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<DIV>Colleagues:</DIV>
<DIV> I want to commend Cheryl for her candor and reflection on this topic
of interest and concern. For all of us, the implications are far ranging.
For all of us, the value that we bring to the student college experience is why
we are in our chosen professions. Please read on.<BR>Dan</DIV>
<DIV><BR>From: Cheryl Warmann
<BR> <A
href="mailto:cwarmann@oakton.edu">cwarmann@oakton.edu</A> </DIV>
<DIV> </DIV>
<DIV>I hope you'll take the time to read my thoughts about one <BR>of our
current legislative issues. Please tell me how <BR>your institution is
planning to make changes, if any. I'd <BR>like to collate the responses
and send a master list of <BR>ideas out to help all our association
members. <BR>Thanks! -Cheryl</DIV>
<DIV> </DIV>
<DIV>Ethics—The Debate Rages On</DIV>
<DIV> </DIV>
<DIV>Cheryl Warmann<BR>MASFAA Professional Development Chair<BR>Oakton Community
College<BR>Des Plaines, Illinois</DIV>
<DIV> </DIV>
<DIV>As I reflect on my years working in the financial aid <BR>profession, I
wonder if anyone could have foreseen the <BR>issues that challenge us now.
The collapse of Enron <BR>precipitated greater scrutiny of all accounting
controls <BR>and business ethics. The College’s accounting firm now is
<BR>required to ask questions to our publicly elected Board <BR>members,
administrators, and personnel involved in <BR>handling revenue about fraud and
the propensity of fraud <BR>to be committed by someone at the institution. There
are <BR>many more questions, from auditors, about how funds are <BR>managed and
how individuals and offices maintain <BR>appropriate checks and balances.
</DIV>
<DIV> </DIV>
<DIV>This trend failed to prepare me for the current questions <BR>related to
ethics and choice of lenders for institutions <BR>participating in the Federal
Family Educational Loan <BR>(FFEL) program or certifying alternative/private
loans. <BR>However, as the institution has adjusted to the additional
<BR>attention our auditors pay to fraud prevention, we also <BR>will make
changes to help the public feel confident in our <BR>business
relationships.</DIV>
<DIV> </DIV>
<DIV>Recently our office conducted a self assessment that <BR>included reviewing
the National Association of Student <BR>Financial Aid Administrator’s Statement
of Ethical <BR>Principals. Our office had an animated conversation about
<BR>point #11—“Commit to the highest level of ethical behavior <BR>and refrain
from conflict of interest or the perception <BR>thereof.” </DIV>
<DIV> </DIV>
<DIV>Some office staff were shocked and outraged that anyone <BR>might think we
perform our duties without rising to high <BR>standards. Yet, each day, we
all develop perceptions of <BR>public officials, pro-athletes, and Hollywood
stars—<BR>whether or not we know the complete situation. Our
<BR>profession’s “15 minutes of fame” is hardly glamorous and <BR>has
unfortunately only brought additional scrutiny to <BR>institutional and lender
business relationships. At the <BR>moment this oversight is
uncomfortable—it challenges us to <BR>think a little more carefully about why
particular <BR>relationships benefit students at our institution.</DIV>
<DIV> </DIV>
<DIV><BR>Once I passed my surprise, anger, and a little sadness at <BR>the
additional examination, I realized that this is an <BR>opportunity for our
office – and our profession – to help <BR>our students and parents better
understand why particular <BR>business practices exist and that we want to
provide <BR>options that will help them with financial planning and <BR>securing
the education they seek. Sound daunting? <BR>Perhaps, a
little. </DIV>
<DIV> </DIV>
<DIV>As I look at the proposed language regarding prohibited <BR>inducements,
preferred lenders, and the Sunshine Act, <BR>clearly there are parts I would
like to change. <BR>Colleagues question the unfairness of so many “shalls
and <BR>shoulds” for FFEL participants versus Direct Loan
<BR>participants. I encourage my colleagues to ask the tough <BR>questions
and to make the legislation stronger and more <BR>effective. </DIV>
<DIV> </DIV>
<DIV>In the end, though, I want to use this as an opportunity <BR>to tell
students and parents that we have spent time <BR>researching lender practices,
borrower benefits, and <BR>lender services, and explain what we have
learned. We <BR>will spend more time trying to determine which lenders
<BR>will help our institution manage our default rate. </DIV>
<DIV> </DIV>
<DIV>I expect that our front line staff will use this as an <BR>opportunity to
talk more about financial planning and <BR>provide financial consumer
information. Will it be easy? <BR>Of course not. Will we miss the
chocolate? Absolutely! <BR>In the end, however, the students will benefit,
and that <BR>is truly what matters.<BR></DIV></FONT></BODY></HTML>