Published on August 1, 2014
PowerPoint Presentation: Higher One: Improving Financial Aid Delivery and Management for Students, Universities Colleges and June 2012 PowerPoint Presentation: What W e Do ‣ Students a r e inc r easingly underserved when it comes to financial services. ‣ Higher One has an innovative elect r onic p r ocess for students to access and manage their financial aid r efund for living expenses such as books, food, r ent, etc. ‣ Our platform p r ovides students up to th r ee clear choices for how they want their financial aid r efund administe r ed: ‣ ‣ ‣ Refund check ACH transfer to their banking account Higher One ’ s ‘OneAccount,’ which p r ovides students f r ee basic and customized services ‣ Delivery of financial aid and other r efunds is always f r ee r ega r dless of the student ’ s choice. ‣ Our solution helps colleges and universities outsou r ce financial aid disbursement, f r eeing up administrative dollars to focus on what they do best - educating students. ‣ Higher One complies with federal and state banking r egulations including Reg E, as well as with the FTC, the Department of Education ’ s thi r d-party servicer r egulations under Title I V , the Patriot Act, and many mo r e. PowerPoint Presentation: The Student Loan Process The Student Loan P r ocess BEFORE 2. College/University 1. Sou r ce of Aid 3. Students Lack of options Inconvenience Delays No guidance Students would (i) have to wait to r eceive a check and (ii) be given no financial literacy r esou r ces. The college ’ s financial aid office applied the funds to tuition and disbursed the r emainder to the student for books and living costs. The sou r ce of the student loan or other form of aid was sent to the college or universit y . TOD A Y Choice Ease Fast Delivery Education With Higher One, students have mo r e flexibility and choice in how they r eceive their financial aid r efunds, th r ough up to th r ee easy-to-understand options: 1. Refund check 2. ACH transfer to their banking account 3. Elect r onic T ransfer to a Higher One checking account PowerPoint Presentation: es es k nk es 3 3 Refund Choices and the V alue of Higher One Once a student has r eceived his or her financial aid r efund, the r e a r e th r ee options available to colleges and universities for the management of those funds. Choice of Refund Solution Cost to Student Choice of Service $184-429 Reg. Bank 3 Student The cheapest alte r native to Higher One is $98/yea r . Refund check College/University Deposited to P r e-Paid Ca r d $98-239 Annual Fe Students who cannot qualify for a bank account a r e left behind. Elect r onic T ransfer to Bank of Choice Any student can use Higher One ’ s OneAccount, which is 1/2 the cost of the cheapest alte r native, but has far mo r e consumer p r otections. $184-429 Reg. Ba 2 1 ACH services do not address paper check handling, T itle IV compliance or help avoid the high costs of traditional banking accounts and check cashing services. 2 Higher One ’ s OneDisburse solution address T itle IV compliance, reconciliation, customer service and provides students with access to an alternative to traditional banking accounts and check cashing services. 3 A verage annual cost to maintain checking account, use check cashing services, and use pre-paid cards according to G. Michael Flores, Bretton W oods, Inc. Report, “USING FINANCIAL AID REFUNDS What Are Banking Options Costing College Students?” 03/2012. 4 A verage annual cost of check cashing services according to G. Michael Flores, Bretton W oods, Inc. 5 A verage annual revenue per OneAccount over the trailing 12 months as of 03/2012, which includes revenue from service fees assessed to the OneAccount. Elect r onic T ransfer to OneAccount 5 (No monthly or minimum balance) $49.00 Paper Check Mailed to Student $340.07 Annual Fe 4 3 Elect r onic T ransfer to Bank of Choice $240-464 Nat. Ban 3 $240-464 Nat. Bank $184-429 Reg. Bank 1 ACH Services 3 Check Cashing $340.07 Annual Fe 3 Deposited to Bank of Choice $240-464 Nat. Bank 3 PowerPoint Presentation: S. bank account of their choosing. n optional, no minimum balance, no monthly fee, ancial literacy and ensuring that students have the oney . Johnson, our Financial Literacy and Consumer munication. ducation Our Principles Student Choice Students can transfer their financial aid to any U. Students can r eceive their financial aid by check. Students can open a Higher One ‘OneAccount’, FDIC-insu r ed checking account. • • • T ranspa r ency Higher One posts the OneAccount fee schedule for everyone to see along with a definition of the fee and how to avoid it . • Financial Literacy Higher One is deeply committed to p r omoting fin tools they need to e f fectively manage their m W e have a full time financial literacy expert, Mary Advocacy Manage r , who r eviews all student com • • Flexibility OneDisburse ® Refund Management ® funds disbursement service was designed so that students can choose to have their r efunds sent to any bank account they may have for f r ee. The r e a r e many ways to access 100% of funds at no cha r ge. With the standa r d OneAccount we o f fer f r ee online bill payment, f r ee check writing, f r ee cash access at our A TMs, f r ee use of swipe and sign debit ca r d pu r chases and f r ee transfers to other accountholders. • • V alue for Higher E • • • OneDisburse ® Refund Management ® funds disbursement service saves time and money for schools. Students r eceive their r efunds faster and mo r e convenientl y . Our customers pay less than half the amount in fees than the average bank checking account customer pays per yea r . PowerPoint Presentation: Customer Satisfacti Commitment to T ransparency Higher One values open communication with our clients and r emains dedicated to p r oviding students with the app r opriate tools and information so that they can best manage their own financial lives. • W e maintain open lines of communications with customers to imp r ove our quality of service. ‣ Hold r egular advisory g r oup meetings comprised of students and administrators that utilize Higher One ‣ Conduct extensive customer satisfaction surveys multiple times each calendar year ‣ Interact with students di r ectly th r ough our Campus Relations Coo r dinators ‣ Higher One r esident financial expert, Mary Johnson, p r ovides financial literacy content th r ough OneFor Y ourMone y .com and sha r es best practices with administrators a r ound the country on how to start financial literacy p r ograms on their campuses. Engagement on • Higher One ’ s commitment to transpa r ency and our customers’ well-being has helped establish our industry position as a trusted partne r . ‣ Higher One has achieved a 98% r etention rate with our customers over our 12 years of service to the education community and attained an A+ rating with the Better Business Bu r eau. ‣ 87% of students said they understood their choices on the r efund selection p r ocess. Straightforwa r d • Higher One p r ovides a variety of tools that ensu r e students understand their financial options. ‣ Mobile message alerts to students for payment deadlines, account balances, and check deposits ‣ A use r -friendly web page with instructions for students on how to use their account for f r ee ‣ When signing up on-line, students must view and ag r ee to the fee schedule for the OneAccount. PowerPoint Presentation: Benefits for Students and Schools Looking at the r efund p r ocess, Higher One noticed how frustrating it was for students to wait in line for their money and how costly the p r ocess of issuing checks was for the school. W e sought to help students get their r efunds f r om their school faster and save time and money for colleges and universities. Schools Students ‣ Higher One distribution and payment p r ocessing services st r eamlin e operation s fo r ove r 83 0 colleg e an d university campuses and o f fer enhanced services for app r oximately 6.2 million students . ‣ Save colleges and universities considerable costs r elated to disbursements, and ha r d and soft costs such as staffing, pape r , envelopes etc. ‣ HigherOne saved one community college $4,014,388 f r om 2008-2011. ‣ Refunds available the same day they a r e r eleased by the college or universit y . ‣ Save students app r oximately tens of millions of dollars per year over the costs of banking with one of the four biggest national bank s 1 ‣ The OneAccount is an optional, no monthly fee, no minimum balance, FDIC-insu r ed checking account available to all students with no c r edit check. 1 A verage annual costs of a ‘OneAccount’ versus those of a national bank account. Based on analysis of data derived from Bretton W oods, Inc. Report, “USING FINANCIAL AID REFUNDS What Are Banking Options Costing College Students?” 03/2012. PowerPoint Presentation: Benefits for Students and Schools Take a look at Higher One.com Ratings to see h ow well the company addresses the needs of Its student and educational institutions.