Presented by: Steve Queisser 1

 State of the union  Understanding your options  Elements of a good evaluation  Outsourcing considerations  Practical experience 2

 Increased volume at our institutions: o FAFSA Application Processing Statistics 3 Data obtained from Department of Education Data Center on IFAP

 Increased volume at our institutions: o Pell Grant Disbursements 4 Data obtained from Department of Education Data Center on IFAP

 Increased volume at our institutions: o FAFSA Application Processing Statistics o Pell Grant Disbursements  Decrease in Budgets o State Funding Reduced o Operating Budgets Decreasing or Stagnant  Increased Regulatory Burden 5

Executive Summary:  Two-Thirds indicate financial aid office facing a moderate or severe resource shortage o 80% identify shortage as permanent in nature o 88% impact their obligation to assist and counsel students  Major Cause: o Greater regulatory compliance workload 6

Executive Summary (cont.)  Major Shortage Areas Identified: o Operating Budgets o Staffing Levels (include Counseling, Administrative, and Support) o Insufficient Technology and Lack of Technology Training 7

How much additional productivity may be extracted from an industry that has seen remarkable increases in demand? 8

 Administrative Capability o 34 C.F.R. §668.16(b)(2) - administration o 34 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) 9

 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; 10

3 Basic Options: Status Quo o Do nothing, continue business as usual Add to internal operations o Increase staff and automate processes Outsource o Partner with third-party service provider to increase process efficiency and staff effectiveness 11

 Determine the scope of work o Pinpoint Issue  Peak Processing vs. Everyday Processing o Automation an option?  If yes, do you have access to IT resources?  How quickly can system be changed and tested? o Specialized knowledge base situation o Timing  How quickly does a solution need to be implemented? 12

13

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

 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?

 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!!!

 Pros ◦ Free up Staff to focus on Customer Service ◦ Singular focus on duties ◦ “Low Hanging Fruit”

 Cons ◦ Training and understanding of processing ◦ Training and understanding of Systems ◦ Compliance

 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

 Cons ◦ Perception to internal Staff ◦ Training Follow up for custom services ◦ Understanding of College/University specific culture ◦ Cost

 Solution Discussion …What have you done at your school?  Questions?  Comments?  Concerns?