Key Takeaways from Our Webinar, ‘Future-Proofing Access and Affordability in Educational Institutions’

As tuition costs climb and federal financial aid systems face unprecedented upheaval, institutions across the country are asking: What can we do now to ensure students stay enrolled and graduate without insurmountable financial stress?

That was the central theme of Clasp’s higher ed finance webinar on April 22, 2025, where panelists from Baylor University, Tarleton State University, Concordia University Irvine, and US Aviation Academy joined our own Head of Growth, Marty Herrick, to unpack the urgent realities—and promising solutions—shaping access and affordability today.

Financial Stress is Still the #1 Barrier

Taryn Anderson (Baylor University) reminded us that more than half of students consider dropping out due to financial stress—and many do so silently. Shame, sudden family crises, and rising costs of living all contribute. Students often leave without ever contacting the financial aid office, missing out on support options simply because they didn’t know they existed.

Brett Powell (Tarleton State) echoed this, sharing that hundreds of students each semester carry past-due balances that threaten their ability to continue—even when they’ve done everything right academically. “We need to take on some financial responsibility, too,” he said.

During the discussion, Justin Sykes (US Aviation Academy) underscored the fundamental connection between financing and access to education. As he put it, "The ability to actually get there to start day one and actually enroll in the program is conditioned upon finding a financing vehicle that gets you across the finish line." He further noted that this has been a long-standing issue, and the rising interest rates have only intensified the difficulty for students.

As Steve Jin (Concordia University, Irvine) pointed out, the rising discount rate presents a significant challenge to higher education institutions. He emphasized that a 1% change in the discount rate can have a substantial impact on an institution's overall budget. With the average discount rate at private colleges reaching 56.1%, the net tuition revenue available to fund operations dwindles to less than 44%. This raises the critical question of financial sustainability: Can universities truly operate effectively with such a large portion of potential revenue being given away in discounts?

Colleges Are Getting Creative

In the face of mounting uncertainty, our panelists shared the bold moves they’re making to ensure affordability is more than a buzzword:

Tarleton State expanded its Tarleton Promise program and now offers a $1,000 graduation bonus for students who finish on time, plus exam fee reimbursements for licensure-based careers.

Baylor University provides full-tuition scholarships for students from families earning less than $50,000—and found that those students retained better than their peers.

US Aviation Academy has diversified funding options beyond Title IV and traditional loans, using Clasp and other tools to meet students where they are financially.

Concordia University Irvine is developing an employer-backed tuition program that guarantees jobs after graduation in exchange for last-year tuition support.

These efforts aren't just about keeping students enrolled—they're about long-term outcomes, sustainability, and rethinking how institutions allocate aid and build workforce pipelines.

Income-Driven Models Gain Traction

The panel also explored the role of income-driven repayment in restoring trust in higher ed value. As Steve Jin (Concordia) put it: “Are we willing to put our money where our mouth is? Will our degree deliver enough value to justify the cost?”

Clasp’s institutional loan model—offered through Clasp Finance—gives schools a powerful tool to do just that: provide funding with deferred or income-based repayment that adapts to a student’s real-world earnings post-graduation.

What Happens When the DOE Shifts?

With rumors of the Department of Education being dismantled and the FAFSA pipeline in chaos, panelists discussed how institutions are insulating themselves. Baylor, for example, has leaned on the CSS Profile to get ahead of aid delays. But many agreed: communication and transparency with students are more important than ever. “The best thing we can do is make sure students know there are options—before they disappear,” Marty noted.

The Takeaway

Across diverse institution types, the webinar made one point abundantly clear: financial innovation is no longer optional. Whether addressing past-due balances, creating tailored tuition pathways, or re-evaluating institutional discount rates, colleges are recognizing that ensuring access is the first step towards retention—and the commitment to students must extend beyond enrollment.

Want to Build Your Own Program?

Clasp Finance helps schools launch custom, compliant, low-barrier institutional loan programs that keep students enrolled and reduce your discount rate.

Let’s build your financing model together.