money matters – financial aid issues affecting student success jo-ann craig director, financial...
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Money Matters – Financial Aid Issues Affecting
Student Success
Jo-Ann Craig
Director, Financial Aid
Cape Fear Community College
Retention Research
• 40 years
• 20 years focusing on aid
• Similar findings: aid impacts retention (duh!)
“Starting Right: A First Look at Engaging Entering Students”
• 2007 Pilot of the Survey of Entering Student Engagement (SENSE)
• Administered during fourth and fifth weeks of fall term
• 22 colleges participated
Results
“I was able to access the information I needed to complete the enrollment process (admissions, registration, financial aid, etc.)”
32% strongly agree
2% strongly disagree
Results (cont’d)
Interaction with the Financial Aid Office:
• “Chaos”• “Disorganization”• “I had no idea, it was very confusing”• “When you finally get everything, you feel
like you got that ‘A’”
“Advisors need to be able to understand the policies and procedures that affect students’ financial aid as well as have a clear understanding of
how to refer effectively those students in financial need.”
Charlie L. NuttNational ACademic ADvising Association
Major Financial Aid Issues Affecting Student Success
• “Digital Divide”
• Complexity
• Satisfactory Academic Progress
• Debt Level/Financial Literacy
Digital Divide
Use of Internet expedites the financial aid process:
• Applications processed faster
• Applicants learn of eligibility faster
• Applicants receive e-mail updates
• Applicants have wealth of scholarship information at their disposal
Computer & Internet Use by Students in 2003
Household Income Level
$20,000 or Less
$75,000 or More
% of K-12 Students Using the Internet
40
74
Computer & Internet Use by Students in 2003 (cont’d)
Parents’ Educational % of K-12 Students Level Using the Internet Never graduated from 37 high school Graduate degree 73
Bridging the Divide
• “College Goal Sunday” Events
• Increased access to computers and the Internet
• Collaboration between high schools and colleges
FAFSA
How Do I Apply for Federal Student Aid?
• Step 1 – Get Free Information and Assistance • Step 2 – Get PIN• Step 3 – Gather all Information• Step 4 – Complete the FAFSA• Step 5 – Review your SAR• Step 6 – Submit Verification Documents• Step 7 – Ensure Receipt of Documents• Step 8 – Contact Financial Aid Office with
Questions
Student Aid Application Process
Fall -Spring Senior Year of High
School
Winter-Spring Senior Year of High School
March – April Senior Year of High School
Apply to College
Colleges Receive/Review Applications & Admit
Student
Submit FAFSA
Department of Education Processes FAFSA
2-6 Weeks After Submitting
FAFSA
Student Receives SAR
Schools Receive SAR & Process Aid Package
Student Receives Aid Eligibility
Satisfactory Academic Progress
The qualitative and quantitative measure of a student’s progress toward program completion
SAP Policy Requirements
• Same as or more strict than standards for students NOT receiving aid
• Qualitative measurement• Quantitative measurement• Maximum time frame for completion: 150%• Appeal process
SAP Policy at CFCC
• Must maintain a cumulative 2.0 GPA (Qualitative)• Must successfully complete 67% of all credits
ever attempted (Quantitative)• First semester = Warning of Possible Loss of
Financial Aid Eligibility• Second semester = SUSPENSION of Financial
Aid Eligibility
SAP Policy at CFCC (cont’d)
Appeal Process
• In writing• Can appear before
committee
Appeal Committee Membership
• Staff• Faculty• Student• NO Financial Aid
Staff
Why Do Students Fail to Meet SAP Guidelines?
• Academic Challenges
• Personal Challenges
• Financial Challenges
• Medical/Mental Challenges
• Military Service Challenges
• Social Adjustment Challenges
Student Doesn’t Meet SAP Guidelines…
Now What?
• Does the Financial Aid Office have an obligation to help?
• Is the Financial Aid Office equipped to help?
• What can be done?
Debt Level/Financial Literacy
• Up to 3 in 5 first-year college students max out their first credit card within their first year on campus
• Nearly 60% of first year students report that “financial problems” interfere with their school work
• 29% report “financial problems that are very distracting and troublesome”
• Almost 3 in 4 college students believe it is acceptable to use credit cards for living expenses
Debt Level/Financial Literacy
• 64% of undergraduates don’t know the interest rate on their credit cards
• Bankruptcies for those under 25 years of age increased from 15,000 in 1995 to 150,000 cases in 2000
Financial Literacy Key Concepts
Money Management Income vs. expenses Spending and credit Value of savings and investing
Financial Literacy Training
Timing isn’t Everything
• No “perfect” time
• Start with assessment of current practices
• Assess your students
Financial Literacy Training
Existing Programs• A class in financial literacy; some award
academic credit• Imbedding subject material in freshman
year curriculum• Subject material is required in financial aid
presentations made to all new students• Adding presentations/workshops to
Orientation
Debt Level/Financial Literacy
• Here at CFCC…
What Do I Do With ALL of This Information?
Talk with:
• Financial aid director• Student government leaders• Retention committee members• Counseling staff members• Student Development leaders (Registrar,
Enrollment Manager)
Jo-Ann CraigDirector, Office of Financial AidCape Fear Community College
411 North Front StreetWilmington, NC 28401
910-362-7057