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WANTED: to Graduate Financial Aids Role in Student Retention HELP!

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Sample Retention Plan Identify the Issue State the Objectives Find your group Create/Execute the Plan Measure Results Share Results

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Reason for Leaving 2003-04 Enrollees Depart at/by End of 1 st Year * Source: Beginning Postsecondary Study 04:06, NCES, Dept. of Education

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Reason for Leaving 2003-04 Enrollees Depart at/by End of 3 rd Year * Source: Beginning Postsecondary Study 04:06, NCES, Dept. of Education

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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%

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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

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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

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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

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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)

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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%

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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%

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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%

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Financial Concerns Not Academically Prepared Financial Aid Knowledge University Connections Other Concerns What are some barriers to retention?

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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

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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.

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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)

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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)

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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

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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.

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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)

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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.

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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?

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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*

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In postsecondary education, students are the customers, and customer service is everyones responsibility What can the Financial Aid Office do?

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Ideas for Improvement Financial Aid Awarding Outreach Campus Connections First Generation Awards Minority Populations

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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

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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.

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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)

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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)

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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)

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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)

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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?

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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.

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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

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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