EMBRACING THE FUTURE: BEST PRACTICES IN CHANGE MANAGEMENT FOR FAFSA SIMPLIFICATION

FAFSA simplification is not a simple tech change but a comprehensive, broad updating that’s both necessary and complex. Find out how colleges and universities can improve outcomes by getting some help throughout this transition.

Originally established in 1965, through the Higher Education Act with the goal of helping to encourage enrollment in postsecondary education in middle- and low-income students, the Free Application for Student Aid has long been an essential tool and first step in obtaining loans, grants, and other funding options for college-bound students.

Knowledge Brief

Since 1965,FAFSA has been pivotal for student funding. Now, the FAFSA Simplification Act aims for modern, streamlined aid processes. Originally established in 1965, through the Higher Education Act with the goal of helping to encourage enrollment in postsecondary education in middle-and low-income students, the Free Application for Federal Student Aid has long been an essential tool and first step in obtaining loans, grants, and other funding options for college-bound students. An important, and even essential, update to the process and system of awarding student aid to students is on the horizon with the goal of simplifying it.

Done through the FAFSA Simplification Act, the overall goal is to replace an outdated and cumbersome process with one that’s better representative of the needs of today’s students. FAFSA simplification is not a simple tech change but a comprehensive, broad updating that’s both necessary and complex. Find out how colleges and universities can improve outcomes by getting some help throughout this transition.

Why FAFSA Needed Change

The evolution of FAFSA over time has left the process complex, time-consuming, and simply frustrating not just to students and their parents but also to colleges and universities. The overhaul will include:

• A shorter and more user-friendly application process itself, reducing questions asked from over 100 down to under 40.
• The Expected Family Contribution (EFC) will become the Student Aid Index(SAI) to better reflect the diversity of those applying for college but also to avoid confusion that applications are, in some way, related to the amount of money a family should have.
• Adjusted Gross Income (AGI) will be used alongside SAI to make eligibility decisions for Pell Grants. The overhaul also eliminates the discount applied to families with more than one child in college. The process also eliminates any consequences of limiting financial qualifications for contributions made by others, such as grandparents. 

These changes will create a ripple effect with Financial Aid Directors now confronted with operational complexities. Enrollment Managers will have to adjust to shifts in student demographics and enrollment patterns as well.

Impact on Colleges and Universities

Financial Aid Directors, who typically coordinate financial aid funds, will be tasked with ensuring the college’s processes meet new compliance requirements. They will also need to be able to meet all regulatory changes that could come since the actual updates to systems and methods may change going forward. For Enrollment Managers, it will be critical to staying ahead of the confusion students and families will face by providing effective education strategies now, before the rollout occurs.

Language, internal procedures, methods for measuring aid eligibility, and simply the way they talk and interact with students related to the SAI will all need to change

Our Solutions

Because of the complexities of this change but the critical need to ensure the process goes well, organizations may wish to seek out third-party, tailor-made solutions and services that can complement the institutions’ internal efforts. With FA Solutions and Educational Compliance Management (ECM), colleges and universities gain access to methods to improve operational efficiencies, including filling valuable roles during peak enrollment periods with highly trained staff. That staff can provide assistance with a range of services:

• Serving as an interim financial aid director
• Working as an assistant financial aid director
• Providing quality assurance
• Managing verification and financial aid advising
• Title IV reconciliation and regulatory consulting

Best Practices in Change Management

Organizations navigating the overall FAFSA will need to have strategic foresight and tactical prowess. To do that, consider the following strategies we encourage:

Recognize the Importance of Change

As a college financial aid director, you must understand:

• The reason why these changes are happening and the benefits they will present to students
• How to engage stakeholders, including faculty, staff, and students, about these implications as well as the benefits of them 

Develop a Strategic Response

Among the steps to include here:

• Create a task force for your school with a dedicated team of professionals focused on the transition. This group is responsible for managing strategies, understanding the changes, and ensuring good communication.
• Form external partnerships, including with organizations like FA Solutions and ECM, that can provide guidance, valuable resources, and expertise to manage the process internally. 

Training and Skills Development

Organizations Must:

• Engage in continuous learning, including monitoring how FAFSA will evolve through regular training sessions, webinars, workshops, and courses.
• Utilize the expertise of organizations like FA Solutions and ECM on how to master FAFSA Simplification. 

Transparent Communication

Work to:

• Keep the challenges of communication open by creating content, encouraging questions, offering feedback, and engaging stakeholders.
• Provide updates through newsletters and emails to share in the process and changes over time. 

Adapt Technology Systems

It will also be important for organizations to:

• Make system upgrades to ensure all systems used for financial processing meet new compliance and regulatory requirements
• Incorporate data management strategies to ensure all sensitive data is protected and compliance is met.

Monitor and Evaluate

As you go through the changes, consider:

• Creating feedback loops to ensure there’s a simplified way to gather feedback from stakeholders. Identify and correct pain points.
• Conduct regular reviews to ensure progress is moving forward and adjust when it’s not.

Celebrate Milestones and Successes

Ultimately, organizations also need to:

• Recognize and celebrate milestones once reached, no matter how miniscule they may seem.
• Share in successes so others can also benefit.

The FAFSA simplification is not about isolated, simple changes but rather about an interconnected shift. Institutions will need to adapt to that challenge, and doing so with help from FA Solutions and Educational Compliance Management (ECM)  can help to streamline the process.

Watch the Webinar Now

Get insights into the implications that come from the simplification of FAFSA by watching the FA Solutions and ECM webinar now. Dive deeper into the realm of FAFSA changes. Engage with our recent webinar and discover how FA Solutions and Educational Compliance Management can be your guiding light during this transformative phase.