- An outsourcing provider can handle time-consuming tasks such as processing financial aid applications, awarding aid, and disbursing funds, which can free up the institution's staff for other priorities.
- Outsourcing for administration and compliance can help reduce the risk of penalties and fines while meeting regulatory obligations.
- Outsourcing the financial aid function can provide institutions with greater flexibility to adapt to their evolving financial aid needs.
Is your institution ready to outsource its financial aid office?
It has long been a practice in higher education to outsource various functions, most commonly those related to dining, bookstores, custodian services, and even athletic trainers. A newer outsourcing task schools are starting to consider is the back-office function of financial aid.
Outsourcing the financial aid office functions provides efficiencies and benefits that can improve operations and enhance student experience.
Resolve the uncertainty of turnover
Many colleges and universities are facing increased turnover in their financial aid offices, which, coupled with a competitive employment market, has made it difficult to fill vacancies or find time to adequately train new hires. Employee retention in the financial aid office is crucial to support students who rely on this function to afford college.
Outsourcing provides access to a team of experienced professionals dedicated to your institution’s financial aid function. The provider is responsible for training and retaining staff, which can help alleviate the burden on your human resources department and reduce turnover.
Focus on serving students
Students are an institution’s most important customer, and with the enrollment cliff on the horizon, it’s more important than ever for institutions to personally interact with students and families, providing timely counseling and reducing financial stress.
Outsourcing the financial aid function allows personnel to focus on the mission of the office — serving and advising students. A provider can handle time-consuming tasks such as processing financial aid applications, awarding aid, and disbursing funds, which can free up your institution's staff for other priorities.
When student experience is better, and parents are satisfied by the process, it can lead to better retention rates and affordability for prospective students.
Reduce costs with increased budget control
The economics of an outsourced model can give institutions better control over costs by eliminating budget uncertainty and timing delays related to personnel turnover. This includes recruitment and replacement of outgoing personnel while simultaneously being short staffed.
By outsourcing with a predictable cost structure, your institution can prepare its budget over a specific timeline, potentially finding savings with smaller departments and helping avoid unexpected expenses.
Get peace of mind over compliance
Institutions have sustained pressure due to regulatory changes adding administrative financial aid duties and shifts among student demographics. The U.S. Department of Education has hundreds of compliance requirements relating to administering student financial aid.
Outsourcing for administration and compliance can help reduce the risk of penalties and fines while meeting regulatory obligations. An experienced team of trusted auditors and industry professionals can also help identify areas of noncompliance and recommend corrective actions.
Gain flexibility to adapt to your needs
Institutions can outsource as much or as little as they want based on their evolving financial aid needs. This model can be temporary or permanent, and services can range from determining student awards to outsourcing the entire function.
Outsourcing allows your institution to be in control of the services you are seeking and have comfort the work will be completed as your needs and priorities change.
How we can help
A team of CLA industry professionals is waiting to provide information and strategies that suit your institution’s specific needs. We can administer your programs and reporting so you can focus on serving your students and performing value-added activities.
Learn more about how outsourcing can benefit your institution.