This document discusses the issues with outsourcing financial aid processes and how automation can provide a better solution. It outlines five key issues with outsourcing: the risk of exposing sensitive student information, the upfront work required to set up outsourcing, potential quality issues, lack of control over processes, and lack of student focus. Automation addresses these issues by providing secure software solutions that integrate easily, are under the control of the financial aid office, help standardize processes, and allow the school to focus on their students. The document advocates that schools should start automating their financial aid functions instead of outsourcing them.
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Once, the great debate in financial aid was to
outsource or not to outsource. Now a third player has
entered the field. It goes by the name of
automation.
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More understaffed colleges are automating elements
of the financial aid process with software to meet the
needs of a quickly growing student population and
improve office efficiency, safety and compliance.
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Many colleges still rely on outsourcing for financial aid
processes, not realizing what they outsource could be
kept in-house and simplified with financial aid software.
Next, we discuss the top five issues with outsourcing
and how automation solves them:
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Depending on what process is being outsourced,
outsource consultants may have access to Institutional
Student Information Records (ISIRs).
The loss or theft of student or parent documents
involved in certain processes – such as FAFSA
verification – would put the school at great risk.
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Schools are held responsible for financial security,
regardless of who performed the financial aid functions.
This means schools that outsource are accountable for
errors that surface during audits, and in the event of a
security breach, the school would be liable.
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WHY AUTOMATE?
Software doesn’t desire to steal
identities and is less vulnerable to
error than a human.
Q:
A:
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CampusLogic takes document security very personally.
As such, our verification processing platform,
StudentVerification, is enabled with extensive
security measures including government-grade data
encryption that protects uploaded documents.
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While outsourcing may save time and hassle for the
department in the long run, it often requires extensive
set-up on the front end.
Migration of school-specific processes, forms and
information to a servicer can be time consuming and
costly for an institution.
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If a financial aid department is understaffed, allotting
time and resources to setting up outsourcing is difficult
and may be impossible.
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WHY AUTOMATE?
Most financial aid software
solutions are simple and
easy to set up.
Q:
A:
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StudentVerification, for example, integrates with all
student information and imaging systems.
The verification software-as-a-service (SaaS) can be
launched in as little as a few days with the bulk of
work accomplished by the software provider.
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It is more difficult for schools to QA outsourcers than an
internal team, and some schools won’t QA an outside
company’s work at all.
This means the school won’t know about a problem
until it’s too late, often after the mistake has been
made repeatedly.
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WHY AUTOMATE?
In-house teams still own the
process when they work with
software. Though software makes
processes much faster, it is still
under the control of financial aid
admins and the director.
Q:
A:
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Software like AutoReconciliation – a tool that
reconciles COD and SIS data in almost no time –
is even known to reduce the risk of error of an
experienced, in-house financial aid team.
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Schools are often required to conform to the
practices, forms and policies of the
outsourcing company.
This prevents the school’s financial aid staff from truly
owning the process, increasing the risk of mistakes
or miscommunication.
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WHY AUTOMATE?
Your school may have a specific
way of doing things that has
proven effective for your unique
student population.
Q:
A:
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Outsourcing companies may take a one-size-fits-all
approach or may not understand or be equipped to
undertake your school’s methods. As a result your
students will suffer, as may your school’s reputation.
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Nobody cares about your students
as much as you do.
Outsourcing companies are not involved in schools’
culture; they do not see your students
every day like you do.
Furthermore, they lack your synergy and
easy cooperation with other departments.
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Your in-house financial aid admins are a part of the
larger team of school staff that is responsible for the
institution’s success and is invested in the
achievements of the student body.
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WHY AUTOMATE?
Software solutions are tools. They
allow a school to own the financial
aid process without destroying the
budget with overhead costs or
creating headaches for the financial
aid department. And they work
within the systems your school
already has in place.
Q:
A:
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StudentVerification is branded for each school, so
students and parents using it don’t even realize they’ve
left the school’s website, creating a seamless and
trusting user experience.