Navigating Financial Aid Uncertainty with Ellucian's Expertise

Financial aid uncertainty is the number one barrier for students to attend and persist in college. Those closely following developments in higher education are well aware of the upheaval caused by the FAFSA Simplification Act for the 2024-25 award year. At Ellucian, we prioritize issues affecting our customers and their students, making FAFSA a focal point in our discussions.

In a recent article, Ellucian Chief Product and Technology Officer, Mike Wulff, and Chief Strategy and Development Officer, Jeff Dinski, provided recommendations on how the U.S. financial aid system could evolve in the future.

Check out this exclusive interview with Mike Wulff to explore how technology can help institutions combat these challenges and learn how Ellucian is putting our customers first.

What is the most recent delay with FAFSA processing?

Mike: The Department of Education announced on July 30, 2024, that institutional batch corrections will not be available for the 2024-25 FAFSA. Instead, institutions will need to submit manual corrections for individual students via the FAFSA Partner Portal (FPP). This decision reverses the department's initial commitment to making batch corrections available in the first half of August. Typically, batch correction functionality allows financial aid offices to efficiently and accurately process FAFSA corrections in bulk.

Without this functionality, financial aid offices will continue to face challenges in making corrections promptly, delaying aid disbursements and affecting student enrollment decisions for the fall term.

Additionally, the Department of Education has announced a phased rollout for the 2025-26 FAFSA. The department has indicated that batch corrections for the 2025-26 FAFSA will not be available by December 1, when the FAFSA application becomes accessible to students.

Why is financial aid critical to student and institutional success?

Mike: Financial aid is vital for students and institutions alike, boosting enrollment by increasing affordability and access for all students. This support leads to higher retention and graduation rates, creating a more supportive learning environment for all students.

For institutions, robust financial aid programs enhance reputation and competitiveness by attracting top talent. Moreover, financial aid ensures enrollment stability, which is essential for covering costs and maintaining a steady tuition revenue stream.

In short, financial aid is key to student access, institutional success, and keeping the lights on.

Why does Ellucian care about financial aid?

Mike: Ellucian is committed to fostering student success and equitable access to education. By offering robust financial aid management solutions, Ellucian helps institutions streamline processes, improve compliance, and allocate funds effectively.

This support enables colleges and universities to attract and retain a diverse student body, further enhancing their ability to support their students and serve the community. By optimizing financial aid operations, Ellucian empowers institutions to allocate resources strategically, investing in initiatives that promote student retention, graduation, and overall academic excellence. In essence, Ellucian's dedication to financial aid reflects our broader goal of driving positive outcomes for students and institutions alike.

What specific product updates were made in response to the FAFSA Simplification Act?

Mike: Ellucian has been proactive in supporting customers with changes for the 2024-2025 academic year stemming from the FAFSA Simplification Act and other regulatory updates. Since June of last year, we've been providing institutions with a series of updates, including revised fields and data crosswalks from the 2023-2024 processing year.

These crosswalks map Banner and Colleague data to the Institutional Student Information Record (ISIR) record layout data, detailing new and obsolete fields and naming conventions. This helps institutions identify any necessary adjustments to their ISIR processing functionality. We've also supplied the essential 2024-2025 forms, updates for ISIR imports, and introduced cloud-based services for Student Aid Index (SAI) and Pell calculations.

We have added support for Pell enrollment intensity and updated logic for Pell awarding and disbursements. These updates are part of our ongoing commitment to ensuring that our customers are equipped with the tools and resources they need to navigate regulatory changes effectively and serve their students better.

Ellucian is preparing for future developments like the FAFSA Simplification Act. What strategies is Ellucian implementing to enhance agility and adaptability in responding to regulatory changes in the future?

Mike: This year, in anticipation of the FAFSA changes, Ellucian introduced cloud-based services for our Student Aid Index (SAI) and Pell calculations, which are available to all our Banner and Colleague customers. By delivering these services, we've eliminated the need for customers to manage software updates themselves, reducing overhead and enabling quicker adoption of changes and updates.

Already, we've witnessed the benefits of this service, as Ellucian has seamlessly delivered specification changes mandated by the Department of Education without disrupting our customers' operations. Moving forward, Ellucian remains committed to identifying and providing shared services like this, which remove barriers to adoption and simplify the upgrade process for our customers.

What does the power of technology unlock for institutions?

Mike: The power of technology unlocks countless opportunities for institutions, streamlining operations, enhancing efficiency, and reducing costs. It enables personalized learning, expands access to resources, and supports better student engagement. Technology also allows institutions to reach wider audiences through online education and foster collaboration for research and innovation. Additionally, automation and data analytics help tailor financial aid packages effectively and provide real-time support, reshaping the financial aid process.

Ultimately, technology empowers institutions to evolve and thrive in today's dynamic educational landscape, driving student success and institutional growth.

Ready to ease financial uncertainty at every step of the educational journey? Learn how modern technology can help engage, enroll, and fund more students at any institution.