2
State of the union Understanding your options Elements of a good evaluation Outsourcing considerations Practical experience
Learning Objectives
3
Increased volume at our institutions:o FAFSA Application Processing Statistics
State of the Union – Where are we now?
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
Overall Applications
Series1
Data obtained from Department of Education Data Center on IFAPhttp://federalstudentaid.ed.gov/datacenter/
-
150,000
300,000
450,000
600,000
Indiana
Series1
4
Increased volume at our institutions:o Pell Grant Disbursements
State of the Union – Where are we now?
$-
$5,000,000,000
$10,000,000,000
$15,000,000,000
$20,000,000,000
$25,000,000,000
$30,000,000,000
$35,000,000,000
Overall Pell Disbursements
Series1
Data obtained from Department of Education Data Center on IFAPhttp://federalstudentaid.ed.gov/datacenter/
$-
$200,000,000
$400,000,000
$600,000,000
$800,000,000
$1,000,000,000
$1,200,000,000
Indiana Pell Disbursements
Series1
5
Increased volume at our institutions:o FAFSA Application Processing Statisticso Pell Grant Disbursements
Decrease in Budgetso State Funding ReducedoOperating Budgets Decreasing or Stagnant
Increased Regulatory Burden
State of the Union – Where are we now?
6
Executive Summary:
Two-Thirds indicate financial aid office facing a moderate or severe resource shortageo 80% identify shortage as permanent in natureo 88% impact their obligation to assist and counsel
students
Major Cause: oGreater regulatory compliance workload
2010 NASFAAAdministrative Burden Survey
7
Executive Summary (cont.)
Major Shortage Areas Identified:oOperating Budgetso Staffing Levels (include Counseling, Administrative,
and Support)o Insufficient Technology and Lack of Technology
Training
2010 NASFAAAdministrative Burden Survey
8
How much additional productivity may be extracted from an industry that has seen
remarkable increases in demand?
2010 NASFAAAdministrative Burden Survey
9
Administrative Capabilityo34 C.F.R. §668.16(b)(2) - administrationo34 C.F.R. §668.16(h) - counseling
Provided as a guide for responses to certain questions in the 2010 NASFAA Administrative Burden Survey
Referenced in a letter to College and University Presidents by Federal Student Aid COO, William J. Taggart (electronic announcement dated 4/6/11)
Regulatory Requirement
10
34 C.F.R. §668.16(b)(2)(2) Uses an adequate number of qualified persons to administer the Title IV,
HEA programs in which the institution participates. The Secretary
considers the following factors to determine whether an institution uses an
adequate number of qualified persons—i. The number and types of programs in which the institution participates;
ii. The number of applications evaluated;
iii. The number of students who receive any student financial assistance at the institution
and the amount of funds administered;
iv. The financial aid delivery system used by the institution;
v. The degree of office automation used by the institution in the administration of the
Title IV, HEA programs;
vi. The number and distribution of financial aid staff; and
vii. The use of third-party servicers to aid in the administration of the Title IV, HEA
programs;
Regulatory Requirement
11
3 Basic Options:• Status QuooDo nothing, continue business as usual
• Add to internal operationso Increase staff and automate processes
• Outsourceo Partner with third-party service provider to
increase process efficiency and staff effectiveness
Understanding Your Options
12
Determine the scope of workoPinpoint Issue
Peak Processing vs. Everyday Processing
oAutomation an option? If yes, do you have access to IT resources? How quickly can system be changed and tested?
oSpecialized knowledge base situation
oTiming How quickly does a solution need to be
implemented?
Weighing the Options
• First Line of Customer Service• Creates constant interruptions to staff
processing• Repeat Calls• What “the real questions are?”
• Devil is in the detail and understanding
Phones are a #1 Priority and Burden at most schools
Hire Student workers to answer phones◦ Pros
Can listen and respond with empathy Similar situation as caller They KNOW the University and love it too Cheap!!! Other ideas? Comments?
Internal Call Center Creation
Drawbacks◦ Training and timing◦ Useful timeframe◦ Lack of process and FA knowledge◦ Repeat calls for same issue◦ Sick Days, No shows, re-training◦ “They are students!!” Haha!!!
Internal Call Center
Pros◦ Free up Staff to focus on Customer Service◦ Singular focus on duties◦ “Low Hanging Fruit”
Temporary Service Providers
Cons◦ Training and understanding of processing◦ Training and understanding of Systems◦ Compliance
Temporary Service Providers
Pros◦ Highly Trained ◦ Proficient with multiple FAM Systems◦ No Sick Days◦ Compliance Driven◦ Staffs dedicated to each process or phone system◦ Technology Advantages◦ Held to Service Level Requirements◦ Cost Effective
Outsourced Service Provider for Call Center and Processing Services
Cons◦ Perception to internal Staff◦ Training Follow up for custom services◦ Understanding of College/University specific
culture◦ Cost
Outsourcing