WASFAA 2011 Aloha! Financial Aid Outsourcing Analysis © 2009 Global Financial Aid Services 1 Matthew Johnner Partner (Mobile)

Agenda »Global Introduction »When to Outsource »Benefits »Financial Aid Services »Process overview »What to in-source vs. outsource »Savings Analysis Methodology © 2009 Global Financial Aid Services 2

Global Snapshot PeopleProcessTechnology 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 Heritage in strict compliance with no findings for any clients since founding in 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 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 3 »Specialists in financial aid administration using a people, process and technology model.

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 » 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 4

To Outsource or not to Outsource… © 2009 Global Financial Aid Services 5

When to Outsource »Do’s » Need a better way than the status quo and have limited resources or expertise » Need technology advances » Need specialization » Need to deliver an immediate improvement » Need to save capital or operating expenses as part of the equation »Don’ts » 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 6

Benefits »Reduce administrative costs »Economies of scale – do more with less »Reduce space, IT, training, retention, quality assurance, other costs »Freeze new hires »Standardize processes »Student benefit & Compliance benefit »Improve financial aid cash flow & reduce funds on-hold »Improve student service »Cycle time improvement »Online and Kiosk processing »Free-up campus staff to counsel, handle complex issues and help increase enrollment »Increase enrollment »Online enrollment to subsidize campuses »Slow processing hurts enrollment in competitive programs © 2009 Global Financial Aid Services 7

Financial Aid Shared Services © 2009 Global Financial Aid Services 8

Financial Aid Process Applicatio n 1 File Review 2 Award 3 Disburse/ Accounting 4 Exits 5 Refunds 6 © 2009 Global Financial Aid Services 9 Student Counseling

What to In-source vs. Outsource In-source & CentralizeOutsourceShared Responsibility System-wide policiesTitle IV back office processesCompliance 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. Software interfaces © 2009 Global Financial Aid Services 10

Savings Analysis Methodology © 2009 Global Financial Aid Services 11

Cost Savings – Driven by Goals © 2009 Global Financial Aid Services 12 Savings Potential – 20% Savings Potential – 40% As is Internal - Shared Service Center (multi-campus) Global Shared Service Center 50% 75 % 100% Decentralized costs Centralized costs Institution SSC Costs Retained employees Function not impacted Global SSC Costs Institution employees

Mahalo! »Questions? Matthew Johnner Partner © 2009 Global Financial Aid Services 13