A need-based approach to study abroad
As study-abroad programs began to resume after the pandemic, Rich Bartecki and his colleagues at IES Abroad noticed a troubling trend: The economic impact of the public-health crisis meant that financial need was growing among students. And many of the lowest-income students weren’t going abroad at all.
Bartecki, executive vice president for marketing and college relations at the nonprofit study-abroad organization, compares the typical education-abroad office to a store. High-need students, he said, “might just be window shopping, because they think, that’s not for me. Or if they go in, they’re not buying anything because it’s just too expensive.”
Before the pandemic, IES Abroad had awarded about $6 million a year in financial aid. But Bartecki and Susan Thomas, associate director of financial aid, questioned whether the funds were going to students with the greatest need. Research suggests that students who are typically underserved by study abroad — those who are economically disadvantaged, first generation, or from underrepresented minority groups — see bigger academic benefits from having an international experience, graduating on time, and with higher grade-point averages, than their peers.
IES Abroad decided to take a hard look at how it was allocating its financial-aid dollars. The guiding principle, Thomas said, was “what does equity of experience look like?”
The result is the organization’s new high-impact aid commitment. During a yearlong pilot, financial-aid applications from participating colleges increased 194 percent. Among students with the highest need, applications were up 120 percent.
How they did it: IES Abroad brought in a consultant to examine its financial-aid policies and identify several problem points: The organization wasn’t awarding scholarships until late in the application cycle, and it was “top-off aid,” meaning that it supplemented assistance students were getting from their college or other sources to meet their total expenses. Not knowing how much aid they would get made planning tough for students and could discourage them from going abroad.
While IES Abroad plans to increase its fundraising, the group focused on ways to redistribute the financial aid it already allocates. It had been giving $2,000 grants to public colleges for each student in its programs, and it cut that amount in half. The reallocation gave the organization about $1 million more for need-based aid in the pilot program.
IES Abroad changed the way it calculates aid, tying it to federal financial aid. Advisers can tell students upfront how much financial assistance they are likely to receive based on the amount their families are expected to pay toward their education, according to details on their Free Application for Federal Student Aid, or FAFSA. Students with the highest need, those with no expected-family contribution, could receive $7,000 from IES Abroad.
Under the new system, IES Abroad said it would notify students of scholarship awards within five days of their application. The organization also simplified its financial-aid application so that it can be filled out in about 10 minutes, eliminating a required essay. The form allows students to provide additional information, Thomas said, so that they can let IES Abroad know if their families’ financial situation has changed because of illness or job loss.
How it’s going: IES Abroad recruited a dozen partner colleges, including both public and private institutions, for its pilot and worked closely with them to make sure its new approach would complement their financial-aid policies.
Three times as many students at pilot institutions filled out financial-aid applications than in the prior year. Participation in IES Abroad programs by students who were eligible for Pell Grants rose by 106 percent.
While increasing post-pandemic participation in study abroad may account for some of the growth, the rise in financial-aid applications from pilot institutions was much greater than from those not taking part in the program. According to IES Abroad data, applications from non-pilot colleges doubled during the same period.
Jamilah Rashid, a study-abroad program manager at Howard University, which was part of the test run, praised the new program’s “transparency and depth of the funding model. Students know very early on whether or not the program will be viable for them.”
What’s next: IES Abroad will expand the need-based-aid program to students at all 250 colleges that are part of its consortium for the spring of 2025. (The application cycle for those programs opened earlier this month.) Based on the pilot, IES Abroad has a good estimate of student need, Bartecki said, but “if we get too many students and have to give away more, that’s a good thing.”