Awarding financial aid to families isn’t easy. You want to award the right amount of aid to the right families, filling seats with mission-appropriate students while supporting your school’s enrollment goals.
But when a family applies for financial aid and one or both parents own a business, it adds another level of complexity to your financial aid decision. It can be extremely difficult to analyze what amount of income a business owner’s family can put toward school tuition.
There are three key tips we recommend you keep in mind as you analyze a business owner’s financial aid application. Clint Losch, a Regional Account Manager with ISM and a financial aid and tuition management specialist, shares our advice and what you should watch for when evaluating business owners’ applications.
In summation:
- Do not try to evaluate taxes. Instead, look for key indicators you can use that are much less involved than trying to analyze an entire tax return.
- Identify red flags. This can include home, car, and recreational expenses.
- Use our housing expense estimation formula. Watch the video for an explanation of how this estimation can provide a ballpark estimate of the business owner’s housing expenses. We explain how that can help translate to income available for school tuition.
Financial aid should be a strategic tool that fills your seats with mission-appropriate students and ultimately grows your school. Want to learn more about making the right strategic financial decisions for your school? Enter to win a free seat at our Strategic Financial Planning workshop. It takes place February 1–2 in Houston, TX.
Additional ISM Resources:
The Source for Business & Operations Vol. 18 No. 2 How to Have Difficult Conversations With Families About Financial Aid
The Source for Business and Operations Vol. 14 No. 6 Providing Financial Information to Parents
The Source for School Heads Vol. 16 No. 10 Consider These Suggestions for Your School’s Financial Aid Procedures
ISM White Paper 5 Elements to Consider When Setting Your Financial Aid Policy
Additional ISM resources for members:
I&P Vol. 40 No. 12 ‘Rainy-Day’ Financial Aid: The Need for Proper Communication
I&P Vol. 39 No. 13 Strategic Financial Aid: Filling the Empty Seat
