University Business - March 2008 - (Page 34)

MONEY M AT T E R S example of a subpopulation that must receive special attention. At many institutions, RAs receive a grant in the equivalent of the standard room charge (typically around $4,000 per year). Including an additional award with such a high value often aﬀects the student’s subsidized loan eligibility rather than any need-based grant. However, if the ﬁnancial aid oﬃce is not told who the RAs will be until after the loan is processed, sending adjustments and/or returning already disbursed funds is burdensome for both the ﬁnancial aid oﬃce and the student. The best solution is to schedule competitions and auditions at times that will betaward to accommodate the entitlement (or wasting precious resources by allowing it to be an “add on” to other institutional aid—a process known as “stacking”). Some institutions handle this by requiring students to complete a separate application by a speciﬁc deadline in order to receive the award. A better approach is to ask students about their eligibility for such awards right on the admissions application. This not only serves as a way to market the award but also ensures that the student’s eligibility can be determined at the time of admission—and therefore prior to a needbased package having been sent. OUTSIDE SCHOLARSHIPS Outside scholarships are another source of funds typically involving multiple oﬃces. Although students are asked to report any outside scholarships to the ﬁnancial aid oﬃce, that doesn’t always happen. Often the ﬁrst notice of an outside scholarship is when the check arrives at the student accounts oﬃce. Having eﬀective protocols for communication between the bursar’s oﬃce and the ﬁnancial aid oﬃce about such awards is, therefore, critical to avoiding an overaward situation. Although it is not necessary for the ﬁnancial aid oﬃce to make every decision regarding a student’s award, it is important for the oﬃce to take full responsibility for coordinating those awards into the individual student’s package in a manner that will meet both institutional policy and governmental regulations. The ﬁnancial aid oﬃce should also be in a position to provide reports and analysis that include all sources of ﬁnancial aid (internal vs. external, departmental, entitlement, merit, athletic, etc.) In short, it is important for institutions to be aware of how many oﬃces may need to link to the ﬁnancial aid oﬃce. The links with admissions and bursar are usually well understood, but other critical connections with academic aﬀairs and development are often weak. Almost every institution could beneﬁt from a review of those relationships to ensure strong and eﬀective communications are in place. that shared goals are “top of mind,” that eﬀective calendars and communication procedures are in place, and that any concerns which arise are addressed quickly. It is possible to achieve a “win-win-win” situation: satisﬁed donors, thankful students, and prudent ﬁscal oﬃcers, but it takes a coordinated eﬀort. DEPARTMENTAL OFFICES In some institutions, speciﬁc departments (typically academic or athletic) are responsible for awarding scholarship and grant funds. Because many students who receive departmental funds are also eligible for other federal, state, or institutional resources, the ﬁnancial aid oﬃce must coordinate the entire package to ensure that students are not overawarded. When this is not well understood, problems can arise. Probably the most common issue relates to timing. For example, academic departments may want to hold competitions or auditions for their awards in the late spring. Financial aid ofﬁces, however, typically begin awarding aid for the following year in February or March. If the need-based aid letter from the ﬁnancial aid oﬃce is sent ﬁrst, and then a departmental award is granted, students will routinely receive a revised aid letter, which often reduces some other fund in order to accommodate the departmental award. Clearly this frustrates and confuses students who had thought they could “have it all.” To avoid this scenario, some aid oﬃces hold the packages of students who plan to compete for departmental awards. This is problematic for incoming students, however. They may well receive an aid oﬀer from another college sooner and decide to move forward, rather than waiting to hear from all of the institutions that admitted them. Thus, the college that waits runs the risk of losing some of its best candidates. For returning students, it may be difﬁcult to identify which student’s packages to hold, resulting in delayed packaging for all upperclass students in an eﬀort to accommodate just a few cases. The selection of resident assistants (RAs) is another Ask students about their eligibility for such awards right on the admissions application. ter accommodate the aid awarding cycle. When it isn’t possible to award the departmental grant earlier (e.g., some sports), two approaches may be considered: • leaving a “place holder” in the package in anticipation of the departmental award; and • informing the department of the student’s aid eligibility before the departmental award is oﬀered, so that any impact on other aid will be known in advance. ENTITLEMENTS To build demand from a desired population, more and more institutions are beginning to oﬀer guaranteed awards to students in that population (e.g., children of alumni, students from a particular religious denomination, students from a particular geographic area). Again, eligibility for these awards needs to be considered as part of a total aid package. Often the admissions oﬃce is charged with identifying students who meet the criteria. However, if the identiﬁcation process is not timely, the institution again runs the risk of having to adjust a prior 34 | March 2008 universitybusiness.com http://universitybusiness.com

Table of Contents for the Digital Edition of University Business - March 2008

University Business - March 2008
Contents
College Index
Company Index
Advisory Board
Editor's Note
Stats Watch
Sense of Place
Viewpoint
EduComm Insert
Financial Aid
Money Matters
Human Resources
Higher One Insert
Community College
Cadets on Campus
Keeping an Eye on the Network
Sizing Up Second Life
Endowment Management
What's New
Calendar of Events
End Note

University Business - March 2008