollment leaders frustrated. Deposits are down and a key indicator of the likelihood of enrolling, accepted aid offers, are still months away from being able to be tracked. That is because award notifications that were previously sent between December and February are now likely to go to students in April or May.
Before those notifications are produced there is still so much to do. Modeling of financial aid budgets, testing of technical capabilities, and maybe even verification of applications. All these activities rely on the receipt of ISIRs. That is not likely to occur until mid-March. At this point, many institutions are asking:
- What does the change to SAI mean for my students’ financial need?
- How should I be thinking about my financial aid budget this year?
- What can I do to help my incoming students and families now?
- Will I be able to respond quickly enough to students that need additional help after award
notifications are produced? - What if our students go elsewhere? Or worse, not at all?
For well-resourced schools there may be less concern. They may have done early analysis on the impacts of SAI and its comparison to historical EFCs or expected family contributions. They adjusted their financial aid strategy to account for changes. Some may be able to rely on the CSS Profile or a home- grown application to approximate student need, model financial aid budgets, and produce estimated award notifications. They might have robust IT infrastructure that can pivot quickly, and sophisticated net price calculators that can provide students and families with information to ease fears. They might have already developed communication strategies and leveraged CRM capabilities to continue to engage admitted students.
For others, solutions are not so easy. They rely on the federal aid application, and SAI, for all these activities. They may have understaffed IT, admissions, and financial aid offices. They may not have CRMs optimized. For those institutions, less time to complete these tasks can compound their impact and leave them behind enrollment goals. Do not worry if you are in this latter category; now is a time of great opportunity. Rethinking what is possible and revamping business operations can create a resilient, more agile institution. Doing so, like in so many years past, will benefit the institution and its students.