WASFAA 2011
Aloha!
Financial Aid Outsourcing Analysis
Matthew Johnner
Partner
214.208.0436 (Mobile)
mjohnner@globalfas.com
© 2009 Global Financial Aid Services
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Agenda
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Global Introduction
When to Outsource
Benefits
Financial Aid Services
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Process overview
What to in-source vs. outsource
» Savings Analysis Methodology
© 2009 Global Financial Aid Services
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Global Snapshot
» Specialists in financial aid administration using a people,
process and technology model.
People
Process
Technology
400 employees that manage
400,000 student files for 440
ground and online campuses.
Global disbursed $5 billion in
Federal Direct Student Loans and
FFELP aid in 2010.
Heritage in strict compliance with
no findings for any clients since
founding in 1996. Global is SAS 70
Level 2 certified and undergoes
internal and external audits. 5
Million files reviewed since
founding.
Advanced technology to auto
package based on complex
financial aid and academic
requirements. We interface with
your existing Student Information
System.
Teams are organized by process
with Key Performance Indicators
watched closely. Global has
sophisticated Hiring, Training,
Quality Assurance & Management.
2-to-5 day average file
review/award cycle time for over
400,000 files in 2009. Global has
processing locations in Gulfport &
Tulsa and a Phoenix data center.
Sophisticated Student guided
financial aid process option via
Campus Kiosk and/or Online
environment. 7 students to 1
counselor efficiency.
Dedicated regulatory team that
‘operationalize’ ongoing regulatory
updates.
Ideal for Online campuses that
require speed, online processes,
and expanded support.
Sophisticated profiling and
customization of our system with a
45-to-90 day conversion
timeframe.
© 2009 Global Financial Aid Services
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Global Processing Model
» Two Solutions (Full Scope & ‘Outsourcing Lite’)
» Report to Director of Financial Aid
» School Provides Counseling, Policy and Non-Title IV Management
» Full Scope Administration
» Global provides day-to-day back office processing
» File review, Loan certification, FDSL origination, disbursement and
reconciliation, Title IV accounting, Return to Title IV processing, Reporting &
Compliance support
» Software deployed to student to ‘self package’ as well as software to
College/University counselor.
» Kiosk option – one counselor to 7 students on-campus
» Outsourcing Lite
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Automated verification and c-code software. Change the game.
Smart forms and paperless process (e.g., bar-code fax, upload, camera phone)
Compliance File Review and then we are done.
Per unit pricing
© 2009 Global Financial Aid Services
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To Outsource or not to Outsource…
© 2009 Global Financial Aid Services
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When to Outsource
» Do’s
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Need
Need
Need
Need
Need
a better way than the status quo and have limited resources or expertise
technology advances
specialization
to deliver an immediate improvement
to save capital or operating expenses as part of the equation
» Don’ts
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Think you are going to save huge amounts day one
Try to avoid the time and care a outsourcing relationship takes
Treat your partner like a ‘vendor’
Select the partner and think you are done
Stop improving
Forget why you partnered when you are 3 years down the road
© 2009 Global Financial Aid Services
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Benefits
» Reduce administrative costs
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Economies of scale – do more with less
Reduce space, IT, training, retention, quality assurance, other costs
Freeze new hires
» Standardize processes
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Student benefit & Compliance benefit
Improve financial aid cash flow & reduce funds on-hold
» Improve student service
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Cycle time improvement
Online and Kiosk processing
Free-up campus staff to counsel, handle complex issues and help increase enrollment
» Increase enrollment
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Online enrollment to subsidize campuses
Slow processing hurts enrollment in competitive programs
© 2009 Global Financial Aid Services
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Financial Aid Shared Services
© 2009 Global Financial Aid Services
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Financial Aid Process
Applicatio
n
File Review
Award
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3
Exits
Refunds
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Disburse/
Accountin
g
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Student Counseling
© 2009 Global Financial Aid Services
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What to In-source vs. Outsource
In-source & Centralize
Outsource
Shared
Responsibility
System-wide policies
Title IV back office processes
Compliance
Student financial aid campus
counseling
Commodities, including:
1. File review
2. Loan certification
3. Direct Loan origination,
disbursement and
reconciliation
4. Title IV accounting
Reporting
Manage ‘non-T4’ such as
institutional scholarships,
private loans, Tuition
Assistance & VA
Inbound and Outbound
contact center for student
financial aid counseling
Accounting
Financial Aid team support for
enrollment growth, default
prevention, retention, etc.
© 2009 Global Financial Aid Services
Software interfaces
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Savings Analysis Methodology
© 2009 Global Financial Aid Services
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Cost Savings – Driven by
Goals
100%
As is
Internal - Shared Service
Center (multi-campus)
© 2009 Global Financial Aid Services
Global SSC Costs
Institution
employees
Savings
Potential – 40%
Function not
impacted
Institution SSC Costs
Retained employees
Function not impacted
50%
Centralized costs
75%
Decentralized costs
Savings
Potential – 20%
Global Shared
Service Center
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Mahalo!
» Questions?
Matthew Johnner
Partner
214.208.0436
mjohnner@globalfas.com
© 2009 Global Financial Aid Services
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