top 11 metrics every financial aid director should be measuring
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TOP
11METRICS EVERY FINANCIAL AID DIRECTOR SHOULD BE MEASURING
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Financial aid directors must possess a plethora of competencies.
One of the most important is the ability to collect, interpret and analyze data.
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2 REASONSData collections and evaluation metrics are crucial to improving processes and driving financial aid policy
development and improvement.
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ONE. Though change is a constant in the financial aid office, having an idea of what works and
what doesn’t work – and the data to back it up – equips financial aid directors to define the best policies that
support department and institution goals, specifically for enrollment.
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TWO. Directors may also use financial aid metrics to determine and measure problems students or staff are facing before, during and after the financial
aid award process. Only once the sticking points or difficulties are discovered, can they be solved.
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There are countless metrics financial aid directors could measure.
We picked 11 of the most important to explore for you.
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1. AID EXPENDITURES
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1. AID EXPENDITURES
Aid expenditures by type: state/federal grants, institutional scholarships/grants, loans, federal work
study (FWS), etc.
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1. AID EXPENDITURES
WHY? Typically produced in an annual report, these figures are important for monitoring changes in funding
sources over time.
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2. UNMET NEED
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Number of undergraduates with unmet need, and average amount of unmet need (segmented by
resident and non-resident tuition payers for state-supported institutions).
2. UNMET NEED
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WHY? This helps school officials determine accessibility of an institution.
2. UNMET NEED
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3. COVERING UNMET NEED
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3. COVERING UNMET NEED
How students are covering unmet need (for students whose aid doesn’t cover direct costs), such as payment
plans, private loans, etc.
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3. COVERING UNMET NEED
WHY? This helps financial aid officers make educated recommendations, as well as brainstorm alternate
funding options with students.
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4. PROFILE OF STUDENTS
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4. PROFILE OF STUDENTS
Profile of students (segmented by undergraduate, graduate and professional, if applicable)
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4. PROFILE OF STUDENTS
Note the following:
Whether those students were eligible for merit vs. need-based aid, students’ need levels versus costs,
etc.
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5. THE NUMBER OF STUDENTS EMPLOYED ON CAMPUS
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5. THE NUMBER OF STUDENTS EMPLOYED ON CAMPUS
The number of students employed on campus in Federal Work-study Programs, their average earnings by semester and number of hours worked per week.
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6. ADMITS, ENROLLEES AND YIELD RATES
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6. ADMITS, ENROLLEES AND YIELD RATES
Admits, enrollees and yield rates (number of accepted students who have placed deposits) for freshmen and
transfers.
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6. ADMITS, ENROLLEES AND YIELD RATES
Organize them by: • need level
• quality • amount of grant
Analyze these reports to determine effectiveness of awarding strategies.
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7. AVERAGE NET TUITION REVENUE
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7. AVERAGE NET TUITION REVENUE
The average net tuition revenue (NTR) generated by enrollees and segmented by freshmen, transfers and
total undergraduates.
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7. AVERAGE NET TUITION REVENUE
Directors may choose to get more precise by separating new student data by factors such:
• Quality• Geography
• Ethnicity• Gender
• Need groups
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7. AVERAGE NET TUITION REVENUE
The various segmentations suggested would be useful in monitoring trends among specific populations as well
as to inform inter-department debates regarding enrollment goals.
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8. RETENTION
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8. RETENTION
Freshman cohort profiles of students who stay vs. those who leave the school. Retention analysis may reveal
student characteristics related to attrition.
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8. RETENTION
The analysis should include financial-aid-related information as well as academic data, in order to
increase the institution’s understanding of the role of financial aid in student retention.
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9. DEFAULT RATES ON BOTH PERKINS AND STAFFORD LOANS
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9. DEFAULT RATES ON BOTH PERKINS AND STAFFORD LOANS
Of course, schools strive to lower default rates.
As the saying goes, you must know where you are to know where you’re going.
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9. DEFAULT RATES ON BOTH PERKINS AND STAFFORD LOANS
Comparing these year over year helps schools evaluate what policies and procedures are working to
reduce default rates.
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9. DEFAULT RATES ON BOTH PERKINS AND STAFFORD LOANS
Or you can just email [email protected] to request our default prevention guide: The Roadmap to
Reducing Your School’s Default Rates.
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10. DEBT LEVELS OF GRADUATING SENIORS
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10. DEBT LEVELS OF GRADUATING SENIORS
Measuring this against direct costs and indirect costs is one way to determine if school materials (such as award letters) are guiding students to borrow more
money than they need.
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11. PERCENTAGE OF GRADUATES WHO ARE EMPLOYED POST-GRADUATION
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11. PERCENTAGE OF GRADUATES WHO ARE EMPLOYED POST-GRADUATION
This helps schools calculate effectiveness of individual programs and also guides default assessment.
