[Wsssc] (Feedback Requested) FA Simplification Presentation to the SBCTC Board

Sun Dec 3 17:17:59 PST 2023

Dear WSSSC,

Yokiko and I are reaching out in preparation for our upcoming presentation to the SBCTC Board on FAFSA Simplification, which is scheduled for Thursday afternoon.

In addition to providing a basic overview of Simplification, an overview of student-parent concerns around enhanced security measures, digital equity, and equitable representation of financial situation, we will primarily be focusing on the impact to our institutions. We have compiled a draft problem statement, along with considerations and recommendations, which we would value your expertise to ensure its accuracy and representation of all our colleges. I ask that you please respond to me directly with any additional feedback you have no later than this Wednesday. Specific example (student, staff, departments) and student impact are extremely useful as we illustrate this concern.

Opening Analogy:

Streamlining the FAFSA process is akin to renovating a complex house. For students and parents, it's like transitioning from a labyrinthine maze to a well-lit, organized floor plan, making the experience much smoother. However, for institutions and financial aid offices, this overhaul is like changing the entire architectural design. It necessitates crafting a new communication plan, establishing different workflows, and mastering a learning curve, which can be particularly challenging for offices short-staffed, facing frequent turnover, already juggling numerous additional responsibilities (SSEH, SEAG, etc.).

Adding to the complexity, many financial aid directors and staff are compensated significantly under market value. The regionalization of these classifications further compounds the challenges, particularly for larger metropolitan institutions, creating additional strains on resources as they navigate the intricate reconstruction of financial aid processes. The transformation, while promising efficiency for users, requires addressing these disparities to ensure a sustainable and equitable transition for the professionals managing the structural changes.

Problem Statement:

Financial aid offices currently face substantial challenges, leading to an extended processing time for applications (ranging from 4 - 60 weeks); chronic understaffing is a significant contributor to this delay with some offices turning over more than 175% in the past year; exacerbated by a compensation structure for financial aid directors and staff that falls below market value for recruitment and retention. Particularly in metropolitan areas, the prevailing annual salaries of $45,000 to $60,000 for staff present a critical issue for employee retention and morale. Not to be understated, the simplification comes after one of the most difficult and challenging overhauls of ctcLink, which resulted in 50% of Financial Aid Directors leaving their roles during the 2021-2023 period.

Considerations:

  *   Processing time: Current processing time of existing financial aid applications ranges anywhere between 4-60 weeks for institutions. With an unknown workflow and business process, this change will have an unknown but likely massive disruption.
  *   Current staffing: Acknowledging the shortage of personnel in financial aid offices, our presentation highlights the need for increased staffing to meet the escalating demand for financial aid services.
  *   Business process adjustment: Unfortunately, many institutions do not yet know what these changes will mean for their departments in terms of internal communication, business processes, institutional workflow impacts, and more.
  *   Compensation Disparities: We emphasize the importance of addressing wage disparities by revisiting the compensation structure to attract and retain skilled financial aid professionals, especially in metropolitan regions.
  *   Regional Impact: Regional variations in the cost of living, suggesting a need to assess and adjust pay scales accordingly, particularly in metropolitan areas.

Recommendations:

  *   Staffing Investment: Our proposal advocates for resource allocation or redistribution for existing provisos ($80K CBO outreach) to recruit and hire additional staff, ensuring that financial aid offices have the necessary workforce capacity to address this compounding and urgent need.
  *   Compensation Adjustment: We suggest a revision of the compensation structure to bring it in line with market standards, with specific attention to metropolitan regions.
  *   Training Programs: We cannot emphasize enough the need for patience and investment in the implementation to learn, adjust, enhance the efficiency of existing staff and streamline processes, ultimately reducing processing times.
  *   Other?

Yokiko and I would be immensely grateful for your insights and feedback on whether we have accurately captured the complexity of the problem, considerations, and recommendations. Your expertise is invaluable to the success of our presentation, and we look forward to your input. Again, thank you for your time, and we appreciate your response as our presentation is fast approaching this Thursday.
[Compass]
Lauren Hibbs, Ed.D
Director, Student Services
Washington State Board for Community and Technical Colleges
lhibbs at sbctc.edu* o: 360-704-4334 *
sbctc.edu<https://www.sbctc.edu/> * Twitter: @SBCTCWashington<https://twitter.com/SBCTCWashington> * Facebook: @WASBCTC<https://www.facebook.com/wasbctc/>

SBCTC Vision:

"Leading with racial equity, our colleges maximize student potential and transform lives within a culture of belonging that advances racial, social, and economic justice in service to our diverse communities."

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