By: Sean Hudson, Sr Consultant
In an ideal world, higher education would be accessible to all without financial barriers. However, until we reach that point, it is crucial for educational institutions to make education affordable for students. This is achieved through strategic packaging of financial aid at various discount rates and the utilization of Professional Judgements when the Free Application for Federal Student Aid (FAFSA) does not accurately reflect a student’s or family’s financial situation. By establishing a solid appeal process, we can further extend opportunities for students and parents to pursue their educational aspirations.
Increasing Demand for Appeals:
With the transition to Prior-Prior FAFSA years and the recent Higher Education Emergency Relief Fund (HEERF) funding, the number of Professional Judgements and appeal requests has surged. Educational institutions must adapt to meet this growing demand for financial assistance.
Strategic Approach to Appeals:
When dealing with appeal requests, it is vital to approach the process strategically. Begin by understanding the available budget and determining if a separate budget item for appeals exists. By collaborating with the Finance Office and potentially the Admissions Office, you can present a comprehensive statement and showcase the potential return on investment (ROI). Demonstrating how providing additional funding can lead to increased enrollment and revenue generation over multiple years is an effective strategy.
Developing an Effective Process:
To ensure transparency and streamline the appeal process, it is imperative to establish a clear and accessible written process. This process should be prominently displayed on the college website and include information on application requirements, necessary supporting documentation, the review timeframe, and communication methods for notifying students of the decision. Specify the review committee composition, without divulging individual names, to provide reassurance and credibility. Additionally, define the amount or range of funding available for appeals, balancing the students’ needs while considering the institution’s budgetary limitations. Clearly communicate whether the appeal grants are one-time disbursements or can be expected annually.
Collaborating with the Alumni Relations Office responsible for awarding Endowed Scholarships can optimize the appeal process. Utilize the appeal process to identify suitable recipients for specific donor scholarships, thereby saving appeal budget funds by redirecting them towards endowed scholarships.
Monitoring and Fiscal Responsibility:
To ensure efficient utilization of appeal funds, implement regular monitoring of the awarding process. Stay vigilant in identifying students who have secured full funding through other means. It is essential to allocate sufficient funds for the spring semester, unless the policy explicitly states that appeals are exclusively granted in the fall. Consider the previous year’s awarded funds and track them accordingly, while also monitoring new students who do not enroll to reallocate those funds for future appeals.
Maintaining Transparency and Managing Expectations:
Once you begin awarding funds through the appeal process, anticipate an increase in applications, as students often share information with their peers. Transparent communication and a well-defined process become even more critical in managing expectations and maintaining a fair and equitable system. Additionally, recognize that students who previously received Professional Judgements may become appeal applicants, particularly if the initial adjustment resulted in only a minimal increase in aid.
Unlocking Potential: Benefits of a Well-Designed Appeal Process:
A well-crafted appeal process can yield numerous benefits for educational institutions. It can effectively boost new student enrollment, contribute to student retention, increase revenue through enrollment growth, and enhance the institution’s reputation for prioritizing student well-being. Investing time and effort into developing a robust process, even if it requires revamping an existing one, will undoubtedly yield long-term rewards.
As the pursuit of accessible higher education continues, educational institutions must proactively adapt their financial aid processes to meet the needs of students and families. By implementing a transparent and effective appeal process, colleges and universities can create an environment that fosters educational opportunities, supports student success, and upholds their commitment to providing a quality education for all.
Are you looking for expert guidance and support in optimizing your institution’s financial aid processes? Contact FAS today!