WANTED:
to Graduate
Financial Aid’s Role in
Student Retention
Sample Retention Plan
Identify the Issue
 State the Objectives
 Find your group
 Create/Execute the Plan
 Measure Results
 Share Results

Reason for Leaving
2003-04 Enrollees – Depart at/by End of 1st Year
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Public 2
Personal
Family
Public 4
Financial
Academic
* Source: Beginning Postsecondary Study 04:06, NCES, Dept. of Education
Non-profit 4
Dissat.
Schedule
Other
Reason for Leaving
2003-04 Enrollees – Depart at/by End of 3rd Year
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Public 2
Personal
Family
Public 4
Financial
Academic
* Source: Beginning Postsecondary Study 04:06, NCES, Dept. of Education
Non-profit 4
Dissat.
Schedule
Other
Reason for Leaving
2003-04 Enrollees
% Change from: Depart at/by End of 1st to Depart at/by End of 3rd
Personal
Family
Financial
Academic
Dissat.
Schedule
Other
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%
* Increase from 0% to 6%
** Increase from 0% to 11%
*** Increased from 0% to 16%
* Source: Derived from Beginning Postsecondary Study 04:06, NCES, Dept. of Education
Reason for Retention Concern
• Financial Earnings
o
•
Bachelor’s degree holders earn 31% more
than workers with an Associate’s degree and
74% more than those with a high school
diploma*
Need for New Workers
o
By 2018, the U.S. will need 22 million new
workers with Associate’s degrees or higher**
•
•
Will be 3 million workers short
Will need at least 4.7 million new workers with
postsecondary certificates
* Source: Carnevale, Rose & Cheah, (2011)
** Source: Carnevale, Smith & Strohl, (2010)
Reason for Retention Concern cont.
• Recent Recession
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
VS
o
6.8% for college graduates
* Source: Carnevale, Jayasundera & Cheah, (2011)
Reason for Retention Concern cont.
• Loan Default Rate
o
Loan borrowers not completing a program
default at a higher rate than those who
complete programs
o
The average default rate for those borrowers
with no credential/academic earning is more
than 4 X the rate for those with a Bachelor’s
degree*
o
Loan default = no Title IV, bad credit reports,
collection agency contact, IRS income tax
offset, negative impacts on ability to get jobs
* Source: Nguyen, M. (2012)
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)
First Year Retention Rates
Total Public and Private (2010)
Two-Year
Four-Year
RMASFAA States
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%
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%
Source: NCES, IPEDS Fall 2010 Enrollment Retention Rate File
Graduation Rates
Total Public and Private (2009)
Three-Year Graduation
Rates for Associate Students
Six-Year Graduation Rates of
Bachelor’s Students
RMASFAA States
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%
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%
Source: NCES, IPEDS Graduation Rate Survey
Student Pipeline Rates
9th 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%
What are some barriers to retention?
•
Financial Concerns
•
Not Academically Prepared
•
Financial Aid Knowledge
•
University Connections
•
Other Concerns
Financial Concern

Cost of college has gone up 2x the
inflation rate; average 5-8% per year

Cost of living has continued to go up
•

Families may plan for first year, but not
for 2nd, 3rd or 4th years…
No help from parents
Financial Concern cont.

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.

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)
Financial Concern cont.
• Colleges and universities (especially at
department level) use endowed funds to
reward continuing academic success
instead of increased need
o
o
Higher performing students are more likely to
transfer out regardless of a financial aid package. *
Thus college cost is not a variable in student
selection process for higher performing students.*
VS.
* Source: Herzog. (2008)
Not Academically Prepared
•
Remedial classes*
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 student’s chances of success in college
* Source: Elliott, S. (2013)
** Source: Complete College America. (2013)
Not Academically Prepared cont.
“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
According to ED, students who are more likely
to withdraw are:**
o
o
Students who take any remedial course
Students with a GPA below 2.75
* Source: Elliott, S. (2013)
** Source: U.S. Dept. of Education (2002)
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)” *
•
Sallie Mae - 2007 Survey of Parents of
College-Bound Freshmen
o
o
“Cost of school” top priority for15% of respondents
(4th most popular choice)
“Location of school” was top priority for 34% (most
frequently selected choice)
* Source: Millennial Branding & StudentAdvisor.com, (2012)
University Connection
•
Retention requires a degree of connection
between student and institution
•
Withdrawal is failure to make that
connection.
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”*
o Students are at higher risk of withdrawal if they begin attending
higher education during any semester other than fall*
* Source: U.S. Dept. of Education (2002)
Other Concerns
•
•
Embarrassment to ask for help
•
Cost of going to college really worth the
time and effort in school and out of the
workforce?
•
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)
Other Concerns cont.
•
Students who are the most high risk may
also be the least responsive to retention
efforts*
o May not be cost (or time) effective to target this
group
•
Students who are high risk for withdrawal
remain high risk throughout their college
enrollment*
* Source: Singell, L.D. & Waddell, G.R. (2010)
In postsecondary education,
students are the customers, and
customer service is everyone’s
responsibility…
What can the Financial Aid Office do?
Ideas for Improvement
•
Financial Aid Awarding
•
•
•
First Generation Awards
Campus Connections
•
Outreach
Minority Populations
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*

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
* Source: Scannell, J. (2011)
Financial Aid Awarding cont.

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 CO’s median household
income or less
 More information: http://www.sfs.colostate.edu/commitment-tocolorado
◦ 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.

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)
First Generation

Specific awards targeting First Generation
students
o
Student’s and families with the least knowledge on
college and associated costs
o
Encourage first generation college students to
participate in Higher Ed and to promote diversity in
student population
o
Additional funding aids in retention of this group
First Generation cont.

Colorado State University
First Generation Award
o
$4,000 per year, renewable up to 5 years
o
Student’s parents must NOT have received a
bachelor’s 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
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
• Offer presentations to faculty groups and departments
o
Allow others to report students they are
concerned about (financial reasons).
• Assign a financial aid counselor liaison for each
department on campus
• Communication can be initiated by either office
Outreach

Financial literacy campaign for new and
continuing students
o
Classroom workshops, on-line programs,
publications, emails
o
Require completion of an annual programs or
if a student fails a course, withdraws or their
GPA drops below a certain point
•
o
Students have an increased risk of dropping out with
lower GPAs and withdrawals; intervene early
Peer-to-peer counseling/presenting
•
Put fellow students in position of mentor
•
Topics chosen via peer focus groups
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
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
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 University’s requirement) for their first few semesters
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 academic help when students may not know how
(or be willing) to ask for it
• Provides connection with faculty in academic major
• Improved persistence rates were shown for these students
Outreach cont.

Increasing outreach to middle schools for
family financial planning
o
Start early! Educate!
o More financially ready students & families
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
* Source: USA Today. (2013)
Outreach cont.

Social media/networking for financial aid
outreach
Everybody’s 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
o
Have school’s main Social Media site (official) send
out status reports and tweets of important
financial aid events and deadlines
• Have the main site “share” your page’s status updates
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
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)
Other Thoughts

Stating “financial reasons” on withdrawal
surveys might be easier than listing more
personal or difficult reasons.
• Financial aid or costs are much more important for
“first purchase” than “repurchase” decisions. *
AND
• Degrees of dissatisfaction and satisfaction (the latter
involving esteem, relationships, etc.) are the real
drivers/influencers to re-enrollment behavior. *
Michael Collette, VP for Marketing & Strategic Planning at Anderson University (Ind.)
* Source: Scannell, J. (2011)
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)
Group Discussion
What is your office doing to aid in retention?
What would you like to see your office do to aid
in retention?
• Specific aid? Targeting specific groups or case-by-case?
• Campus Connections?
• Outreach?
• Other Thoughts?
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.
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 Education’s Bridge to Nowhere.. Retrieved from:
http://www.completecollege.org/docs/CCA-Remediation-final.pdf. pp. 2-3.
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.pdf
Domonell, K. (2013). Sequestering Minority Education. University Business 3/26/2013.
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-tyingfinancial-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 Aid’s Role in Executing SEM Recruitment and Retention. 19th
AACRAO Enrollment Management Conference. Univeristy of Michigan-Dearborn. Retrieved from:
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-developmentstudy/
NCHEMS Information Center for Higher Education Policymaking and Analysis, 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.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
Sallie Mae. (2008). 2007 Survey of Parents of College-Bound Freshmen. Retrieved from:
http://www.rmasfaa.org/docs/exchange/200803/rme6.html
References cont.
Scannell, J. (2011). The Role of Financial Aid and Retention. Retrieved from: http://www.universitybusiness.com/article/rolefinancial-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-toimprove-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-valueVergakis, B. (2013). Feds’ loan changes hamper black college enrollment. Associated Press. Retrieved from:
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=5727