Using Financial Aid to Meet Enrollment Goals Pamela W. Fowler Executive Director, Office of Financial Aid University of Michigan NeASFAA Spring Conference 2014

Role of Financial Aid Recruiting –Scholarships –Need-based aid packaging –Outreach Retention –Sufficient funding for expenses –Monitoring progress to degree After Graduation –Loan Repayment Options

Before you start What is not working? What is our goal? –Does everyone agree on the goal? Where are we now? –Get the data together so you have a clear picture of where you began. –How much time will you have to show improvement?

Recruiting Scholarships –Enrollment priorities Gifted and Talented Diversity Athletes Need-Based Aid Packaging –Matrix packaging –Grant/loan balance –No loans Outreach – information to students and parents

Outreach Recruiting low income students is not only an admission job To do so, you need staff and money devoted to this effort The best advising is done in person with the student and their parent Do you participate in Admission recruiting/conversion events? What message are you providing?

Matrix Packaging Use matrix packaging to direct aid –High Merit-High need – Low income –Underrepresented Minorities Must define these populations clearly Define how much money for each group Must track the success of these packaging strategies.

Merit vs. Need-Based Aid The case for merit –Elevates the profile of the institution Could result in more state funding, better donations from alumni and others If successful, institutional aid can be directed to low income students (assumes merit = low need) The case for need –Needy meritorious students get aid –Higher income students will attend anyway –Low income students attend at much lower rates

Packaging Strategies for Low Income Students No loan packages No work packages Early notification of scholarships Meet full need or partial need? Alternative loans for low income students?

Retention Scholarships –One time vs. four-year awards Need-Based Aid –Realistic Budgets –Grant/loan balance –Access to private loans Satisfactory Academic Progress –Monitor progress toward degree to maintain federal aid eligibility

Scholarships How much will it take to convince a low income student to attend? –Do they understand what it costs to attend? Will the funds be there for 4 years or more? What will the funds be replaced with if not available for 4 years?

Need-Based Aid Is the budget realistic? Do you have a solid basis for your budgets? Does the student understand what is included and what is not? Do students understand that budgets can be adjusted? Is this information easy to get to on your website? Do faculty know? Do students understand what you cannot cover with need-based aid?

Retention - Loans Access to private loans can be critical Keeping a lid on total borrowing

Satisfactory Academic Progress Is your policy rooted in reality? Is it encouraging students to succeed or to fail? Do you have the attention of academic advisors and faculty? Does the student understand it? Are there support services in place?

After Graduation Outstanding Balances –Do students leave with outstanding balances? Loan Repayment –More than exit counseling –Keep in touch –Offer to help along the way

Conclusion You need clear goals Develop a means to achieve the goals Use date to support what you are doing and if you are successful It takes money, aid, staffing, system work