Money Matters – Financial Aid Issues Affecting Student Success Jo-Ann Craig Director, Financial...

Money Matters – Financial Aid Issues Affecting

Student Success

Jo-Ann Craig

Director, Financial Aid

Cape Fear Community College

Retention Research

• 40 years

• 20 years focusing on aid

• Similar findings: aid impacts retention (duh!)

“Starting Right: A First Look at Engaging Entering Students”

• 2007 Pilot of the Survey of Entering Student Engagement (SENSE)

• Administered during fourth and fifth weeks of fall term

• 22 colleges participated

Results

“I was able to access the information I needed to complete the enrollment process (admissions, registration, financial aid, etc.)”

32% strongly agree

2% strongly disagree

Results (cont’d)

Interaction with the Financial Aid Office:

• “Chaos”• “Disorganization”• “I had no idea, it was very confusing”• “When you finally get everything, you feel

like you got that ‘A’”

“Advisors need to be able to understand the policies and procedures that affect students’ financial aid as well as have a clear understanding of

how to refer effectively those students in financial need.” 

Charlie L. NuttNational ACademic ADvising Association

Major Financial Aid Issues Affecting Student Success

• “Digital Divide”

• Complexity

• Satisfactory Academic Progress

• Debt Level/Financial Literacy

Digital Divide

Use of Internet expedites the financial aid process:

• Applications processed faster

• Applicants learn of eligibility faster

• Applicants receive e-mail updates

• Applicants have wealth of scholarship information at their disposal

Computer & Internet Use by Students in 2003

Household Income Level

$20,000 or Less

$75,000 or More

% of K-12 Students Using the Internet

40

74

Computer & Internet Use by Students in 2003 (cont’d)

Parents’ Educational % of K-12 Students Level Using the Internet  Never graduated from 37 high school    Graduate degree 73

Bridging the Divide

• “College Goal Sunday” Events 

• Increased access to computers and the Internet

• Collaboration between high schools and colleges

FAFSA

How Do I Apply for Federal Student Aid?

• Step 1 – Get Free Information and Assistance • Step 2 – Get PIN• Step 3 – Gather all Information• Step 4 – Complete the FAFSA• Step 5 – Review your SAR• Step 6 – Submit Verification Documents• Step 7 – Ensure Receipt of Documents• Step 8 – Contact Financial Aid Office with

Questions

Student Aid Application Process

Fall -Spring Senior Year of High

School

Winter-Spring Senior Year of High School

March – April Senior Year of High School

Apply to College

Colleges Receive/Review Applications & Admit

Student

Submit FAFSA

Department of Education Processes FAFSA

2-6 Weeks After Submitting

FAFSA

Student Receives SAR

Schools Receive SAR & Process Aid Package

Student Receives Aid Eligibility

Satisfactory Academic Progress

The qualitative and quantitative measure of a student’s progress toward program completion

SAP Policy Requirements

• Same as or more strict than standards for students NOT receiving aid

• Qualitative measurement• Quantitative measurement• Maximum time frame for completion: 150%• Appeal process

SAP Policy at CFCC

• Must maintain a cumulative 2.0 GPA (Qualitative)• Must successfully complete 67% of all credits

ever attempted (Quantitative)• First semester = Warning of Possible Loss of

Financial Aid Eligibility• Second semester = SUSPENSION of Financial

Aid Eligibility

SAP Policy at CFCC (cont’d)

Appeal Process

• In writing• Can appear before

committee

Appeal Committee Membership

• Staff• Faculty• Student• NO Financial Aid

Staff

Why Do Students Fail to Meet SAP Guidelines?

• Academic Challenges

• Personal Challenges

• Financial Challenges

• Medical/Mental Challenges

• Military Service Challenges

• Social Adjustment Challenges

Student Doesn’t Meet SAP Guidelines…

 Now What?

• Does the Financial Aid Office have an obligation to help?

• Is the Financial Aid Office equipped to help?

• What can be done?

Debt Level/Financial Literacy

• Up to 3 in 5 first-year college students max out their first credit card within their first year on campus

• Nearly 60% of first year students report that “financial problems” interfere with their school work

• 29% report “financial problems that are very distracting and troublesome”

• Almost 3 in 4 college students believe it is acceptable to use credit cards for living expenses

Debt Level/Financial Literacy

• 64% of undergraduates don’t know the interest rate on their credit cards

• Bankruptcies for those under 25 years of age increased from 15,000 in 1995 to 150,000 cases in 2000

Financial Literacy Key Concepts

        Money Management        Income vs. expenses        Spending and credit        Value of savings and investing

Financial Literacy Training

Timing isn’t Everything

• No “perfect” time

• Start with assessment of current practices

• Assess your students

Financial Literacy Training

Existing Programs• A class in financial literacy; some award

academic credit• Imbedding subject material in freshman

year curriculum• Subject material is required in financial aid

presentations made to all new students• Adding presentations/workshops to

Orientation

Debt Level/Financial Literacy

• Here at CFCC…

What Do I Do With ALL of This Information?

Talk with:

• Financial aid director• Student government leaders• Retention committee members• Counseling staff members• Student Development leaders (Registrar,

Enrollment Manager)

Jo-Ann CraigDirector, Office of Financial AidCape Fear Community College

411 North Front StreetWilmington, NC 28401

 jcraig@cfcc.edu

  910-362-7057