Take These Five Annual Steps to Prepare for Financial Aid Season

Financial aid is an important part of any private or independent school’s admissions and enrollment program. While gathering documentation and awaiting decisions can be stressful for families and processing that information may be challenging for staff, reviewing your school’s financial aid policies and resources prior to every enrollment season can help ensure an effective and efficient process. Here are five steps to prepare for financial aid season.

1. Align with all stakeholders.

The Board of Trustees, Head of School, and Admissions staff must agree upon the purpose, expectations, and resources for the school’s financial aid program, as well as who the program is meant to serve. If the Board wants to enroll more low-income families but returning students need the bulk of the current financial aid budget, the school may need to reallocate other resources in order to hit enrollment and net tuition revenue goals. It’s critical to realign each year and agree on the tools and reports used to track progress towards those goals. You should also align on the school’s terminology (e.g., financial aid or tuition assistance, grant or award, etc.), so all stakeholders will discuss it with families in the same manner.

2. Evaluate internal expertise.

Family tax structures have become more complicated with the gig economy and higher rates of self-employment, multiple jobs, diverse investments, and separate households. What used to require a simple review of W-2 forms is no longer that straightforward. The higher the level of earnings, the more complicated those taxes become. The average application folder now takes 90 minutes to review, and the average school reviews 200 applications per year. That’s 300 hours—or two full months of working hours—reviewing folders. A lack of expertise in your financial aid program can lead to costly mistakes. Some schools choose to outsource.

3. Assess the financial impact of external trends.

How much does a family need to earn to afford the school’s tuition this year? Inflation, unemployment, and illness-related income disruption may all affect a family’s ability to pay. Ensure your financial aid program takes all of that into consideration. Tax returns and pay stubs may not tell the whole story, and financial aid calculators only capture a moment in time. Every school should have a Financial Aid Policy Manual that outlines how each application is reviewed.

4. Align your financial aid platform with your school’s goals.

Run an essentials report from your financial aid platform for data on the families you currently serve. The cost-of-living expenses “protected” may need to change every year. Ensure the thresholds are appropriate for the current economic environment. Review system settings, deadlines, and requirements. Update email templates, messaging, and cadence for that year. Update award/denial letters and contracts. Ensure all platform links are correct. Instructions should be clear and communicated early and often to both new and returning families. Be sure all records and documents are current for that school year. Set up impactful reporting.

5. Update your website.

To attract a wider student demographic, a school’s website must be welcoming to different kinds of families. Tell your story with text and video, including instructions on how to apply for financial aid. Ensure the most-searched keywords (financial aid & private schools) are present on the page and in your metadata, and that other pages on your website link to financial aid information. The school calendar should include application deadlines. Update FAQs annually to address questions staff encountered the most over the past year. Consider creating an affordability chart that shows how your program serves both higher and lower income families.