WANTED: to Graduate Financial Aids Role in Student Retention
HELP!
Slide 2
Sample Retention Plan Identify the Issue State the Objectives
Find your group Create/Execute the Plan Measure Results Share
Results
Slide 3
Reason for Leaving 2003-04 Enrollees Depart at/by End of 1 st
Year * Source: Beginning Postsecondary Study 04:06, NCES, Dept. of
Education
Slide 4
Reason for Leaving 2003-04 Enrollees Depart at/by End of 3 rd
Year * Source: Beginning Postsecondary Study 04:06, NCES, Dept. of
Education
Slide 5
PersonalFamilyFinancialAcademicDissat.ScheduleOther Public
2+5%-45%-38%-42%-7%+93%-16% Public 4-41%-36%-35%-8%+25%+31%***
Non-profit 4-55%-75%+35%*-11%**+38% Reason for Leaving 2003-04
Enrollees % Change from: Depart at/by End of 1 st to Depart at/by
End of 3 rd * Source: Derived from Beginning Postsecondary Study
04:06, NCES, Dept. of Education * Increase from 0% to 6% **
Increase from 0% to 11% *** Increased from 0% to 16%
Slide 6
Reason for Retention Concern Financial Earnings o Bachelors
degree holders earn 31% more than workers with an Associates degree
and 74% more than those with a high school diploma* * Source:
Carnevale, Rose & Cheah, (2011) ** Source: Carnevale, Smith
& Strohl, (2010) Need for New Workers o By 2018, the U.S. will
need 22 million new workers with Associates degrees or higher **
Will be 3 million workers short Will need at least 4.7 million new
workers with postsecondary certificates
Slide 7
Reason for Retention Concern cont. Recent Recession * Source:
Carnevale, Jayasundera & Cheah, (2011) o Job Changes o +187K
Bachelors Degree or higher o -1.75M Associates/some college o -5.6M
HS Diploma or less o Recovery Job Changes o +2M Bachelors Degree or
higher o +1.6M Associates/some college o -230K HS Diploma or less o
Peak Unemployment rate o 13.4% for adults with HS diploma o 6.8%
for college graduates VS
Slide 8
Reason for Retention Concern cont. o The average default rate
for those borrowers with no credential/academic earning is more
than 4 X the rate for those with a Bachelors degree* o Loan
borrowers not completing a program default at a higher rate than
those who complete programs * Source: Nguyen, M. (2012) Loan
Default Rate o Loan default = no Title IV, bad credit reports,
collection agency contact, IRS income tax offset, negative impacts
on ability to get jobs
Slide 9
Reason for Retention Concern cont. States beginning to tie
funds to graduation rates or other performance indicators Course
completion, time to degree, transfer rates, number of degrees
awarded, number of low-income & minority graduates * Source:
NCSL. (2012)
Slide 10
First Year Retention Rates Total Public and Private (2010)
RMASFAA States Colorado: 50% Kansas: 52.6% Montana: 51.6% Nebraska:
59.6% N. Dakota: 54% S. Dakota: 64.5% Utah: 50.8% Wyoming: 57.1% US
Average: 54.3% Source: NCES, IPEDS Fall 2010 Enrollment Retention
Rate File Two-Year Four-Year RMASFAA States Colorado: 75.5% Kansas:
72.7% Montana: 68.4% Nebraska: 77.8% N. Dakota: 73.6% S. Dakota:
68.2% Utah: 73.3% Wyoming: 72.7% U.S. Average: 77.1%
Slide 11
Graduation Rates Three-Year Graduation Rates for Associate
Students RMASFAA States Colorado: 39.3% Kansas: 34.4% Montana:
24.4% Nebraska: 30.3% N. Dakota: 37% S. Dakota: 60.7% Utah: 36.4%
Wyoming: 53.9% U.S. Average: 29.2% Total Public and Private (2009)
Source: NCES, IPEDS Graduation Rate Survey Six-Year Graduation
Rates of Bachelors Students RMASFAA States Colorado: 53.3% Kansas:
53.2% Montana: 45.2% Nebraska: 55.1% N. Dakota: 46.9% S. Dakota:
44.8% Utah: 51.5% Wyoming: 55.4% U.S. Average: 55.5%
Slide 12
Student Pipeline Rates 9 th Grade to College Grad Total Public
and Private, Two-Year and Four-Year (2008) RMASFAA States Colorado:
22.2% Kansas: 22.0% Montana: 16.1% Nebraska: 24.9% N. Dakota: 24.6%
S. Dakota: 29.5% Utah: 20.8% Wyoming: 25.5% U.S. Average:
20.5%
Slide 13
Financial Concerns Not Academically Prepared Financial Aid
Knowledge University Connections Other Concerns What are some
barriers to retention?
Slide 14
Financial Concern Cost of college has gone up 2x the inflation
rate; average 5-8% per year Families may plan for first year, but
not for 2 nd, 3 rd or 4 th years Cost of living has continued to go
up No help from parents
Slide 15
Many families experiencing catastrophic financial situations
More PLUS loans being denied* o ED made change October 2011 (after
most loans for 1112 originated) started to see issues 1213 o
Originally looked at whether applicant had an adverse credit
history for an account in the past 90 days o Now looks for
delinquent accounts during last 5 years o Foreclosures,
bankruptcies, wage garnishments, repossessions, tax liens, past due
payments. * Source: Vergakis, B. (2013) Financial Concern
cont.
Slide 16
Increasing financial aid packages creates only modest
improvements in retention o On average $1,000 increase in gift aid
results in only a 2-4% increase in student retention* o Is a
marginal benefit worth a large-scale (and costly) expansion? o
Challenge: Identify more cost-effective forms of aid vs. targeting
aid programs more effectively * Source: Crockett, K, Heffron,
M.,& Schneider, M. (2011)
Slide 17
Financial Concern cont. Colleges and universities (especially
at department level) use endowed funds to reward continuing
academic success instead of increased need VS. o Higher performing
students are more likely to transfer out regardless of a financial
aid package. * o Thus college cost is not a variable in student
selection process for higher performing students.* * Source:
Herzog. (2008)
Slide 18
Not Academically Prepared Remedial classes* * Source: Elliott,
S. (2013)** Source: Complete College America. (2013) o >50% of
students entering 2 yr colleges and almost 20% of those entering 4
yr colleges are placed in remedial classes.** o Drains money
intended to pay for college courses o Student may go into debt over
these courses o Imperils students chances of success in
college
Slide 19
The evidence is clear very few students who have this cycle
(going into debt for remedial classes) ever graduate from an
institution of higher education* Dan Clark, executive director of
the Education Roundtable * Source: Elliott, S. (2013) ** Source:
U.S. Dept. of Education (2002) According to ED, students who are
more likely to withdraw are:** o Students who take any remedial
course o Students with a GPA below 2.75 Not Academically Prepared
cont.
Slide 20
Financial Aid Knowledge Lack of student and family knowledge of
financial aid programs College students are generally mentored by
their parents and ignore experts (especially online experts) * *
Source: Millennial Branding & StudentAdvisor.com, (2012) Sallie
Mae - 2007 Survey of Parents of College-Bound Freshmen o Cost of
school top priority for15% of respondents (4 th most popular
choice) o Location of school was top priority for 34% (most
frequently selected choice)
Slide 21
University Connection Retention requires a degree of connection
between student and institution o Students who experienced lower
social and academic integration into campus life during their first
year of postsecondary education were more likely than others to
leave within 3 years* * Source: U.S. Dept. of Education (2002) o
Students are at higher risk of withdrawal if they begin attending
higher education during any semester other than fall* Withdrawal is
failure to make that connection.
Slide 22
Other Concerns Embarrassment to ask for help Students who are
undecided or who have a less job specific major are more likely to
drop out* Inability to cope with the demands of coursework,
studying, a family and job * Source: Harvard. (2011) Cost of going
to college really worth the time and effort in school and out of
the workforce?
Slide 23
Other Concerns cont. * Source: Singell, L.D. & Waddell,
G.R. (2010) Students who are high risk for withdrawal remain high
risk throughout their college enrollment* o May not be cost (or
time) effective to target this group Students who are the most high
risk may also be the least responsive to retention efforts*
Slide 24
In postsecondary education, students are the customers, and
customer service is everyones responsibility What can the Financial
Aid Office do?
Slide 25
Ideas for Improvement Financial Aid Awarding Outreach Campus
Connections First Generation Awards Minority Populations
Slide 26
Financial Aid Awarding Use endowed funds to respond to
increased need among returning students instead of only targeting
to academic success o Academically successful students are more
likely to be retained anyways* * Source: Scannell, J. (2011) Create
grant programs with set criteria so new and continuing students can
see stability Have funds that can be used on a case by case basis
to holistically assess need and retention
Slide 27
Colorado State University (CSU) Commitment to Colorado Promises
grant funds at least equal to the amount of annual tuition and fees
for Pell grant eligible CO residents Promises grant funds equal to
half the amount of annual tuition for CO resident students whose
families earn COs median household income or less More information:
http://www.sfs.colostate.edu/commitment-to-
coloradohttp://www.sfs.colostate.edu/commitment-to- colorado
Student Support Grant Holistic grant that helps students in
financial need nearing graduation stay in school. Amount of grant
is different for each student and based on multiple factors
determined by the financial aid counselor. Financial Aid Awarding
cont.
Slide 28
Examine where breakpoints in retention occur at various levels
of unmet need to identify financially at risk populations Do a
cost/benefit analysis * Source: Scannell, J. (2011)
Slide 29
First Generation Specific awards targeting First Generation
students o Students and families with the least knowledge on
college and associated costs o Additional funding aids in retention
of this group o Encourage first generation college students to
participate in Higher Ed and to promote diversity in student
population
Slide 30
First Generation cont. Colorado State University First
Generation Award o $4,000 per year, renewable up to 5 years o
Students parents must NOT have received a bachelors degree o Must
demonstrate financial need o Must demonstrate potential for
academic success o Outreach and Support Programs Department
Provides University connection, staff support and mentoring
Slide 31
Campus Connections Enhancing connections between financial aid
office with academic faculty, advisors, and advocacy offices o Let
other offices know that the financial aid office may have solutions
o Allow others to report students they are concerned about
(financial reasons). Offer presentations to faculty groups and
departments Assign a financial aid counselor liaison for each
department on campus Communication can be initiated by either
office
Slide 32
Outreach Financial literacy campaign for new and continuing
students o Peer-to-peer counseling/presenting o Require completion
of an annual programs or if a student fails a course, withdraws or
their GPA drops below a certain point Put fellow students in
position of mentor Topics chosen via peer focus groups o Classroom
workshops, on-line programs, publications, emails Students have an
increased risk of dropping out with lower GPAs and withdrawals;
intervene early
Slide 33
Outreach cont. Kansas State University o Offers free financial
counseling to students to help with budgeting and managing debt Met
with 406 students on campus during the 2012-2013 academic year o
Offers group financial presentations covering budgeting, credit,
student loan repayment and financial planning Presented to over
5,300 individuals during the 2012-2013 academic year
Slide 34
Outreach cont. Sitting Bull College (ND) o Holds Health &
Financial Fairs each semester, bringing in local area services to
educate student o Holds Student Summit each semester to allow
students to ask question and visit with representatives from
various departments on campus
Slide 35
Outreach cont. Notifying at-risk students of specific SAP
requirements in advance o Reduce the risk of students leaving due
to financial aid exclusion o KSU contacts students that are
admitted on exception and informs them of specific financial aid
requirements for their first academic year These students are also
placed on an academic plan (through the Universitys requirement)
for their first few semesters
Slide 36
Outreach cont. Academic Improvement Program Salish Kootenai
College o Takes students on financial aid probation due to academic
probation, and provides one academic quarter of intensive intrusive
advising & skill building Provides connection with faculty in
academic major Improved persistence rates were shown for these
students Provides academic help when students may not know how (or
be willing) to ask for it
Slide 37
Outreach cont. Increasing outreach to middle schools for family
financial planning o Start early! Educate! o More financially ready
students & families * Source: USA Today. (2013) o A study
published February 2013 in the American Sociological Review found
that students who received $12,000 from their parents in the first
year of college were more likely to complete their degree* o
However, they were also more likely to get lower grades
Slide 38
Social media/networking for financial aid outreach Outreach
cont. o Everybodys doing it. Set up a Facebook page or a Twitter
account to get the word out to these Millennials and Social
Media-friendly parents o Have schools main Social Media site
(official) send out status reports and tweets of important
financial aid events and deadlines Have the main site share your
pages status updates
Slide 39
Outreach cont. CSU Warner College of Natural Resources, Social
Media Case Study o What has worked: Unique photos Stories/posts
about student, alumni & faculty Cross promoting Being a good
friend o (responding/liking to posts on page, tagging other campus
departments) Like ads o Generally $10/wk or $350 lifetime o Less
successful: Open ended questions External news Videos Posting more
than 1-2 times a day, 7 days/wk
Slide 40
Outreach cont. Cecil Community College (MD) Campaign to
increase financial aid awareness Informational workshops Targeted
mailings Phone calls to students eligible for financial aid but had
not enrolled Campaign resulted in financial air participation rate
increase of 33 -39% in two years Retention rates of financial aid
recipients increased slightly at 1% College expansions Increase
staff & computer support in learning centers Retooled career
& job placement services * Source: Center for Community College
Student Engagement.(2006)
Slide 41
Other Thoughts Stating financial reasons on withdrawal surveys
might be easier than listing more personal or difficult reasons.
Michael Collette, VP for Marketing & Strategic Planning at
Anderson University (Ind.) Degrees of dissatisfaction and
satisfaction (the latter involving esteem, relationships, etc.) are
the real drivers/influencers to re-enrollment behavior. * Financial
aid or costs are much more important for first purchase than
repurchase decisions. * AND * Source: Scannell, J. (2011)
Slide 42
Other Thoughts cont. Financial issues may be more of a tipping
point when students are already concerned with: Academic
performance Campus relationships Family issues Work situations
Assuming is always the main driver to improved retention rates is
not enough * Source: Scannell, J. (2011)
Slide 43
Group Discussion Specific aid? Targeting specific groups or
case-by-case? Campus Connections? Outreach? Other Thoughts? What is
your office doing to aid in retention? What would you like to see
your office do to aid in retention?
Slide 44
References Colorado State University, Warner College of Natural
Resources. (2013). Social Media Case Study. Carnevale, A.P.;
Jayasundera, T.; and Cheah, B. August 2012. Executive Summary: The
College Advantage: Weathering the Economic Storm. Georgetown
University Center on Education and the Workforce. Carnevale, A.P.;
Rose, S.J.; and Cheah, B. August 2011. The College Payoff:
Education, Occupations, Lifetime Earnings. Georgetown University
Center on Education and the Workforce. Retrieved from:
http://www9.georgetown.edu/grad/gppi/hpi/cew/pdfs/collegepayoff-complete.pdf.
http://www9.georgetown.edu/grad/gppi/hpi/cew/pdfs/collegepayoff-complete.pdf
Carnevale, A.P.; Smith, N.; and Strohl, J. June 2010. Executive
Summary: Help Wanted: Projections of Jobs and Education
Requirements Through 2018. Georgetown University Center on
Education and the Workforce. Center for Community College Student
Engagement. (2006). Act on Fact: Using Data to Improve Student
Success. Austin, TX: The University of Texas at Austin, Community
College Leadership Program. Complete College America. Spring 2012.
Remediation: Higher Educations Bridge to Nowhere.. Retrieved from:
http://www.completecollege.org/docs/CCA-Remediation-final.pdf. pp.
2-3. http://www.completecollege.org/docs/CCA-Remediation-final.pdf
Crockett, K., Heffron, M., Schneider, M. (2011). Targeting
Financial Aid for Improved Retention Outcomes. Noel-Levitz and
American Institutes for Research. Retrieved from:
http://www.air.org/files/LA_PELL_STUDY_report_1011.pdfhttp://www.air.org/files/LA_PELL_STUDY_report_1011.pdf
Domonell, K. (2013). Sequestering Minority Education. University
Business 3/26/2013.
Slide 45
References cont. Ellitot, S. (2013). Indiana legislature bill
aims to boost college readiness by typing financial aid to state
exams. Retrieved from:
http://www.indystar.com/article/20130124/NEWS05/130124042/Bill-aims-boost-college-readiness-by-tying-
financial-aid-state-exams?gcheck=1&nclick_check=1http://www.indystar.com/article/20130124/NEWS05/130124042/Bill-aims-boost-college-readiness-by-tying-
financial-aid-state-exams?gcheck=1&nclick_check=1 Harvard
Graduate School of Education. (2011). Pathways to Prosperity Study.
Henderson, S., Tatum, J. (2009). Beyond Leveraging: Financial Aids
Role in Executing SEM Recruitment and Retention. 19 th AACRAO
Enrollment Management Conference. Univeristy of Michigan-Dearborn.
Retrieved from:
http://handouts.aacrao.org/sem19/finished/T0215p_J_Benfield%20Tatum.pdf
http://handouts.aacrao.org/sem19/finished/T0215p_J_Benfield%20Tatum.pdf
Herzog. (2008) Journal of Student Financial Aid. 37(3) Musselwhite
& Reeve. (2013). Academic Advising and First Generation
Students. Millennial Branding and StudentAdvisor.com. (2012).
Millennial Branding and StudentAdvisor.com Release New Study on
Student Career Development. Retrieved from:
http://millennialbranding.com/2012/11/student-career-development-
study/http://millennialbranding.com/2012/11/student-career-development-
study/ NCHEMS Information Center for Higher Education Policymaking
and Analysis,
http://www.higheredinfo.org/http://www.higheredinfo.org/ National
Conference of State Legislatures (NCSL). (2012). Performance
Funding for Higher Education. Retrieved from:
http://www.ncsl.org/issues-research/educ/performance-funding.aspxhttp://www.ncsl.org/issues-research/educ/performance-funding.aspx
Nguyen, M. February 2012. Degreeless in Debt: What Happens to
Borrowers Who Drop Out. Retrieved from:
http://www.educationsector.org/publications/degreeless-debt-what-happens-borrowers-who-drop-out
http://www.educationsector.org/publications/degreeless-debt-what-happens-borrowers-who-drop-out
Sallie Mae. (2008). 2007 Survey of Parents of College-Bound
Freshmen. Retrieved from:
http://www.rmasfaa.org/docs/exchange/200803/rme6.html
http://www.rmasfaa.org/docs/exchange/200803/rme6.html
Slide 46
References cont. Scannell, J. (2011). The Role of Financial Aid
and Retention. Retrieved from:
http://www.universitybusiness.com/article/role-
financial-aid-and-retentionhttp://www.universitybusiness.com/article/role-
financial-aid-and-retention Singell, L. D., & Waddell, G. R.
(2010, September). Modeling retention at a large public university:
Can at-risk students be identified early enough to treat? Research
in Higher Education, 51(6), 546-572. doi: 10.1007/s11162-010-9170-7
Time Ideas. (2012). 8 Ideas to Improve Higher Education. Retrieved
from: http://ideas.time.com/2012/10/18/8-ideas-to-
improve-higher-education/#slide/tie-funding-to-graduation-rates/?&_suid=13594909150780032817017170189644http://ideas.time.com/2012/10/18/8-ideas-to-
improve-higher-education/#slide/tie-funding-to-graduation-rates/?&_suid=13594909150780032817017170189644
U.S. Department of Education. (2002, November). Short-term
enrollment in postsecondary education: Student background and
institutional differences in reasons for early departure, 1996-98.
Washington, DC: National Center for Education Statistics. USA
Today. (2013). Which colleges offer the best value? Retrieved from:
http://www.9news.com/news/article/314987/339/Which-colleges-offer-the-best-value-
http://www.9news.com/news/article/314987/339/Which-colleges-offer-the-best-value-
Vergakis, B. (2013). Feds loan changes hamper black college
enrollment. Associated Press. Retrieved from:
http://news.yahoo.com/feds-loan-changes-hamper-black-162929184.html
http://news.yahoo.com/feds-loan-changes-hamper-black-162929184.html
Wilmsen, E. (2011). Educational Policy Institute honors CSU with
2011 Outstanding Student Retention Program award. Today @ Colorado
State. Retrieved from:
http://www.today.colostate.edu/story.aspx?id=5727http://www.today.colostate.edu/story.aspx?id=5727