Parents

American Student Assistance 2007 Symposium Roundtable Discussion

ASA Roundtables are a unique Symposium experience, enabling colleagues to come together and discuss current issues in higher education. Each facilitated session is designed to allow focused and in-depth discussions on topics at the forefront of our industry. This year our roundtables focused on:

• – Parents
• – Serving Adults and other Non-traditional Students
• – The 21^st Century Financial Aid Office

Parents

Parents of the current generation of college students are more involved than ever in their children’s financial affairs. What do we need to do to meet parents’ needs? How can we address their concerns?

Moderator:

Are your students the children of “helicopter parents”? If so, what are the needs and concerns of these parents? How do they differ from the students? Have these questions and concerns changed over time, and if so, in what way?

Respondents:

• – More parents are leaving the financial aid responsibility to their kids
• – Parents are better educated and more knowledgeable about financial aid
• – Parents often want to simplify the loan process for their children. Some parents will encourage consolidation without completely understanding the pros and cons of consolidation. Accordingly, the information parents give to the students is often incorrect or inaccurate
• – Many students use their parents as financial advisors; often relying too heavily on them for their financial needs
• – Is the “helicopter parent” a luxury of middle/upper income families?
• – Parents aren’t that “helicoper-ish” at lower cost institutions, parents are definitely helicopter parents at higher cost institutions
• – Parents should “hover” given that the cost/investment is so high. It is not unusual, when spending $100k or more, to want to make sure your investment is doing okay
• – Parents are hovering more. The parents of the “me generation” raised students who feel entitled. Parents don’t want to take out school loans in their own names
• – Some schools believe “helicopter parenting” does a disservice to the student(s)
• – Many of the parents say they were “on their own” regarding the college process and they don’t want their own children to have to go through the same experience
• – I wish there were more helicopter parents, with students wanting to go to a college way above their means, I have noticed more parents who need knowledge
• – Financial Literacy for parents should start early before college
• – Parents are willing to complete forms and students have expectations that parents will do it all, but parents are more removed from paying than in the past

Moderator:

The Wall Street Journal Online reported in July 2005 that colleges and universities are assigning full-time staff or forming entire new departments to field parents’ calls and e-mail messages. How has your institution responded to the rising number of over-involved parents? How has your office responded?

Respondents:

• – They do not have a full-time office dedicated to parent needs, but there is someone who runs a parent chat line at the school
• – More and more, we see parents’ e-mails being used for student contact so that the student doesn’t have to do anything. There is one official e-mail account per student. The school is only required to send info to that account. Info can be forwarded to other accounts, but it’s the student’s responsibility to check and to forward it correctly
• – The school has required e-mail addresses from every student for the last 2 – 3 years. A pop-up message can be sent for each user id—i.e. “You haven’t signed your promissory note.” Students are much more likely to get info this way
• – When I sit down with parents to explain loans, parents want everything in their kids’ names. So they are forced into alternative loans rather than PLUS loans
• – Some representatives suggested adding financial literacy topics to admissions tests, (and possibly include parents); make it a requirement
• – Some schools utilize a web portal for students, (and are thinking about adding one for parents), for financial literacy
• – Introduce financial literacy programs that include information for parents, maybe part of orientation or online counseling

Moderator:

What can we do to assist students in understanding that their education and related financial debt is their responsibility? What can we do to educate the parents on this same issue?

Respondents:

• – Parents generally want nothing to do with student loans
• – Some cultures do not believe in taking out loans for financial aid
• – Many parents do not know the financial aid process; there are growing tensions between parents and students while going through this process
• – Given the opportunity, parents would like guidance and access to the various tools that may be available to students
• – Students need to be empowered; need to know what exactly they are signing
• – Some schools have tried to incorporate financial literacy into the entrance counseling sessions
• – Many parents (especially single parents) are overwhelmed and they make decisions primarily based on need
• – Programs need to be quick and to the point
• – For parents of low-income, 1^st generation students, there are huge knowledge gaps—especially in underserved communities
• – Parent involvement with the financial aid process varies due to cultural differences, language facility/deficit, etc
• – The parents are very well-informed, the Financial Services department gives them all the information up front
• – The financial aid office rarely sees parents, parents don’t participate in orientation programming, a lot of parents don’t have computers or computer skills, their parents believe that the students will be able to figure it all out better than they can
• – It’s important for students to know what the choices are
• – Parents should attend exit counseling with students
• – There should be a parents session at orientation

Moderator:

What are the top 10 parental needs? How can we most efficiently meet those needs?

Respondents:

• – All parties agreed that the biggest parental need is assistance in completing the forms; also mentioned was a central place for parents to access information
• – Parents are generally not internet-savvy
• – Some low-income parents are afraid of debt and therefore unintentionally restrict access to education for their children
• – Parent Information Resource Centers (such as Mass PIRC) and Parent Educational Centers (such as Mass PEC) are very useful venues for educating and involving parents if appropriate financial literacy information can be given through them
• – Parents need information
• – Parents need children to “bring them along” to raise their skills in dealing with the financial aid process
• – Parents need reassurance that students are doing the right thing by assuming school debt
• – We have to reach out to parents sooner about how to finance the education (ex. 529 programs)
• – Parents don’t realize that financial aid may not cover everything
• – Financial aid and other administrators should work better together from the beginning to get the message out
• – In understanding the process, many come in blind. Parents are reluctant to give out their personal info for FAFSA

^ back to top