1. finance
2. personal finance
3. lending
4. student loans

Official Newsletter of the North Carolina Association of Student Financial Aid Administrators
Message from your Publications and Publicity Chair
Greetings to all! I have a couple of things that I need to write about. The first thing is to explain
the three different cover pages for the newsletter. In prior newsletters I have asked for suggestions
about naming our newsletter something other than the NCASFAA Newsletter. I have received a
few suggestions and have narrowed it down to three. I want all of you to take a look at these and
send in your opinion as to what you think of the names submitted and the look for those names.
Be honest, of course – but not too honest!
The other thing I have to write about is very painful. I moved to North Carolina from Virginia
in 1992 and worked at NC State University until I moved over to Wachovia in 2000. I quickly
became involved in the association and this past year celebrated 15 years as a NCASFAA member.
I have served as Chair for New Aid Officers, Spring Program, Lender Liaison, and Publicity and
Publications, as well as being a member of numerous committees.
by Audrey Callahan
Newsletter Editor
Wachovia
INSIDE THIS ISSUE
Given the current environment in the lending industry, Wachovia Management has asked all of
their representatives to give up their positions on boards and committees. Believe me, I fought this
very hard and came up with all kinds of scenarios that would keep me as the Chairperson for the
newsletter. But if any of you bank with or know Wachovia Bank, we are very conservative. But
this is what makes me so very proud of the organization I work for; I am very glad that they are so
conservative given everything currently happening. So at this time I have to resign my position as
Chair of Publicity and Publications. I hope things will change and I
can once again be asked to participate on the Board for NCASFAA
and serve on various great committees.
Editor’s Message/Cover 1.........................................................1
Editor’s Message/Cover 2.........................................................2
Editor’s Message/Cover 2.........................................................3
President’s Message...................................................................4
New Aid Officers Workshop.....................................................5
Loan Limit Reminder...............................................................6
Legislation You’re NOT Hearing About...................................7
Preferred Lenders: Setting the Record Straight........................ 10
New NCASFAA Website........................................................11
News From NASFAA.............................................................12
Conference Recap..................................................................14
Greetings from CCCSFAAA..................................................16
State and High School Relations Committee..........................16
NASFAA Responds to Cuomo...............................................18
NCASFAA Middle School Enrichment Scholarship...............18
Budget and Finance Committee.............................................18
Article by Michael O’Grady...................................................20
Movers & Shakers..................................................................23
Shaping a Strong Team...........................................................23
Student Loan Sunshine Act....................................................24
Conference Photos.................................................................25
Now, you are probably e-mailing me right now to tell me that you
are so sorry to see me go, but that YOU want to take over my job.
So if you are interested please let me know and I’ll let the incoming
Board know that we have some takers.
It has been an honor and a privilege to be a part of the 2006-07
NCASFAA Board and to be asked by Tony Carter to serve again
for the 2007-08 year. I am hoping that I can look back on this year
and say, “Remember that dark year in 2007 when I had to resign
my position?” Thanks again for all your messages and comments
about the newsletter!
E-mail: audrey.callahan@wachovia.com
Phone: 919-522-4510
Official Newsletter of the North Carolina Association of Student Financial Aid Administrators
Message from your Publications and Publicity Chair
Greetings to all! I have a couple of things that I need to write about. The first thing is to explain
the three different cover pages for the newsletter. In prior newsletters I have asked for suggestions
about naming our newsletter something other than the NCASFAA Newsletter. I have received a
few suggestions and have narrowed it down to three. I want all of you to take a look at these and
send in your opinion as to what you think of the names submitted and the look for those names.
Be honest, of course – but not too honest!
The other thing I have to write about is very painful. I moved to North Carolina from Virginia
in 1992 and worked at NC State University until I moved over to Wachovia in 2000. I quickly
became involved in the association and this past year celebrated 15 years as a NCASFAA member.
I have served as Chair for New Aid Officers, Spring Program, Lender Liaison, and Publicity and
Publications, as well as being a member of numerous committees.
by Audrey Callahan
Newsletter Editor
Wachovia
INSIDE THIS ISSUE
Given the current environment in the lending industry, Wachovia Management has asked all of
their representatives to give up their positions on boards and committees. Believe me, I fought this
very hard and came up with all kinds of scenarios that would keep me as the Chairperson for the
newsletter. But if any of you bank with or know Wachovia Bank, we are very conservative. But
this is what makes me so very proud of the organization I work for; I am very glad that they are so
conservative given everything currently happening. So at this time I have to resign my position as
Chair of Publicity and Publications. I hope things will change and I
can once again be asked to participate on the Board for NCASFAA
and serve on various great committees.
Editor’s Message/Cover 1.........................................................1
Editor’s Message/Cover 2.........................................................2
Editor’s Message/Cover 2.........................................................3
President’s Message...................................................................4
New Aid Officers Workshop.....................................................5
Loan Limit Reminder...............................................................6
Legislation You’re NOT Hearing About...................................7
Preferred Lenders: Setting the Record Straight........................ 10
New NCASFAA Website........................................................11
News From NASFAA.............................................................12
Conference Recap..................................................................14
Greetings from CCCSFAAA..................................................16
State and High School Relations Committee..........................16
NASFAA Responds to Cuomo...............................................18
NCASFAA Middle School Enrichment Scholarship...............18
Budget and Finance Committee.............................................18
Article by Michael O’Grady...................................................20
Movers & Shakers..................................................................23
Shaping a Strong Team...........................................................23
Student Loan Sunshine Act....................................................24
Conference Photos.................................................................25
Now, you are probably e-mailing me right now to tell me that you
are so sorry to see me go, but that YOU want to take over my job.
So if you are interested please let me know and I’ll let the incoming
Board know that we have some takers.
It has been an honor and a privilege to be a part of the 2006-07
NCASFAA Board and to be asked by Tony Carter to serve again
for the 2007-08 year. I am hoping that I can look back on this year
and say, “Remember that dark year in 2007 when I had to resign
my position?” Thanks again for all your messages and comments
about the newsletter!
E-mail: audrey.callahan@wachovia.com
Phone: 919-522-4510
Official Newsletter of the North Carolina Association of Student Financial Aid Administrators
Message from your Publications and Publicity Chair
Greetings to all! I have a couple of things that I need to write about. The first thing is to explain
the three different cover pages for the newsletter. In prior newsletters I have asked for suggestions
about naming our newsletter something other than the NCASFAA Newsletter. I have received a
few suggestions and have narrowed it down to three. I want all of you to take a look at these and
send in your opinion as to what you think of the names submitted and the look for those names.
Be honest, of course – but not too honest!
The other thing I have to write about is very painful. I moved to North Carolina from Virginia
in 1992 and worked at NC State University until I moved over to Wachovia in 2000. I quickly
became involved in the association and this past year celebrated 15 years as a NCASFAA member.
I have served as Chair for New Aid Officers, Spring Program, Lender Liaison, and Publicity and
Publications, as well as being a member of numerous committees.
by Audrey Callahan
Newsletter Editor
Wachovia
INSIDE THIS ISSUE
Given the current environment in the lending industry, Wachovia Management has asked all of
their representatives to give up their positions on boards and committees. Believe me, I fought this
very hard and came up with all kinds of scenarios that would keep me as the Chairperson for the
newsletter. But if any of you bank with or know Wachovia Bank, we are very conservative. But
this is what makes me so very proud of the organization I work for; I am very glad that they are so
conservative given everything currently happening. So at this time I have to resign my position as
Chair of Publicity and Publications. I hope things will change and I
can once again be asked to participate on the Board for NCASFAA
and serve on various great committees.
Editor’s Message/Cover 1.........................................................1
Editor’s Message/Cover 2.........................................................2
Editor’s Message/Cover 2.........................................................3
President’s Message...................................................................4
New Aid Officers Workshop.....................................................5
Loan Limit Reminder...............................................................6
Legislation You’re NOT Hearing About...................................7
Preferred Lenders: Setting the Record Straight........................ 10
New NCASFAA Website........................................................11
News From NASFAA.............................................................12
Conference Recap..................................................................14
Greetings from CCCSFAAA..................................................16
State and High School Relations Committee..........................16
NASFAA Responds to Cuomo...............................................18
NCASFAA Middle School Enrichment Scholarship...............18
Budget and Finance Committee.............................................18
Article by Michael O’Grady...................................................20
Movers & Shakers..................................................................23
Shaping a Strong Team...........................................................23
Student Loan Sunshine Act....................................................24
Conference Photos.................................................................25
Now, you are probably e-mailing me right now to tell me that you
are so sorry to see me go, but that YOU want to take over my job.
So if you are interested please let me know and I’ll let the incoming
Board know that we have some takers.
It has been an honor and a privilege to be a part of the 2006-07
NCASFAA Board and to be asked by Tony Carter to serve again
for the 2007-08 year. I am hoping that I can look back on this year
and say, “Remember that dark year in 2007 when I had to resign
my position?” Thanks again for all your messages and comments
about the newsletter!
E-mail: audrey.callahan@wachovia.com
Phone: 919-522-4510
Message From The President
by Rance Jackson, NCASFAA President
The NCASFAA 2007 Spring Conference has come to a close at the Riverside Hilton Hotel in beautiful and
historic Wilmington, North Carolina. In spite of all of the uncertainty, misperception and politicization
regarding the financial aid profession buzzing over our heads during the three-day conference, those in
attendance were able to find time to reflect on and celebrate the association’s 40th anniversary. The President’s
Reception took place on the Henrietta III Riverboat, with a cruise down the Cape Fear River. Casino Night
again was a favorite time to have fun and relax. Attendees were treated to the music of the NCASFAA band
that played music from different genres.
Conference sessions included presentations from David Bartlett, training officer with the U.S. Department of
Education in the Kansas City regional office, Dr. Ann Coles, Director of Pathways to College Network, Diane
Sales-Smith of the College Board and Brent Tener, SASFAA President. The Keynote speaker was Liza Bruce
with ECMC who reminded us that “Everyday You Make A Difference”; her comments were inspiring and
heartfelt. As a part of our overall concept of charity, NCASFAA made a nominal contribution to the Leader
Dog School for the Blind, recognizing Baxter her Leader Dog, as he has always maintained a positive presence
at many of our conferences.
Over the past year, we have continued to build on the success we started 40 years ago. With the sanction
of the Executive Board, NCASFAA provided services to our membership that included leadership training
through the Leadership Symposium, early awareness efforts with the Middle School Enrichment Scholarship
Program, training through the New Aid Officers Training Workshop and the NASFAA Training workshops.
The association adopted a Guide for Fiscal Management and launched the new Web site developed by ATAC
that allowed better access to information and services. NCASFAA partnered with their neighboring state and
shared a joint conference with South Carolina as well as formally adopting the California Community College
Association of Financial Aid Administrators (CCCSFAAA) as their sister association. NCASFAA has solidified
the future of the summer enrichment program by delegating the Middle School Enrichment Scholarship
Program as the charity for the spring conference and increasing the number of eligible participants.
In the same light, NCASFAA wishes to sincerely thank all of the supporters who have generously assisted in
ensuring the goals and objectives of the association have been met and will be maintained in the future. A
simple thank you is not enough. NCASFAA is indebted to these various entities and professional organizations,
for without their foresight and commitment to higher education, much of what the association has
accomplished would not have happened. Future efforts to provide better service, communication, training and
early awareness can only be accomplished with a concerted effort from all concerned.
Themes of accessibility, affordability and accountability surfaced throughout this year’s conferences and
meetings. Through board and membership support, NCASFAA focused on leadership, partnering, training,
fiscal management, Web improvements, and early awareness. The future of the association depends on
continued involvement and volunteerism of the membership. Your participation is valuable.
Little is being noted in this article about the public political perception of the financial aid profession.
All financial aid professionals know why they do what they do. NCASFAA is proud that its members
continue to work tirelessly for individuals who seek to have their dream of a college education fulfilled.
After all, that is what we all do. Every day.
New Aid Officers Workshop
The SASFAA Summer Workshop is an intense professional
development activity designed to provide a working
knowledge of the federal financial aid programs, as well as an
understanding of the laws and regulations that govern these
programs. The curriculum will take the student from A-Z
covering the basics of financial aid.
The workshop is intended for new financial aid administrators
with less than three years of experience in the field of financial
aid. Other individuals whose professional responsibilities
include significant contact with the financial aid process are
welcome to attend the workshop on a space-available basis.
Preference will be given to financial aid administrators.
Format of the Workshop
A carefully selected faculty of experienced aid administrators
selected from the SASFAA states and representing diverse
institutions will provide instruction. These individuals will
team-teach and work with the same class of participants
throughout the week. Instruction will include the use of case
studies, lectures and interactive instruction. The faculty will be
on site for the entire week, providing opportunities for ample
interaction outside the classroom.
Location and Dates
The workshop will be held on the beautiful campus of
Furman University. Visit Furman’s website at www.furman.
edu to view the campus. Classes will be conducted in stateof-the-art classrooms that contain PCs, projectors, and other
equipment. All workshop participants will stay at the North
Village Apartments or similar housing on campus. Participants
should plan to arrive no later than 1:00 p.m. on Sunday, June
17, to check in and take care of on-site registration activities.
Check-in and on-site registration will be from 9:00 a.m. to
2:00 p.m. on Sunday, June 17. The first class begins at 3:00
p.m. on Sunday, and the workshop will end by 11:30 a.m. on
Friday for room check-out.
Participants may arrive on Saturday June 16. Check-in and
on-site registration will be available from 12:00 pm until 4:00
pm on Saturday. There is an additional charge if you arrive on
Saturday.
Please make your travel arrangements to allow you to arrive
before the workshop begins on Sunday afternoon and for you
to attend all of Friday morning’s activities.
Cost
Registration fee for the workshop is $675, if registration
is completed by May 23, and $725 if registration is
completed after May 23. The registration fee includes all
instructional materials, most meals, housing and your 2006-07
SASFAA membership ($25). A minimum non-refundable (but
transferable) deposit of $100 must accompany the registration
form. Those arriving on Saturday, June 16, will be charged an
additional $34.50 fee to cover the additional night’s lodging.
Housing
Housing is provided in North Village Apartments located on
Furman’s campus. Each apartment will have four bedrooms
(single occupancy in each bedroom), two bathrooms, a common
living and kitchen area. Basic furnishings include bed, dresser,
desk, sofa, and chairs. Basic appliances include stove, sink, and
refrigerator. Televisions are not provided. There are Internet and
telephone connections in each bedroom. Linens include one
pillow, one pillowcase, two sheets, one blanket, facecloths, and
towels per person. Participants may want to bring additional
linen items for their own comfort. For additional information on
the residence halls visit http://www.furman.edu/housing/nv.htm
Food
Beginning with dinner on Sunday, June 17, participants will be
provided breakfast, lunch and dinner at the University. Morning
and afternoon beverage and snack breaks will be provided. There
are several special activities and functions planned throughout the
week. Cafeteria meals are self-selected. The following meals will
be provided to participants:
Sunday, June 17
Dinner: Picnic
Monday, June 18
Breakfast – Lunch – Dinner
Tuesday, June 19
Breakfast – Lunch – Dinner
Wednesday, June 20 Breakfast – Lunch – Dinner on your own
Thursday, June 21
Breakfast – Lunch – Dinner: Banquet
Friday, June 22
Breakfast
Travel
Furman University is located in Greenville, SC. The GreenvilleSpartanburg International Airport services most major airlines
and/or commuter flights from around the country and includes
direct flights from Atlanta. You are responsible for your
transportation from the airport to Furman. Ground
transportation can be arranged through ETS Airport Express
at 864-877-6666, toll free 866-ETS-RIDE, or at
www.eastsidelimo.com.
For driving directions, please visit Furmans’ website at:
www.furman.edu/general/campusmap.html
Curriculum
Bill Zahn – University of North Carolina-Greensboro
Topics to be covered include:
Ellen Green – Trident Technical College
The Application Process
Professional Judgment
Cedric Trigg – University of Louisville
Student Eligibility
Return of Title IV Funds
Forrest Stuart – Rhodes College
Awarding/Packaging
Federal Methodology
Kiesha Pope – J Sargeant Reynolds Community College
Federal Aid Programs
Reporting/Record Keeping
Wayne Bodiford – St John’s River Community College
Loan Certification
Audit and Program Reviews
Jill Rayner – North Georgia College & State University
Verification
IRS Forms
Sharon Oliver – North Carolina Central University
Cost of Attendance
Cash Management
Buddy Jackson – Faulkner University
FERPA
Satisfactory Academic Progress
For more information, contact:
EDE Overview
ACG & SMART
Sandra Neel, Vice President
University of Tennessee at Martin
731-881-7040
731-881-7036 (fax)
sneel@utm.edu
Registration
Complete the SASFAA Summer 2007 New Aid Officers
Workshop Registration Form by the deadline date and follow
the instructions on the Web site.
Workshop Instructors
Erik Melis – George Mason University
Searcy Taylor – Mississippi Gulf Community College
Andy Weaver – University of Alabama-Huntsville
or
Pat Arauz, NAOW Curriculum Coordinator
University of Louisville
502-852-6145
502-852-0182 (fax)
p.arauz@louisville.edu
Anh Do – St Thomas University
Brad Barnett – James Madison University
Reminder: Aggregate Loan Limits Unchanged Under HERA
by Jacqueline B. Bell
Although the Higher Education Reconciliation Act of 2005 mandates an increase in annual limits for Stafford loans effective July 1, 2007,
aggregate education-loan limits remain unchanged.
USA Funds’ policy advisers note that aggregate loan limits remain as follows:
Student Classification
Dependent undergraduate.
Loans Included
• Combined subsidized and unsubsidized
Stafford-loan funds.
• The outstanding balance of SLS and Direct
Stafford loans.
• Any portion of a Consolidation loan
attributable to one of the above types of
loans.
Aggregate Loan Limit
$23,000
Independent undergraduate, or
dependent undergraduate whose parents
are unable to borrow a PLUS loan.
$46,000
Graduate or professional.
$138,500
No more than $23,000 of this amount
may be subsidized Stafford-loan funds.
No more than $65,500 of this amount
may subsidized Stafford-loan funds.
The sum of Stafford loans included in a Consolidation loan continue to count toward the student’s aggregate loan limit, despite
the fact that they are included in the new loan.
The Legislation You’re NOT Hearing About
– and How It Could Impact Your Students
by Jay Sweeney, American Student Assistance
Whether you think the recent investigations into school
and lender relationships are tarnishing the financial aid
profession, or whether you believe the rise in accountability
and transparency is actually a good thing for the industry,
there’s one by-product that we can all agree has been a positive:
Student loan borrowers’ ability to cope with their debt is finally
getting the attention it deserves.
It’s true that the Student Loan Sunshine and Student Aid
Repayment (STAR) Acts, if passed, could have long-term
effects on the types of student loans available and benefits
offered. But regardless of how a loan is originated, the end
result for the consumer borrower is the same – it’s a debt that
must be repaid and fit into a monthly budget. And for some
borrowers entering the workforce today, facing an average
education debt of $20,000, there’s a growing concern about
the disparity between income levels and monthly payment
amounts.
As a nonprofit with a mission of helping students and families
manage higher education debt, American Student Assistance®
is closely monitoring two pieces of proposed legislation that
would directly impact current borrowers’ ability to repay their
student loans: the Student Debt Relief Act, introduced by Sen.
Kennedy (D-MA), Chairman of the Senate Health, Education,
Labor and Pension Committee, and the Student Borrower Bill
of Rights, introduced by Sen. Clinton (D-NY). The repayment
components of these bills may not be getting the same publicity
as the Sunshine and STAR acts, but they have just as much
potential to make a difference in borrowers’ lives.
Student Debt Relief
While various repayment options exist in the federal loan
programs, their effectiveness is limited, especially with the
increasing debt burden experienced by students. Most options
are based exclusively on the borrower’s debt level rather than
their ability to pay. This leaves borrowers with high debt and
low family income repayment options that lead to negative
amortization and increased debt.
As part of the Student Debt Relief Act of 2007 (S. 359), a Fair
Payment Assurance program would be created for borrowers
with high debt relative to income. This program would defer
student loan payments for borrowers earning less than 150
percent of the poverty level for their family size. Borrowers with
income above that level would have the option of having federal
student loan payments capped at 15 percent of their monthly
discretionary income. The government would take care of any
unpaid interest that resulted from the lower payments on all
subsidized Stafford and Perkins Loans.
Fair Payment Assurance would also forgive student loans
after 25 years of steady payment on Stafford, Grad PLUS and
Perkins Loans. Parent PLUS Loans could not be forgiven.
Fair Payment Assurance would also address the inequities of
the current payment plans with regard to borrowers’ family
circumstances and available income. Today, a single borrower
with no dependents is treated the same as a single borrower
with multiple dependents, despite the fact that their monetary
obligations are significantly different. Under the proposed new
program, family size would be taken into consideration when a
borrower’s monthly payment amount is determined. According
to an analysis of the Student Debt Relief Act by the Project
on Student Debt (projectonstudentdebt.org), a nonprofit
that works to increase public understanding of student debt’s
impact on society, a parent with two children would have a
significantly lower monthly payment than a single borrower
shouldering the same debt level at the same income.
Other initiatives under the Student Debt Relief Act include
loan forgiveness for public sector work; the much-talked about
interest rate cut on subsidized Stafford Loans; and a $1,500 tax
credit for interest on student loans.
Many of these ideas for student loan payment reform were
actually originally included in the Project on Student Debt’s
Plan for Fair Loan Payments. In 2006, the Project submitted
a formal petition to the Department of Education to make
student loan payments more manageable for low-income
borrowers. ASA was one of a few FFELP guarantors to join
student groups, parent associations and college access providers
in signing the petition. ED denied the petition, then agreed
to make repayment reform part of Negotiated Rulemaking,
but ultimately dropped the topic in the Rulemaking sessions.
Now it remains to be seen if the reforms will eventually become
reality through passage of the Student Debt Relief Act.
Student Borrower Bill of Rights
Another piece of legislation with the potential to directly
impact borrowers’ repayment efforts is the Student Borrower
Bill of Rights (S. 511). After first presenting the bill last year,
Sen. Clinton recently reintroduced legislation that seeks to,
in the Senator’s words, “provide student borrowers with basic
rights to ensure that loan payments are affordable, allow
students to shop for loans in a free marketplace, and give
students timely information about their loans.”
To make payments more affordable, the bill would set
limits on the maximum amount of a monthly student loan
payment based on a formula involving the borrower’s Adjusted
Gross Income (AGI) and the poverty line of the previous
year. Additionally, the bill would allow loan forgiveness
for borrowers who are terminally or seriously ill (unable to
work for 60 months or more). Borrowers who have declared
bankruptcy could also discharge their student loans. The Bill of
Rights would also prevent student loan interest rates from being
“unreasonable and exploitative,” as well as reduce the additional
fees associated with student loan default.
The Bill of Rights would mandate that student loan lenders
report not just delinquent, but also timely payments to credit
bureaus. It would also allow FFELP loans to be consolidated
multiple times. The original version of the bill included the
repeal of the Single Holder Rule for Consolidation Loans,
which was already passed last year through the Emergency
Supplemental Appropriations Act for Defense 2006.
The bill would also require lenders to report important
information to borrowers in a timely manner during every
payment period. Among other things, the statement would
have to include the original principal amount borrowed,
current balance, interest rate, total amount paid so far,
monthly payment amount and due date, and lender contact
information. Such statements and additional information
on their rights and responsibilities would have to be sent to
borrowers when they leave school, become delinquent, default,
or apply for loan consolidation.
Last, the bill would require certain higher education
institutions to disclose a number of facts to their student loan
borrowers, including the percentage of students who graduated
within 150 percent of their expected dates; the percentage of
graduates who found employment after six months; the median
annual earnings of graduates; and the percentage of students
who defaulted on student loans. Under the bill, any college
administrator who received incentives to push students into
loans would be liable for repaying the loans.
Regardless of whether any or all of these suggestions for
repayment reform ever become reality, we can all be glad that
the topic of student debt has risen to the forefront of our
society’s collective conscience.
We’re proud to support
those who’ve never
stopped believing in a
better place.
Together, we can awaken young minds to a future full of greater possibilities and alive with hope. Bank of America is
proud to support NCASFAA.
Visit us at www.bankofamerica.com.
Bank�of�America, N.A. Member FDIC.
©2006 Bank�of�America Corporation.
~ Equal Housing Lender SPN-69
Getting solutions and
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Education One loans are subject to credit approval, receipt of a completed, signed Application and
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Students may need a cosigner to qualify. © 2006 JPMorgan Chase & Co. (06-543) 08/06
D R A F T
N O T I C E
PLEASE REVIEW THIS PROOF. In order to make your requested delivery date any changes and
subsequent proofs must be signed off no later than 08/29/06.
Preferred Lenders: Setting the Record Straight
With these institutional/lender partnerships, saving families money and time is the goal.
by Haley Chitty, NASFAA Assistant Director of Communications
The recent scrutiny of colleges’ preferred lender lists by state
and federal officials, while intended to expose unscrupulous
student lending practices, has generated a flood of misleading
information in the media and in political arenas about a
common practice designed to benefit students.
Media reports suggest that the preferred lender list is the
result of an “unholy union” between financial aid officers
and student loan companies designed to pick the pockets of
students and their parents.
As financial aid administrators know, the reality is much less
nefarious. These lists are generally developed to save students
and parents money and time.
Helping the public to understand how preferred lender lists
are developed and used would help dispel some of the myths
that have been growing about this common student aid tool.
Here’s what administrators and staff should know about
preferred lender lists, including some things to consider when
developing these lists.
Why A Preferred Lender List?
The growing gap between the cost of higher education and
the amount of available federal and state aid has caused a
rapid expansion of the student loan industry. Schools develop
preferred lender lists to help families sort through the evergrowing array of available loan terms and conditions and to
identify loans with the most favorable borrower benefits and
companies with the best customer service.
These lists are designed to be a starting point for families
trying to navigate the maze of potential lenders. Financial aid
administrators use their intimate knowledge of the student
loan industry to choose lenders that generally offer the best
products and services to most students, but each student’s
circumstances are different. So families should be encouraged
to do their own research and ask aid administrators and
lenders tough questions to ensure they get the loan that is best
for them and that they understand the terms of their loan.
How These Lists Are Constructed
Financial aid offices that offer lender recommendations to
students spend significant time and resources in developing
their lists. The National Association of Student Financial
Aid Administrators has developed a monograph to help aid
offices with this process (see www.nasfaa.org/PDFs/2005/
Monograph15.pdf ).
One of the institutions highlighted during the recent wave of
criticism of preferred lender lists reviewed proposals from 35
student loan companies to determine which lenders it would
feature on its preferred lender list. A nine-member panel
reviewed the 10-page proposals and ranked companies based
on customer service, borrower benefits and pricing, default
aversion, loan delivery flexibility, diversification (value-added
products), and life-of-loan servicing.
“It took us three months to complete this process,” says an
official from this institution. “It was quite laborious but
worth every minute to try and offer the best lending options
available to our students.”
Many students and parents don’t have the time or resources
to conduct such a thorough review of the plethora of private
loan options and companies. Private lenders offer an array of
upfront and back-end benefits and interest rates that can vary
depending on the student’s credit history, intended major, and
institution chosen.
Another university mentioned in the recent negative press
coverage had students ask the institution to develop a
preferred lender list. Students notified the Financial Aid office
that they were unhappy with the multiple options for private
loans because the process of choosing one was too frustrating
and complex, according to a university official. Students felt
that navigating the multitude of loan terms should be the
Financial Aid office’s responsibility. The university decided
it was in students’ best interest to identify, on behalf of
borrowers, a private loan that offered the best combination of
terms available.
Some factors the university considered when selecting lenders
for their list would never be considered by students and
parents. But ultimately these factors benefit the borrower.
In addition to the loan rates and benefits, the university
considered questions such as:
• Does the lender make FFELP loans? If so, there could
be a conflict of interest with the school’s Stafford loan
volume.
• What is the lender’s approval rate? It doesn’t matter what
the loan terms are if a student can’t get approved.
• Does the company offer a deferment option and an
interest-only option for in-school periods?
• Is the lender willing to discuss its tiered pricing of
interest rates as it relates to credit scores?
Through asking such questions, the university found lenders
that met the criteria it was looking for. In addition, these
lenders offered to return a small portion of their profit to give
to needy students in the form of scholarships. This is known
as revenue sharing, and many higher education institutions
depend on this money to compensate for stagnant local, state,
and federal funding of need-based financial aid.
The Question of Revenue Sharing
Although schools generally use the funds from revenue
sharing agreements with lenders to increase financial aid for
students, NASFAA President Dallas Martin discourages such
arrangements.
“I advise against this practice because it is hard for many in
the public to understand the benefits to students that these
agreements bring,” Martin says. “Since many do not know or
understand the details of such agreements, the appearance of a
conflict of interest may be unavoidable.”
Despite the possible appearance of a conflict of interest, it
is hard to criticize institutions for exploring every possible
avenue for raising additional money for financial aid.
“Student aid funds – whether coming from the federal or state
governments – have not come close to adequately meeting the
financial aid needs of students and families,” Martin says.
Subsidized federal loan limits for Year 3-5 undergraduate
students and for graduate students have not been increased in
well over a decade. Loan limits for Year 1-2 undergraduates
were recently raised by only a modest amount. Students and
families are often left with no choice but to use alternative
loans, which have higher interest rates and fewer borrower
benefits than the federal loan programs.
The rates on private loans also vary depending on a borrower’s
or loan cosigner’s credit score and other factors, such as if the
student’s major has a higher earning potential. All this makes
it harder for students and families to choose a loan company.
The High Price of The Trial-By-Media Approach
The recent negative publicity about preferred lender lists
may help increase transparency in the student loan industry,
but at what cost? This media coverage could be undermining
students’ and parents’ trust in the counseling and advice
given by financial aid administrators, most of whom are
scrupulously honest and forthright and take pride in their
adherence to NASFAA’s Statement of Ethical Principles.
This mistrust could prove harmful to students who rely on
the knowledge and experience of financial aid professionals.
If students and families don’t think they can turn to Financial
Aid offices for guidance, they are more likely to seek
advice from questionable sources such as predatory student
aid consulting firms, lenders whose marketing approach
encourages students to borrow as much as possible, or simply
uninformed relatives or neighbors. In fact, one Chicagobased television newscast recently recommended that families
consult with their mortgage broker about student loans rather
than consulting the student aid office.
Clearly, improving transparency in the student loan process
is commendable, but using inflammatory rhetoric that
implicates an entire profession only creates distrust and harms
the students everyone is trying to help.
Welcome to the New NCASFAA Website!
by Lisa Koretoff, Technology Chair
The new NCASFAA Web site went live at the end of October. NCASFAA and ATAC partnered together to create a brand-new
site that better meets the needs of our membership. As a result, my role has changed. Instead of being the person who updates the
Web site, I will now forward updates to ATAC.
Here are some of the new features:
• ListLock listserv. Members use the Web site to post
messages to the NCASFAA listserv. Go to the Home
Page and click on Listserv to access this feature.
• Members site. You can now update your own
membership information. Login under Member
Services to access your data.
• Online registration for conferences and workshops.
Our Support Staff workshop is the first one to use
this feature. Registration is easy!
• Job Announcements. You control the posting of
your job announcements. Click on Employment to
post to the site and the listserv.
• And much more!
Coming soon: Online voting.
If you have any questions about the Web site or need help with using the new features, please contact me lakoretoff@gtcc.edu.
I’d be happy to help!
News from NASFAA: Is Graduate-Level Education
Receiving Enough Attention?
by Justin Draeger, Assistant Director for Communications, NASFAA
The U.S. education system is made up of more than just
undergraduate schools, yet lawmakers, business leaders and
college presidents are speaking out about the dwindling
emphasis, funding and access to graduate-level education.
Graduate education is the backbone of American
competitiveness and innovation. That was the message – and
the title – of a legislative forum held recently in Washington,
D.C. by the Council of Graduate Schools. Several lawmakers
turned out for the event, along with university presidents and
business leaders, to discuss what is seen as a stagnant U.S.
graduate-level education system, at least in comparison to other
developed nations.
While the number of scientific papers published by Americans
has remained fairly constant over the last decade, the number of
scientific papers published outside of the United States has risen
by more than 30 percent. More and more developing nations
are investing substantial amounts of money in their graduate
schools, illustrated by the fact that South Korea produces about
the same number of doctorates as the United States, but with
a population that is only about the size of California, Oregon,
and Washington combined.
“There’s a lack of understanding of the absolutely essential role
of graduate education,” said Ohio State University President
Karen Holbrook.
Undergraduate schools, community colleges and trade-schools
should remain an integral part of this discussion, as lawmakers
emphasized that everyone involved in primary, secondary and
postsecondary education has a responsibility to give more
credence to access and participation in graduate education.
Congressman Ruben Hinojosa, chairman of the House
Subcommittee on Higher Education, Lifelong Learning and
Competitiveness, stated that the push to get more students into
graduate-level education was a “kindergarten-to-college” effort.
“People need to be told that they have the ability to go to
college,” said Hinojosa.
Hinojosa also emphasized the need for more funding from the
federal government at all levels of higher education, calling
it “shameful” that only 7-8 percent of the budgets at public
primary and secondary schools are federal dollars.
Hinojosa restated his commitment to begin and finish reauthorization of the Higher Education Act this year to increase
college access through additional federal dollars. Congressman
Rush Holt, Chairman of the House Appropriations Select
Intelligence Oversight Panel, also stressed loan forgiveness and
increased scholarships to ensure that students could financially
“make it” to graduate and doctorate levels.
Temple University President Ann Weaver Hart reminded
participants that the federal government is the largest single
provider of higher education funding and that those monies
must be targeted toward U.S. public policy goals, specifically
to ensure that the United States is providing enough access to
graduate-level education.
Participants focused on several target populations, including
minority and first-generation college students, as a potential
goldmine of future graduate students.
“Most Americans have little idea about the potential of
minority students,” said Hinojosa. He went on to explain how
his region in southern Texas had gone unnoticed by employers,
schools and legislators for several years. But now, after more
than a decade of work, his congressional district has become a
large contributor to the both the Texas and U.S. economies.
These target populations require proactive solutions, according
to the University of Houston System Chancellor G. Jay Gugue.
“We’re seeing that first-generation college students are ‘debt
averse,’” said Gugue, arguing that we must find increased
funding sources to tap into U.S. populations that have
historically been underrepresented.
Despite many of the troubling statistics about the lagging
education system and apparent lack of competitiveness in the
world, the forum demonstrated that there’s still hope. The
United States has the largest economy in the world and many
agree that our higher education system remains the envy of
developed nations. The United States is still the home of the
largest global corporations, many of which – such as Google
and Genentech – sprung from graduate school research
projects.
As policymakers, business leaders, and higher education officials
and stakeholders – including financial aid administrators
– unite to advocate for increased funding, access and
participation in graduate-level education, we will remain at the
forefront of global innovation and competitiveness, according
to Debra Stewart, president of the Council of Graduate
Schools.
40
th
Anniversary Conference – Conference Recap
by Amy L. Berrier, The University of North Carolina at Greensboro
NCASFAA celebrated its 40th anniversary on April 23-25 in
historic downtown Wilmington. We had a great time reconnecting
with our colleagues and celebrating 40 years of promoting
leadership, education, access, and diversity.
Bridget Ellis and her team of presenters presided over the second
annual Leadership Symposium held on Sunday and Monday.
Many members were in attendance and had a great time working
together with their colleagues during this workshop. Kay Stroud
and her team of presenters worked hard to provide great training
at our semi-annual New Aid Officers’ Workshop. NCASFAA
continues the tradition of providing valuable training to our
members.
We were provided with a very moving and inspiring keynote
address by Liza Bruce of ECMC. Liza and Baxter have spoken
for college convocations, professional development workshops for
university faculty and staff, leadership workshops, and financial aid
professional association conferences. Liza’s presentations speak to
diversity, perseverance, motivation, and grabbing the gusto out of
life. Liza’s goal is to remind people that life is precious, that family,
friends and the love of others are paramount, and that every day
each of us makes a difference in the lives of others.
Dr. Steve Brooks (NCSEAA) and Dr. Ann Coles (TERI) provided
an update on the Task Force on College Access for Students from
Low-Income Backgrounds. The Task Force’s on-going mission is to
examine issues related to academic preparation and information,
admission and financial aid processes, and retention and success.
We celebrated our 40th anniversary at our Presidents’ Reception
on Monday night, April 23, with a chartered Henrietta Riverboat
Cruise on the Cape Fear River. Approximately 175 members
boarded the Riverboat for our evening cruise from 9-11 p.m. We
were able to enjoy some relaxing time with our fellow members
while enjoying homemade desserts and an anniversary cake for
NCASFAA. Members enjoyed talking with one another and
listening to the DJ as well as a band on the top deck of the
Riverboat.
Our Spring 2007 charity was our own Middle School Scholarship
Program. Takeila Barnes, Deborah Tollefson, and their committee
worked hard to secure items for the silent auction that was held
on Monday and Tuesday. We also had the pleasure of hearing one
of our 2006 recepients, Brittany Kingsberry, speak at our opening
luncheon. With your donations NCASFAA has increased the
number of scholarships provided to middle school aged children
to six for the summer of 2007. Keep up the support!
Many thanks to all of you who helped in any way, shape, or form
with the planning and the success of our Spring 2007 Conference.
It would have not been possible without you all!
Spring 2007 Conference Committee:
Amy Berrier - Spring Chair - UNC Greensboro
Bill Cox - Fall 2006 Joint Chair - NCSEAA
Rance Jackson - President - NCSU
Casey Wallen - Agencies - National Education
Bridget Ellis - Leadership Symposium - College Loan
Corporation
Kay Stroud - New Aid Officers’ Workshop - Appalachian
State University
Audrey Callahan - Publications and Publicity - Wachovia
Teresa Williams - Wingate University
Bill Carswell - NCSEAA
Tony Bordeaux - University of Alabama
Anita Pennix - Davidson County Community College
Misty Clark - ECPI
Cedric Barksdale - NCSU
Nichole Faulkner - Cape Fear CC
Tony Patterson - NCSU
Jeni Rone - NSLP
Bruce Cabiness - UNC Greensboro
Laura Misner - College Foundation
Mike Abernathy - Chase
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Greetings from the California Community Colleges
Student Financial Aid Administrators Association
by Beth Asmus, CCCSFAAA President
These are turbulent times for our nation’s financial aid
professionals, student lenders and guarantee agencies.
• First – there’s the Student Loan Sunshine Bill. Totally
misnamed – a more appropriate title for this bill might
be the “Witch Hunt” Bill. I wonder if Senator Kennedy
has ever read NASFAA’s Statement of Ethical Principles.
Doubtful.
• Second, at least for us on the West Coast in California,
is the Pell Grant Equity Act of 2007. This bill will
eliminate Pell Grant Tuition Sensitivity for only the
2007-2008 academic year. The Pell Alternate Payment
Schedule must be used to award our students, because
of the wonderfully low student enrollment fees in
California. Thanks to Governor Schwarzenegger, resident
students pay only $20 per unit. Little did the governor
know that when he reduced the fees, he indirectly took
away Pell Grant funds for the state’s neediest students.
Now I ask you, where is the equity in that?
• And last but not least, the biggest oxymoron is the
Reauthorization of the Higher Education Act. I’m
sure President Lyndon B. Johnson is rolling over in his
grave and spewing vile adjectives at President Bush and
Congress for their failure to reauthorize the Federal
Student Aid programs.
State and High School
Relations Committee
by Kimberly Driggers, St. Andrews Presbyterian College
CCCSFAAA hosted its annual Spring Training for more
than 300 members. We’re a big state, so we take our Spring
Training events out to three separate locations – one in
Northern California and two in Southern California. By
providing the events locally, this allows colleges to send
more of their staff to financial aid training events. This
year’s training had a dual focus on financial aid services for
both Foster Youth and Veterans. Also offered were interest
sessions on Financial Aid TV, Navigating Financial Aid
Websites, Extraordinary Presentations, Creating PDF Files
for Higher Education, Alternative Loans, Best Practices for
Quality Customer Service, and a Hot Topics Roundtable.
The effect of the Virginia Tech tragedy was felt worldwide,
but most intensely by those of us involved in higher
education. We applaud NCASFAA for providing candles for
the many campus and student vigils in the days and weeks
following the tragedy.
If you enjoyed my singing “Heads Carolina, Tails California”
to ya’ll this past November at the North Carolina/South
Carolina conference at the Grove Park Inn in beautiful
Asheville, then you might be surprised to know that I
haven’t been inspired to sing since. But I did recently dress
up like “Tina Turner” to serve our college’s classified staff
at an annual luncheon. One never knows what opportunity
will pop up next, but we do know that we have to be ready
to put ourselves out there at any time – for our students.
You probably noticed that I have said little in this article
about the public perception of our profession. We all know
why we do what we do. CCCSFAAA is proud to join with
our sister association NCASFAA, and other financial aid
associations across the country to continue to work tirelessly
for individuals who seek to have their dream of a college
education fulfilled.
Apply for financial aid promotion
We were very busy earlier in the year putting together packets of information for all high school guidance counselors in North Carolina.
These packets included a message from the president and the chair for the State and High School Relations committee, along with
posters advertising FAFSA Day. Over 800 packets were mailed. We were also responsible for updating the financial aid spreadsheet that
aids all high school guidance counselors in knowing information about a specific North Carolina college or university’s financial aid
office. It was a lot of work and fun at the same time.
This has been a great year but sadly enough it has to come to an end. I will be closing the chapter of State and High School Relations
chair and opening another as NCASFAA’s Treasurer-elect for 2008-2009 and then NCASFAA Treasurer for 2009-2011! Thanks to
everyone who voted for me and made this opportunity possible!
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SELM-1121 NCASFAA Nwsltr-FAL-1.i1 1
8/31/06 3:14:39 PM
NASFAA Responds
to Cuomo Investigation
NASFAA understands the motivations of those schools that have
decided to accede to the Attorney General’s settlement and we respect
their decisions. But we will stand by any postsecondary institution that
decides otherwise and goes to court to adjudicate this matter. Schools
that do not agree to this settlement care just as much about their
student and parent borrowers and have as much integrity as the schools
that agreed to the settlement. We believe the schools who challenge the
Attorney General’s actions will prevail in any court case.
New York Attorney General Andrew Cuomo claims that he is
“beginning the process of restoring trust between universities and
students.” But he needlessly tore the fabric of trust between schools
and students in the first place with his inflammatory press statements
and media comments. Financial aid administrators have built trust
with students and parents for generations by offering well-informed,
accurate, and unbiased information.
NASFAA agrees that any preferred lender list abuses and genuine
conflicts of interest should end; however, such abuses are rare.
NASFAA is confident that when the New York Attorney General’s
office completes its investigation it will find only a very few problems;
nearly every aid administrator and school is extremely ethical.
Undoubtedly, some areas need improvement because we can always do
better. It would serve the public interest to have greater transparency
in how and why a school uses a lender list. Student aid administrators
only want to serve their students’ best interests.
The Attorney General’s investigation and the ensuing media coverage
only provide a limited view of the student financial aid profession.
The whole picture is one of America’s great success stories. Student aid
administrators work tirelessly to get students the best terms on student
loans so they can achieve their higher education goals and maximize
their career potentials.
Budget & Finance
Committee
by Betsy Spencer
The 2005-2006 audit was completed on January 31 by Betsy
Spencer, Bill Horn, Cedric Barksdale and Sherri Avent, with
assistance from Paul Coscia. A number of recommendations
were made to facilitate future audits as well as provide
a better audit trail. These suggestions have been
incorporated into the NCASFAA Guide to Financial
Management and are pending approval by the Board.
The records used in the audit have been submitted to
Dana Kelly for archival.
NCASFAA Middle School
Enrichment Scholarship
by Takeila Barnes
The Middle School Enrichment Scholarship
Committee would like to thank everyone who
supported the silent auction held at the spring
conference. Our association helped raise $7,627.14 to
assist with sending students to a summer enrichment
programs. The committee has been busy processing
the paperwork for the six students that we are
sponsoring this year. We have received requests for
the following camps: Engineering Lab/Coding &
Cryptology Camp at UNC-Charlotte, Duke’s Young
Writers Camp, ECU’s Youth Legislator’s Camp, All
Arts and Science Camp at UNCG, and General
Hugh Shelton Leadership Camp at UNC Charlotte.
Students will be attending camps starting June 17
through August 3, 2007.
For more information on the NCASFAA Middle
School Enrichment Scholarship, please visit at
http://www.ncasfaa.com/docs/toc_scholarships.html.
My Witness to a 20-Year Slide in Financial Aid
by Michael O’Grady, College Loan Corporation
When Liza Bruce says jump, I jump. So when she asked me
if I could do her a favor, I said, “Of course Liza – anything
for you.” Unfortunately, I didn’t know the favor would be so
painful.
Committee Chair, the late Lee Atwater. We are technically
still together, having played recently at a New Years Eve gig
in Alexandria for their First Night Celebration. We were the
oldies band, of course.
She asked me to write a “vignette” about myself and financial
aid. Obviously, this combination might need FDA approval
as a sleep aid – so I had to tell her no for the first time in our
19 years of knowing each other. I did agree to opine about the
latest state of affairs in financial aid. I do this with a caveat
from Plato: “You have no right to your opinion unless it is
responsible.”
Although I have always been proud of NASFAA’s diversity, I
never realized what a challenge that meant when it came to
entertaining at a NASFAA conference. We had requests for
country music (we knew one song and played it), big band (we
knew two), Motown, (that we knew) and for the first time, the
Electric Slide. We had learned it two years earlier when playing
for an African American Boating organization called the
Seafarers in Washington, DC. It wasn’t hard to remember – it’s
two chords, C# and D# minor, that repeat for 20 minutes. It’s
electric boogie-woogie-woogie ad nauseaum.
The State of Financial Aid 2007
I guess no one really saw this coming. In lock step the financial
aid community, financial aid offices and lenders side-stepped,
back and forth, in tandem for more than two decades. We
just thought everyone did it and nothing seemed particular
nefarious about this practice. We just did it and everyone
seemed to follow like lemmings. In hindsight, was it wrong?
Well, clearly it wasn’t illegal; however, it should be stopped if
we are to regain our dignity.
What 20-year financial aid slide I am referring to? The
“Electric Slide,” of course. I remember how it all started – how
the financial aid community got infected with this infectious
yet monotonous dance step – and I bear some responsibility.
I was working at the front desk in financial aid at American
University. I have proof of this auspicious start to my financial
aid career. U.S. News and World Report did an article titled
“College Tuition Squeeze – And How to Cope” and featured
my picture complete with a bad Magnum PI mustache helping
students. This article, written in 1982, mentioned a school was
lending students “cut-rate” money at 13%, compared to the
16% banks were charging. The maximum was $2,500. I guess
today’s 6.8% doesn’t look so woefully bad, but the freshman
limit of $3,500 looks stone age when you account for inflation.
By the way, the article states that a year’s tuition at UVA was
going to go up a whopping $204, to $1,334.
Flash forward a couple of years. My boss at the time, who is
now a big-wig at the Department of Education, said, “Hey, can
your band play for the NASFAA conference?” I didn’t flinch.
I had reacquainted myself with music to supplement my
income, which permitted a lofty diet of turkey hot dogs and
homemade iced tea. The band I was in was an 8-piece rhythm
and blues band with a focus on Motown. We would stay
together for 25 years playing for fundraisers in Washington for
both Democrats and Republicans, and for Historically Black
Colleges and Universities. We opened gigs for everyone from
Little Anthony and the Imperials to the Commodores; from
Democratic Congressman Gephart to Republican National
The request came, so we were happy to comply. This
“new” dance step (a rip-off of an older dance step call
“The Madison”) would kill 20 minutes and would help us
avoid other requests from Cajun to classical music. Twenty
enthusiastic dancers hit the dance floor with others jumping
in to learn. We went on to play some Temptations, Four
Tops, and Motown when a group surrounded the front of the
stage. They wanted the Electric Slide again. Better that than
a request for the group Wham or Billie Ray Cyrus, so what
the heck. Another 20 minutes down. The dance floor swelled
to about 50 trying the new dance. It’s electric boogie woogiewoogie. We followed up with some more dance tunes from the
Commodores, Earth Wind and Fire, and Marvin Gaye and
we were done … or so we thought. The Sheraton (now the
Marriott, where this year’s conference will be) wait staff waited
patiently as we play the EB yet another time.
Fast forward about 10 years and I am walking out the door
with my saxophones to play at the VASFAA Halloween
conference party (yes, we used to have conferences in the
fall) in Tyson’s Corner in Northern Virginia (yes, we had a
conference in Northern Virginia).
“Wait, we aren’t ready,” my wife, Monique, says, referring
to herself and my 11-month-old, Caitlin. “Caitlin needs a
costume!”
“What happened to the mermaid costume we just bought
three weeks ago?” I retorted. Unbeknownst to me, the new
costume was no good – Caitlin had learned to walk, hence no
non-walking costume would suffice. My wife went downstairs
to create a new costume. A cat or a mouse I don’t quite
remember. Like everyone in the Washington area, I can’t seem
to recall anything. As we played the Electric Slide, 11-monthold Caitlin weaved in and out of the VASFAA Electric Slide
dancers. (For those of you who remember Caitlin, she is now
12, an older sister to Brittany, 10, and little Mikey, 2. I don’t
do a Christmas letter, so I can say now that she is a little
actress and has been an extra in movies (“State of the Union”),
commercials (Giant Food Stores), industrial videos (United
Way) and TV (West Wing). Brittany has followed in Caitlin’s
footsteps and has done numerous TV commercials and print
ads. She will be featured in the American premier of “Witches
of Eastwick” as it comes to the Washington area this summer.
Little Michael? No way will he avoid student loans. He has
worked only one job in two and a half years. An eviction
notice is imminent – as soon as he learns to read.
Perhaps I am most thankful to VASFAA for getting me
started in one of my true interests: enhancing crosscultural communication on college campuses. I served as
Multicultural Committee Chair twice for VASFAA. We
created Public Service Announcements targeting listeners at
Urban Contemporary radio stations and created a PSA in
Spanish. Two of our speakers that addressed affirmative action
in concurrent sessions went on to bigger and better things.
One went on to take a high-level job at the Department of
Education and the other went on to argue the Michigan Case
to the Supreme Court.
Which I guess raises another, higher
issue. Whether it is a guest speaker at
conference, or a student sitting in front
of you looking for guidance, you don’t
know what the future portends for them.
The “appointment” in front of you has
an appointment with destiny and you are
part of them reaching that goal. Just think
of the millions of Virginians that got a
college education thanks to the financial
aid community. Their education has
served to the betterment of themselves,
their families, their communities and the
state of Virginia. The biggest headline has
yet to be written – it is the culmination of
millions of bylines created by the stories
of graduates of the nation’s colleges and
universities. Now that’s electric.
So next time you hear “It’s Electric”
your immediate thoughts might be,
“When is a Code of Conduct going to
bar this song from conferences.” Be
patient, however. That song has endured
several reauthorizations, the renaming of
multiple aid programs, several Congresses
and Presidents, and TV programming
from Full House to American Idol. This
song permits open access to the floor,
and there is no “exclusive” dancing. It
will endure just as we have endured. In
fact, it will probably just be renamed the
Madison.
The best things in life are fee free.
Citibank Federal Stafford Loans have ZERO ORIGINATION FEES. We’ll pay the fee for
our borrowers. That means every dollar borrowed goes toward a student’s education,
not to fees.
Our zero origination fee offer has your students’ best interests in mind. And yours, too.
Citibank offers you great services and tools that will make your life easier and will give
you more time to connect with your students. From faaonline.com to Priority Services
and more, we provide you with the support you need to get your job done.
As our partners in education financing, trust Citibank to help you help your
students afford the education of their choice, and the best things in life.
Visit faaonline.com or call our Priority Services team today
at 1-800-846-1290.
For Federal Stafford Loans, the 3.00% origination fee that is typically charged is paid by Citibank, N.A. and is not paid by the
borrower. However, a 1.00% guarantee fee may or may not be charged by a guarantor and would be payable by the borrower, if
charged. This offer is valid on Federal Stafford Loan requests that are received by Citibank, N.A. while this zero fee loan program is
in effect. Visit studentloan.com for other terms and conditions that may apply.
The Student Loan Corporation is a subsidiary of Citibank, N.A. ©2005 Citibank, N.A. Citibank and Citibank with Arc Design are
registered service marks of Citigroup Inc.
Lender Code: 826878
Movers and Shakers
Sandra Rhyne has been hired as the Assistant Director of
Karen Schaeffer has joined the Guilford Tech Community
Financial Assistance for Scholarships and Campus Work at
Meredith College. Most recently, Sandra was the Scholarship and
Grant Coordinator for the South Carolina Commission on Higher
Education.
Julie Setzer is the new Director of Financial Aid at Greensboro
College staff as Financial Aid Technician. Karen comes to us from
Maria College in New York.
College.
Additionally, Trea Marvin has joined the Meredith College
Financial Assistance team as an Information Specialist. Trea comes
from the public library and worked in financial aid in Ohio.
Director Vickie Fleming will be leaving North Carolina
Wesleyan College on May 31 for School of Arts in Raleigh.
Jerry Alan Donna is the new Director of Financial Aid at Salem
Tracy Rapp is the new Assistant FA Director/Veterans
College, after eight years of service as Assistant Director of Student
Financial Aid at North Carolina School of the Arts.
Coordinator at Mitchell Community College. Tracy comes to MCC
from Las Vegas, Nevada, with financial aid and Veterans experience.
Barbara Goodman, Assistant Director at Guilford Tech
Community College, is now Barbara Maynard. Barbara married
Randy Maynard in September.
by Em McNair,
TG Senior Regional Account Executive
The fuel for a strong financial aid office is teamwork. Deadlines
can be short, demand in the form of student questions high, and
staff to handle work at a premium. To make the most of their
resources, financial aid offices need to train their teams to work as
a unit.
Ideally, a strong financial aid office creates its own energy – a
spirit of mutual support based on respect and a desire to help.
To foster that energy and to set a high standard of performance,
you’ll need to establish a clear path for each member of your staff
and for the group as a whole.
Pathway to Unity
In setting a training plan to shape your team into a more cohesive
group, consider each area listed below. Keep in mind that your
staff may need more or less time to become an effective team
given the varied skill sets of each member.
• Evaluate and train: If you have a formal evaluation tool for
testing the regulatory knowledge of your staff, compare scores
across the team and consider training to address weaknesses.
Mentoring by team members who have a high degree of
regulatory knowledge may be a good idea. Also, you may
want to look closer at personality tests that help you gauge the
personal style of each team member.
• Assign roles and responsibilities: Though financial aid
offices often stress cross-training, it’s good to consider
assigning oversight roles to more experienced staff members
and apprentice roles to those new to the profession. You may
want to rotate jobs – intake versus paperwork.
Shape Your Financial Aid Staff
Into A Strong Team
• Create an environment of trust and eliminate fear: Good
performance often comes as a matter of wanting to give
your best. You can create a workplace that gets the most out
of your team by opening up lines of communication and
making it a habit to gather feedback on office practice. Make
it clear that no negative fallout will occur because of honest
feedback.
• Handle conflict quickly: Don’t let things simmer between
staff members; deal with issues head-on so that conflict does
not breed potential future aggression. You’ll want to ensure
an atmosphere of mutual care as much as possible, which
means ironing out conflict immediately.
• Set a common vision: Make clear what you expect from the
team in the short- and long-term, and define a way to achieve
those goals, whether through training or by working one-onone with team members. Whether your team buys into your
vision is important to achieving your goals.
• Reward the team: When you start seeing results in terms of
better teamwork – they just completed their first peak season
together, for example – it’s time to show you value that effort
with a reward. This could come in many forms: a formal
in-office celebration, small bonuses, or even certificates
– whatever conveys that sense of making goal.
The Student Loan Sunshine Act
Well, the House has decided to move ahead quickly with a
regulatory bill, and on May 14 passed – on a vote of 414 to
3! – the Student Loan Sunshine Act (HR 890). It’s almost
identical to Ted Kennedy’s S. 486 in the Senate, so there is no
doubt that something very much like this will become law.
And soon.
The Sunshine Act is an amalgam of previously introduced
bills by both the Democrats and the Republicans, so there will
be no polarization on this issue. The so-called “Wild West” of
student lending WILL be reined in!
Here is a synopsis of the bill taken from Inside Higher Ed:
“Among other things, the House legislation would:
• Ban any ‘educational loan arrangement,’ which are
defined as deals in which a lender pays a fee or other
benefits to the institution. Many such arrangements
occur now, and have increasingly been called into
question, especially when they give colleges a share of
the revenue based on loan volume.
• Prohibit lenders from helping to staff campus financial
aid offices.
• Bar college officials from serving on lender advisory
councils or providing any other formal advice.
• Ban all gifts from lenders to campus officials and their
families.
• Continue to allow colleges to use lists of ‘preferred
lenders,’ but require institutions to include at least three
lenders on such lists, to explain how they chose the
lenders, and to show that they put students’ interests first
in the selection of lenders.
• Ban the use of ‘opportunity pools,’ which are loan funds
that some lenders make available to institutions for
their high-risk students in exchange for appearing on
colleges’ preferred lender lists. The pools have become
controversial because critics say the students often aren’t
told they have other options, but defenders say they
often go to low-income and minority students who have
no other way to pay for college.
• Call for civil penalties of up to $25,000 for colleges or
nonfederal lenders found to have violated the provisions
of the law, and for the suspension or termination of
participation in federal loan programs for lenders who
provide federal loans.
• Require institutions to inform would-be borrowers of
private loans about their options for receiving federally
subsidized and insured loans.
• Prohibit colleges from letting providers of private
loans use their names, logos or other representations in
promoting those loans.”
Those last two provisions are the first federal attempt to
regulate the private (alternative) education loan industry.
You can bet there’s more to come!
5 Years of Service
10 Years of Service
15 Years of Service
20 Years of Service
25 Years of Service
President Rance Jackson
Retiring
Retiring
Virginia Tech Memorial Flower Bouquet