Articles

President Discusses Dramatic Changes for Financial Aid Offices

President Discusses Dramatic Changes for Financial Aid Offices

By: David Gray, President

Today, it's clear that students and families will need more assistance than ever with the costs of higher education. Yes, they will be looking for funds, but they will also be looking for guidance. As you develop your institutional strategies for the upcoming year ask yourself this question: Is my office infrastructure up to the challenge?

Each year, I attempt to create various forecasts and predict resource needs for the year ahead. Typically, I rely on historical data to reveal trends from prior years, making the assumption that historical trends will apply to the upcoming year. However, with the current economic environment, I am questioning the relevance of that historical data and its applicability to today's environment.

Although my crystal ball is fairly non-responsive when inquiring about resources and strategies for many areas of higher education, it is somewhat less murky when it comes to the area of financial aid. My prediction: The staff in the financial aid office will be overwhelmed with student requests.

In forecasting the needs of your financial aid office, you may wish to consider the recent changes that have occurred in three areas and the possible effects on your financial aid office.

1. Economic downturn. Due to the changes in today's economy, many families have experienced job loss, salary reductions and lost savings. More than ever, families are concerned with costs and will be seeking more advice about financial aid. Students and families are worried that they can no longer afford college. They are frustrated by their fiscal constraints and may become aggravated with the financial aid process. Consequently, your financial aid office will receive more requests for guidance by phone and in-person. This summer, the patience, compassion, understanding, and kindness of your financial aid staff will be thoroughly tested.

2. Shifting enrollment patterns. Due to the current status of the economy, enrollment patterns have begun to shift. Significantly more people are choosing to enter or return to college. Applications for admission have increased dramatically as have applications for financial aid. The effect - more students will apply and qualify for assistance which equates to increased workloads for your financial aid staff.

3. Federal regulations governing financial aid. With the recent enactment of the Higher Education Opportunity Act and the new stimulus packages, many of the existing financial aid programs have been modified and new programs have been created. The new status of "unaccompanied homeless youth" and more incidents of "displaced worker" will increase the need for additional documentation, efficient automated processes, and well trained staff.

It's safe to assume the financial aid office will feel the impact of these dramatic changes which have occurred during recent months. Due to the timing of the office's work and the preparations for the fall term, it is apparent the impact will occur during this Summer term. In my opinion, now is not the time to reduce resources in this key area of the campus infrastructure.

The good news: these changes represent additional financial assistance for students, families, and the colleges or universities they attend. The challenge will be the office infrastructure. Can it hold together until the students are enrolled, the applications are processed, and the funds are received?

We are facing extraordinary times with many new challenges. The key to your success will be a sound infrastructure.



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