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WANTED: to Graduate

WANTED: to Graduate. HELP!. Financial Aid’s Role in Student Retention. 2013 RMASFAA Training Committee. Sample Retention Plan. Identify the Issue State the Objectives Find your group Create/Execute the Plan Measure Results Share Results. Reason for Leaving

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WANTED: to Graduate

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  1. WANTED:to Graduate HELP! Financial Aid’s Role in Student Retention 2013 RMASFAA Training Committee

  2. Sample Retention Plan • Identify the Issue • State the Objectives • Find your group • Create/Execute the Plan • Measure Results • Share Results

  3. Reason for Leaving 2003-04 Enrollees – Depart at/by End of 1st Year * Source: Beginning Postsecondary Study 04:06, NCES, Dept. of Education

  4. Reason for Leaving 2003-04 Enrollees – Depart at/by End of 3rd Year * Source: Beginning Postsecondary Study 04:06, NCES, Dept. of Education

  5. Reason for Leaving 2003-04 Enrollees % Change from: Depart at/by End of 1st to Depart at/by End of 3rd * Increase from 0% to 6% ** Increase from 0% to 11% *** Increased from 0% to 16% * Source: Derived from Beginning Postsecondary Study 04:06, NCES, Dept. of Education

  6. Reason for Retention Concern • Financial Earnings • Bachelor’s degree holders earn 31% more than workers with an Associate’s degree and 74% more than those with a high school diploma* • Need for New Workers • By 2018, the U.S. will need 22 million new workers with Associate’s degrees or higher** • Will be 3 million workers short • Will need at least 4.7 million new workers with postsecondary certificates *Source: Carnevale, Rose & Cheah, (2011) **Source: Carnevale, Smith & Strohl, (2010)

  7. Reason for Retention Concern cont. • Recent Recession • Job Changes • +187K Bachelors Degree or higher • -1.75M Associates/some college • -5.6M HS Diploma or less • Recovery Job Changes • +2M Bachelors Degree or higher • +1.6M Associates/some college • -230K HS Diploma or less • Peak Unemployment rate • 13.4% for adults with HS diploma • 6.8% for college graduates VS *Source: Carnevale, Jayasundera & Cheah, (2011)

  8. Reason for Retention Concern cont. • Loan Default Rate • Loan borrowers not completing a program default at a higher rate than those who complete programs • The average default rate for those borrowers with no credential/academic earning is more than 4 X the rate for those with a Bachelor’s degree* • Loan default = no Title IV, bad credit reports, collection agency contact, IRS income tax offset, negative impacts on ability to get jobs *Source: Nguyen, M. (2012)

  9. Reason for Retention Concern cont. • States beginning to tie funds to graduation rates or other performance indicators • Course completion, time to degree, transfer rates, number of degrees awarded, number of low-income & minority graduates *Source: NCSL. (2012)

  10. First Year Retention Rates Total Public and Private (2010) Two-Year Four-Year RMASFAA States Colorado: 50% Kansas: 52.6% Montana: 51.6% Nebraska: 59.6% N. Dakota: 54% S. Dakota: 64.5% Utah: 50.8% Wyoming: 57.1% US Average: 54.3% RMASFAA States Colorado: 75.5% Kansas: 72.7% Montana: 68.4% Nebraska: 77.8% N. Dakota: 73.6% S. Dakota: 68.2% Utah: 73.3% Wyoming: 72.7% U.S. Average: 77.1% Source: NCES, IPEDS Fall 2010 Enrollment Retention Rate File

  11. Graduation Rates Total Public and Private (2009) Three-Year Graduation Rates for Associate Students Six-Year Graduation Rates of Bachelor’s Students RMASFAA States Colorado: 39.3% Kansas: 34.4% Montana: 24.4% Nebraska: 30.3% N. Dakota: 37% S. Dakota: 60.7% Utah: 36.4% Wyoming: 53.9% U.S. Average: 29.2% RMASFAA States Colorado: 53.3% Kansas: 53.2% Montana: 45.2% Nebraska: 55.1% N. Dakota: 46.9% S. Dakota: 44.8% Utah: 51.5% Wyoming: 55.4% U.S. Average: 55.5% Source: NCES, IPEDS Graduation Rate Survey

  12. Student Pipeline Rates9th Grade to College Grad Total Public and Private, Two-Year and Four-Year (2008) RMASFAA States Colorado: 22.2% Kansas: 22.0% Montana: 16.1% Nebraska: 24.9% N. Dakota: 24.6% S. Dakota: 29.5% Utah: 20.8% Wyoming: 25.5% U.S. Average: 20.5%

  13. What are some barriers to retention? • Financial Concerns • Not Academically Prepared • Financial Aid Knowledge • University Connections • Other Concerns

  14. Financial Concern • Cost of college has gone up 2x the inflation rate; average 5-8% per year • Cost of living has continued to go up • Families may plan for first year, but not for 2nd, 3rd or 4th years… • No help from parents

  15. Financial Concern cont. • Many families experiencing catastrophic financial situations • More PLUS loans being denied* • ED made change October 2011 (after most loans for 1112 originated) – started to see issues 1213 • Originally looked at whether applicant had an adverse credit history for an account in the past 90 days • Now looks for delinquent accounts during last 5 years • Foreclosures, bankruptcies, wage garnishments, repossessions, tax liens, past due payments. *Source: Vergakis, B. (2013)

  16. Financial Concern cont. • Increasing financial aid packages creates only modest improvements in retention • On average $1,000 increase in gift aid results in only a 2-4% increase in student retention* • Is a marginal benefit worth a large-scale (and costly) expansion? • Challenge: Identify more cost-effective forms of aid vs. targeting aid programs more effectively *Source: Crockett, K, Heffron, M.,& Schneider, M. (2011)

  17. Financial Concern cont. • Colleges and universities (especially at department level) use endowed funds to reward continuing academic success instead of increased need • Higher performing students are more likely to transfer out regardless of a financial aid package. * • Thus college cost is not a variable in student selection process for higher performing students.* 4.0 EFC 0 VS. *Source: Herzog. (2008)

  18. Not Academically Prepared • Remedial classes* • >50% of students entering 2 yr colleges and almost 20% of those entering 4 yr colleges are placed in remedial classes.** • Drains money intended to pay for college courses • Student may go into debt over these courses • Imperils student’s chances of success in college *Source: Elliott, S. (2013) **Source: Complete College America. (2013)

  19. Not Academically Prepared cont. “The evidence is clear very few students who have this cycle (going into debt for remedial classes) ever graduate from an institution of higher education”* • Dan Clark, executive director of the Education Roundtable • According to ED, students who are more likely to withdraw are:** • Students who take any remedial course • Students with a GPA below 2.75 * Source: Elliott, S. (2013) ** Source: U.S. Dept. of Education (2002)

  20. Financial Aid Knowledge Lack of student and family knowledge of financial aid programs “College students are generally mentored by their parents and ignore experts (especially online experts)” * • Sallie Mae - 2007 Survey of Parents of College-Bound Freshmen • “Cost of school” top priority for15% of respondents • (4th most popular choice) • “Location of school” was top priority for 34% (most • frequently selected choice) *Source: Millennial Branding & StudentAdvisor.com, (2012)

  21. University Connection • Retention requires a degree of connection between student and institution • Withdrawal is failure to make that connection. • Students “… who experienced lower social and academic integration into campus life during their first year of postsecondary education were more likely than others to leave within 3 years”* • Students are at higher risk of withdrawal if they begin attending higher education during any semester other than fall* * Source: U.S. Dept. of Education (2002)

  22. Other Concerns • Embarrassment to ask for help • Inability to cope with the demands of coursework, studying, a family and job • Cost of going to college really worth the time and effort in school and out of the workforce? • Students who are undecided or who have a less job specific major are more likely to drop out* *Source: Harvard. (2011)

  23. Other Concerns cont. • Students who are the most high risk may also be the least responsive to retention efforts* • May not be cost (or time) effective to target this group • Students who are high risk for withdrawal remain high risk throughout their college enrollment* *Source: Singell, L.D. & Waddell, G.R. (2010)

  24. In postsecondary education, students are the customers, and customer service is everyone’s responsibility… What can the Financial Aid Office do?

  25. Ideas for Improvement Financial Aid Awarding • First Generation Awards • Minority Populations • Campus Connections • Outreach

  26. Financial Aid Awarding • Use endowed funds to respond to increased need among returning students instead of only targeting to academic success • Academically successful students are more likely to be retained anyways* • Create grant programs with set criteria so new and continuing students can see stability • Have funds that can be used on a case by case basis to holistically assess need and retention *Source: Scannell, J. (2011)

  27. Financial Aid Awarding cont. • Colorado State University (CSU) • Commitment to Colorado • Promises grant funds at least equal to the amount of annualtuition and fees for Pell grant eligible CO residents • Promises grant funds equal to half the amount of annual tuition for CO resident students whose families earn CO’s median household income or less • More information: http://www.sfs.colostate.edu/commitment-to-colorado • Student Support Grant • Holistic grant that helps students in financial need nearing graduation stay in school. • Amount of grant is different for each student and based on multiple factors determined by the financial aid counselor.

  28. Financial Aid Awarding cont. • Examine where breakpoints in retention occur at various levels of unmet need to identify financially at risk populations • Do a cost/benefit analysis *Source: Scannell, J. (2011)

  29. First Generation • Specific awards targeting First Generation students • Student’s and families with the least knowledge on college and associated costs • Encourage first generation college students to participate in Higher Ed and to promote diversity in student population • Additional funding aids in retention of this group

  30. First Generation cont. • Colorado State University First Generation Award • $4,000 per year, renewable up to 5 years • Student’s parents must NOT have received a bachelor’s degree • Must demonstrate financial need • Must demonstrate potential for academic success • Outreach and Support Programs Department • Provides University connection, staff support and mentoring

  31. Campus Connections • Enhancing connections between financial aid office with academic faculty, advisors, and advocacy offices • Let other offices know that the financial aid office may have solutions • Offer presentations to faculty groups and departments • Allow others to report students they are concerned about (financial reasons). • Assign a financial aid counselor liaison for each department on campus • Communication can be initiated by either office

  32. Outreach • Financial literacy campaign for new and continuing students • Classroom workshops, on-line programs, publications, emails • Require completion of an annual programs or if a student fails a course, withdraws or their GPA drops below a certain point • Students have an increased risk of dropping out with lower GPAs and withdrawals; intervene early • Peer-to-peer counseling/presenting • Put fellow students in position of mentor • Topics chosen via peer focus groups

  33. Outreach cont. • Kansas State University • Offers free financial counseling to students to help with budgeting and managing debt • Met with 406 studentson campus during the 2012-2013 academic year • Offers group financial presentations covering budgeting, credit, student loan repayment and financial planning • Presented to over 5,300 individuals during the 2012-2013 academic year

  34. Outreach cont. • Sitting Bull College (ND) • Holds Health & Financial Fairs each semester, bringing in local area services to educate student • Holds Student Summit each semester to allow students to ask question and visit with representatives from various departments on campus

  35. Outreach cont. • Notifying at-risk students of specific SAP requirements in advance • Reduce the risk of students leaving due to financial aid exclusion • KSU contacts students that are admitted on exception and informs them of specific financial aid requirements for their first academic year • These students are also placed on an academic plan (through the University’s requirement) for their first few semesters

  36. Outreach cont. • Academic Improvement Program – Salish Kootenai College • Takes students on financial aid probation due to academic probation, and provides one academic quarter of intensive intrusive advising & skill building • Provides academic help when students may not know how (or be willing) to ask for it • Provides connection with faculty in academic major • Improved persistence rates were shown for these students

  37. Outreach cont. • Increasing outreach to middle schools for family financial planning • Start early! Educate! • More financially ready students & families • A study published February 2013 in the American Sociological Review found that students who received $12,000 from their parents in the first year of college were more likely to complete their degree* • However, they were also more likely to get lower grades *Source: USA Today. (2013)

  38. Outreach cont. • Social media/networking for financial aid outreach • Everybody’s doing it…. Set up a Facebook page or a Twitter account to get the word out to these Millennials and Social Media-friendly parents • Have school’s main Social Media site (official) send out status reports and tweets of important financial aid events and deadlines • Have the main site “share” your page’s status updates

  39. Outreach cont. • CSU – Warner College of Natural Resources, Social Media Case Study • What has worked: • Unique photos • Stories/posts about student, alumni & faculty • Cross promoting • Being a good “friend” • (responding/”liking” to posts on page, tagging other campus departments) • “Like” ads • Generally $10/wk or $350 lifetime • Less successful: • Open ended questions • External news • Videos • Posting more than 1-2 times a day, 7 days/wk

  40. Outreach cont. • Cecil Community College (MD) • Campaign to increase financial aid awareness • Informational workshops • Targeted mailings • Phone calls to students eligible for financial aid but had not enrolled • Campaign resulted in financial air participation rate increase of 33 -39% in two years • Retention rates of financial aid recipients increased slightly at 1% • College expansions • Increase staff & computer support in learning centers • Retooled career & job placement services *Source: Center for Community College Student Engagement.(2006)

  41. Other Thoughts • Stating “financial reasons” on withdrawal surveys might be easier than listing more personal or difficult reasons. • Financial aid or costs are much more important for “first purchase” than “repurchase” decisions. * AND • Degrees of dissatisfaction and satisfaction (the latter involving esteem, relationships, etc.) are the real drivers/influencers to re-enrollment behavior. * Michael Collette, VP for Marketing & Strategic Planning at Anderson University (Ind.) *Source: Scannell, J. (2011)

  42. Other Thoughts cont. • Financial issues may be more of a “tipping point” when students are already concerned with: • Academic performance • Campus relationships • Family issues • Work situations • Assuming is always the main driver to improved retention rates is not enough *Source: Scannell, J. (2011)

  43. Group Discussion What is your office doing to aid in retention? Specific aid? Targeting specific groups or case-by-case? Campus Connections? Outreach? Other Thoughts? What would you like to see your office do to aid in retention?

  44. References Colorado State University, Warner College of Natural Resources. (2013). Social Media Case Study. Carnevale, A.P.; Jayasundera, T.; and Cheah, B. August 2012. Executive Summary: The College Advantage: Weathering the Economic Storm. Georgetown University Center on Education and the Workforce. Carnevale, A.P.; Rose, S.J.; and Cheah, B. August 2011. The College Payoff: Education, Occupations, Lifetime Earnings. Georgetown University Center on Education and the Workforce. Retrieved from: http://www9.georgetown.edu/grad/gppi/hpi/cew/pdfs/collegepayoff-complete.pdf. Carnevale, A.P.; Smith, N.; and Strohl, J. June 2010. Executive Summary: Help Wanted: Projections of Jobs and Education Requirements Through 2018.Georgetown University Center on Education and the Workforce. Center for Community College Student Engagement. (2006). Act on Fact: Using Data to Improve Student Success. Austin, TX: The University of Texas at Austin, Community College Leadership Program. Complete College America. Spring 2012. Remediation: Higher Education’s Bridge to Nowhere.. Retrieved from: http://www.completecollege.org/docs/CCA-Remediation-final.pdf. pp. 2-3. Crockett, K., Heffron, M., Schneider, M. (2011). Targeting Financial Aid for Improved Retention Outcomes. Noel-Levitz and American Institutes for Research. Retrieved from: http://www.air.org/files/LA_PELL_STUDY_report_1011.pdf Domonell, K. (2013). Sequestering Minority Education. University Business 3/26/2013.

  45. References cont. Ellitot, S. (2013). Indiana legislature bill aims to boost college readiness by typing financial aid to state exams. Retrieved from: http://www.indystar.com/article/20130124/NEWS05/130124042/Bill-aims-boost-college-readiness-by-tying-financial-aid-state-exams?gcheck=1&nclick_check=1 Harvard Graduate School of Education. (2011). Pathways to Prosperity Study. Henderson, S., Tatum, J. (2009). Beyond Leveraging: Financial Aid’s Role in Executing SEM Recruitment and Retention. 19th AACRAO Enrollment Management Conference. Univeristy of Michigan-Dearborn. Retrieved from: http://handouts.aacrao.org/sem19/finished/T0215p_J_Benfield%20Tatum.pdf Herzog. (2008) Journal of Student Financial Aid. 37(3) Musselwhite & Reeve. (2013). Academic Advising and First Generation Students. Millennial Branding and StudentAdvisor.com. (2012). Millennial Branding and StudentAdvisor.com Release New Study on Student Career Development. Retrieved from: http://millennialbranding.com/2012/11/student-career-development-study/ NCHEMS Information Center for Higher Education Policymaking and Analysis, http://www.higheredinfo.org/ National Conference of State Legislatures (NCSL). (2012). Performance Funding for Higher Education. Retrieved from: http://www.ncsl.org/issues-research/educ/performance-funding.aspx Nguyen, M. February 2012. Degreeless in Debt: What Happens to Borrowers Who Drop Out. Retrieved from: http://www.educationsector.org/publications/degreeless-debt-what-happens-borrowers-who-drop-out Sallie Mae. (2008). 2007 Survey of Parents of College-Bound Freshmen. Retrieved from: http://www.rmasfaa.org/docs/exchange/200803/rme6.html

  46. References cont. Scannell, J. (2011). The Role of Financial Aid and Retention. Retrieved from: http://www.universitybusiness.com/article/role-financial-aid-and-retention Singell, L. D., & Waddell, G. R. (2010, September). Modeling retention at a large public university: Can at-risk students be identified early enough to treat? Research in Higher Education, 51(6), 546-572. doi: 10.1007/s11162-010-9170-7 Time Ideas. (2012). 8 Ideas to Improve Higher Education. Retrieved from: http://ideas.time.com/2012/10/18/8-ideas-to-improve-higher-education/#slide/tie-funding-to-graduation-rates/?&_suid=13594909150780032817017170189644 U.S. Department of Education. (2002, November). Short-term enrollment in postsecondary education: Student background and institutional differences in reasons for early departure, 1996-98. Washington, DC: National Center for Education Statistics. USA Today. (2013). Which colleges offer the best value? Retrieved from: http://www.9news.com/news/article/314987/339/Which-colleges-offer-the-best-value- Vergakis, B. (2013). Feds’ loan changes hamper black college enrollment. Associated Press. Retrieved from: http://news.yahoo.com/feds-loan-changes-hamper-black-162929184.html Wilmsen, E. (2011). Educational Policy Institute honors CSU with 2011 Outstanding Student Retention Program award. Today @ Colorado State. Retrieved from: http://www.today.colostate.edu/story.aspx?id=5727

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