CBA Statement on the Key Role of School Financial Aid Offices in Helping Students

"Among the very best sources of information for students is the financial aid administrator at the school in which the student seeks enrollment." Joe Belew, President, Consumer Bankers Association

ARLINGTON, Va., May 28, 2008- Although students attending traditional colleges and universities across the United States are now beginning their summer vacations, the challenging process of securing funding for college for the 2008-09 academic year is also underway. At thousands of colleges around the country, financial aid administrators are finalizing financial aid packages for the upcoming year. Because of efforts by these dedicated professionals, thousands of otherwise discouraged students will have the opportunity to attend college.

    Surprisingly, despite plentiful evidence of the benefits received by students and parents through consultation with financial aid administrators, recent advertisements by a student loan company suggested that students and parents not consult with financial aid administrators before making a decision on using educational loans. These advertisements prompted Consumer Bankers Association President Joe Belew to issue the following statement:

    "There can be no worse advice to students and their families than to rely exclusively on the Internet or direct mail solicitations to learn about and apply for a student loan. Recent advertisements by one student loan lender implying that borrowers should not consult with the financial aid office at the institution they are attending are inappropriate and a complete disservice to students. In no way does this approach comport with the goal of sound and ethical marketing of student loans.

    "Students attending college and the families that support them should seek information on student loan options from a variety of sources, including Web sites administered by the U.S. Department of Education and by other organizations as well as through the financial aid office at their school. They should be prepared to ask the right questions to determine whether they need a loan, and, if so, what the best loan product should be for them. Among the very best sources of information for students is the financial aid administrator at the school in which the student seeks enrollment."
 

The Consumer Bankers Association is the recognized voice on retail banking issues in the nation’s capital. Founded in 1919, CBA provides leadership, education, research and federal representation on retail banking issues. For more information, please contact Marybeth Leongini, 703.276.3887 or mleongini@cbanet.org or visit www.cbanet.org.