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AFFORDABILITY & FINANCIAL AID COMMUNICATIONS

©ROBERT E. JOHNSON, PH.D. 2015

Improving Your Strategic Recruitment Communications Plan

Academic ImpressionsHouston, TX

June 1-3, 2015

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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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Timing and frequency…

• 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

• 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…

• At and after FAFSA filing time• After receipt of SAR:

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

• Contact within one week

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

• Desired major• Enrollment probability• Ability to pay• Place on SAR receipt list

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Channels…

• 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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To start and continue…

• After an inquiry…• Link to affordability content in early inquiry email.• Include affordability session in campus visit programs.• Offer personal review time w/ individual campus visits.• Make sure NPC is findable & includes scholarships.

• Keep NPC as simple as possible

• After an application or acceptance…• Immediate offer to help with FAFSA.• After financial aid award, call to review.

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A NEW AFFORDABILITY ENVIRONMENTMajor media attention…

“Sticker price” shock will remain.

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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=tcosharehttp://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 ability to compare…

College Abacus… New York Times

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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.

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MEETING STUDENT EXPECTATIONS…

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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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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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Really low loan default rate…

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COMMUNICATING AFFORDABILITY:THE PUBLIC SECTOR

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UCLAClear introduction to financial aid components.

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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BALL STATE UNIVERSITYEfficient use of public funding means lower tuition without reduced quality.

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Ball State Universityhttp://cms.bsu.edu/about/roi/ensuring-affordability

• “Our reduction in expenditures resulted in a $2,648 annual tuition savings for every full-time equivalent (FTE) student in 2011-2012.”

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COMPARING TUITION COSTSUniversity of Texas – Austin

Eastern Washington University

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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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Eastern Washington University…http://www.ewu.edu/undergrad/afford

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COMMUNICATING FINANCIAL AID AWARDS

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A glossary on your site…Not so easy to read,

navigate…Easier to find the needful…

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

• “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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Financial Aid Shopping Sheet…http://collegecost.ed.gov/shopping_sheet.pdf

• About 2,000 schools use this DOE format.

• Allows easier comparison of awards from different schools.

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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 HOUSTON!

Bob Johnson, Ph.D. (248.766.6425)

bob@bobjohnsonconsulting.com

www.bobjohnsonconsulting.com

@highedmarketing on Twitter

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APPENDIX 1:MORE PRIVATE SECTOR

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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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Reducing merit-based aid…http://www.american.edu/initiatives/collegeaffordability/how-financial-aid-stacks-up.cfm

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Lower loan default rate…http://www.american.edu/initiatives/collegeaffordability/taking-charge-of-your-college-costs.cfm

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Decreasing cost increase levels…http://www.american.edu/initiatives/collegeaffordability/how-AU-is-addressing-college-costs.cfm

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UNIVERSITY OF FINDLAY5 affordability myths.

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Opening page in 2015http://www.findlay.edu/offices/student/financialaid/Affordability-Myths

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Myth #1… Public vs. private cost…

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Myth #2… Family income

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Myth #3… Completion times & rates

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Myth #4: Debt level

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Myth #5… Default rates

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Call to action… two options

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“Total Degree Cost Calculator”… https://www.findlay.edu/offices/student/financialaid/Total%20Degree%20Cost%20Calculator

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APPENDIX 2:COMPARING TUITION COSTS“A small tuition is the best tuition”

Eastern Washington University

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

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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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Eastern New Mexico University…https://www.enmu.edu/future-students/tuition/compare.shtml

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Texas Women’s University…http://www.twu.edu/bursar/cost-comparison.asp

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

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Western International University…http://west.edu/affordability/tuition-comparison-guide

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

APPENDIX 3:AFFORDABILITY: WORDS W/O SUBSTANCE

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Lost on a traditional financial aid page…http://www4.lehigh.edu/admissions/undergrad/apply

Start here… End here…

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“Cost & Affordability” = Financial aid infohttp://www.bradley.edu/admissions/freshman/cost/

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“Affordable” commitment w/o details…https://www.utsystem.edu/affordability/

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“Most affordable” claim, no specifics…https://www.lewisu.edu/affordability/outstandingvalue.htm

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A mission statement, PR approach…http://rwu.edu/about/partnerships-initiatives/affordable-excellence/our-approach