University Business - March 2009 - (Page 27)

money m at t e r s Navigating enrollments and ﬁnancial aid in tough times By Kathy Kurz and Jim Scannell Uncharted Waters IN DECEMBER, STAMATS AND SCANNELL & KURZ PRESENTED “WISE MOVES IN TOUGH TIMES,” A WEBINAR with more than 800 college and university leader participants. is spring, Scannell & Kurz will present at two national conferences and conduct two more webinars on the topic. e demand for these is new. No one can wholly predict the impact on college enrollments for fall 2009. e credit crunch had very little impact on fall 2008 enrollment, due in large part to its timing. And with the impact primarily felt in the private loan market, government-subsidized loans were readily available for this academic year. Now the “perfect storm” of limited credit, increased unemployment, reduced asset values, and economic uncertainty has Katrina-like potential for upheaval and change. Based in part on the December webinar, the following are recommendations on preparing for the unknown and securing what can be secured. WO BIG QUESTIONS ON the minds of administrators at higher education institutions today are “What colleges are most at risk?” and “How will families react to the economic situation?” While the argument can be made that no college will emerge unscathed— not even the most elite private research universities and public ﬂagships—clearly some IHEs are much more vulnerable. They include institutions that: • Are profoundly tuition driven. • Have an undifferentiated portfolio of academic programs. • Already discount deeply. • Are not near major population centers. Colleges and universities with these attributes are “poster children” for institutions at risk. Although the extent to which families may change their college-going plans is certainly not clear, there is an array of behaviors that needs to be monitored. Large numbers of students and families are likely to opt for lower-cost institutions, especially for their first year. Of course, there is a limit to the capacity of low-cost, state-supported institutions, both two-year and four-year. As the press universitybusiness.com T Some families will reduce expenses by having their children commute rather than live on campus. has made us well aware, most states are cutting back on their support of state colleges and universities, so less will be available to serve more. Certainly some families are going to reduce expenses by having their collegebound students commute rather than live on campus. This is why IHEs in rural areas are disadvantaged. Financial uncertainty will weigh heavily on many families, limiting their willingness to use their assets and investments for education when job security and retirement funds are so unpredictable. Given all this, there are a handful of “do nots,” as colleges and universities prepare themselves to enroll the new class in fall 2009. These include cutting budgets in revenue-producing offices such as admissions and financial aid, increasing tuition to make up for enrollment and budget shortfalls, investing in new market development before securing the primary market, and proceeding based on an anecdote (read: fear) rather than data. sHort-tErm stratEgIEs to consIDEr • Communicate affordability. Make sure your prospective and current students know that you are their partner in keeping your institution affordable. How? On the web, share income profiles, case studies, calculators, and merit guarantees. Get on the phone with current students who have balances or who don’t pre-register. Call newly admitted students who just received their first financial aid award Kathy Kurz and Jim Scannell are partners in the enrollment management consulting ﬁrm Scannell & Kurz. ey can be reached via their website, www.scannellkurz.com. March 2009 | 27 http://www.scannellkurz.com http://www.universitybusiness.com

Table of Contents for the Digital Edition of University Business - March 2009

University Business - March 2009
Contents
Editor's Note
Company Index
Advisory Board
College Index
Behind the News
Human Resources
Viewpoint
Money Matters
Special Report: Higher Ed and the Economy
Helping the Help Desk
Acts of Adaptation
10 Questions & Answers About the Cloud
What's New
End Note

University Business - March 2009