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Introduction
The purpose of this service is to assist students in financing
their education through administering federal and state grant,
loan, and work-study programs. In many cases, the service
awards institutional scholarships and other forms of assistance,
as well. Some institutions also provide financial counseling.
History of Providing
Service to Distance Students
For a number of reasons student aid has not been routinely
available to students studying at a distance. In part, this
was because most of the students were part-time and adults
and assumed not to be eligible for need based student aid.
Another factor was that the continuing education units, which
largely bore the responsibility for administering distance
programs, tended to develop their own administrative functions,
including registration and record keeping. The complexity
of the requirements for administering federal student financial
assistance also militated against providing aid to distance
students. Administrators managing the service were often wary
of providing aid to students enrolled in "non-traditional"
programs for fear they would inadvertently violate regulations
and incur liabilities for their institutions.
This situation is changing rapidly as distance education
programs have become more integral to the mission of many
colleges and universities and the students more diverse. Demand
for online services by on-campus students as well as the efficiencies
that can be achieved should also result in more aid offices
moving their services to the Web.
Opportunities for Providing
Web-based Service
Administering federal student financial assistance, which
is the primary source of funds to support students and thus
is the driver of the student aid process in general, has until
recently required a number of paper bound transactions and
often very long lines of students during registration periods
for one reason because of face to face loan counseling requirements.
Federal requirements have now been modified to allow the service
to be administered online.
The advantages of migrating the service to a fully Web-based
environment are considerable. Students will be able to complete
all of the considerable number of transactions required for
the award of aid online, saving time and frustration. A Web-based
service will also make the process more efficient for student
aid officers. It will expedite the frequent communication
required between the aid office and students and enable student
aid officers to improve the services provided. A Web-based
student aid system has the potential to increase the accuracy
of data and the speed of transactions, yield cost savings,
and increase student satisfaction with administrative services.
Issues
Student aid staffs rely on complex systems, in most instances
commercially developed, to perform the myriad of tasks administration
of student financial aid requires. These systems are designed
specifically to meet requirements for administering federal
student financial assistance and to interface with other administrative
offices to provide and receive information needed for the
aid process. For the most part, these systems are not designed
to provide student services per se, but rather to support
administration of the aid process. They tend to be rigid and
difficult to adapt to new requirements. As a result while
student aid offices rely very significantly on technology
to administer aid, their systems are not designed to interface
with students. Commercial providers and some institutions
are beginning to address this need, but most aid offices are
not able to offer full student aid services on line.
Over the past several years, the Department of Education
(EDUC) has migrated the transactions necessary to providing
federal aid to students to a Web-based environment. Institutions
exchange information with EDUC and receive student aid funds
electronically. EDUC systems also interface with students.
From completing and submitting the application for federal
aid (FAFSA) to checking loan balances, students may conduct
most of their business with EDUC online. EDUC's requirements
that institutions must request copies of tax returns and other
similar documents to verify the information submitted on the
FAFSA for a certain number of applicants will continue to
require paper transactions either by mail or fax.
Up until recently, the question of the legal enforceability
of electronic signatures posed the last remaining barrier
to full migration of federal student aid to the online environment.
The passage of the Electronic Signatures in Global and Nation
Commerce Act clarified the legal status of electronic signatures.
The act allows all parties to the student aid process to use
electronic records and electronic signatures in place of paper
records and handwritten signatures. The Department issued
guidance on the use of electronic signatures in administering
student loans in 2001. Uncertainties remain, however, since
guidance does not provide the same assurance as regulations.
In addition as yet, EDUC has not provided guidance concerning
the use of electronic signatures for other student aid transactions.
It's likely that security will be the most important issue.
As with other online transactions, authentication of identify
is one of the most difficult problems to address.
Few, if any, institutions have fully automated their student
aid service. Many provide really helpful information concerning
aid and the aid process rendering the whole subject much more
understandable. Many also provide links to other resources
such as FinAid or the College Board and the Department of
Education. The design of the online service differs according
to whether the institution conceptualized the service primarily
for distance education students or the student body at large.
This situation is likely to change as institutions develop
Web based services that enable students to accomplish a number
of functions online and, as well, facilitate exchange of data
among services. Most large institutions are likely to follow
this pathway. Smaller institutions are likely to use other
approaches. The links below illustrate various ways institutions
are providing student financial assistance on line. It must
be noted that it is difficult to determine from websites alone
how much of the actual student aid process can be completed
online. This is because the exchange of information between
the student and the institution is necessarily password protected.
About the Author
Marianne Phelps is an independent consultant and facilitator
in several areas relating to postsecondary education. These
include distance education, accreditation, international education,
outcomes assessment, and organizational change. She served
in several high posts in the U. S. Department of Education,
including Special Assistant to the Assistant Secretary for
Postsecondary Education, was Vice President for Governmental
Relations for the Council on Postsecondary Accreditation,
and served as Associate Provost and University Planning Officer
for The George Washington University. Dr. Phelps has written
numerous articles and presented at many conferences on a variety
of postsecondary education issues. She earned her doctorate
in American Civilization from The George Washington University.
Associations and Organizations
- National Association of Student Financial Aid Administrators
(NASFAA)
http://www.nasfaa.org/Home.asp
NASFAA is a membership based organization for student
financial aid administrators. This site provides tools,
services, and resources regarding financial aid.
Governmental Agencies and
Providers
- U.S. Department of Education, The Student Guide
http://studentaid.ed.gov/students/publications/student_guide/index.html
The Student Guide is the most comprehensive resource on
student financial aid from the U.S. Department of Education.
It covers the Department's major aid programs, including Pell
Grants, Stafford
Loans, and PLUS Loans. Approximately 70% of all student aid comes
from the programs discussed in the Guide.
- Students.gov, Student Gateway to the U.S. Government
http://www.students.gov/index.html
The Federal government also has a website designed specifically
for students which contains information concerning federal
student financial assistance and other matters of interest
to students.
- The Catalog of Federal Domestic Assistance (CFDA)
http://www.cfda.gov/
This web site provides access to a database of all Federal
programs available to state and local governments; federally-recognized
Indian tribal governments; Territories (and possessions)
of the United States; domestic public, quasi-public, and
private profit and nonprofit organizations and institutions;
specialized groups; and individuals.
- FAFSA on the Web
http://www.fafsa.ed.gov/
FAFSA opens the door to the federal aid process. This site
provides information and an application for federal student
aid.
All aid administrators will be familiar with the online
version of the Federal Application for Student Financial
Assistance or FAFSA. This site links to the application
for a pin which students can use to sign the FAFSA electronically.
The pin also allows students to check the status of their
application for federal aid and to view a history of the
federal aid they have received. The FAFSA website serves
as the gateway to these services and others.
The Federal Government administers the Direct Loan Program.
From the FAFSA Web page Direct Loan borrowers, using their
pin, can sign promissory notes and access online entrance
counseling.
-
GI Bill Web Site Education Benefits
http://www.gibill.va.gov/
The GI Bill site is for people in Active Duty and
currently enrolled in school. It has information
about the GI Bill and an online application.
-
Sallie Mae
http://www.salliemae.com/
Sallie Mae plays an integral role in educating parents,
students and educators about the financial aid process.
It currently owns or manages student loans for more than
five million borrowers and is the nation's leading provider
of education loans.
-
Texas Guaranteed (TG)
http://www.adventuresineducation.org/
Texas Guaranteed (TG) provides Adventures In Education (AIE) to assist parents and students in preparing for
and transiting to higher education. AIE also provides
a section for counselors to assist in the important role
they play in students' middle school to college years.
- State Guaranty Agencies
http://bcol02.ed.gov/Programs/EROD/org_list.cfm?category_ID=SGA
Guaranty agencies may also provide online access to loan
counseling and information concerning signing promissory
notes for Stafford Loans electronically. The link provided
leads to a list of Guaranty Agencies which in turn provides
access to the Agency home pages.
Campus Sites
- Brigham Young University Financial Path to Graduation
http://financialaid.byu.edu/path/
Brigham Young University which has one of the most expansively
developed online systems has provided a demonstration site
where visitors can experience what the student would see
and be able to do relative to accessing online financial
aid services. As part of the process of applying for student
aid, BYU requires students to complete an exercise developed
at the University called the Financial Path to Graduation.
This gives entering students an idea of the financial commitment
they are undertaking in borrowing the money they made need
to attend the University. It's based on their intended field
of study and occupation or profession upon graduation.
- Brigham Young University VIP
http://financialaid.byu.edu/vip
BYU's VIP is a system that provides the entire student aid
services online. BYU requires students to use the online
service freeing student aid staff to devote most their time
to face-to-face and telephone financial counseling. The
ID is Brigham Young. No password is required.
- Florida State University
http://www.finaid.fsu.edu
This website provides a guide to completing the FAFSA which
includes links to the Federal pages and information about
how to submit a signature for the FAFSA online.
FSU has initiated online personalized web services. These
services will provide for financial aid processing on line.
Forms students may need to complete for various purposes
are available for download, but must be returned by mail.
Also provided is online access to information concerning
loan status and online student loan entrance counseling.
- University of Southern California
http://www.usc.edu/dept/fao
USC provides an array of online student services, which
include student financial aid. Using "Oasis,"
students can access information concerning application status,
documents received and date of receipt, and a summary of
awards for the two most recent award periods. Forms students
may need at various points in the process are available
for download, but must be faxed or mailed to the service
office. USC requires undergraduates to complete the College
Board's College Scholarship Service Profile application.
This application is available online.
- University of Texas
http://www.utexas.edu/student/finaid/
Accessing the student aid home page takes one directly to
a description of the Web services available. "Check
Aid Status Here" or CA$H is part of UTDIRECT which
enables students to transact business with several services
as well as obtain information. The electronic aid notification
provides students information on awards and allows them
to accept, decline, or reduce awards and also to select
a lender for Stafford loans and report required information
such as reduced enrollment. The site also provides access
to online entrance counseling for students holding loans.
Further information can be obtained conveniently from the
site by e-mailing financial aid staff.
- University of Minnesota, Twin Cities
http://onestop.umn.edu/Finances/viewfa02.html
From this site students can view their award, respond to
the award notice, provide information such as change in
enrollment status to finalize the award, and authorize payment.
With a link to the Department of Education Web site, http://dlenote.ed.gov,
students may sign the promissory note for a direct loan
electronically.
- University of Maryland University College
http://www.umuc.edu/students/fincaid.html
The UMUC Web page provides a significant amount of information
concerning the financial aid that is available to students.
The definitions of terms provided in "Getting Started"
seems particularly helpful to individuals new to the student
aid process. The application checklist would also be helpful.
UMUC's "ISIS" system allows students to submit
the University's Financial Aid Data Form and the Scholarship
application online and, of course, the University encourages
students to submit their FAFSA on line. The remainder of
the financial aid process is currently conducted by mail
or telephone, and there is no currently no provision for
students to submit signatures electronically.
- FACTS
http://www.facts.org
This website contains a repository of information concerning
programs and services offered by public and private colleges
and universities in Florida. It provides basic information
concerning student financial aid and links to the websites
of Florida schools and also tools that enable students to
forecast costs, calculate expected family contribution,
and estimate needs for borrowing.
Consumer Sites
-
Back to College: Resources for Re-Entry Students
http://www.back2college.com/
This site provides answers to every sort of question
re-entry students may have.
-
CollegeFunds.net
http://www.collegefunds.net/index.html
Provides potential scholarships and financial aid resources
information.
-
College Is Possible Campaign
http://www.collegeispossible.org/
America's colleges and universities have prepared
this site to guide you to the books, websites, and other
resources that admissions and financial aid professionals
consider most helpful.
-
College Loan Corporation
http://www.collegeloancorp.com
This site is sponsored by a group of guaranty agencies
who participate in the Federal Family Education Loan Program
(FFELP). They are committed to providing information about
higher education and career opportunities. Plan career/
select school/pay for it.
-
College Savings Plans Network
http://www.collegesavings.org/
All states have created innovative college savings
programs designed to meet the savings needs of their citizens.
These programs seek to make the savings option easier
for the average family. They represent positive, productive
and affordable options that can ensure the education of
our most precious resources: the children of America.
-
eStudentLoan
http://www.estudentloan.com/
eStudentLoan.com is a comprehensive site that helps
people compare loans, find scholarships, apply online,
and talk to other people about student loans.
-
FASTaid
http://www.fastaid.com/links.htm
A source of college related links.
-
FastWeb
http://www.fastweb.com/
FastWeb helps students make the decisions that shape their
lives: choosing a college, paying for college and finding
jobs during and after college.
-
FinAid.org
http://www.finaid.org/
FinAid is a rich online resource that some institutions
link to their own page financial aid site. FinAid was
created several years ago as a public service and may
be one of the most comprehensive sources for information
concerning student aid. It also provides a series of tools
students can use to project college costs, estimate student
aid awards, and calculate loan repayments.
-
IT Skills Loan Program
http://www.itloan.com/index.html
IT Skills Loan Program helps students interested in IT
training and tools.
-
Scholarship Experts
http://www.scholarshipexperts.com/
The Scholarship Experts service begins with the completion
of a nine step E-Profile. Then a complete list of awards
with eligibility criteria that matches the answers listed
in the E-Profile is generated.
-
Students.Gov
http://students.gov/
Students.gov is a cooperative effort between federal
agencies, students, and other parts of the higher education
community, under the leadership of the U.S. Department
of Education. It's goal is to give college students and
those planning for college easy access to the information
and services they need from the U.S. Government.
-
Student Planet.com
http://financialaid.studentplanet.com/
Student Planet.com is a resource for students and
parents to research loans and scholarships for college.
- Wiredscholar
http://scholarshipexperts.wiredscholar.com/paying/content/index.jsp
Wiredscholar is a "Planning for College" destination
site powered by Sallie Mae. It contains various tips and
tools to expedite, simplify and optimize the financial aid
process. Consisting of three main sections, Paying, Deciding,
and Financing, the Wiredscholar Financial Aid Center simplifies
the entire financial aid process for students and parents.
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