ACE American Council on Education Leadership and Advocary - - PowerPoint PPT Presentation

THE PARTHENON GROUP

Innovating to Better Meet Student Needs

Considering External Partners to Improve Student Satisfaction with Financial Aid Processes

March 9, 2014

This document was created before Parthenon joined Ernst & Young LLP

• n August 29, 2014, and has not been updated to reflect the combination.

ACE

American Council on Education

Leadership and Advocary

2

Innovation is prevalent across the higher education value chain, as institutions face a traditional business model under pressure

Manage Costs Spectrum of University Functions

Document and Data Storage Finance and Accounting Human Resources Financial Aid and Student Loans Information Systems Management Dormitories Food Service IT Support Institutional & Operational Support Enrollment Management Academics Online Platform Course Development Back End Front End Academic Core University Functions Marketing and Recruitment Student Coaching

Improve Outcomes

Instruction

3

Given the increased focus on student touchpoints, the student lifecycle provides a valuable lens for examining the quality of services delivered

Application and Admission Transcript Verification & Credit Transfer Financial Aid Processes Regis- tration Orientation Student Accounts Exit Counseling Student Experience:

First Day! Graduation!

Financial Literacy Education Student Supports

• 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?

4

To answer these questions, we surveyed administrators and students across a wide range of institution types

20 40 60 80 100% Student Survey Population Career College Private College Community College State College 750

Student Respondents by Institution Type

20 40 60 80 100% Survey Population Dean Manager Director Vice President

Other

CFO Bursar

150

Administrator Respondents by Title

Source: Parthenon Administrator Survey (n=152); Parthenon Student Survey (n=757)

20 40 60 80 100% Admin Survey Population

Other

Career College State College Community College Private College 150

Administrator Respondents by Institution Type

5

Both students and administrators view financial aid processes as the most important element of the student experience

Rank Student Perspectives 1 Financial Aid Processes 2 Financial Literacy Education 3 Entrance Counseling 4 Registration 5 Application and Admissions 6 Disbursement of Funds 7 Student Accounts 8 Transcript Verification and Credit Transfers 9 Orientation 10 Student Services Rank Administrator Perspectives 1 Financial Aid Processes 2 Registration 3 Orientation 4 Application and Admissions 5 Disbursement of Funds 6 Student Services 7 Student Accounts 8 Transcript Verification and Credit Transfers 9 Entrance Counseling 10 Financial Literacy Education

Source: Parthenon Administrator Survey (n=152); Parthenon Student Survey (n=757)

How important is each of the following processes to the student experience?

6

20 40 60 80 100% Importance

Unimportant

Very Important Satisfaction Satisfied Unsatisfied Importance

Unimportant

Very Important Satisfaction Satisfied Unsatisfied

Yet significant gaps exist in satisfaction with financial aid services as currently

• ffered to students

Importance of Financial Aid Processes

Source: Parthenon Administrator Survey (n=152); Parthenon Student Survey (n=757)

Administrators Students

7

Financial aid processes similarly show the greatest room for improvement

20 40 60 80 100% Financial Aid Processes 48% Entrance Counseling 33% Disburse- ment

• f Funds

29% All Others 20% % of Respondents

Areas for Improvement Students

20 40 60 80 100% Financial Literacy Education 51% Financial Aid Processes 38% Default Prevention 34% All Others 14% % of Respondents

Areas for Improvement Administrators

Source: Parthenon Administrator Survey (n=152); Parthenon Student Survey (n=757)

8

Student needs focus on increased interaction around the financial aid process

Face-to-Face Telephone Email Text / Automated Message Low-Touch Communication High-Touch Communication Communication Methods Student Benefits

• Live answers to help with a complex

process

• Confirmation that important messages

are delivered Student Benefits

• Faster response times and processing
• 24/7 information access
• Accurate information

9

Throughout the financial aid process, students prefer more personal interaction with financial aid staff

25 50 75% Completion

• f FAFSA

Application to College File Review and Verification Loan Packaging Grant Application Scholarship Evaluation Entrance Counseling Disbursement

• f Funds

Exit Counseling Financial Literacy Education Payment Collection Default Prevention % of Respondents Current "High-Touch" Share Ideal "High-Touch" Share

Preferred Interaction with Financial Aid Staff

Source: Parthenon Student Survey (n=757)

10

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

11

Administrators look for partners to provide more comprehensive services, allowing selection from a portfolio of offerings best aligned to student needs

25 50 75% Completion

• f FAFSA

7% Application to College 20% File Review and Verification 15% Loan Packaging 13% Grant Application 7% Scholarship Evaluation 11% Entrance Counseling 16% Disbursement

• f Funds

14% Exit Counseling 14% Financial Literacy Education 22% Payment Collection 25% Default Prevention 24% % of Respondents Rating 6 or 7 Already Partner Likely to Partner

Role of External Partners

Source: Parthenon Admin Survey (n=152)

12

Summary

Institutions should consider external partners as a means of improving student satisfaction along with institutional efficiency The financial aid process represents a real paint point for students The scale and expertise provided by external partners allows administrative staff to focus on needed personal interaction with students 1 2 3