Should you move to Institutional Methodology (IM) ? ...A few things to consider!
Bonnie Lee BehmDirector of Financial Assistance Villanova UniversityOctober, 2014
What I will cover today?
• What is Institutional Methodology (IM)?• What is the CSS/ Financial Aid PROFILE ?• Villanova University’s decision to implement IM• Benefits to the institution• Implementing IM• Challenges • Outcomes• Best Practices
What is Institutional Methodology (IM)? • Provides the school with an Expected Family Contribution as a result of student/family completing the CSS PROFILE • Provides a more in-depth interpretation of a family’s financial resources used to determine the family’s ability to pay • More comprehensive than Federal Methodology (FM)• Covers a broader base of information than FAFSA• Offer opportunity to calculate a Noncustodial Parent Contribution (NCP)• Allows for more flexibility for individual circumstances
IM vs. FM
Federal Methodology• Written into law by Congress• Tables are based on 1967 BLS data
updated for inflation• Reflect spending pattern in 1967• Used to determine federal and/or
state eligibility• Simple Needs Test and Automatic
Zero EFC (no assets)• Relies on AGI as measure of family
income
Institutional Methodology• Formula is overseen by FA
professionals• Tables are based on annual
Consumer Expenditure Survey (CES) Data
• Reflect current family economic circumstances
• Used to award Non-federal funds• All sources or income and assets are
analyzed
What is the College Scholarship Service (CSS) PROFILE?
Fee-for-service form but low income students are given fee waiver• Provides the school with a student and parent EFC• Provides an in-depth interpretation of a family’s financial resources
• More comprehensive (lengthier) than FAFSA• The PROFILE asks questions about multiple years• Offer opportunity to calculate a Noncustodial Parent Contribution (NCP)
• Allows for more flexibility for individual circumstances• Ability to ask questions specific to your institution
Other IM options/Advantages • Net Worth of Home • Other Real Estate and Investment Net worth• Business Net Worth – regardless of size of business• Student’s Assets caputured• Family Household Grid with information on names, colleges, ages, costs of other schools family members attend
• Free form area for family to tell their story
FM EFC vs. IM EFC
Outcome (EFC) can be very different•Most important concept to remember:
FM EFC = Federal aid eligibilityFederal Pell Grant, Federal Campus-based & Federal Direct Loans
IM EFC = Institutional need-based aid eligibilityUniversity/Institutional Need based Grant
CANNOT use IM to determine eligibility for federal aid
Some VU History • Prior to the 2010-2011 Academic Year VU was a FAFSA only school with an institutional application
• Villanova’s emphasis is on NEED based aid• Needy student population continued to grow as did aid budget but not with enough resources to keep pace
• Our Peer schools were already requiring CSS PROFILE• Our predicament: How do we award Villanova Grant to as many needy students as possible in the most equitable way within the limits of our institutionally funded increase in need based aid?
Goal
May or may not increase or decrease individual award amounts but identify the appropriate population of students to receive the institutional aid
Redistribute the limited dollars to students who demonstrate the inability to pay and not just ‘eligible’ based on limited information on the FAFSA
Benefits for Villanova
• CSS PROFILE provides flexibility and freedom to institutions that FM did not provide
• Institutions can decide which PROFILE questions are relevant or choose additional questions needed for distribution of your resources
• Institution chose the PROFILE eligibility criteria (i.e., desired student population) to ask only specific students to file if so desired
• Peer institutions were already using PROFILE
Partners involved in helping us make our decision
College Board Senior LeadersBudget OfficeOFA StaffOffice of AdmissionOther College Board Institutions Software vendorBursar’s Office Registrar’s OfficeInformation Technology Staff
Implementing IM
• Began in the 2010-2011 academic year• Systematically rolled out the process with Freshmen• Subsequently required it for each new class – took 4 years before everyone was on-board
• Required training and support from our Software vendor (Banner)
• Staff and Campus Partners• College Board Representative visited VU for staff trainings
Implementing IM
•Users – the #1 populationClear and timely communication to students and parents
with information regarding PROFILE application processHigh school counselors also considered users
•Other items to considerCommunications need to be revised - Print, Web, voice
messagesDid we want Part-time students or other special groups to
use PROFILE? Current students?
Application, Selection and Renewal Process
• Incoming Freshman YearPre-Selection (invited to complete CSS PROFILE)
ApplicationReview discrepant data issues with FAFSA
• Subsequent YearsRenewal process
Challenges
• Reluctant partners and users• Student participation• Internal processes• Learning curve for OFA staff and campus partners
Communication to students & parentsTimeframe in which communications are sentDiscrepant data and resolution of the dataOther processes such as ISIR reviews, Tax verifications
• Decisions: What if IM EFC is less than FM EFC?
Outcomes
• OFA’s goal to spend institutional aid in a more strategic way and distribute institutional need based grant funds to a broader range of students has been met.
• Looking towards the next few years to revisit our current Service Options and see if we can utilize more of PROFILE’s functionality to reallocate resources even more to achieve the University’s enrollment goals.
Best Practices
• Do your research – ask questions• Know your population & your competition• Involve Senior Leaders and Budget office early on in the process• Choose a small population of students for your first year of implementation
• Partnerships (on and off-campus) are vital to your success• Stay simple in the beginning – you can always add in future years• Automate as much as you possibly can• Be comfortable with change – your process will evolve