Build a Financial Aid Technology Strategy for Maximum ROI
By: Dotti Davidson, FAS Consultant
Prioritizing Technology for Maximum ROI
With 87% of students citing a school’s technological sophistication as a key factor in their college choice, financial aid offices must prioritize technology investments. In an era where digital expectations shape enrollment decisions, outdated systems in financial aid offices can cost schools more than time—they can cost students.
To avoid these pitfalls and ensure the highest return on investment (ROI) in technology for financial aid offices, we can focus on four strategies listed below.
Automate and Streamline the Financial Aid Process
Invest in technology that automates and simplifies the financial aid process, such as application submission, document collection, and student communication. Automation tools can speed up processing times, reduce errors, and free up staff to focus on more complex cases. A streamlined process also improves the overall student experience, which is crucial for recruitment and retention. Just a simple implementation of DocuSign can make a massive difference.
- ROI: Reduced administrative costs and improved student satisfaction.
- Tech Examples:
- AI-powered chatbots
- Digital forms
- Electronic signature
Additional Reading from FAS: Explore practical ways to simplify day-to-day operations in your financial aid office.
Develop Robust Online Portals
Invest in a user-friendly, integrated online portal where students and their families can:
- Track their financial aid status
- Access necessary forms
- Communicate with staff
This helps to engage students early in the decision-making process and keeps them informed throughout their college journey. Many schools already have a portal, but they are not user-friendly or customized. With help from IT, customizations can be made to increase the student experience exponentially.
- ROI: Enhanced engagement, improved retention, and increased student satisfaction, as prospective students find the process clear and accessible.
- Tech Examples:
- Web-based portals
- Mobile apps
- Personalized dashboards
Improve Data Analytics for Decision-Making
Use data analytics to gain insights into student behavior, financial aid trends, and outcomes. This can help financial aid offices make informed decisions about where to allocate resources, identify gaps, and track the effectiveness of financial aid strategies. At one of my previous schools, I had the privilege of learning how to create web pages and had to migrate all the financial aid information to the new platform. Pulling the analytics to see which pages students most utilized helped drive the new layout.
- ROI: Data-driven decision-making helps to fine-tune processes, identify at-risk students, and maximize the effectiveness of financial aid offerings.
- Tech Examples:
- CRM systems
- Predictive analytics tools
- Reporting dashboards
Additional Reading from FAS: Learn how optimizing your PowerFAIDS software setup can further strengthen these outcomes.
Enhance Communication Tools
Invest in communication tools that allow financial aid offices to interact with students and parents effectively. This includes email automation, text messaging, and even AI-powered virtual advisors for answering common financial aid questions. It is amazing how many schools still do not utilize text messaging. At one school, financial aid saw a 60% increase in specific forms being turned in when text messaging was used to prompt the students. In addition, offering virtual financial aid counseling sessions can ensure students have access to help regardless of location. Implementing the Microsoft Bookings app was a game changer in helping those students who can’t make it to campus. The app already comes with the Microsoft Office suite, so there is no added cost.
- ROI: Improved student satisfaction and engagement, quicker response times, and a more connected experience.
- Tech Examples:
- SMS alerts
- Virtual assistants
- Video conferencing tools
- Automated email systems
Financial aid offices can create value for prospective students, reduce operational costs, and foster student loyalty by strategically prioritizing technology investments that automate processes, improve communication, provide personalized support, and enhance the overall student experience. This can drive enrollment, retention, and ultimately lead to a higher ROI. Our consultants at Financial Aid Services (FAS) are available to help develop and implement a strategy that enables your institution to prioritize technology.
Partner with FAS to map out your institution’s path to prioritizing technology.
