The Higher Education Financial Aid Workforce - Pay, Representation, Pay Equity, and Retention

Oct 15, 2026

Uploaded by Callum

Report examining the higher education financial aid workforce, focusing on pay and pay equity, staffing capacity, representation, and retention. Traces the evolution of federal student aid and highlights growing reliance on Title IV programs amid limited public awareness. Analyzes survey findings on increasing applicant volume and staffing shortages, including concerns about administrative capability and meeting student needs. Uses results to recommend strategies for retaining people of color and women through equitable pay and flexible work options, and to ensure adequate staffing or managed outsourcing.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages18

Reading Time45 min

AccessFree to download

Introduction

Financial Aid Positions

Pay of the Financial Aid Workforce

Median Salary for Financial Aid Employees by FAFSA Application Quartile

The Higher Education Financial Aid Workforce: Pay, Representation, Pay Equity, and Retention By Melissa Fuesting and Charlotte Etier May 2024 Introduction Federal student aid first began in the 1940s with the passage of the GI Bill, and was expanded in the 1950s with the creation of the first federal student loan program. 1, 2 In 1965, Congress passed the Higher Education Act which created the first Basic Educational Opportunity Grants, which later became the Pell Grant.3 The federal student aid program continued to expand in the 1980s and 1990s when Parent PLUS loans and unsubsidized loans were created.4 The federal student aid program has changed many times since its creation, but ultimately the goal has always been to assist students in attending college and furthering their education. As college costs continue to increase, more Americans rely on federal student financial assistance programs to help pay for their postsecondary education. Despite the demonstrable and continually increasing importance of federal student aid, the majority of Americans have little knowledge of the Title IV programs or the processes necessary to apply for these funds. 5 The central mission of the financial aid office is to foster access to higher education by minimizing financial barriers and empowering students to make informed decisions about financing their education. For financial aid administrators, this charge must proceed as they grapple with expanding federal regulations and compliance requirements alongside increasing numbers of aid applications and recipients. A 2019 survey of NASFAA membership showed that since 2006 the number of financial aid applicants and recipients has increased dramatically, with an average of 4,808 more applicants and 2,491 more recipients per respondent institution. 6 Additionally, many financial aid offices are facing significant staffing shortages. According to a survey of 500 institutions released by NASFAAin 2022, 80% of respondents indicated that they were concerned about their financial aid office's ability to remain "administratively capable" in the future to adhere to the Department of Education's requirements for Title IV programs.7 What’s more, 56% of respondents said they were concerned with their ability to meet the needs of students given their current staffing levels. In this report, we explore the higher education financial aid workforce, including pay and pay equity, staffing, representation, and retention. Taken together, the results in this report suggest the need for colleges and universities to implement strategies to better retain people of color within the financial aid employee pipeline and to ensure equitable pay for 1 Servicemen’s Readjustment Act of 1944, S. 1767, 78th Cong. (1944) . 2 Lumina Foundation. (2015). A History of Federal Student Aid. 3 Congressional Research Service. (2023) . The Higher Education Act (HEA): A Primer. 4 U.S. Department of Education. (2000) . Federal Student Loan Programs Data Book-FY 1997-FY 2000 . 5 NASFAA. (2023) . National Student Aid Profile. 6 NASFAA. (2019). 2019 NASFAA Benchmarking Report. 7 NASFAA. (2022). Financial Aid Offices Face Intensifying Staffing Challenges Amid Pandemic. people of color and women. Further, to encourage retention, institutions of higher education should consider increasing pay and opportunities for remote and flexible work. Finally, institutions should use these findings to consider whether they have sufficient employees (or combination of employees and outsourcing) to handle the workload required of the financial aid office. Financial Aid Positions Most analyses in this report focus on the 6,073 financial aid employees reported by 956 institutions in CUPA-HR’s higher ed workforce surveys.8 For the purposes of this report, we consider an employee as part of the financial aid office if they are in one of three positions. • Chief student financial aid officers direct the administration of all f

FAQs

What problem does the report address regarding federal student aid administration?

It highlights that federal student aid has grown in importance, while many Americans have limited knowledge of Title IV programs and the application processes. It also emphasizes that financial aid offices face expanding regulations, rising application volumes, and staffing shortages.

Which financial aid office roles are included in the report’s workforce analysis?

The report considers three positions: chief student financial aid officers, deputy heads of student financial aid, and student financial aid counselors.

What staffing and retention recommendations does the report suggest based on its findings?

It recommends strategies to better retain people of color within the financial aid employee pipeline and to ensure equitable pay for people of color and women. It also suggests increasing pay and opportunities for remote and flexible work, and evaluating whether staffing levels (including outsourcing) can handle required workloads.

Oct 15, 2026

Uploaded by Callum