Should you move to Institutional Methodology (IM) ? ... A few things to consider !

1. Should you move to Institutional Methodology (IM) ?  ... A few things to consider! Bonnie Lee Behm Director of Financial Assistance Villanova University October, 2014

2. What I will cover today? • What is Institutional Methodology (IM)? • What is the CSS/ Financial Aid PROFILE ? • Villanova University’s decision to implement IM • Benefits to the institution • Implementing IM • Challenges • Outcomes • Best Practices

3. What is Institutional Methodology (IM)? • Provides the school with an Expected Family Contribution as a result of student/family completing the CSS PROFILE • Provides a more in-depth interpretation of a family’s financial resources used to determine the family’s ability to pay • More comprehensive than Federal Methodology (FM) • Covers a broader base of information than FAFSA • Offer opportunity to calculate a Noncustodial Parent Contribution (NCP) • Allows for more flexibility for individual circumstances

4. IM vs. FM Federal Methodology • Written into law by Congress • Tables are based on 1967 BLS data updated for inflation • Reflect spending pattern in 1967 • Used to determine federal and/or state eligibility • Simple Needs Test and Automatic Zero EFC (no assets) • Relies on AGI as measure of family income Institutional Methodology • Formula is overseen by FA professionals • Tables are based on annual Consumer Expenditure Survey (CES) Data • Reflect current family economic circumstances • Used to award Non-federal funds • All sources or income and assets are analyzed

5. What is the College Scholarship Service (CSS) PROFILE? • Fee-for-service form but low income students are given fee waiver • Provides the school with a student and parent EFC • Provides an in-depth interpretation of a family’s financial resources • More comprehensive (lengthier) than FAFSA • The PROFILE asks questions about multiple years • Offer opportunity to calculate a Noncustodial Parent Contribution (NCP) • Allows for more flexibility for individual circumstances • Ability to ask questions specific to your institution

6. Other IM options/Advantages • Net Worth of Home • Other Real Estate and Investment Net worth • Business Net Worth – regardless of size of business • Student’s Assets caputured • Family Household Grid with information on names, colleges, ages, costs of other schools family members attend • Free form area for family to tell their story

7. FM EFC vs. IM EFC • Outcome (EFC) can be very different • Most important concept to remember: • FM EFC = Federal aid eligibility • Federal Pell Grant, Federal Campus-based & Federal Direct Loans • IM EFC = Institutional need-based aid eligibility • University/Institutional Need based Grant • CANNOT use IM to determine eligibility for federal aid

8. Some VU History  • Prior to the 2010-2011 Academic Year VU was a FAFSA only school with an institutional application • Villanova’s emphasis is on NEED based aid • Needy student population continued to grow as did aid budget but not with enough resources to keep pace • Our Peer schools were already requiring CSS PROFILE • Our predicament: How do we award Villanova Grant to as many needy students as possible in the most equitable way within the limits of our institutionally funded increase in need based aid?

9. Goal May or may not increase or decrease individual award amounts but identify the appropriate population of students to receive the institutional aid Redistribute the limited dollars to students who demonstrate the inability to pay and not just ‘eligible’ based on limited information on the FAFSA

10. Benefits for Villanova • CSS PROFILE provides flexibility and freedom to institutions that FM did not provide • Institutions can decide which PROFILE questions are relevant or choose additional questions needed for distribution of your resources • Institution chose the PROFILE eligibility criteria (i.e., desired student population) to ask only specific students to file if so desired • Peer institutions were already using PROFILE

11. Partners involved in helping us make our decision College Board  Senior Leaders Budget Office OFA Staff Office of Admission Other College Board Institutions  Software vendor Bursar’s Office  Registrar’s Office Information Technology Staff

12. Implementing IM • Began in the 2010-2011 academic year • Systematically rolled out the process with Freshmen • Subsequently required it for each new class – took 4 years before everyone was on-board • Required training and support from our Software vendor (Banner) • Staff and Campus Partners • College Board Representative visited VU for staff trainings

13. Implementing IM •Users – the #1 population Clear and timely communication to students and parents with information regarding PROFILE application process High school counselors also considered users •Other items to consider Communications need to be revised - Print, Web, voice messages Did we want Part-time students or other special groups to use PROFILE? Current students?

14. Application, Selection and Renewal Process • Incoming Freshman Year Pre-Selection (invited to complete CSS PROFILE) Application Review discrepant data issues with FAFSA • Subsequent Years Renewal process

15. Challenges • Reluctant partners and users • Student participation • Internal processes • Learning curve for OFA staff and campus partners • Communication to students & parents • Timeframe in which communications are sent • Discrepant data and resolution of the data • Other processes such as ISIR reviews, Tax verifications • Decisions: What if IM EFC is less than FM EFC?

16. Outcomes • OFA’s goal to spend institutional aid in a more strategic way and distribute institutional need based grant funds to a broader range of students has been met. • Looking towards the next few years to revisit our current Service Options and see if we can utilize more of PROFILE’s functionality to reallocate resources even more to achieve the University’s enrollment goals.

17. Best Practices • Do your research – ask questions • Know your population & your competition • Involve Senior Leaders and Budget office early on in the process • Choose a small population of students for your first year of implementation • Partnerships (on and off-campus) are vital to your success • Stay simple in the beginning – you can always add in future years • Automate as much as you possibly can • Be comfortable with change – your process will evolve