NASFAA National Chair Michael Bennett highlighted opportunities and challenges for the financial aid profession during remarks delivered at the Southern Association of Student Financial Aid Administrator's (SASFAA's) annual conference in Washington, DC.

Bennett encouraged conference attendees to be active in their state, regional, and national associations to ensure that the financial aid profession and system continues to effectively serve students and families, helping them overcome financial barriers to achieve their higher education goals.

"Continue to support one another, hold your head up and be proud of all you do and how well you do it," he said. "You are, and will continue to be, the most trusted source in helping students and families. I encourage everyone in this room to confront those who write or say otherwise."

Bennett encouraged members to make their voices heard in their state, regional and national associations.

"We want know what's on members' minds, so keep your ideas coming," he said

He also highlighted volunteering for committees and other leadership positions in associations as crucial to the strength of the profession.

"I am troubled by our eroding volunteer base," he said noting that some regional and state ballots had candidates running unopposed for leadership roles, which reduces diversity and sector representation. There clearly is work to be done to develop and maintain new leaders and volunteers, according to Bennett. He urged senior leadership to help others remember the calling of the profession and volunteer to serve, even if they had already served. To new financial aid professionals, Bennett urged them to not be afraid to volunteer and said he has never been more excited about the skills and passion newcomers already have.

"Get involved, volunteer on a committee," Bennett said. "SASFAA/NASFAA needs you, now, more than ever, to embrace our profession, to be mentored, to bring your energy and new ideas and lead us into the future."

FFELP Turmoil

Bennett noted that there is an anxious climate in the FFEL program due to the disruption in the credit markets and campuses ensuring that their lending practices are above reproach.

Preferred lender lists were created, in many instances, per student and families' request, to provide a listing of lenders as a starting point, Bennett reminded the audience. Students do not want to be reviewing thousands of lenders, he said.

"We have and will continue to remind students of their responsibility to choose a lender and ensure that there is transparency in all our practices," he asserted.

Bennett sympathized with aid administrators who wrestle with questions like "Should I do an RFI or RFP? Should it be a ‘Preferred Lending List' or a ‘Listing of Lenders?' And, what information is required to be displayed?"

Meanwhile, ongoing investigations by State Attorney Generals and the Department place enormous legal costs on colleges that may have to eventually pass these costs on to students, he noted.

Expressing appreciation for the exhibitors at the SASFAA conference, Bennett noted that "discussing services and products face to face in a relaxed setting continues to be the most effective way to learn about services and products for our students and institution. I encourage our loan providers, guarantors, policy makers and financial aid administrators to pay close attention to the marketing, borrower benefits and delivery of student loans from the student's perspective."

Commenting on the recent commotion caused by disrupted credit markets, Bennett noted that lenders are leaving the industry, people are losing their jobs, states are starting to pull back on options for financing. He also noted that borrowing costs for borrowers are rising as borrowers face paying origination and default fees formerly paid by the student loan industry. In addition, benefits during repayment are also disappearing.

"Will we see the resurrection of the Lender of Last Resort program?" he pondered.

He also noted that opportunities for alternate loans are getting more restricted and more expensive. Students may be resorting to working more hours, impacting their academic performance and persistence, and some students and families may be resorting also to an increase in the use of credit card debt.

Direct to consumer marketing, was another troubling trend highlighted by Bennett. Expensive private loans are being marketed without any school involvement, he said.

"These are just some of the ‘unintended consequences' for FFELP institutions and examples of angst on college campuses," he said. "We will continue to work through these issues."

CEO Transition

Dr. Phil Day, will officially take the reins as NASFAA's president on Monday, March 3, 2008. However, Bennett noted that Dr. Day has been very involved with NASFAA since December requesting information from NASFAA so he can hit the ground running.

Bennett noted that Day's 32 years of experience in higher education in roles like Chancellor of City College of San Francisco, one of the largest and most diverse community college districts in the U.S., and three college presidencies, should serve him well. Bennett also thanked NASFAA Interim President Joan Crissman, expressing how lucky NASFAA was to have "someone with Joanie's 28 years of knowledge, experience and commitment."

National Annual Conference

This year's NASFAA Conference will be held July 6-8 at the Swan and Dolphin Resort, Walt Disney World, in Orlando, FL. Bennett said he was very pleased that the Department of Education will be offering a general session, break out sessions and have an area for NASFAA members to work with Department software and ask questions.

College Goal Sunday

Bennett highlighted NASFAA's role in College Goal Sunday, noting that during past few weeks many NASFAA members have been involved. NASFAA staff has been managing the Lumina Foundation grant since 2004. Last year, College Goal Sunday served more than 28,000 families in 32 states at 600 sites and had 5,500 volunteers.

"College Goal Sunday is a wonderful outreach program that will lead to more outreach and collaborations on college access to reach students/families nationwide.

Bennett concluded by urging members to remain positive and forward thinking and to continue marching forward together with courage, grit and heart. Financial aid administrators need to continue to stand up and speak passionately about removing financial barriers for those who wish to pursue postsecondary learning. He encouraged members to be aware of the issues affecting students, particularly in the areas of access and college costs, and advocate for their interests at the institutional, state, and federal levels.

By Haley Chitty
NASFAA Assistant Director of Communications

Posted 02/25/08 to www.NASFAA.org. Redistribution to non-NASFAA institutions is prohibited. Please submit Web Site questions or comments to Web@NASFAA.org.