Presentation on theme: "SLA Flash Survey: Financial Aid Counseling Background"— Presentation transcript:
1 Student Lending Analytics Flash Survey: Financial Aid Counseling June 22, 2009
2 SLA Flash Survey: Financial Aid Counseling Background Situation: Given the current recession and the reductions that families have seen in their 529 plans and home equity, the demand for financial aid counseling has increased significantly. This survey will provide details on the topics that are most often addressed in these counseling sessionsSurvey GoalsDetermine the extent to which the demand for financial aid counseling has changed within the past yearIdentify the issues being that students/families are most concerned aboutList resources that financial aid administrators rely upon to develop counseling expertise
3 SLA Flash Survey: Financial Aid Counseling Methodology ed flash survey on June 17, 2009 with due date of June 18, 2009In addition to demographic questions, the survey asked respondents the following questions:Indicate the frequency with which each of these issues is discussed in counseling sessions with students and families.Estimate the annual change in the number of students/families counseled by financial aid staff at your institution.Describe the 2-3 most valuable resources used to train financial aid staff to effectively counsel students and families.Describe you or your staff's greatest success achieved through counseling students or their families.
4 SLA Flash Survey: Financial Aid Counseling Methodology (Cont.) Responses were normalized for following reasons:addresses that did not correspond with an educational institution were excludedSeveral schools provided multiple responses; only one response was analyzedResponses that included demographic data but incomplete answers to main survey questions were excludedOverall, there were 178 survey responses analyzed
5 SLA Flash Survey: Financial Aid Counseling Summary The five issues discussed most frequently during counseling sessions were:Scholarships/grantsWork study/job opportunitiesProfessional judgmentUnderstanding differences between Federal and Private LoansImpact of scholarships on financial aid86% of financial aid administrators indicated that the number of students and families counseled had grown in the past year19% of respondents indicated that they had seen an increase of over 20%Respondents identified the importance of these organizations in providing resources to assist them in counseling studentsExperienced, in-house staff to lead training sessionsNASFAA national, state and local conferences and webinarsDepartment of EducationGuarantors, lenders and other state agencies
6 SLA Flash Survey: Financial Aid Counseling Profile of Survey Participants
7 SLA Flash Survey: Financial Aid Counseling Prevalence of Topics Discussed in Counseling Families Survey question: Indicate the frequency with which each of these issues is discussed in counseling sessions with students and families.Source: SLA Flash Survey: Financial Aid Counseling, June 2009 (178 respondents)
8 SLA Flash Survey: Financial Aid Counseling Increase in Numbers Counseled Survey question: Estimate the annual change in the number of students/families counseled by financial aid staff at your institution.Source: SLA Flash Survey: Financial Aid Counseling, June 2009 (178 respondents)
9 SLA Flash Survey: Financial Aid Counseling Resources Identified To Assist Financial Aid Staff Most commonly cited resourcesExperienced staff leading in-office trainingSome indicated that junior staff sat in on counseling sessions with more seasoned staffMock counseling sessionsCross-training to understand other services provided on-campusInternal workshops run by College staff to generate ideas on improving customer serviceLocal/regional/national conferences by financial aid administrator organizations(NASFAA and local chapters)Federal resources: IFAP, Guide to Federal Student Aid, FSA Coach, FSAConferences, FSA University (online)State agencies, guarantor and lender workshops and seminarsGuarantors mentioned specifically: USA Funds, EdFund, PHEAA, TG, NSLPOther resources mentionedAcademic Impressions' video/webinar featuring a financial aid director and a psychologist on how best to cope with anxiety and anger(AES website for debt management)College Board Financial Aid Institute
10 SLA Flash Survey: Financial Aid Counseling Success Stories – Representative Quotes “Nothing beats helping students and families achieve the dream and goal of college.”“Having more students and families complete the FAFSA.”“Luckily, because I'm at an affordable 2-yr public, our greatest achievement is convincing students and families that an education is obtainable. There is sufficient federal assistance available to cover tuition and fees for any student, regardless of the family's income.”“We make all students apply for federal aid before we will process any private loan. Sometimes there is resistance, but they usually comply and many times they receive federal aid.”“I always think it is a success when the parent or student actually owns the information/process when I am finished counseling them (they show that they really understand).”“Family's realization of ability to afford the University after financial aid is awarded.”A simple "Thank You" or "I appreciate it"!!!
11 SLA Flash Survey: Financial Aid Counseling Success Stories – Representative Quotes “Greater recognition of accurate, early filing and a reduction in trying to "game" the system.”“It is always heartwarming to hear a family express their thanks when we have helped them find some resources that they did not know about/were not initially eligible to receive.”“Working in the local high schools with recruiting counselors to provide admission/financial aid/scholarships information to students during the day and parental workshops at night.”“Access to college for first generation college students through extensive outreach.”
12 Thank You Thank you again for your participation! Please contact Tim Ranzetta if you have any additional comments or questions regarding this surveySend toPhone:Look for more upcoming SLA Flash Surveys in the futureFor more information on Student Lending Analytics, proceed to the final six slides
13 Student Lending Analytics Background Founded in 2007Independent Research and Advisory Service with NO lender affiliationsMission: Find best lenders for students through an analytically rigorous, unbiased and comprehensive processServicesRFI Management of FFEL and Private LoansResearchSuccesses to DateManaged RFI process at institutions with over one billion dollars in loan volumeInside Student Lending, our monthly newsletter, reaches over 5,000 financial aidadministratorsStudent Lending Analytics Blog has become the go-to source for breakingdevelopments and analysis on the student lending industrySLA Flash Surveys have included the insights from over 1,500 financial aidprofessionals on a variety of timely topicsPrivate Loan Options and the SLA’s 2009 Alternative Loan Guide providesstudents and financial aid offices with an objective and focused list of private lendersSLA Student Satisfaction Surveys measures student satisfaction with lenders
14 Unlocking the Mysteries of Private Student Loans Student Lending Analytics: Resources Available SLA Private Student Loan Ratings2009 SLA Private Loan Series2009 SLA Private Loan GuidePaying For College BlogStudent Satisfaction SurveysComing Soon: Private Loan Quiz
15 Unlocking the Mysteries of Private Student Loans Private Student Loan Ratings Available atFeatured on front page of New York Times BusinessFocused on evaluating eight lenders that appeared most frequently on over 700 school lender lists that SLA researchedIncludes the following factors in ratings:Expected loan costBorrower benefit savingsFee structureFlexibility of repayment optionsCustomer serviceFinancial stabilitySLA receives no compensation from any lenders on this listNew Service: Student Loan Forum to capture real-time information about interest rates and approvals
16 Unlocking the Mysteries of Private Student Loans 2009 SLA Private Loan Series Most popular post: Shopping for Private Student Loans Makes a Difference!Results from 6 student loan applications yields interest rates between 7% - 12%Before You Apply for a Private Student LoanProvides checklist of items to complete prior to considering a private student loanWhat About Credit Unions?Explores the increasing role that credit unions are providing in the private student loan market"Miss A Payment On Your Private Student Loan, You Could See Your Interest Rate Rise"Highlights two lenders that have clauses in promissory notes which could result in 2% increases in interest rates triggered by one late paymentBorrower Benefits on Private Student LoansProvides examples of savings opportunities available to private loan borrowersWhat Ingredients Go Into the "Secret Sauce"?Insights into the factors that lenders consider in making their credit decisionsDoes It Make Sense To Shop Around For Private Student Loans?Provides details on new Fair-Isaac policy about the impact of applying for multiple student loans on your credit score (hint: it helps student borrowers)The Promissory NoteHighlights the key terms to be aware of when evaluating lender promissory notesWhat is the Meaning of "Instant Credit Response"?Reviews the on-line application process and analyzes the speed of lender credit reviewsPrivate Loan Fee StructureBenchmarks most common fees assessed by private lenders for both origination and servicing of loans
17 The Student Lending Analytics Process RFI Management
18 Student Lending Analytics Research Services Inform financial aid offices on industry developments (implications for their lender lists and relationships)Student Lending Analytics BlogKey resource for thousands of professionals in the student lending industryTimely insights to developments in student lending industryAlertsLegislation, lender exits, earnings calls, industry insightMonthly newslettersWebinarsDecember 2008 – A Conversation about FFELP and Direct LendingMay 2009 – Unlocking the Mysteries of Private Student LoansSurveys (summaries available on our website)FFEL vs. Direct LendingRFI PracticesImplementing Increased Federal Stafford loan limitsAvailability of Alternative LoansLegislative and regulatory updatesWhite papersHelp Line to answer questions/resolve issues throughout the year
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