This document was created before Parthenon joined Ernst & Young LLP on August 29, 2014, and has not been updated to reflect the combination. Innovating to Better Meet Student Needs ACE American Council on Education Leadership and Advocary Considering External Partners to Improve Student T HE P ARTHENON G ROUP Satisfaction with Financial Aid Processes March 9, 2014
Innovation is prevalent across the higher education value chain, as institutions face a traditional business model under pressure Spectrum of University Functions Back End Front End Academic Core Enrollment IT Support Institutional & Operational Support Academics Management University Functions Information Finance and Marketing and Online Systems Dormitories Accounting Platform Recruitment Management Financial Aid and Student Instruction Loans Document and Human Student Course Food Service Data Storage Resources Coaching Development Improve Outcomes Manage Costs 2
Given the increased focus on student touchpoints, the student lifecycle provides a valuable lens for examining the quality of services delivered First Day! Graduation! Student Experience: Transcript Application Financial Financial Verification Regis- Student Student Exit and Aid Orientation Literacy & Credit tration Supports Accounts Counseling Admission Processes Education Transfer • What elements of the student lifecycle are most important to the overall student experience? • Where is there room to improve the quality of those touchpoints? • What touchpoints should be managed internally, and where can partners provide support? 3
To answer these questions, we surveyed administrators and students across a wide range of institution types Student Respondents Administrator Respondents Administrator Respondents by Institution Type by Title by Institution Type 750 150 150 100% 100% 100% Other Other Career College Career College Pre s id e n t Bursar CFO State College Manager Private College 80 80 80 Dean Community College 60 Community College 60 60 Vice President 40 40 40 Private College State College Director 20 20 20 0 0 0 Student Survey Population Admin Survey Population Survey Population 4 Source: Parthenon Administrator Survey (n=152); Parthenon Student Survey (n=757)
Both students and administrators view financial aid processes as the most important element of the student experience How important is each of the following processes to the student experience? Rank Administrator Perspectives Rank Student Perspectives 1 Financial Aid Processes 1 Financial Aid Processes 2 Registration 2 Financial Literacy Education 3 Orientation 3 Entrance Counseling 4 Application and Admissions 4 Registration 5 Disbursement of Funds 5 Application and Admissions 6 Student Services 6 Disbursement of Funds 7 Student Accounts 7 Student Accounts 8 Transcript Verification and Credit Transfers 8 Transcript Verification and Credit Transfers 9 Entrance Counseling 9 Orientation 10 Financial Literacy Education 10 Student Services 5 Source: Parthenon Administrator Survey (n=152); Parthenon Student Survey (n=757)
Yet significant gaps exist in satisfaction with financial aid services as currently offered to students Importance of Financial Aid Processes 100% Unimportant Unimportant 80 Satisfied Satisfied 60 Very 40 Very Important Important Unsatisfied Unsatisfied 20 0 Importance Satisfaction Importance Satisfaction Administrators Students 6 Source: Parthenon Administrator Survey (n=152); Parthenon Student Survey (n=757)
Financial aid processes similarly show the greatest room for improvement Areas for Improvement Areas for Improvement Administrators Students 100% 100% 80 80 % of Respondents % of Respondents 60 60 51% 48% 38% 40 40 34% 33% 29% 20% 20 20 14% 0 0 Financial Literacy Education Financial Processes Default Prevention All Others Financial Aid Processes Entrance Counseling Disburse- ment of Funds All Others Aid 7 Source: Parthenon Administrator Survey (n=152); Parthenon Student Survey (n=757)
Student needs focus on increased interaction around the financial aid process Communication Methods High-Touch Communication Low-Touch Communication Text / Face-to-Face Telephone Email Automated Message Student Benefits Student Benefits • Live answers to help with a complex • Faster response times and processing process • 24/7 information access • Confirmation that important messages • Accurate information are delivered 8
Throughout the financial aid process, students prefer more personal interaction with financial aid staff Preferred Interaction with Financial Aid Staff 75% Ideal "High-Touch" Share Current "High-Touch" Share 50 % of Respondents 25 0 Completion of FAFSA Application to College File Review and Verification Loan Packaging Grant Application Scholarship Evaluation Entrance Counseling Disbursement of Funds Exit Counseling Financial Literacy Education Payment Collection Default Prevention 9 Source: Parthenon Student Survey (n=757)
What are the barriers to improved financial aid services? • People, people, people • Workload and time requirements • Seasonal fluctuations • Lack of an effective technology solution • Tight budgets and scarce resources 10
Administrators look for partners to provide more comprehensive services, allowing selection from a portfolio of offerings best aligned to student needs Role of External Partners 75% Likely to Partner % of Respondents Rating 6 or 7 Already Partner 50 25% 24% 25 22% 20% 16% 15% 14% 14% 13% 11% 7% 7% 0 Completion Application to College File Review and Verification Loan Packaging Grant Application Scholarship Evaluation Entrance Counseling Disbursement of Funds Exit Counseling Financial Literacy Education Payment Collection Default Prevention of FAFSA 11 Source: Parthenon Admin Survey (n=152)
Summary 1 Institutions should consider external partners as a means of improving student satisfaction along with institutional efficiency 2 The financial aid process represents a real paint point for students 3 The scale and expertise provided by external partners allows administrative staff to focus on needed personal interaction with students 12
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