Rethinking Financial Aid's Role in Student Retention

The administration of federal student aid is a highly complex and bureaucratic job thanks to a great deal of program complexity and regulation. Financial aid offices are often overwhelmed with the tasks involved in that administrative process, with staff finding that little time for anything else remains at the end of the day.

Unfortunately, simply following the rules and norms associated with financial aid administration is demonstrably insufficient when it comes to meeting the needs of today's students.  With a far greater number of students entering higher education without the support of college-educated parents, and facing more significant financial constraints (and higher college costs), an effective financial aid office must do more than distribute financial aid and apply rules and regulations.  To ensure that the aid dollars are spent in a cost-effective manner, aid offices must also be part of a cross-campus effort focused on student retention.

Everyone who works on the campuses of colleges and universities today has a shared responsibility for supporting undergraduate retention. This responsibility is essential if they want to help higher education become an engine of equality and social mobility, rather than the engine of inequality that it currently is.  Many of the nation's financial aid officers are committed to this goal and eager to achieve it.

In today's context, a traditional aid office focused on regulation and personal responsibility is contributing to a crisis.  Across the country, students who have overcome enormous challenges to college access find their way onto campus but struggle to retain their financial aid due to rules surrounding the 'satisfactory academic progress' (SAP) standards.   SAP usually means that students must maintain a C average or risk losing their aid. When students fail to do this, there are significant institutional consequences (a loss of Pell dollars, lower graduation rates) and thus the school has failed as well.

Given the stakes, it is reasonable to ask: what role should financial aid offices play in ensuring students make SAP and keep their aid so that they have the financial support necessary to stay in school and reach graduation?

Recent conversations with aid officers suggest that the typical answer goes something like this:
"We want all students to succeed. We tell them that they must make SAP and what will happen if they don't. When they get in trouble, we let them know, and tell them to get help.  We have lots of students to support, and some do their job, and others don't."

I'm sympathetic to that answer, but research suggests it is woefully inadequate.  Here are three critical facts about first-generation college students to illustrate the problem:

1.  They do not know what actions to take to increase their grades.   Research across the educational spectrum shows that holding students responsible for outcomes they do not know how to achieve is ineffective and counterproductive.  Example #1: a student tries to improve her GPA decides to take fewer classes, which results in her becoming part-time, and losing her grants that require full-time enrollment.  Example #2: a student tries to improve her GPA by taking more courses, because she does not know how GPA is computed and she thinks more is better.

2. They are ill-equipped to sort out good advice from bad advice.   When they follow instructions and go seek advice from advisers, they do not know how to handle conflicting advice or determine when that advice is under-informed.  I have encountered academic advisers who do not know that student #1 above will lose some financial aid, or do not tell student #2 that taking more classes could put her at risk.

3. They have little external support, experience more family crises, work longer hours, and are often more averse to taking on loans.  While they might want to seek out help from others, that help is often offered only during daytime hours when their schedules are packed.  In addition, when told they they should take on loans, they feel alienated and misunderstood. 

The growing presence of such students in higher education and the consequences of failing to support them to make SAP as they work their way through college requires financial aid offices to rethink their role in student retention. The financial aid officer is often the first to know the student is in trouble.  This should trigger an early warning system.  In 2013, the implementation of an early warning system ought to be required at every Title IV institution.  The result of an early warning trigger should be proactive efforts (coordinated by multiple offices as needed) to reach the student for comprehensive advising that integrates academic, financial, and family support.  Proactive efforts must reach the student where they are-- email is notoriously ineffective for this purpose. Until the office is connected to the student and progress is occurring, contact should be by phone or in person.

Effective advising is be supportive, non-judgmental, and aligned with the realities of students' lives.  First generation students are more than willing to take responsibility for their academic performance and they are, at the same time, right to expect their colleges and universities to be responsible in return for serving them.    In this day and age, responsibility in financial aid office goes beyond using the same old practices for every student, irrespective of need. We will never increase equity in graduation rates or do our jobs in a cost-effective manner without this fundamental transformation.

The nation's colleges and universities are littered with dropouts who began college with support from financial aid, only to lose it because of an insufficiently supportive environment.  That is a tragedy we cannot afford.   It's time to act.


Data Note:

Some schools are open and honest about the extent of their SAP challenges.  It would be great if more schools published reports like this one from El Camino.

What Constitutes "Satisfactory Academic Progress" in the 21st Century?

I often receive email from students who've learned of my interest in the contemporary college experience and want to provide a window into their own.  Recently I heard from a man who initially enrolled at UW-Madison in 2007 and subsequently took an educational pathway that is increasingly normal.  His efforts to find ways to learn new things and make college affordable are notable, and he challenges us to think about the ways in which traditional forms of higher education align with today's students.  With his permission I'm sharing a letter he wrote, and at his request, I am identifying the author.  The following essay is by James Kasombo, who will be re-entering Madison this fall. 

'Our education system is predicated on the idea of academic ability.'

            Upon graduating from high school in the top five percent of my class, being ushered into the university's honors program, and finding a wholeheartedly welcoming dormitory community off the shores of Lake Mendota, in many respects it felt as though I had made the rightful transition for my life. Granted, no guidance counselors had openly foretold the high costs of a college degree versus the varying returns on investment different majors would create. There was an intense barrier of advanced math and science within the initial semesters of post secondary education if one were to pursue careers in medicine or engineering, stymieing the aspirations of many gifted students having streaked through their K-12 schooling. Convening each night in the communal bathroom to brush our teeth, the floor community would reflect on the day's lectures, discussion groups, and assignments with strikingly different opinions of how this task at hand, that of earning a bachelors degree, was making an impact on our development into adulthood.

            And so it was halfway through the fall semester of 2007, shortly after TED had started an ameliorative experiment of freely posting talks from its conferences on the internet, that I stumbled upon Sir Ken Robinson's now transformative argument for how we look upon education to prepare adults for an unknown future. At that same time, I had successfully tutored a cohort of students through a philosophy midterm, yet failed a calculus exam, and watched as more and more fellow teenagers began the process of withdrawing from their studies altogether.  

            “Students must successfully complete a cumulative 2/3 (67%) of all credits for which they enroll.” Over the course of my three years living in Madison, I would not meet this standard. Instead, I became the youngest person on a team of New Student Leaders for the university's summer orientation program after my freshman year, receiving high marks for engaging with incoming students and relating with the parents who would be sending children their children away. Instead, I produced the Marcia Légère Student Play Festival during my sophomore year. Organizing amateur playwrights, directors, and actors, who would collaborate with drama & literature faculty to create a student driven performance, lead to my reception of the Union Trustee Leadership Award from the Memorial Union Building Association. Instead, I attained an internship with the nation's eleventh largest library system by way of ISIP. Instead, I served as a resident assistant at Highlander House for Steve Brown Apartment's Campus Connect program during my junior year, and also happened to help the UW Model United Nations team win an award at AMUN.

            During those years I would enroll in classes and later withdraw because I did not or could not see a clear connection between my then liberal arts program of study and tangible, substantial opportunities in the labor market. This symptom is seen across the board of postsecondary education as the idea of 'college for all' has collided head first with the reality of costs increasing by sixty percent just over the last decade. Meanwhile, our parents have made zero gains in their income. State institutions of higher learning have watched their funding reduced (such asUW-Madison losing almost ten percent of its budget by way of state taxes, in the space of five years) for the sake of propping up quite arguably the end products of disjointed education,health care and incarceration. Sure, our access to credit was [inappropriately] increased, but in my gut the idea of student debt becoming the new normal was a recipe for disaster: too many college students of today needing to cover growing gaps in their funds by both working and borrowing.

            By the summer of 2010 I had fully withdrawn from the university, personifying yet another data point of those failing to gradate within six years. But as I explained to my parents, it was an opportunity to experience for myself the visceral chasm between my skill set, what I really needed from a college education, and the careers needed to traverse the gap between low skill/low pay work and the upper middle class of the contemporary American economy. Of course, that very summer I would fracture my jaw, requiring surgery covered by my parent's health insurance, and spend several months recovering. This became an all too vital introduction into the treacherous alliance of employment and health we must accept when determining survival, in every sense of the word. Later that year I worked for a luxury hotel in downtown Madison, experiencing significantly higher wages than hotel employees across the capitol square. Being so young and green with employment, it took detailed explanation from the union's representative for me to understand the power of organized labor in service jobs. Yet, I would still fall behind on paying rent, and in lieu of eviction, would move back home to Milwaukee in the spring of 2011.

            Over the following two years I would obtain six different jobs, four of which being full time, with transitions in between being of my own volition. I'd witness the leveling effects the world of retail has on human capabilities. The often direction-less management had detrimental impacts on workers who'd show up day in and day out for the sole task of feeding their kids, and paying interest on loans taken in pursuit of a lifestyle they couldn't afford in the first place. Whether it be a warehouse, bookstore, or banquet hall, I have seen with my own two eyes middle skill laborers becoming prisoners of circumstances, chiefly byway of technology+globalization's effect on productivity. And so, when I was given an opportunity to leap from the role of an hourly worker to that of a manager, I knew my journey into the mindset of real world workplace dynamics was about to become complete. Therefore, in the spring of 2012, I was hired as an assistant manager for a children's museum in downtown Milwaukee, and within a few months was promoted to manager of the visitor services department. This professional experience would finally validate a core reason I stepped out of college and answer the question: Minus the credential of a B.A., did I possess qualifications and life skills necessary to build a fulfilling career?

            At the age of twenty four, I had a job nearly any college graduate of our time would figuratively kill for, management in the non-profit sector. Indeed, I savored every ounce of responsibility placed in my hands, from carrying keys to open the facility, being in a select group of people with safe access, overseeing all front desk operations, handling inventory of the gift shop, to supervising a staff of part time employees and being on the forefront of children's safety & wellbeing. Acting as a hiring manager, looking over the resumes of those jockeying for a job that paid minimum wage yet required significant skills, bringing on those flexible enough to work mornings and weekends, then getting to know the lives of those who would be reporting to me, was an extremely humbling endeavor. Working alongside adults ten, twenty, thirty years my senior with strengths and flaws more seasoned than mine, yet being treated as an equal peer, was wholly invigorating. Yet, after almost a year of sixty hour work weeks, treating injured toddlers, consoling distraught parents, and stressing over six figure budgets, it became apparent that while the answer to the preceding question may have been yes, the real question I had come to answer was how consequential the vehicle of a college degree is in attaining positions of power, influence, and sensible compensation.

            The College Board has made remarkable statements regarding the relaxation of a high school-to-university model many [academically gifted] students assume is the lock step pathway into adulthood. They've advocated creating admission policies for delayed entry after high school, making withdrawal & re-entry policies as clear as possible, and fostering an environment that understands for some students there comes a time when it is appropriate to take a break in their education, when their talents could better flourish in alternative venues. Sadly, these revelations come from a report written over thirty years ago in 1981, and it's safe to say their recommendations have not become mainstream. Ask any Millennial, and we will tell you that when coming of age, preparation for college and preparation for a vocation are indeed mutually exclusive.  In the space of just one generation, the gap between annual wages for a college degree versus a high school degree has increased from fifteen thousand to twenty-five thousand dollars, mainly because the high school graduate has seen negligible gains. Yet, the chance of someone from the top income fifth staying up there without a college degree is higher than someone from the bottom income fifth reaching the top with a college degree. The overarching fact is for those of us in the middle, a bachelor's degree evenly exchanges the probability of winding up in poverty with that of reaching the top, but odds are you stay in the middle depending on your field of study. In other words, placing a magnificent amount of faith in debt which cannot be discharged for the sake of a credential which inherently doesn't acknowledge the wide variance of human capital, has been the harbinger against completion of my degree ever since discovering voices of educational revolution.

            You know that the college degree is not affordable. Two-thirds of college presidents believe a degree is not affordable for those who need it most.  Unfortunately, federal student aid programs have performed poorly, trying desperately to fund accordingly with merit and income, juggling the balance between institutional subsidies and individual aid. Such struggles are why I have wound up appealing for my aid package. Though, it should be made clear, this is a process I support. Public monies should not be loaned nor spent on causes to which there will be no significant return. But I do hope it is inferred from my writings that my time in school was an incredibly formative portion of my life. Lessons learned inside the classroom transferred directly towards my life as an employee. Leadership positions attained at the university were the linchpin towards my success within stressful situations of the workplace, especially in management. And now, I look to return to Madison with aspirations to graduate in the winter of 2015 with degrees in Computer Science and Philosophy. I've spoken with my advisor as how to organize my classes over the coming semesters. I've gained skills in self discipline and persistence to assure academic achievement. Most importantly, I've gained the real world experience necessary to assure my studies not only relate to career goals, but towards my aspirations of leveling the playing field for those residing within the downside of advantage.

            Rising tides of the American economy do not lift all boats. The college degree has become less a sail, more the life jacket in terms of being buoyed by gains of our free market. My time away from the university was an exercise in coming to terms with this well researched conclusion, thanks to tangible successes and mistakes in real life. Once the goals I have set for myself come to fruition, the resulting tributes will acknowledge a proud alumnus, proponent, and advocate of UW-Madison.

 On Wisconsin!