Retention?
What can we do about students who really want to be in school but do not have the means to remain in school?
That's THE question for many students, Edlynn. Hopefully, this question has been answered before the student starts classes. The financial aid staff at your school should be fully versed in the resources available to students – local sources as well as the traditional federal and state ones. Students who don't have a clear plan to meet their financial obligations are headed for an unpleasant problem.
This is a difficult challenge for schools. The first step is to revisit the student's financial aid package to see if they are capturing as much title IV funding as possible. Are there viable solutions to the "gap" balance, which the student is personally responsible for? Does the school allow students to be set up on a flexible payment plan that is funded internally by the institution. This may be a level of flexibility that the school is unwilling to commit to. Historically, private career schools are not good at being in the "banking" or "lending" business. Many school owners are reticent when it comes to assuming the risk of student balances. With the pressure of tuition increases accelerating at a rate greater then increased title IV awards, this has created a widening in the gap funding amount. No easy solution here!
Having been a school owner, Richard, I can tell you that the reticence you mention is the result of unfortunate experience. There is some wisdom in the adage of “never a borrower or lender beâ€. Somehow privilege becomes entitlement and those who borrowed the money [student or staff/faculty] seem to resent having to repay the money, particularly after time has erased memory of the pain of the moment.
The gap truly is a growing problem, but I suggest that schools that get involved in lending money to cover the gap should work through established third parties and very clearly outline the obligations before executing the agreement.
We need to stop and take a look at the individuals financial circumstances. We must make sure we cover all the financial situations correctly and within all the guidelines set forth. Hopefully, we maybe able to help some, but you can never help all. Some schools do use alternative financing, (Sallie Mae, Wells Fargo, etc)and some have gap. There are professional judgements and dependency overrides for those who qualify. Never give up until you exhaust all avenues.
As you suggest, Mildred, financial aid is complicated area. Hopefully, students spend enough time at the beginning of the inquiry process to fully understand the extent of their obligation to the school and lenders. Unfortunately, many students are not well informed about the options and costs.
As a private school owner this is a daily dilemma for me! Many times studnets have financing figured out when they begin training but their personal situation changes, divorce, loss of job etc. I have found that the more time I spend talking with them about budgeting the money they have the better retention I get. Many times, they drive a brand new car, smoke, go out to lunch everyday, have cell phones and pagers and forget that sometimes they need to actually make a few sacrifices while they are in school! I think many students were raised to believe that they should never have to do without the extras and they can't cope when they don't have the money to keep up their lifestyles.
Frustrating, isn't it Therese? Do you have any specific tips or best practices to share with other participants?
I spend time tlaking about necessary expenses and extra expenses-- obviously, housing food, day care are necessary but cell phones, eating out, new cars etc are extra in most cases. We talk about how they can better spend the money they do have, how they can conserve gas money by car pooling with other studetns from their area, pack their lunch all but one day a week etc. Sometimes we hit home, others we don't but at least we can say we tried!!
I agree. In many cases -- but certainly not all -- it is more an issue of helping students better use their own resources. We have developed books and courses that help students manage their money, time, and resources better. Plenty of students say that "this doesn't apply to me." But for some, it is a real eye opener which not only helps them in school, but also in their career.
Over 94% of colleges now have some form of success course or extended orientation. Aside from the introduction to campus resources it is a real challenge to develop a mix of life skills that works for everyone. Many young students don't know how to balance a checkbook, but an adult student is insulted that they have to do a unit on this subject. This offers an opportunity to get students involved helping each other. And of course, there are those 'adult' students who haven't mastered the skills and are embarrassed to acknowledge their shortcomings.
What skills do you focus on in your courses, Brian?
No matter what situation or walk of life a student comes from, attending school will require that they reallocate personal resources. The three main ones we focus on are time, money, and personal energy. We work with the students to create a personal action plan that helps them to best allocate these items. Some students need more remedial help in this, but all students benefit from this planning. It is also a useful tool later if a problem arises. We are able to go back to their action plan and identify areas that they may not have implemented.
