Trusting Financial Aid Officers

A recent Student Voice survey by Inside Higher Ed in conjunction with Student Lab shows students who had “a lot of trust” in financial aid administrators was nearly the lowest of all college personnel surveyed (23%).  Only college “presidents/other executive level officials” surveyed less at 19% – which is a different story altogether.  As part of my responsibility at numerous institutions included overseeing financial aid within Enrollment Management, this was disappointing however not altogether surprising. 

The role of a financial aid officer/administrator is tricky; one full of meaningful contradictions that are often dictated by federal, state, and institutional policy as well as institutional philosophy.  The philosophy of the financial aid director and enrollment manager also plays a meaningful role. 

Historically, what I would refer to as a less forward-thinking philosophy of financial aid directors was one who saw their role as protecting the institution’s finances by awarding as little financial aid as possible in order to be a good steward of institutional resources.  I worked with such a director at one institution who awarded appeal funds only when requested by the president or when I essentially mandated the funds be distributed.  The positive end of this story is that, over time, the individual became more flexible and, while maintaining a philosophy of protecting institutional resources, understood that student persistence had an even more meaningful impact on institutional finances.  Thus, while awarding appeal funding on a limited basis was a cost, it also had a greater ROI as the tuition paying student would remain enrolled which also had a mission driven and positive reputational impact on the institution. 

The financial aid officer is also in a tricky position as at many institutions, financial aid is truly seen as a cost versus an investment in student persistence.  I worked with numerous presidents and CFO’s who aggressively worked to control financial aid spending despite the student persistence impact.  To go a step further, I worked at an institution where the level of financial aid spending was controlled by a board of trustees mandate.  One year, the president, to control financial aid spending, mandated a reduction in financial aid resulting in a new student enrollment shortfall.  That fall, at a community town hall meeting, after budget cuts had been announced because of the enrollment shortfall, the president told the community, “I learned a lot last year.”  To his defense, he had my back and the following year, the spending limits on financial aid were more flexible and new student enrollment targets were exceeded.     

Please know, I understand that financial aid is indeed an expense, but it is much more than this.  From my perspective, it is an institutional tool that plays a meaningful role in helping to achieve new student enrollment and current student persistence efforts.  To attract and retain qualified capable financial aid officers requires providing some level of creative entrepreneurial professional judgement that allows them to make decisions to help a student and/or family – within certain guidelines.  Some of these guidelines are mandated via federal and state compliance and others based on institutional philosophy or policy.

From the student perspective, if they request financial aid or appeal for additional financial aid, and they do not receive the funds requested, this is the crux of the survey outcome.  From their point of view, a financial aid officer, hurt their chances of continuing their education – making them untrustworthy.  In my experience, nearly every financial aid officer has some level of interest in helping students but is often hamstrung by federal, state, or institutional policy.  Ultimately, they feel trapped and do not feel they can help a student.  Hence, why, in 2024, according to a College and University Professional Association for Human Resources and National Association of Financial Aid Administrators report, 56% of financial aid employees were likely to seek other employment within the next year.  Clearly the challenges with the Free Application for Federal Student Aid played a role in this report’s outcome as well. Given the recent employment cuts within the Department of Education, the sustainability of the federal financial aid system and those on the front lines involved in administering financial aid, is going to be under even further stress. 

In my experience, by and large, financial aid officers are amazing trustworthy people who want to help students and families as well as their institutions sustain.  Again, by and large, they should be celebrated on their campuses.  Creative entrepreneurial financial aid officers are those that can walk the fine federal, state, and institutional policy line while helping students enroll and persist.  They help make a student’s dream of a college education come true.