North Dakota Attorney General Wayne Stenehjem set the record straight about the ethics of financial aid administrators in his state at a Student Loans of North Dakota default prevention symposium on Thursday.
The ND attorney general assured participants at the symposium that New York did not have a monopoly on ethical behavior in student lending.
Stenehjem read from a recent New York Attorney General press release in which Andrew Cuomo stated that the recent passage of the Student Lending Accountability, Transparency and Enforcement (SLATE) Act underscored "New York government's legacy of putting forth progressive, effective, legislation and leading the nation by example."
"We are just as much the leaders in being honest, farsighted, and acting according to ethical guidelines," said Stenehjem in response.
Stenehjem's family has deep roots in helping students find resources to attend college. His father - Martin "Buck" Stenehjem - signed the first federally insured student loan (FISL) in the nation in 1967 for a student attending Valley City State University in Valley City, ND. The application was signed at the Bismarck post office by Buck Stenehjem and a representative from the U.S. Department of Education. The attorney general's father was also the first director of Student Loans of North Dakota, the state designated, nonprofit guarantor.
"We don't see a problem here," he added. "We see an industry that acts fairly and in the best interest of students."
Stenehjem expressed concern over current legislation being considered in Congress that could harm students by hampering the Federal Family Education Loan Program. Stenehjem, and North Dakota Governor John Hoeven, both sit on the North Dakota Industrial Commission, which oversees the nonprofit, state guarantor and the state-owned lender.
"I know how the national legislature works," said Stenehjem. "They either do nothing, or they over-react, and I fear that is what is happening here."
The attorney general concluded by thanking financial aid administrators for the work they do to help students and families. Stenehjem said that he speaks with first-hand experience about what a difference financial aid administrators can make in a person's life. Financial aid helped him meet his financial needs while attending college.
Stenehjem stressed the value of student loans and the importance of paying them back.
"The day that I graduated from college, my father came up to me and said, ‘Welcome to your 12 month grace period,'" laughed Stenehjem. Even though his loan repayment amount was quite large, "I made that payment happily every month," he remarked, because of the opportunities it gave him in life.
NASFAA Assistant Director for Communications Justin Draeger also spoke at the symposium, emphasizing institutional research as a way to target limited default prevention resources to the students who need them most.
Financial aid administrators from around the state, and as far away as South Dakota and Minnesota came together to discuss their successes and innovative new approaches to default prevention work.
By Justin Draeger
NASFAA Assistant Director for Communications
Posted 05/21/07 to www.NASFAA.org. Redistribution to non-NASFAA institutions is prohibited. Please submit Web Site questions or comments to Web@NASFAA.org.
