90/10
We are a Barber school and have found that product sales have helped us in our 90/10. Are there any other avenues you have seen increased revenue outside of Title IV?
Joseph,
I have worked with other colleges that have cosmetology or other health care type of occupations (such as massage, esthetics) that are able to offer these services to the public and use the monies received to assist in their non-TIV revenue. The other most common avenue that colleges will pursue is private loans; however, the structure must be appropriately handled. Most clients have found these to be difficult to manage.
Sincerely, Chyrl
Chyrl Ayers
What exactly do you mean "the structure must be appropriately handles"?..and what has been found to be difficult to manage?
Joseph,
There are specific requirements for the treatment of the private loans related to disbursements and posting of these private funds and requirements for the relationship between the lender and the school. Many colleges have found it difficult to find lenders that are willing to do private loans that are competitive with the federal loan programs; therefore, students are more interested in the federal loans.
Sincerely,
Chyrl Ayers
We've found that income from our cost center supports our staying within the 90/10 rule. Alternative funding sources, loans, as well as Veteran's GI Bill benefits keeps us withing 90/10.
Laura,
Based on your answer it appears your institution has 90/10 covered and methods to ensure compliance.
Sincerely,
Chyrl Ayers
One way to help your 90/10 that is not based on revenue is to make sure your title iv refunds are returned timely. This will not only make sure you are compliant on the timeliness of your refunds but will also reduce the amount of title iv you have on your books, especially right at the end of the fiscal year.
Bryan,
That is an interesting take on 90/10 and timely refunding. Does your institution take any additional steps to insure compliance with the 90/10 requirement (private loans, other revenue earning projects, cash payment plans, etc)?
Sincerely,
Chyrl Ayers
Yes, we do all of the above and we also have a growing population of veterans seeking to use post 9-11 benefits. I believe it is critical to have an outstanding VA certfifying official so students with veteran's benefits feel welcome and have confidence in their institution of choice.
Two main points that help us with 90/10:
1. We have a great deal of military veterans using their benefits to pay for their education.
2. We have a conversation with every student about contributing to their education by paying 1-10% of their total tuition per term.
Both fators help us tremedously with maintaining the 90/10 rule.
Latoya,
Your points are well made and these two items definitely contribute to assisting in 90/10 calculation. I am curious how well received the contribution of 1 - 10% is from your students. Do you allow them to opt out of the contribution or is it a requirement?
Sincerely,
Chyrl Ayers
We will allow the student to opt-out. We try to make sure the student understands the vlaue of contributing toward their education by making an investment in themselves.
Latoya,
You approach is excellent. I greatly appreciate you sharing your processes and the options available to students so they have a clear understanding of the importance of their education.
Sincerely,
Chyrl Ayers
We also have a large population of students using VA benefits which helps tremedously with the 90/10. We also have some internal funding that requires students to make a small monthly payment and that helps as well. You can also never have enough students who do not take out any funding.
Joseph,
State programs, VA tuition payments, MyCAA, student’s payments, FL Pre-paid, Bright Futures Scholarships and other outside scholarships have helped us increase the 10 money throughout the years.
Thank you,
Romina Kraja
Business Operations Manager
Sanford-Brown College, Jacksonville, FL
