Financial Aid 101

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The following is a presentation prepared for
NASFAAs 2007 Conference in Washington, DCJuly
8-11, 2007
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Technology Done Right (Or Wrong?) - Lessons
Learned from SOE Reviews

• Moderator - Phil Asbury
• Presenters - Doug Levy
• Tim Opgenorth

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Todays Outline

• Background of NASFAAs Standard of Excellence
  (SOE) Review Program
• Peer Reviewers
• Aspects of Technology Review
• Common Technology Related Findings
• Strengths
• Compliance
• Recommendations
• Tips for Self Assessment
• Contact Information

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Background of SOE Review Program

• A Standards of Excellence (SOE) Review is a
  voluntary appraisal of an institutions financial
  aid delivery by experienced financial aid
  administrators.
• The purpose of the review is to assess the
  strengths and weaknesses of an institutions
  administration of federal financial aid in the
  areas of
• Title IV Compliance
• Automation
• Technology and Systems
• Human Resources and Facilities
• Customer Service
• Other areas of particular interest to
  participating institutions

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Background of SOE Review Program - Cont.

• The first Standards of Excellence Review was
  conducted during the fall of 1999.
• Depending upon the size and scope of the review,
  there are usually between two and four peer
  reviewers, usually from different institutions.
• NASFAA tries to select a peer review teams
  comprised of financial aid administrators from
  similar institutions (i.e. size, public/private,
  system, etc.).
• IS CONFIDENTIAL.

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Peer Reviewers

• There are currently 58 peer reviewers in the SOE
  program.
• Peer reviewer since
• Phil Asbury - 2000
• Doug Levy - 2003
• Tim Opgenorth - 2005

• As part of the peer review team, you may conduct
  one-on-one interviews, lead focus groups, or
  review student files and other documentation. The
  team leader organizes the working papers and
  documents the results of the peer review.

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Aspects of Technology Review

• There are five areas of the technology review
• Background Information
• Type of software
• Software customization
• Processing and Functionality
• Automation of FAFSAs, tracking, packaging,
  budgets, disbursements, etc.
• Management such as
• Internal controls
• Security
• Staffing

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Aspects of Technology Review - Cont.

• Data Connectivity and Integration such as
• Coordination with other offices
• Staff access to various systems
• Special Issues such as
• Document imaging
• Experimental sites
• Quality assurance

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Technology Related - Strengths

• The NASFAA Standards of Excellence (SOE) Review
  Program defines strengths as practices at an
  institution that exceed minimum regulations or
  requirements.
• Usually, strengths enhance student service and/or
  the overall educational program at an institution.

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Technology Related Most Common Strengths

• Student web access to financial aid information
  online and self-service web transactions.
• Extensive software upgrade implementation
  controls and procedures.
• Student access to computer kiosks in convenient
  locations.
• FAFSA on Web completion rates.

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Technology Related Most Common Strengths - Cont.

• Staff access to Policy and Procedure manual
  online.
• FA Website presentation and content (increasingly
  a strength as more institutions invest in this).
• Staff intranet site.
• Formal, written institutional policy recognizing
  email as preferred form of communications with
  students.
• Policy that restricts modification of vendor
  software to things that are absolutely necessary
  to support operations.

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Technology Related - Compliance Exceptions

• The NASFAA Standards of Excellence (SOE) Review
  Program defines compliance exceptions as
  violations of federal laws, regulations, or
  regulatory guidance.
• Failure to address compliance exceptions in a
  timely manner usually leads to systemic problems
  in the administration of Title IV programs.

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Technology Related Most Common Compliance
Exceptions

• Good news! All institutions that have
  participated in the NASFAA SOE peer review
  process to date have complied with EDs minimum
  software and hardware standards.
• Bad news! There were other compliance exceptions
  found! Many overlap with other areas of the
  review.

• Not signed up or participating in Transfer
  Monitoring process.
• Budgets are not created properly (i.e. wrong
  tuition, FT/PT).
• Lack of timely reporting of information to COD.

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Technology Related Most Common Compliance
Exceptions - Cont.

• Lack of a policy that allows students to opt out
  of electronic communications entirely.
• Proper notifications not made in publications
  including terms of awards, identification of
  awards as Federal, etc.
• Ensuring proper FERPA training and compliance for
  both staff and student workers.

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Technology Related - Recommendations

• The NASFAA Standards of Excellence (SOE) Review
  Program defines recommendations as non-regulation
  guidance offered to enhance financial aid
  delivery.
• In the technology area, the majority of the
  findings are recommendations.

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Technology Related Most Common Recommendations

• Automate financial aid processes maximize use
  of financial aid system functionality.
• Implement e-notifications award letters,
  disbursement notices, consumer information, etc.
• Improve system security access, passwords and
  virus protection.
• Provide interactive web self-services.

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Technology Related Most Common Recommendations -
Cont.

• Provide training for financial aid staff all
  aspects of financial aid administration,
  including software system training.
• Utilize production, exceptions and statistical
  reports canned and ad hoc. There is a huge
  need to be able to pull data out of the system in
  a timely and accurate manner.
• Develop and implement a disaster
  recovery/contingency plan.
• Hire financial aid information technology staff -
  staff dedicated to the financial aid systems is
  needed in the information technology and/or
  financial aid departments.

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Technology Related Most Common Recommendations -
Cont.

• Implement document imaging should interface
  with financial aid system or student information
  system as a whole.
• Develop and implement a technology plan.
• Establish software testing, implementation, and
  approval policies and procedures.
• Develop and implement system interfaces
  includes purchasing a new integrated system if
  developing program interfaces is not feasible.

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Technology Related Most Common Recommendations -
Cont.

• Use of bulk email software to send ad hoc or
  routinely scheduled emails to specified groups of
  students.
• Implementation of a data warehouse environment.
• Formal, written institutional policy recognizing
  e-mail as preferred form of communication with
  students.
• Inclusion of parents in strategy regarding
  electronic communication.
• Forms on the web that at a minimum can be
  data-enterable PDFs and longer term be submit
  able directly to the web.

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Self Assessment

• Flow chart electronic processes
• Does it flow smoothly / are there bottlenecks?
• Use of automation
• Is the office utilizing the system to its
  fullest?
• Do you have adequate staff / financial resources
  to support technology initiatives?
• Do you have a strategic plan for your office?
• Where do you need to be in two/five years to keep
  pace with technology and your competitors?

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SOE Contact Information

• Most often institutions request a review to meet
  accreditation requirements, assess the
  institutions strengths and weaknesses, resolve
  issues of management or compliance, or address
  other institutional goals.

• If you have any questions about the SOE Review
  Program, contact Susan Luhman, program
  coordinator at 202-785-0453 Ext. 147 or
  excellence_at_nasfaa.org.

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Questions?
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Our Contact Information

• Phil Asbury
• Director of Financial Aid - Rollins College
• pasbury_at_rollins.edu
• Doug Levy
• Associate Director of Financial Aid - University
  of Michigan
• douglevy_at_umich.edu
• Tim Opgenorth
• Director of Financial Aid - University of
  Illinois at Chicago
• timothy1_at_uic.edu

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