Affordabillity & Financial Aid Communication

Bob Johnson Consulting, LLC 1

AFFORDABILITY & FINANCIAL AID COMMUNICATION

©ROBERT E. JOHNSON, PH.D. 2016

Improving Your Strategic Recruitment Communications Plan

Academic ImpressionsAtlanta, GA

June 6-8, 2016

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Two Opening Questions…

• Old style “financial aid” speak is dead.

• Why is talking about price

• and cost • and affordability • and debt…

• About as popular has getting a root canal?

• Is this marketing smart?

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COST AND AFFORDABILITY…You can’t beat “sticker price” fear.What is “affordable” to one family is not “affordable” to another.“Fill out the FAFSA” is not an answer.

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A NEW AFFORDABILITY ENVIRONMENTMajor media attention…“Sticker price” shock will remain.

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“How to pay for college” search trend…

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Chronicle of Higher Education…http://bit.ly/1l3n516

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And in the financial media…http://time.com/money/3768807/

college-living-costs/?xid=tcoshare http://www.cnbc.com/id/102520397

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From the Department of Education…http://nces.ed.gov/collegenavigator/

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Debate over the ability to compare…http://nyti.ms/1PRKrjZ

College Abacus… New York Times in 2016

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MEETING STUDENT EXPECTATIONS…

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What do students want from you?http://bit.ly/1RC625M

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Ruffalo Noel-Levitz 2013 report…http://bit.ly/1PHWFzx

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How easy to find your NPC?

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Where people expect to find it…

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Does your NPC include scholarships?

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What impact on enrollment?

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Start on email, move to personal…

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CONVERSION COMMUNICATIONS

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Channel mix…• Website content at the start as students begin to explore choices.

• After an inquiry, use the channel preferred by the student if known.• Text, phone, email, letter.

• If preferred channel not known, default to email.• For a financial aid award:

• Letter for the award.• Selected prospects: phone call after the award letter.

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Timing and frequency (1)…• Start at first contact using top task rationale

• After an online inquiry or other inquiry source…• Two or three times during a 3 to 6 month inquiry cycle

is not too often… assuming weekly email contact.• Include link to Net Price Calculator or similar estimator.

• During a campus visit• After an application or admission

• After receiving an application• For April 1 admissions

• After an admissions decision• For rolling admissions

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Timing and frequency (2)…• At and after FAFSA filing time

• After receipt of SAR (if new to the database):• Contact within one week

• After a financial aid award letter is sent:• Contact within one week

• If you cannot contact everyone:• Contact by your recruitment priority:

• Desired major• Enrollment probability• Ability to pay• Out-of-state students

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COMMUNICATING AFFORDABILITY: THE PRIVATE SECTOR

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WELLESLEY COLLEGE7 “Basic financial questions” to a FAFSA-free EFC estimate.

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Before the NPC, a “quick” first step…http://www.wellesley.edu/admission/affordable/myintuition

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#1… Demographics

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#2… Total family income

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#3… Home equity

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#4… Savings & checking accounts

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#5… IRAs, 401Ks and such (optional)

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#6… Value of investments

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#7… Other children in college

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Your expected family contribution…

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CALVIN COLLEGESpeaking in clear language to “Families just like yours.”

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Taking on “sticker price” syndrome…http://www.calvin.edu/offices-services/financial-aid/affordability/

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Families of all income levels…

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“Sticker price” and “Actual cost”

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Loan level & success after graduation…

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Touting a low loan default rate…

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COMMUNICATING AFFORDABILITY:THE PUBLIC SECTOR

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UCLAClear intro to types of financial aid.Emphasis on low in-state sticker price.44% of students pay no tuition.

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Ask the question: Can I Afford UCLA?http://www.ucla.edu/admission/affordability

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EASTERN KENTUCKY UNIVERSITY4-Step Scholarship Estimator.

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If you offer “merit” aid…http://scholarships.eku.edu/estimator

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COMPARING TUITION COSTSUniversity of Texas – AustinUniversity of Wisconsin - SuperiorAustin Community College

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University of Texas at Austin…http://www.utexas.edu/tuition/national.html

State residents… Out-of-state students…

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University of Wisconsin-Superior…http://www.uwsuper.edu/admissions/cost/compare-tuition-and-cost.cfm

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Austin Community College…http://www.austincc.edu/tuition-and-financial-aid/compare-costs

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EXPLAIN FINANCIAL AID IN NORMAL HUMAN LANGUAGE

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A glossary on your site…

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The devil is in the detail…• Net Price Calculator defined:

• “A tool to estimate financial aid eligibility at Williams based on family finances. The Net Price Calculator is the best source of early financial aid information for college planning. If you have a complicated financial situation and are unsure how to answer certain questions on the Net Price Calculator, please feel free to give us a call.”

• Make this work better with…• Link to the NPC.• And a phone number to call… right here!

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AT THE END…

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4 key communication points…• Cost & affordability are key concerns you can’t ignore.

• To increase inquiries and campus visits:• Create website content that genuinely addresses fears

people have.• And make sure people can find it.

• To increase applications:• Use inquiry-stage email to introduce “affordability” content.

• To increase deposits:• Follow-up financial aid awards with personal contact to

review/explain details.

THANKS FOR BEING HERE IN ATLANTA!

Bob Johnson, Ph.D. (248.766.6425)bob@bobjohnsonconsulting.comwww.bobjohnsonconsulting.com

@highedmarketing on Twitter

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APPENDIX 1:MORE PRIVATE SECTOR EXAMPLES

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AMERICAN UNIVERSITYReducing tuition increases and merit aid.

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American U. gets serious…http://www.american.edu/initiatives/collegeaffordability/

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UNIVERSITY OF FINDLAY5 affordability myths.

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Private sector cost mythology… http://www.findlay.edu/offices/student/financialaid/Affordability-Myths

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APPENDIX 2: MORE TUITION COST COMPARISONS

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State College of Florida…http://www.scf.edu/StudentServices/Tuition/TuitionandFeesComparison.asp

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Elgin Community College…http://elgin.edu/students.aspx?id=148

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Mott Community College…

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Ashworth in the for-profit sector…https://www.ashworthcollege.edu/tuition/how-we-compare/

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Texas Woman’s University…http://www.twu.edu/costs/cost-comparison/

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Nicolet College…http://www.nicoletcollege.edu/future-student/high-school/comparing-costs/