Where should financial aid report? Organizing for enrollments? Think carefully about optimum linkages before you set structure

University Business, June, 2004 by Kathy Kurz, Jim Scannell

Dave Dickson, VP for Financial Affairs at St. Edward's University (TX), oversees a combined student financial services operation that was created explicitly to better serve St. Edward's students. Each entering student is assigned a financial counselor to assist with the student's educational financing needs. Dickson stresses, "We use a team approach to new student recruitment, and the financial services director is a member on the enrollment management team."

At Abilene Christian University (TX), Financial Aid reports to VP for Finance Phil Schubert. He notes, "Because of the inherent complexity and potential impact that the awarding of financial aid can have on an organization, it makes sense for the reporting structure to follow the knowledge and understanding that might be held by certain members of the executive team." Student financial aid is not a business one learns in a few weeks, he says. "The behind-the-scenes management of financial aid in our organization centers around a focus on net tuition revenue and involves a significant amount of spreadsheet data analysis, 'what if" scenarios, and financial projections. These tasks fit more closely with the skills of financial professionals than other campus offices." There must be a commitment for coordination and collaboration, he says, especially with admissions/recruiting, for any reporting structure to be successful

At Princeton University (NJ), the office led by Director of Student Aid & Services Don Betterton reports to the dean of the college, who is the chief academic officer. Betterton sees the Financial Aid office as part of a student service model where Financial Aid is counseling students and families about financing their Princeton education--much as academic advisers would counsel students on course selection, or career service staff would counsel them on career options. He indicated that Princeton's structure might more closely resemble a small liberal arts college where Financial Aid might be part of a dean of students' organization.

Jim Belvin, director of Financial Aid at Duke (NC), also reports to that institution's chief academic officer, the provost. At Duke, Financial Aid is viewed as part of the academic enterprise. It is the Office responsible for creating access for students whose academic and personal profile qualify/them as the types of candidates who support Duke's academic mission, but whose financial resources place Duke out of reach without financial assistance.

IN THE END ...

Organizational structure is less important; communication and shared goats more important. It's as straightforward as that. As an institutional resource, Financial Aid must be aligned to advance the mission of the institution. Based on that mission and the students served, some reporting structures may emerge as more appropriate, but no organization will be successful without collaboration, cooperation, and coordination.

Kathy Kurz and Jim Scannell are partners in the enrollment management consulting firm, Scannell & Kurz, Inc. (www.scannellkurz.com).