National Association of Student Financial Aid Administrators (NASFAA) President and CEO Dr. Philip R. Day Jr. issued the following statement regarding New York Attorney General Andrew Cuomo's settlements with student lending companies to reform direct marketing of private student loans.
"Every year students and families are misled by direct to consumer marketing and borrow more expensive private or alternative education loans before exhausting federal financial aid options including federal student loans, which are usually less expensive and have additional protections for borrowers. We appreciate the work of New York Attorney General Cuomo to curb these deceptive marketing practices and protect students and families trying to pay for higher education.
"For years NASFAA members in financial aid offices across the country have worked to inform students and families about the dangers of misleading direct-to-consumer marketing of private loans. Because increases in the cost of college have outpaced increases in financial aid, more families must rely on private loans to finance higher education. However, private education loans should only be used as a last resort. We urge all families to visit the financial aid office on campus before borrowing private loans to finance higher education. Financial aid administrators will ensure their students receive all the federal, state, and institutional financial aid they are eligible for to eliminate or reduce the need for more expensive private student loans."
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The National Association of Student Financial Aid Administrators (NASFAA) is a nonprofit membership organization that represents more than 14,000 financial aid professionals at nearly 3,000 colleges, universities, and career schools across the country. Each year, financial aid professionals help more than 16 million students receive funding for postsecondary education. Based in Washington, D.C., NASFAA is the only national association with a primary focus on student aid legislation, regulatory analysis, and training for financial aid administrators. In addition to its member Web site at www.NASFAA.org, the Association offers a Web site with financial aid information for parents and students at www.StudentAid.org.
Posted 09/09/08 to www.NASFAA.org. Please submit Web Site questions or comments to Web@NASFAA.org.
