It’s Deja Vu All Over Again
This post was written by Dave Gruen
May 18, 2009 6:45 am Code of Conduct, CuomoThose of you that have followed baseball over the years are probably familiar with Yogi-isms — quotes uttered by the irrepressible Yogi Berra. Some of his quotes were: “It ain’t over ’til it’s over;” “Never answer an anonymous letter;” “When you come to a fork in the road — take it;” “You can observe a lot by watching;” and, “The future ain’t what it used to be.” However, his most famous quote is probably “It’s déjà vu all over again.”
Oftentimes I feel that way, especially when I saw a Chronicle of Higher Education blog post by Kelly Field that asks what has become of the $13.1 million that New York Attorney General Andrew Cuomo received from student loan companies and colleges back in 2008-09. In my acceptance speech last summer at the Orlando conference, I asked the same question. My predecessor, Mike Bennett, also asked the same question before me. I challenged Mr. Cuomo to work with NASFAA to develop college access and financial literacy programs with the funds. After all, no group is in a better position than NASFAA to provide this type of information to our nation’s college students. Unfortunately, I received the same response that the Chronicle received and that that Mr. Bennett received, “déjà vu all over again.” To date, it appears that not much has been done with those funds to assist students and families. It appears that the funds continue to sit dormant (hopefully they were not invested in the stock market).
So, my question to you, the membership of NASFAA, is to give me your ideas. What is the best way for Mr. Cuomo to be sure his funds are targeted to assist students and families? How can NASFAA solicit his support in working with us to develop programs? Should we begin a letter writing campaign to pry these funds loose so that students can benefit?
May 18th, 2009 at 8:12 am
Dave, I’m glad you are continuing to push the issue - I think NASFAA is an excellent organization to utilize those funds!
May 18th, 2009 at 9:01 am
Developing financial literacy programs would be great. Those of us representing small schools could certainly use the help.
May 18th, 2009 at 9:30 am
Funnel those funds into “Cash for College” days and similar outreach activities. Thanks NAFSAA!
May 18th, 2009 at 9:46 am
Cuomo could use those funds to educate schools on the Direct Loan program since it appears that will soon be the only show in town and so many schools, like mine, will need training on how DL operates. Send these funds to regional guarantee agencies like AES/PHEAA for training financial aid office personnel in the intracacies of Direct Loans.
May 18th, 2009 at 10:27 am
Hold a lottery and pay off the student loans for proven displaced workers.
May 18th, 2009 at 10:51 am
Part of me (the vindictive part) would like to see the story get picked up by the same media Cuomo used to make financial aid administrators look like snake oil salesmen…Attorney General collects $13 million to help students, show us the students he’s helped.
I’m not defending the lender/school relationships that Cuomo sought to end, there were things happening that shouldn’t have, regardless of the “but it was only 6 people” argument. But time and the absence of any apparent use of the $13M has shown that his crusade against the “unholy alliance” was nothing more than political posturing. He’s on to bigger and better things, and he’d stonewall the media the same way he’s stonewalled NASFAA, or he’ll have some spin doctored answer…if the media even cares enough to pick it up. This story’s shelf life as national news was short - which worked in our favor in the long run, but also means that it’s unlikely that his feet will get held to the fire.
May 18th, 2009 at 11:18 am
How about funneling the money into state financial aid organizations? We have committees specifically addressing outreach and financial literacy programs. Help us help the students by assisting our efforts in students realizing their dream of a college education! Or, since travel and salaries are frozen at nearly every institute in the state, fund scholarships through the state association so that financial aid administrators can attend local, regional and national conferences in order to gain valuable training and information to benefit students on our campuses.
Financial aid administrators weathered the storm of Mr. Cuomo’s wrath and continued their work without malice, knowing their efforts were worthwhile - all the while keeping the students’ interests at heart. I have to say that I am in agreement with David Sheridan’s comments to a large degree.
May 18th, 2009 at 2:37 pm
I really like the idea of the funds being used to develop and deliver a financial literacy campaign, class or other such initiative. Perhaps a curriculum oriented toward delivery to our students which schools could adopt into orientation or academic achievement classes.
I’m willing to write a letter! These funds could be used to do a lot of good for our students…so glad you are “on it”.
May 18th, 2009 at 5:50 pm
I would suggest that we take Michelle’s suggestion one step further. Rather than being overly concerned about trying to see that lenders, guarantors and servicers maintain some level of financial support from the pending student loan changes, we should be lobbying heavily for funds to be returned to the campus. It is wholly appropriate that colleges and universities receive an administrative cost allowance for processing direct loans. Futhermore, it should be stipulated that these funds are intended to provide additional resources to financial aid offices and are not to be supplanted by reductions in institutional or state support. I look forward to the day when financial aid conferences and training opportunities are once again predominantly attended by financial aid professionals and not lenders, guarantors and servicers. There is something terribly wrong with the fact that schools can’t afford to send their staff to these events but the lending community can. It is a rather clear indication of who is “making money” from the student loan business.
May 19th, 2009 at 7:49 am
Perhaps if Mr. Cuomo is not more forthcomming we should encourage congress to investigate his non-use of these funds.
May 20th, 2009 at 1:07 pm
Maybe Mr. Cuomo, since he hasn’t found a use for the funds, should return it to those lenders who contributed it in the first place. After all, it was nothing but a witch hunt in the first place. Let those lenders have back their legitimately earned funds and maybe those banks won’t fail or have to bailed out by the taxpayer.