Transcript Document

Student Lending Analytics
Flash Survey: Financial Aid Counseling
June 22, 2009
© Student Lending Analytics, LLC
Slide 1
SLA Flash Survey: Financial Aid Counseling
Background
Situation: Given the current recession and the reductions that
families have seen in their 529 plans and home equity, the demand
for financial aid counseling has increased significantly. This survey
will provide details on the topics that are most often addressed in
these counseling sessions
Survey Goals
– Determine the extent to which the demand for financial aid
counseling has changed within the past year
– Identify the issues being that students/families are most concerned
about
– List resources that financial aid administrators rely upon to develop
counseling expertise
© Student Lending Analytics, LLC
Slide 2
SLA Flash Survey: Financial Aid Counseling
Methodology
Emailed flash survey on June 17, 2009 with due date of June 18,
2009
In addition to demographic questions, the survey asked respondents
the following questions:
– Indicate the frequency with which each of these issues is discussed in
counseling sessions with students and families.
– Estimate the annual change in the number of students/families counseled
by financial aid staff at your institution.
– Describe the 2-3 most valuable resources used to train financial aid staff to
effectively counsel students and families.
– Describe you or your staff's greatest success achieved through counseling
students or their families.
© Student Lending Analytics, LLC
Slide 3
SLA Flash Survey: Financial Aid Counseling
Methodology (Cont.)
Responses were normalized for following reasons:
– Email addresses that did not correspond with an educational institution were
excluded
– Several schools provided multiple responses; only one response was
analyzed
– Responses that included demographic data but incomplete answers to main
survey questions were excluded
Overall, there were 178 survey responses analyzed
© Student Lending Analytics, LLC
Slide 4
SLA Flash Survey: Financial Aid Counseling
Summary
The five issues discussed most frequently during counseling sessions were:
–
–
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Scholarships/grants
Work study/job opportunities
Professional judgment
Understanding differences between Federal and Private Loans
Impact of scholarships on financial aid
86% of financial aid administrators indicated that the number of students
and families counseled had grown in the past year
– 19% of respondents indicated that they had seen an increase of over 20%
Respondents identified the importance of these organizations in providing
resources to assist them in counseling students
–
–
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Experienced, in-house staff to lead training sessions
NASFAA national, state and local conferences and webinars
Department of Education
Guarantors, lenders and other state agencies
© Student Lending Analytics, LLC
Slide 5
SLA Flash Survey: Financial Aid Counseling
Profile of Survey Participants
School Type
School Ownership
60%
60%
50%
40%
30%
20%
10%
0%
40%
20%
0%
4-Year Private 4-Year Public 2-Year Public
Other
Private
40.0%
30%
20%
10%
0%
30.0%
20.0%
© Student Lending Analytics, LLC
0
0.0%
Northeast
South
Midwest
West
O
ve
r
$4
0,0
0
00
01
-$
40
,0
00
$3
0 ,0
$2
0 ,0
01
-$
30
,0
00
-$
20
,0
$1
5 ,0
01
$1
0 ,0
01
-$
15
,0
00
00
0
10.0%
$1
0,
1-
Other
School Region
Cost of Attendance
$5
,00
Public
Slide 6
100.0%
90.0%
80.0%
70.0%
43%
60.0%
53%
50.0%
58% 49%
48%
40.0%
30.0%
20.0%
Frequently
44%
36%
Very Frequently
42% 43% 39% 30%
51%
10.0%
32%
23%
30%
21% 17% 25% 18% 15% 17% 21%
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Percentage of Total Respondents
SLA Flash Survey: Financial Aid Counseling
Prevalence of Topics Discussed in Counseling Families
Survey question: Indicate the frequency with which each of these issues is discussed in counseling sessions with students and families.
Source: SLA Flash Survey: Financial Aid Counseling, June 2009 (178 respondents)
© Student Lending Analytics, LLC
Slide 7
SLA Flash Survey: Financial Aid Counseling
Increase in Numbers Counseled
50.0%
38%
Percentage of Respondents
40.0%
29%
30.0%
19%
20.0%
11%
10.0%
1%
2%
2%
Over 20%
decline
Between 10
and 20%
decline
Between 1
and 9%
decline
0.0%
No change
Between 1
and 10%
increase
Between 11
and 20%
increase
Over 20%
increase
Survey question: Estimate the annual change in the number of students/families counseled by financial aid staff at your institution.
Source: SLA Flash Survey: Financial Aid Counseling, June 2009 (178 respondents)
© Student Lending Analytics, LLC
Slide 8
SLA Flash Survey: Financial Aid
Counseling Resources Identified To Assist Financial Aid Staff
Most commonly cited resources
– Experienced staff leading in-office training
• Some indicated that junior staff sat in on counseling sessions with more
seasoned staff
• Mock counseling sessions
• Cross-training to understand other services provided on-campus
– Internal workshops run by College staff to generate ideas on improving customer
service
– Local/regional/national conferences by financial aid administrator organizations
(NASFAA and local chapters)
– Federal resources: IFAP, Guide to Federal Student Aid, FSA Coach, FSA
Conferences, FSA University (online)
– State agencies, guarantor and lender workshops and seminars
• Guarantors mentioned specifically: USA Funds, EdFund, PHEAA, TG, NSLP
Other resources mentioned
– Academic Impressions' video/webinar featuring a financial aid director and a
psychologist on how best to cope with anxiety and anger
– www.youcandealwithit.com (AES website for debt management)
– College Board Financial Aid Institute
© Student Lending Analytics, LLC
Slide 9
SLA Flash Survey: Financial Aid Counseling
Success Stories – Representative Quotes
“Nothing beats helping students and families achieve the dream and goal of
college.”
“Having more students and families complete the FAFSA.”
“Luckily, because I'm at an affordable 2-yr public, our greatest achievement
is convincing students and families that an education is obtainable. There is
sufficient federal assistance available to cover tuition and fees for any
student, regardless of the family's income.”
“We make all students apply for federal aid before we will process any
private loan. Sometimes there is resistance, but they usually comply and
many times they receive federal aid.”
“I always think it is a success when the parent or student actually owns the
information/process when I am finished counseling them (they show that
they really understand).”
“Family's realization of ability to afford the University after financial aid is
awarded.”
A simple "Thank You" or "I appreciate it"!!!
© Student Lending Analytics, LLC
Slide 10
SLA Flash Survey: Financial Aid Counseling
Success Stories – Representative Quotes
“Greater recognition of accurate, early filing and a reduction in trying
to "game" the system.”
“It is always heartwarming to hear a family express their thanks
when we have helped them find some resources that they did not
know about/were not initially eligible to receive.”
“Working in the local high schools with recruiting counselors to
provide admission/financial aid/scholarships information to students
during the day and parental workshops at night.”
“Access to college for first generation college students through
extensive outreach.”
© Student Lending Analytics, LLC
Slide 11
Thank You
Thank you again for your participation!
Please contact Tim Ranzetta if you have any additional comments
or questions regarding this survey
– Send email to [email protected]
– Phone: 650-218-8408
Look for more upcoming SLA Flash Surveys in the future
For more information on Student Lending Analytics, proceed to the
final six slides
© Student Lending Analytics, LLC
Slide 12
Student Lending Analytics
Background
Founded in 2007
Independent Research and Advisory Service with NO lender affiliations
Mission: Find best lenders for students through an analytically rigorous,
unbiased and comprehensive process
Services
– RFI Management of FFEL and Private Loans
– Research
Successes to Date
– Managed RFI process at institutions with over one billion dollars in loan volume
– Inside Student Lending, our monthly newsletter, reaches over 5,000 financial aid
administrators
– Student Lending Analytics Blog has become the go-to source for breaking
developments and analysis on the student lending industry
– SLA Flash Surveys have included the insights from over 1,500 financial aid
professionals on a variety of timely topics
– Private Loan Options and the SLA’s 2009 Alternative Loan Guide provides
students and financial aid offices with an objective and focused list of private lenders
– SLA Student Satisfaction Surveys measures student satisfaction with lenders
© Student Lending Analytics, LLC
Slide 13
Unlocking the Mysteries of Private Student Loans
Student Lending Analytics: Resources Available
SLA Private Student Loan Ratings
2009 SLA Private Loan Series
– 2009 SLA Private Loan Guide
Paying For College Blog
Student Satisfaction Surveys
Coming Soon: Private Loan Quiz
© Student Lending Analytics, LLC
Slide 14
Unlocking the Mysteries of Private Student Loans
Private Student Loan Ratings
Available at http://www.studentlendinganalytics.com/ratings.html
Featured on front page of New York Times Business
Focused on evaluating eight lenders that appeared most frequently on over
700 school lender lists that SLA researched
Includes the following factors in ratings:
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Expected loan cost
Borrower benefit savings
Fee structure
Flexibility of repayment options
Customer service
Financial stability
SLA receives no compensation from any lenders on this list
New Service: Student Loan Forum to capture real-time information about
interest rates and approvals
© Student Lending Analytics, LLC
Slide 15
Unlocking the Mysteries of Private Student Loans
2009 SLA Private Loan Series
Most popular post: Shopping for Private Student Loans Makes a Difference!
– Results from 6 student loan applications yields interest rates between 7% - 12%
Before You Apply for a Private Student Loan
– Provides checklist of items to complete prior to considering a private student loan
What About Credit Unions?
– Explores the increasing role that credit unions are providing in the private student loan market
"Miss A Payment On Your Private Student Loan, You Could See Your Interest Rate Rise"
– Highlights two lenders that have clauses in promissory notes which could result in 2% increases in interest
rates triggered by one late payment
Borrower Benefits on Private Student Loans
– Provides examples of savings opportunities available to private loan borrowers
What Ingredients Go Into the "Secret Sauce"?
– Insights into the factors that lenders consider in making their credit decisions
Does It Make Sense To Shop Around For Private Student Loans?
– Provides details on new Fair-Isaac policy about the impact of applying for multiple student loans on your
credit score (hint: it helps student borrowers)
The Promissory Note
– Highlights the key terms to be aware of when evaluating lender promissory notes
What is the Meaning of "Instant Credit Response"?
– Reviews the on-line application process and analyzes the speed of lender credit reviews
Private Loan Fee Structure
– Benchmarks most common fees assessed by private lenders for both origination and servicing of loans
© Student Lending Analytics, LLC
Slide 16
The Student Lending Analytics Process
RFI Management
© Student Lending Analytics, LLC
Slide 17
Student Lending Analytics
Research Services
Inform financial aid offices on industry developments (implications for their
lender lists and relationships)
– Student Lending Analytics Blog
• Key resource for thousands of professionals in the student lending industry
• Timely insights to developments in student lending industry
– Alerts
• Legislation, lender exits, earnings calls, industry insight
– Monthly newsletters
– Webinars
• December 2008 – A Conversation about FFELP and Direct Lending
• May 2009 – Unlocking the Mysteries of Private Student Loans
– Surveys (summaries available on our website)
• FFEL vs. Direct Lending
• RFI Practices
• Implementing Increased Federal Stafford loan limits
• Availability of Alternative Loans
– Legislative and regulatory updates
– White papers
– Help Line to answer questions/resolve issues throughout the year
© Student Lending Analytics, LLC
Slide 18