by Andrea Gardner
Editor in Chief
The University of La Verne’s Office of Financial Aid went over its allocation for student aid by more than $900,000 for the 1996-1997 school year and will go over again this year, possibly by the same amount.
According to Dean of Enrollment Services Adeline Cardenas-Clague, the Office of Financial Aid went over its projected number of enrollment, which caused it to go over the allocation. She predicted the same average for this year.
According to President Stephen Morgan, such overbudgeting is usually planned and that the situation could fluctuate until enrollment numbers settle in October or November.
Chief Financial Officer Steve Grey also did not know the exact amount of this year’s debt, but said he expected it to be less than last year.
Last year’s financial aid debt was absorbed by an administrative budget that went underbudget by about $1 million. Dr. Morgan said the University will depend on another department that underbudgets or increased revenue from enrollment to compensate for this year’s overage.
According to Dr. Morgan, awarding financial aid is a gamble because the Office of Financial Aid can never be certain of the number of students who will accept their awards.
Said Cardenas-Clague, “You don’t know who is going to accept that award.”
Dr. Morgan says one of the major problems is that the University has been generous in the amount of ULV Grants given to students.
“Sometimes we stay too generous on the ULV Grant too long,” said Dr. Morgan. He described this as good for the student, but tough on the institution.
Cardenas-Clague said that the ULV Grant was used as one method of increasing enrollment. She said because new students are “shopping” for the best deal, and everybody wants the same students that La Verne wants, meeting students’ needs are important.
Other causes for the debt include the larger number of transfer students in the spring than in the fall and the need for more tracking of the process to make sure the University does not over award.
“We just need to put controls actually on the whole awarding process,” said Dr. Morgan.
He said a tracking system was implemented this year, designed to keep running totals of the numbers of students accepting financial aid award letters. He said, however, that the system has not been successful enough to keep the Office of Financial Aid out of debt this year.
“We need to improve the tracking system,” said Dr. Morgan.
Grey said the supply and demand systems of financial aid have not worked together enough, which is one reason for the overbudgeting. Cardenas-Clague and the Office of Financial Aid control the demand for financial aid, while his office controls the money supply. By having the two departments work more closely, he hopes to decrease the amount of debt next year.
Cardenas-Clague recognizes the responsibility to watch the budget, but she also wants to build enrollment and meet the students’ needs.
Grey, however echoed Dr. Morgan, saying that the overbudget is always expected.
“We underbudget the supply side and then try to adjust as we see it,” said Grey.
For next year, the University is considering financial leveraging, which would award more financial aid to students with higher success rates, which are often determined by grade point average.
Said Cardenas-Clague, “There is a gap between what the University is able to offer and what students need.”
With financial leveraging, she said the University will be able to award wisely to students who will contribute successfully.
The University has hired the consulting firm of Noel Levitz to help improve the budgetary situation.
Grey said the proposed plan sounds more specific and easier to control.
“I think financial aid leveraging appears to be an informative way to issue financial aid,” he said.
