It's pretty safe to say that the majority of faith-based schools across the country have welcomed students into the classroom to being the 2010-2011 school year.  Now it's time to start planning for the 2011-2012 school year!

However, you're still going to get parents that are interested in enrolling their children in your school.  When I worked for a Schools' Office, this is the time of year I'd get phone calls from parents that wanted to enroll their child, but was told be the school that since there were no financial aid funds left, they would have to pay the full tuition cost.  Perhaps that's still happening at your school today.  I guess that means that your school is full to the gills with children, and that you have waiting lists a mile long.

No?

Enrollment can only grow if children are enrolled.  How can you increase enrollment if children are being turned away?  Even if you have "no aid" left to give, a new child enrolling into the school is "found" revenue.  This may require a change in thinking on your part, shifting from a "financial aid" mindset to a "revenue stream" mindset.

Here are a couple of scenarios to illustrate:

Scenario 1: "There is no more aid" - While this may be true, stating this to just one parent will eventually cause your enrollment "funnel" to shut down since parents talk to parents.  Instead, look at it this way - Little Johnny Smith's parents has "0" ability to pay, yet his parents are willing to pay $1000.  If you enroll the child, that's $1000 that you didn't have before he walked in the door.  Next year, he becomes part of the financial aid process, and then can be awarded "real" aid dollars.  Turn the student away in September and you're defeating the whole purpose of building enrollment for your school.

WARNING:  Once again, this is for NEW students - they might have moved here from another state, transferred by a company so that dad can start his new job, etc.  Doing this for ALL students will send the wrong message to current parents.  You may choose to hold current parents feet to the fire to apply for aid before the deadline.  Those applying after the deadline that are returning to the school will be awarded aid on a first-come first-served basis with whatever aid is remaining.  Those who choose not to apply for aid are obviously going to pay the full amount.

Caveat 1) Don't count your full pay families until they're hatched - ESPECIALLY in our current economic climate!   Your full pays from last year may turn into aid applicants, and upfront payers may become monthly payers. To be fair, even thought they are "returning parents," DO allow them to apply for aid just as you would a new parent, since, in reality, they are new to the aid process.  However, if they were parents in the previous year, and you're counting them as a full pay simply because they have registered and have not filled out an application, you are doing your school a disservice.

Caveat 2) Payment method.  "I'll pay you when I can" is why schools are closing today.  A contribution is a gift; tuition is an obligation.  All parents should have at least 3 options when paying tuition - Full parent pay tuition before the year begins; Half up front, and half due January 1; or choose a tuition management company for monthly auto-withdrawal or online invoicing (just like college).  I recommend FACTS for two reasons:  One, I work for the company, but more importantly, I chose to work for them, because I've seen the company's success with the schools I used to work with.  Two, FACTS' business model - recommends direct debit because it's the most successful way to get tuition to your school.  There are no late fees with direct debit - only NSF fees, which the parent pays.  Even if a school chooses invoicing where late fees are charged, your school keeps the late fees and has full control over them.

Traditionally, FACTS' mantra as been "Full or FACTS," since most parents that choose 2 payments have their second payment due right when the time Christmas bills come due.  Today, it's makes more sense than ever to have ALL payments go through FACTS.  This avoids: checks sitting in a drawer - or worse, on a desk - or even worse, cash in a drawer; multiple trips to the bank; parents asking for receipts; potential for fraud; etc.   It's a real benefit to the school, saving on all the accounting time, and bringing in a steady cash flow for good financial management.

It also can help the parents develop responsible payment habits.  For instance, if payments are made for 10 months, parents can take the same amount out for the other two months of the year and build a Christmas or vacation fund, or put $$ away for their children's college education.  Here's the scenario for two children paying $1500 each.  9 years - 300 a month x 2 months a year = $5,400 in principal.  Invested over 9 years, that would at least pay for a couple of years at a state institution of higher learning, and would help parents to plan for their children's future.  Remember, we're not only educating students anymore.

Scenario 2: "Miss Jennifer Jackson has withdrawn" - The parents of Miss Jennifer Jackson were returning parents, went through the financial aid process, and were only going to pay $1200, receiving $2600 in aid for a $3800 tuition bill.  If the child leaves the school, the school is losing only $1200 in revenue.  However, if the awarded aid is reallocated to existing parents, the school has actually lost THE ENTIRE $3800.  What SHOULD happen is that this $2600 is reserved by the school to use for either new students coming in or reserved as additional income for the school.  If you REALLY need to use it (as in, if you don't use it, you lose it - which may happen in some scholarship situations), then perhaps use it as a source for those "end of the summer" appeals.

These two ideas are absolute KEY to increasing and maintaining enrollment, as well as generating a positive cash flow from your tuition revenues.

© Michael V. Ziemski, SchoolAdvancement, 2010 (Original Publication Date: 20050829)

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