Washington, DC - May 13, 2009 - Confronted with significant challenges in balancing this year's budget (FY 2008-09) and projected declines in revenues that will impact the 2009-10 budget, the National Association of Student Financial Aid Administrators (NASFAA) made tough budgetary decisions yesterday to ensure that the association continues to achieve its goals, maintains an appropriate array of programs and services at an optimum level of quality, and remains fiscally stable regardless of the economic environment. To this end, NASFAA has reduced the number of exempt professional and nonexempt staff and has reduced its operating budget.
"The recent economic downturn has affected everyone, including many of our member colleges and universities, and NASFAA is no different," said NASFAA President and CEO Dr. Philip Day. "While NASFAA membership remains stronger than ever, the recent economic downturn has made our current and future budget unsustainable. This has forced us to make some tough decisions, including laying off some valuable employees who have dedicated their lives to removing financial barriers to higher education. These employees have made NASFAA what it is today and it saddens me to see them go."
NASFAA's institutional membership reached historic highs this year and retention levels of 97 percent far outpace industry standards. Projected budget shortfalls can largely be attributed to a sharp reduction in the association's investment portfolio and reduced revenue from the annual conference.
NASFAA remains strong and the association is taking firm measures to further ensure that membership revenue is spent wisely. After review and discussion among NASFAA executive staff, NASFAA's Finance and Audit Committee, and the NASFAA Board of Directors, the association has developed and implemented a detailed plan that will reduce expenses and reallocate resources in a fiscally responsible way without sacrificing the products and services NASFAA offers its members.
"The tough action NASFAA has taken will put the association on a solid financial foundation, ensure that we can continue to provide vital information and services to financial aid offices, and remain a voice for college access and affordability in Washington."
About NASFAA
The National Association of Student Financial Aid Administrators (NASFAA) is a nonprofit membership organization that represents more than 20,000 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 post secondary 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.
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