This post is the first part of a two-post series on opportunities associated with the new Prior-Prior Year regulations which went into effect in fall 2016.
Prior-Prior Year is now in its fourth month. How well prepared is your campus for the new realities of today’s marketplace? And how are you making a stronger case for your affordability using P-P-Y for today’s cost-conscious families? Consider:
- 2 million students will graduate from U.S high schools every year for at least the next 10 years (Western Interstate Commission for Higher Education, 2016).
- Approximately 62 percent of American students annually will consider postsecondary education (National Center for Higher Education Management Systems, 2016).
- The price tag of higher education has nearly doubled in the last 20 years (Perry, 2016). There are no consumer goods or services that have increased more than the annual cost of college education since 1996. If we compare the overall consumer prices of all goods and services during this same period, the cost of higher education has increased in real dollars by more than 94 percent.
Need evidence that cost is a growing concern? The Cooperative Institutional Research Program (CIRP) Freshman Survey is part of the Higher Education Research Institute, which is part of UCLA. The survey, which has a fifty-year history, is administered to incoming first-year students before they start classes, allowing campuses to understand student perceptions about college prior to time on campus and in classrooms. The 2015 CIRP Freshman Survey indicated that the top reason students chose the institution they attended was academic reputation—not surprisingly, this has remained the number one reason for several years. The third and fourth reasons focused on financial aid and cost. The overall amount of financial aid offered was the third reason, and the overall cost of attending the college was the fourth (Cooperative Institutional Research Program, 2016).
In addition, a study by Ruffalo Noel Levitz found that Caucasian and African American students are more likely to have discussions regarding college financing versus parents of Hispanic and Asian American students. Of the parents who are “very involved” in the college selection process, as many as 72 percent have had conversations with their students about college financing (Ruffalo Noel Levitz, 2016).
Address the cost conversation earlier—Prior-Prior Year brings new opportunities
There is no doubt that institutional awards and state financial assistance affect students’ choices of postsecondary institutions; unfortunately, students and families often are not informed of their financial aid package or other sources of financial assistance until after students are admitted (Renn & Reason, 2013). This is changing, however. Fall 2016 was the first fall in which campuses were able to begin awarding financial aid to admitted students as early as October 1—which many campuses are referring to as Prior-Prior Year awarding. Because many students and families have an unrealistic understanding of how they will pay for college, the additional time in the process to assess financial aid and determine how much a family can contribute to total cost of attendance is beneficial.