Economy

THE NEWS COMING OUT OF higher education these days can seem like an endless stream of updates on shrinking endowments, rising tuition costs, and across-the-board budget cuts. The recession is hitting higher education hard; it seems no one is being spared.

IT WAS THE DISASTER THAT DIDN'T happen, despite the headlines in national and local newspapers throughout the spring of 2008. “College Financial Aid System ‘In Crisis,’” proclaimed USA Today. “No Funds to Lend to 40,000 Students,” blared the Boston Globe. “Student Loans Start to Bypass 2-Year Colleges,” warned The New York Times.

IN THE CURRENT ECONOMIC environment, it comes as no surprise that some higher ed institutions are beginning to wonder whether a radical strategy like reducing sticker price would be the best way to maintain market share. This spring, deposits were lagging at many private IHEs, even at campuses where admit numbers were up. More families were appealing financial aid awards, and more institutions were responding to those appeals. Officials are concerned students may “melt away” before fall.

Things are changing rapidly in our society and economy and on campuses. The status quo has starting to become more of the status qua. What was once truth, fact, or really more belief and certainty are being replaced by new realities. And those realities have even started to be felt on college campuses where we all worked so hard not to let change in even though we felt perfectly at ease telling everyone what they needed to change.

IN AN EFFORT TO GET AMERICA’S recently unemployed workers back to work, the Obama administration has implemented several initiatives to encourage them to learn new job skills through postsecondary education. These initiatives are likely to affect higher education institutions and provide additional opportunities to educate workers who have been negatively impacted by the economic downturn.

In the fallout of significant budget cuts at public universities, it's difficult to see a bright spot. Programs are being eliminated, salaries are frozen, faculty furloughed, and institutions with a strong history of serving their communities are forced to make bone-deep cuts. There is, however, a solution that can help us navigate through this crisis and we're seeing it at work: private, market-driven institutions of higher education.

EDUCOMM 2009 BROUGHT SOME OF THE brightest stars in higher education to the Ritz-Carlton Orlando, Grande Lakes resort, for three days of education sessions, new product introductions, and fun. The conference featured a number of firsts. For example, it was the first time in six years that EduComm took place independent of InfoComm. Also for the first time, the conference featured five keynote sessions that mixed thought-provoking topics with light-hearted “edutainment” sessions.

Dowling College, in Oakdale, NY, has 7,000 students, most of whom obtain financial aid refunds each semester. The school implemented Higher One’s OneDisburse "Refund Management" system in 2007.

It’s not easy to get to a bank, especially for students without cars. A shuttle stops at the local strip mall but there’s only one bank, so if that’s not your bank you can’t cash your check. That problem is gone with refunds going right into our OneAccounts.

Welcome to the second Streamlined of 2009! My colleagues and I are proud to continue this series of publications designed to inform college and university administrators about new and innovative methods of streamlining business office operations.