Statement from the National Association of Student Financial Aid Administrators

WASHINGTON, DC (04/03/2007)(readMedia)-- NASFAA understands the motivations of those schools that have decided to accede to the Attorney General's settlement and we respect their decisions. But we will stand by any postsecondary institution that decides otherwise and goes to court to adjudicate this matter. Schools that do not agree to this settlement care just as much about their student and parent borrowers and have as much integrity as the schools that agreed to the settlement. We believe the schools who challenge the Attorney General's actions will prevail in any court case.

New York Attorney General Andrew Cuomo claims that he is "beginning the process of restoring trust between universities and students." But he needlessly tore the fabric of trust between schools and students in the first place with his inflammatory press statements and media comments. Financial aid administrators have built trust with students and parents for generations by offering well-informed, accurate, and unbiased information.

NASFAA agrees that any preferred lender list abuses and genuine conflicts of interest should end, however such abuses are rare. NASFAA is confident that when the New York Attorney General's office completes its investigation it will find only a very few problems; nearly every aid administrator and school is extremely ethical. Undoubtedly, some areas need improvement because we can always do better. It would serve the public interest to have greater transparency in how and why a school uses a lender list. Student aid administrators only want to serve their students' best interests.

The Attorney General's investigation and the ensuing media coverage only provide a limited view of the student financial aid profession. The whole picture is one of America's great success stories. Student aid administrators work tirelessly to get students the best terms on student loans so they can achieve their higher education goals and maximize their career potentials.

The National Association of Student Financial Aid Administrators (NASFAA) is a nonprofit membership organization that represents more than 12,000 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 training for financial aid administrators. Each year, members help more than 8 million students receive funding for postsecondary education. 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.

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