You are here

Articles: Financial Services

  • With a dramatic change in net price, ensure that enrollments will increase to certain levels. Otherwise, operating costs must be substantially reduced.
  • Identify the types of students you want and set the sticker price accordingly.
  • Diversify the revenue stream and operate more efficiently.

When your students graduate, they're entering a whole new world of job descriptions, resumes, cover letters, networking contacts, interviews, industry jargon, and career fairs. The whole process can be overwhelming.

What's more: Few university career service centers prep their students for the most important aspect of today's job search—all things digital.

Being a financial aid administrator is an accident waiting to happen these days. The soaring costs for college have produced a soaring amount of applications for assistance, creating a constant stream of traffic at the Financial Aid Office. There are times when it resembles an all-day rush hour, with students and parents in a hurry to get in and get out with some part of the gold they’re convinced is hidden there.

“If you build it, they probably won’t come.” That’s Sara Wilson’s take on the launch of the typical campus financial literacy program. As financial literacy project manager at USA Funds, she knows firsthand how many students participate and what they think later as they look back.

While numerous post-graduation surveys by the company show students regret not learning more about personal finance while they were in school, they also tend not to access financial literacy information when it’s offered on a completely voluntary basis, Wilson says.

New financial literacy programs aim to reduce student default rate. (Getty Graphics via Getty Images)

A spooky cloud of crimson smoke dramatizes the dread of overwhelming student debt in “The Red,” a short movie thriller created for SALT, the American Student Assistance financial literacy program for students and alumni.

Less dramatic but noteworthy still, college students logging onto the National Endowment for Financial Education’s CashCourse can take a “Financial Realities” quiz to test their knowledge. In the opening question, they’re asked what will have the worst impact on their finances: gourmet coffee drinks, borrowing money, or spending without a plan.

The interest in financial literacy has expanded beyond the financial office, which is where Lyssa Thaden, financial education content manager at American Student Assistance, used to focus her pitches.

“Now, at a stakeholder meeting, I’ll have someone from the financial aid office but also someone from admissions and enrollment management,” says Thaden, who consults with school sponsors of SALT, ASA’s financial literacy program. “The marketing folks show up, the residence life people show up, and even alumni.”

By the time our UB audience reads this, the movie “Captain Phillips,” based on a true story, will be hitting the Hollywood box office. After keeping the crew of his ship safe, Phillips was held hostage on a lifeboat by Somali pirates. In interviews since, the captain reported not knowing that the ship anchored on his horizon carried US Navy SEALs—a team that would ultimately rescue him.

Since their inception after WWII, the U.S. Navy SEALs have intelligently vanquished US enemies.

More than 165 college and university presidents have asked President Obama and Congress to help close the “innovation deficit.” In an open letter coordinated by the Association of American Universities (AAU) and the Association of Public and Land-grant Universities (APLU), the presidents urge them not to cut additional research and education discretionary spending. By coining the phrase “innovation deficit,” they hope to spark national and local conversations.

In the life of an institution, the chief financial officer helps drive the big narrative, but also digs down into the day-to-day. A CFO is strategist and analyst, decision-maker and inspirer, and protector and possibility-seeker all in one.

Today’s students are facing higher costs, greater debt and continually changing financial aid policies, yet many don’t have a clear understanding of how their financial decisions can impact their education and their future. Institutions are beginning to respond to the need for financial literacy programs, but face a major hurdle gaining traction and commitment on campus, stemming from the fact that financial literacy does not naturally fall under any one college department’s responsibility. Instead it has many touch points of concern during a student’s college experience.

Education is an industry undergoing exciting and dramatic transformation. Some recent trends and developments in the space include: Common Core Standards, MOOCs (massive open online course), game-based learning, blended learning, marketing, recruitment, and a host of ancillary specialized services. These industry changes, along with advances in technology, have stimulated the growth of educational companies and have spurred the interest of private equity investors.

Student loan debt is topping $1 trillion, and borrowers aren’t the only ones with reason to be concerned. While higher education leaders aren’t responsible for the loans, they also have a stake in getting rising debt and default levels under control.

Megan McClean, director of policy and federal relations for the National Association of Student Financial Aid Administrators, says the first reason for concern about debt is simply that administrators care about students and want them to succeed.

Supporting the emotional health of students should be a priority on all campuses, and the nonprofit Jed Foundation is helping to make that happen. Colleges and universities can evaluate the care they provide with JedCampus, a program launched in May.

“Efforts should be made to promote connectedness and reduced isolation,” says John MacPhee, executive director of the program. “Mental health improves the more a student feels like a member of a community.”

Saying “We've got a crisis in terms of college affordability,” President Obama outlined a three part proposal to reign in the cost of higher education before a capacity crowd at the University at Buffalo Thursday. The appearance was the first of the president’s two-day bus tour through New York and Pennsylvania designed to call attention to high education costs.

“We can’t go about business as usual,” Obama said. "Our economy can't afford the trillion dollars in outstanding student loan debt.”

College students with no loan debt are more likely to lead a richer social life that involves partying, studying less, and forming relationships that will last long after graduation, a pair of University of Indiana sociologists says.