Every financial aid packaging matrix includes students who are a good fit for your institution, but aren’t offered as much institutional aid as others. In fact, they are offered less aid primarily to help balance your discount rate.
To enroll, these families are going to need to utilize higher amounts of student (and parent) loans. You can increase your yield and enrollment of these students – and their peace of mind – by offering them LRAP.
How to identify the best prospects for LRAP?
- Consider using LRAP with students in any cell that has a discount rate lower than your discount rate goal.
- Further filter the possible cells by those whose yield is lower than your average.
- Use LRAP with the students you have identified.
Increased yield and enrollment from these cells will accomplish two goals: higher enrollment and higher net-revenue.
For example, sample Cell 2, in the matrix below is an ideal cell to offer LRAP to. The yield rate is lower than average and the discount rate is below the discount rate goal.