February/March 2003 Online Publication    





For more information about NASFAA, visit www.nasfaa.org.		 Recent NASFAA Press Releases

The following are recent NASFAA Press Releases, which were sent to all state associations:

The Institute for Higher Education Policy, NASFAA, and TERI Launch a New Study on the Effects of Alternative Loans on Financial Aid Policy.

Washington, D.C. (December 20, 2002) The Institute for Higher Education Policy, the National Association of Student Financial Aid Administrators (NASFAA), and The Education Resources Institute (TERI) announced the launch of a research project that will examine the dramatic increase in privately funded, or alternative, student loans and the effect these loans have on students and higher education policy. The project is funded by TERI. NASFAA's Research Committee will organize a series of focus groups of financial aid administrators that will provide the opportunity to discuss private/alternative loan issues on their campuses.

Since the launch of our private loan programs over 17 years ago, there has been a dramatic increase in the need for private loan programs. We believe the research compiled by this study will help inform policy and help shape the direction these programs may take in the future, said TERI President, Lawrence O'Toole.

Alternative loans are one of the fastest growing areas in student aid, but the area we probably know the least about, said Jamie Merisotis, president of the Institute for Higher Education Policy. As we develop national policy, getting a better understanding of the alternative loan market will be critical to the development of federal loan policy and, more broadly, the development of institutional policy that affects access for students.

The Institute and NASFAA researchers hope to address several specific concerns of the higher education community, including:
  • Who is taking out private loans? What types of borrowers opt to take out alternative loans instead of, or in addition to, federal student loans?

  • Why are students borrowing private loans? Are private loans being used to cover unmet financial need, or to fund students lifestyle or convenience choices?

  • What are the potential policy questions that emerge in light of increased alternative lending? Would the growth in private loans be affected by any increase in federal loan limits? What effects do private loans have on loan consolidation, tuition increases, packaging of financial aid, and total student loan debt burden for colleges and students?
To examine the alternative loan phenomenon more comprehensively, the Institute and NASFAA researchers will make use of existing data from the National Postsecondary Student Aid Study, the College Board and NASFAA's Survey of Undergraduate Financial Aid Policies, Practices, and Procedures (SUFAPPP), and other sources. Researchers will also conduct a limited survey of select aid administrators to assess alternative loan volumes.

NASFAA is very excited to work with the Institute for Higher Education Policy and TERI on this groundbreaking study, said NASFAA President Dallas Martin. Having reliable data on alternative loans will be critical to members of the higher education community as they begin to develop their reauthorization proposals.

The project is tentatively titled Alternative Student Loans: Sleeping Giant of the Student Aid System? and will culminate with the release of a comprehensive report in the spring.

The Institute for Higher Education Policy is a non-profit educational research group in Washington, DC. The Institute s activities are designed to promote innovative solutions to the important and complex issues facing higher education. These activities include research and policy analysis, policy formulation, program evaluation, strategic planning and implementation, and seminars and colloquia. For more information, visit www.ihep.org or call (202) 861-8223.

The Education Resources Institute (TERI) is a Boston, Massachusetts based non-profit organization. Founded in 1985, it is a provider of education information and finance services. TERI has assisted hundreds of thousands of students and families achieve their education goals. Education loans guaranteed by TERI are available for undergraduate, graduate, and part-time students. For more information, visit www.TERI.org or call (800) 255-TERI (8374).

New NASFAA Review for NCAA Division I Schools

Washington, D.C. (January 31, 2002) - In February 2003, the National Association of Student Financial Aid Administrators (NASFAA) will begin offering a new financial aid review program for schools that compete in NCAA Division I sports. Although violations of NCAA by-laws usually originate in the athletic department, serious infringements can occur in other campus offices. NASFAA's new Financial Aid NCAA Division I Compliance Review focuses on the financial aid office and is designed to evaluate the financial aid office's oversight and administration of NCAA by-laws as they relate to financial aid.

During the review, peer reviewers will examine the institution's:
  1. Athletic scholarship notification process,
  2. Coordination of athletic and Title IV aid,
  3. Compliance with Equity in Athletics Disclosure Act requirements,
  4. Submission of athletic aid data,
  5. Reporting of athletic program participation rates,
  6. Disbursements procedures,
  7. Coordination and interpretation of rules procedures,
  8. Athletic governance structure,
  9. Monitoring, reporting, and certification steps,and
  10. Program evaluation and documentation efforts.
The Financial Aid NCAA Division I Compliance Review is being offered as the newest module in NASFAA's Standards of Excellence (SOE) Review Program - a peer review program developed in 1999 to promote the highest standards in the administration of student financial aid.

For more information, contact Vernetta P. Fairley, Program Director at 202-785-0453, ext. 141 or fairleyv@nasfaa.org, or visit www.NASFAA.org/SOE.asp.

NASFAA'S "Best Practices Symposium"
Back by Populuar Demand for 2003

Washington, D.C. (November 4, 2002) - For the second year, the National Association of Student Financial Aid Administrators (NASFAA) will host a training opportunity to explore critical issues facing financial aid professionals. "In Search of Best Practices - A NASFAA Symposium" will be offered as a day and a half symposium at four sites in 2003.

Orlando, Florida, February 9-10
Rosen Plaza Hotel, 9700 International Drive, Orlando, FL, (407) 996-1704
Day 1 - Sunday, 8 a.m. to 5 p.m., Day 2 - Monday, 8 a.m. to Noon

Minneapolis, Minnesota, March 30-31
Holiday Inn Select, 3 Appletree Square, Bloomington, MN, (952) 876-8652
Day 1 - Sunday, 1 p.m. to 9 p.m., Day 2 - Monday, 8 a.m. to Noon

Las Vegas, Nevada, May 21-22
Hampton Inn Tropicana, 4975 South Industrial Rd, Las Vegas, NV, (702) 948-8100
Day 1 - Wednesday, 8 a.m. to 5 p.m., Day 2 - Thursday, 8 a.m. to Noon

Denver, Colorado, June 2-3
Regis College, in conjunction with the RMASFAA Summer Institute.
Lodging information will be available at www.RMASFAA.org in March 2003.
Day 1 - Monday, 8:30 a.m. to 4:30 p.m., Day 2 - Tuesday, 9:00 a.m. to 12:30 p.m.

Symposium topics will include Financial Aid Office Organization and Structure, Project and Resource Management, and Legal Issues. The subject matter will be targeted towards intermediate and advanced financial aid administrators who have high competency levels in the nuts and bolts aspect of each subject area.

The cost per registrant is $175 and includes one meal. Registration is available to NASFAA members only. For more information, hotel rates, and a registration form, visit www.NASFAA.org or call Judy Schneider, 202-785-0453 x144 or shneiderj@nasfaa.org.

The National Association of Student Financial Aid Administrators (NASFAA) is a nonprofit membership organization that represents more than 10,000 financial aid professionals at nearly 3,000 colleges, universities and career schools across the country. Based in Washington, D.C., NASFAA is the only national association with a primary focus on student aid legislation, regulatory analysis and professional development for financial aid administrators. Each year, Members help more than 8 million students receive funding for postsecondary education. For more information about NASFAA, visit www.nasfaa.org.