Numerous articles discuss the importance of trust, transparency, and accountability. These three words are integral to the success of colleges and universities. With decreasing confidence in higher education and increasing governmental oversight,10 institutions will need to shift their focus to proactive governance to protect students and mitigate downstream risks to reputation. One key area that must be considered is the importance of disclosure.
Why disclosure?
Disclosures come in many forms in the industry. The list is growing from the Clery Act to the Family Educational Rights and Privacy Act (FERPA) to tuition costs and refunds, and the information required can be time-sensitive and voluminous. In addition, frequent amendments to local, state, and federal regulations require constant monitoring.
Tuition and financial aid disclosures are two areas that made several headlines. The US Government Accountability Office (GAO) posted a blog about What Financial Aid Offers Don't Tell You About the Cost of College.11 One finding from the report was that “91% of colleges do not provide students accurate information in their financial aid offers about how much they will have to pay to attend their school.”
This statistic is troublesome and only fuels distrust. One group committed to ensuring tuition transparency is the College Cost Transparency Initiative (CCT). Their mission focuses on providing families and students with an understanding of the cost of college in a manner “that is clear, accurate, and transparent.” The good news is that several colleges and universities are starting to commit and support this cause.
"66% of parents report they are unfamiliar with the refund policies of their college or university."
-2022 College Confidence Index by GradGuard/College Pulse
Three key resources to locate for your campus right now:
Clery Act report
Refund policy
Campus net cost calculator
Why are there challenges?
Unfortunately, tuition pricing is not standardized, which makes it complicated for students and parents to compare costs. Further, tuition is only one piece; several mandatory fees can sharply increase the cost of attendance. All of this adds to suspicion about the true cost of education.
Tuition refund policies are also creating risk for institutions due to inconsistent practices:
Some policies are clear and concise, while others could be more opaque, making it easier for students to be aware of deadlines.
Some policies are inflexible and may not account for student mental health needs, which exacerbates an already ongoing crisis.
Taxonomy needs to be clarified. Words mean different things to different audiences.
Non-refundable fees add additional unaccounted financial burdens to students and families.
How can these risks be mitigated?
Develop clear policies with consistent and standardized wording.12
Refrain from burying essential details in the fine print.
Conduct regular reviews of existing policies to ensure they align with current regulations.
Partner with your risk management, audit, and legal teams to understand the risks and impacts of non-disclosure.
Train and educate your students, faculty, and staff.
10 news.gallup.com/poll/508352/americans-confidence-highereducation-down-sharply.aspx
11 www.gao.gov/blog/what-financial-aid-offers-dont-tell-you-aboutcost-college
12 www.collegeprice.org/home