In light of the recent attention that has been given to the relationship between postsecondary institutions and student loan providers, NASFAA's Board of Directors spent considerable time at its April 21 - 23 meeting deliberating over the actions that it should take to address these matters. As an outcome, the Board approved a resolution announcing a plan of action to develop its own code of conduct within the next few weeks that will provide its members and their institutions explicit guidance in carrying out the expectations of the NASFAA Statement of Ethical Principles.
The resolution that was adopted is as follows:
A RESOLUTION
of the
Board of Directors of the
National Association of Student Financial Aid Administrators (NASFAA)
in meeting assembled at Charlotte, North Carolina.
WHEREAS, we, as the leadership of NASFAA and as individuals dedicated to the profession of student financial aid administration are deeply saddened by recent allegations of impropriety and conflict of interest in the administration of education loan programs, and
WHEREAS, the alleged conduct of a few people has cast a cloud over the entire student financial aid community; and
WHEREAS, we believe that there must be an absolute and unequivocal expectation of ethical administration of all student financial aid programs by every person and entity with a role in that process, whether in the employ of an institution, a lender or the federal or state government; and
WHEREAS, we unequivocally deplore any action or behavior on the part of individuals and entities involved in student financial assistance that are or give the appearance of being improper or unethical; and
WHEREAS, we believe in the integrity and honesty of the overwhelming majority of the thousands of student financial aid administrators who serve the millions of students enrolled at our nation's colleges and universities; and
WHEREAS, we believe that NASFAA must take a leading role in ensuring continued public confidence in the integrity and professionalism of these financial aid administrators; and
WHEREAS, we unequivocally reaffirm the absolute commitment of our organization to ensuring the highest levels of ethical behavior in the administration of student financial aid programs, and
WHEREAS, we believe that the advice and guidance provided by student financial aid administrators must always be in the best interest of the students and parents they serve and entirely free of bias or conflict of interest, in accordance with the NASFAA Statement of Ethical Principles,
THEREFORE BE IT RESOLVED that the NASFAA Board of Directors:
- Shall promptly develop and promulgate its own code of conduct that will provide student financial aid administrators and their institutions with explicit guidance in carrying out the expectations of the NASFAA Statement of Ethical Principles;
- Shall promptly review all of the Association's relationships with student loan providers, other entities, and organizations and take all such measures as may be necessary to modify its policies and practices to ensure that the Association itself is in total and complete compliance with its Statement of Ethical Principles so that the Association will continue to set the highest standards of ethical behavior and conduct its affairs in a manner that is free of any conflicts of interest or the perception thereof;
- Shall promptly establish a mechanism to inform, educate, and advise financial aid administrators regarding compliance with the NASFAA Code of Conduct; and
- Calls upon every NASFAA member to undertake a review of his or her current practices and those of his or her institution to ensure that all financial aid decisions, particularly those involving educational loans, are free of any bias, actual or perceived conflicts of interest, and are based solely on the best interests of students and parents.
ADOPTED this Twenty-Third day of April, 2007.
Posted 04/25/07 to www.NASFAA.org. Redistribution to non-NASFAA institutions is prohibited. Please submit Web Site questions or comments to Web@NASFAA.org.
