Financial aid administrators are crowding into conference rooms this fall to participate in listening sessions designed to fuel NASFAA's National Conversation Initiative (NCI). NCI is a national campaign to find and eliminate barriers to college access and success.

Through listening sessions nationwide, NASFAA is tapping into the expertise of student aid administrators "on the front lines," as well as other stakeholders in the student aid system, to identify and find workable solutions for the challenges that prevent students from engaging and succeeding in college.

"The breadth and depth of financial aid knowledge displayed at these NCI Listening Sessions has been truly amazing," NASFAA President and CEO Dr. Phil Day said. "The intensity of participants' drive to help needy students overcome financial barriers is also inspiring. The listening sessions really show how vital this initiative is and how much work lies ahead."

The NCI Listening Sessions have been like opening a pressure valve, allowing financial aid administrators to vent their frustrations about the current financial aid system and express their recommendations for a system that better serves needy students.

"My hope is that we can get back to financial assistance programs that help needy students. Students should not be saddled with unaffordable debt or confused by complicated applications and eligibility criteria," said Mary Ellen Duffy, director of financial aid at Albright College." In addition, these programs should be entitlements so students won't worry that Pell Grants and Stafford Loans may disappear. Students should be able to focus on their education, not worry about being able to afford their education."

A Broken System

Many who spoke at the initial listening sessions expressed frustration and disappointment about problems that prevent the current system from effectively providing access and support to ensure student success.

Speakers said that the current system is disgraceful when it comes to serving low-income, minority and first-generation students.

"This country is not serious about providing access," one attendee said. "We talk a good game, but we don't back it up."

Attendees said that getting the country to demonstrate a tangible commitment to financial aid and college access is a serious challenge. At recent Listening Sessions at the MASFAA, PASFAA, and NYSFAAA conferences, there has been a strong sense of urgency to increase investments in need-based aid and eliminate the financial barriers faced by today's college students. Failing to meet this challenge will ensure that the U.S. relinquishes its position as a world leader, according to financial aid administrators at the sessions.

Simplification

One of the prominent problems identified during the listening sessions is the complexity of the financial aid process. Financial aid administrators argued that the complexity of the application process is a real barrier for many low-income students. In addition, the administrative burden caused by the excessive regulation of the programs prevents many aid administrators from spending more time counseling and advising students and families.

"I've spent most of my career making poor kids prove they are poor," lamented one aid administrator.

Eliminating the FAFSA and using IRS data to determine need and consolidating the financial aid programs into one grant, one loan, and one job were two popular solutions to simplifying the aid system.

While most agreed that the FAFSA is too complicated and questions need to be eliminated, it could be difficult to find common ground about which questions to eliminate. Some administrators recommended eliminating the FAFSA or a significant number of questions, while others complained that the current FAFSA does a poor job of accurately assessing student's need. Finding a solution to simplify the application while providing enough information to accurately determine need will be a real challenge for the NCI.

One participant cautioned she couldn't support many of the simplification recommendations provided by colleagues who wanted to drastically simplify the FAFSA because her institution used much of the FAFSA data to determine institutional aid eligibility. Eliminating the FAFSA or many of the questions would force students to fill out additional aid applications at her institution.

TEACH, ACG, and SMART Grants

Aid administrators described the new grant programs as a source of much disappointment and aggravation. They complained that the new programs made the financial aid system infinitely more complicated for students and for financial aid offices.

In addition, aid administrators felt that too many higher-income families got the bulk of this additional money and low-income students struggled to maintain the merit requirements.

"Bringing an element of merit into the Pell equation is inappropriate," said one participant.

This sentiment was well received by participants, as others agreed that grants should be awarded based exclusively on a student's need, and that aid distributed according to merit is a waste.

Need Analysis & EFC

Session participants criticized the current methods used to determine need and the EFC because they do not provide an accurate assessment of a student or family's need. They argued that the formula needs to be completely overhauled and financial aid offices need more flexibility to accommodate special circumstances.

However, they remained pessimistic that lawmakers can get it right.

"Congress doesn't understand the formula so they only change pieces of it," one attendee noted. "Instead, they should overhaul the entire system."

Funding

All aid administrators in attendance could agree that a greater financial commitment was needed from state and federal governments.

"It is not just about redistributing the current funding," one said. "We need to increase funding dramatically."

One participant noted that it will cost institutions more to provide the support needed to ensure that under-served student populations can access and succeed in higher education and that lawmakers needed to consider this when appropriating funds.

Another noted that there is currently Pell Grant funding shortfall. "If we attract more needy students, will the funding be there to serve them?" he asked.

Excitement and Challenges

NCI Listening Session attendees have been excited about the opportunity to express their concerns and hopes for the future of financial aid. This excitement was visible as these financial aid professionals - some in the field for many years, some new to the field - spoke with a sincerity that illuminated their passion for ensuring that needy students have the resources needed to successfully complete higher education.

Participants at the sessions agreed about many of the problems that hamper the financial aid system's effectiveness. The challenge for NCI will be to find workable solutions that financial aid administrators from all sectors of higher education can all agree to.

"Everyone can agree about reducing regulations," said one participant. "But, there are going to be so many conflicting issues from different higher education sectors, it will be interesting to see how this information is synthesized and prioritized in a way that everyone can agree to."

You can learn more about NCI and see a schedule of the upcoming NCI Listening Sessions on the NCI Listening Session Overview document.

By Haley Chitty
NASFAA Associate Director of Communications

Posted 10/23/08 to www.NASFAA.org. Redistribution to non-NASFAA institutions is prohibited. Please submit Web Site questions or comments to Web@NASFAA.org.