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ERIC Number: ED543308
Record Type: Non-Journal
Publication Date: 2010-Jan-15
Pages: 5
Abstractor: ERIC
Reference Count: 0
ISBN: N/A
ISSN: N/A
Budget Cuts: Financial Aid Offices Face Budget Cuts and Increasing Workload. Quick Scan Survey Results
National Association of Student Financial Aid Administrators (NJ1)
The majority of college financial aid offices have seen cuts to their operating budgets this year compared to the 2007-08 academic year when the recession began, according to the National Association of Student Financial Aid Administrator's latest QuickScan Survey. Sixty-two percent of financial aid offices reported operating budget cuts this year and 22 percent reported that their operating budgets were cut by 11 percent or more. Seven percent said they expected budget cuts later this year. Another 30 percent received level funding through the recession and only 5 percent reported an increase in their operating budget. Many financial aid offices face level or reduced funding as their workload increases due to record numbers of financial aid applicants, awards, and appeals. Financial aid offices at every type of higher education institution (public, private, nonprofit, for profit, two-year, and four-year) seem to have been equally susceptible to budget cuts in recent years. There were no significant differences in the frequency or severity of budget cuts between institution types. Survey respondents were split on how budget cuts were implemented. Most (41 percent) said their school implemented budget cuts across the board, while 34 percent said budget cuts happened on an office by office level. Financial aid offices with budget cuts have implemented a variety of strategies to cut costs. Reducing staff travel is the most common strategy with 61 percent of survey respondents cutting travel. Other common strategies include: reducing office supply and equipment expenses (56 percent); forgoing salary or cost of living increases (51 percent); reducing staff training (32 percent); and implementing hiring freezes (33 percent). Other strategies reported by survey respondents, include: (1) Gaining efficiencies through increased automation of processes and communications; (2) Deferring projects; (3) Relying on efficiencies and costs savings from previous years to balance out cuts recently implemented; and (4) Reducing office hours.
National Association of Student Financial Aid Administrators. 1101 Connecticut Avenue NW Suite 1100, Washington, DC 20036. Tel: 202-785-0453; Fax: 202-785-1487; e-mail: membership@NASFAA.org; Web site: http://www.nasfaa.org
Publication Type: Numerical/Quantitative Data; Reports - Research
Education Level: Higher Education; Postsecondary Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: National Association of Student Financial Aid Administrators (NASFAA)