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Opportunities to ImproveService and Outcomes

Presented by:Steve Queisser

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

Learning Objectives

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Increased volume at our institutions:o FAFSA Application Processing Statistics

State of the Union – Where are we now?

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5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

Overall ApplicationsSeries1

Data obtained from Department of Education Data Center on IFAPhttp://federalstudentaid.ed.gov/datacenter/

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150,000

300,000

450,000

600,000

IndianaSeries1

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Increased volume at our institutions:o Pell Grant Disbursements

State of the Union – Where are we now?

$-

$5,000,000,000

$10,000,000,000

$15,000,000,000

$20,000,000,000

$25,000,000,000

$30,000,000,000

$35,000,000,000

Overall Pell DisbursementsSeries1

Data obtained from Department of Education Data Center on IFAPhttp://federalstudentaid.ed.gov/datacenter/

$-

$200,000,000

$400,000,000

$600,000,000

$800,000,000

$1,000,000,000

$1,200,000,000

Indiana Pell DisbursementsSeries1

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Increased volume at our institutions:o FAFSA Application Processing Statisticso Pell Grant Disbursements

Decrease in Budgetso State Funding ReducedoOperating Budgets Decreasing or Stagnant

Increased Regulatory Burden

State of the Union – Where are we now?

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Executive Summary: Two-Thirds indicate financial aid office facing

a moderate or severe resource shortageo 80% identify shortage as permanent in natureo 88% impact their obligation to assist and counsel

students

Major Cause: oGreater regulatory compliance workload

2010 NASFAAAdministrative Burden Survey

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Executive Summary (cont.) Major Shortage Areas Identified:oOperating Budgetso Staffing Levels (include Counseling, Administrative,

and Support)o Insufficient Technology and Lack of Technology

Training

2010 NASFAAAdministrative Burden Survey

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How much additional productivity may be extracted from an industry that has seen

remarkable increases in demand?

2010 NASFAAAdministrative Burden Survey

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Administrative Capabilityo34 C.F.R. §668.16(b)(2) - administrationo34 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)

Regulatory Requirement

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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; andvii. The use of third-party servicers to aid in the administration of the Title IV, HEA programs;

Regulatory Requirement

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3 Basic Options:• Status QuooDo nothing, continue business as usual

• Add to internal operationso Increase staff and automate processes

• Outsourceo Partner with third-party service provider to

increase process efficiency and staff effectiveness

Understanding Your Options

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Determine the scope of workoPinpoint Issue

Peak Processing vs. Everyday ProcessingoAutomation an option?

If yes, do you have access to IT resources? How quickly can system be changed and tested?

oSpecialized knowledge base situationoTiming

How quickly does a solution need to be implemented?

Weighing the Options

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Solutions!!!!

• 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

Phones are a #1 Priority and Burden at most schools

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?

Internal Call Center Creation

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!!!

Internal Call Center

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

Temporary Service Providers

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

Temporary Service Providers

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

Outsourced Service Provider for Call Center and Processing Services

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

culture◦ Cost

Outsourcing

Solution Discussion …What have you done at your school?

Questions? Comments? Concerns?

Other Solutions