September 29, 2008

Loan-Company Executive to Lead Federal Aid Advisory Panel

Washington — For the first time in its 20-year history, the federal government’s Advisory Committee on Student Financial Assistance is going to be led by a representative of a student-loan company.

Members of the committee, which describes itself as “an independent source of advice and counsel to Congress and the secretary of education on student financial-aid policy,” today elected Scott A. Giles of the Vermont Student Assistance Corporation as their new chairman for the coming year. His term begins Wednesday.

Mr. Giles serves as vice president for policy, research, and planning at Vermont Student Assistance, a nonprofit student-loan provider. Allison G. Jones, assistant vice chancellor of academic affairs in the California State University system, was elected vice chairman. Both were elected without debate and without dissent in a brief meeting of the advisory committee held by conference call.

The committee was formed by Congress in 1986 and began meeting in 1988. The House voted to eliminate the committee earlier this year as part of its reauthorization of the Higher Education Act. The final enacted version of the bill retained the committee but required that its members serve single four-year terms that cannot be renewed. Its members — six appointed by Congressional leaders and five by the education secretary — previously were chosen for three-year terms, with no limit on renewals.

Congress also asked the advisory committee to undertake this coming year a thorough study of regulations that affect higher education. In addition, the committee enters a year in which Congress and the Education Department are expected to consider far-reaching structural changes in how the federal government delivers student financial assistance. The committee, however, has traditionally avoided directly evaluating methods of aid delivery because of potential business conflicts involving some of its members.

Mr. Giles said he hoped the committee under his leadership would continue trying to help students navigate the system of federal aid and consider the long-term value of a college education. “We try to look at this from the perspective of students and families,” he said. —Paul Basken

Comments

1. It’s going to be hard to avoid evaluating delivery methods this year, with the number of schools who have switched from the FFELP to the Direct Loan program. It is a little like ignoring the elephant in the room.

   http://www.collegeloanconsultant.com/direct-federal-student-loan.html

   — collegeloanconsultant    Sep 29, 08:03 PM    #

2. The advisory committee has safely avoided student loan issues for more than a decade and will continue to do so. College choice and aid simplification have been their preferred areas. The committee says it focuses on access but in reality it focuses on choice, because of emphasis on 2yr students allegedly facing unmet need vis-a-vis 4yr institutions. collegeloanconsultant overlooks the various dl discounts, including two upfront ones which were only offered by a couple of FFEL lenders. collegeloanconsultant seems to be counting discounts that nationwide lenders only offered through a handful of schools.

   — accountantsfirst    Sep 29, 11:57 PM    #

3. It is shocking to me that the president of this key committee on student financial aid is from the private so-called non-profit (they get paid don’t they) student load industry, just as the committee is about to consider tinkering with how aid is distributed. Fox in the chicken coop? Look at the financial system breakdown resulting from inadequate oversight and learn!

   — tread carefully    Sep 30, 11:13 AM    #

4. Great choice because we need individuals that understand the financial aid process from all perspectives including nonprofit lenders in the FFELP community. Unfortunately, there are some misconceptions related to the FFELP industry.

   — Great Choice    Sep 30, 01:36 PM    #

5. Scott will be an excellent Chairman of ACSFA. He has a long history of advocating for education. He worked for the House Science Committee and Senator Jeffords. He is smart and well respected by the Hill. In my past experiences I’ve always found Scott as a straight shooter and always focused on finding good policy. The ACSFA members made a good choice.

   — Rich Hershman    Sep 30, 01:46 PM    #

6. I think it’s just outrageous anyone with anything to do with lending is in this position. You simply can’t trust lenders, except Robert Rubin, or the heads of private firms, except Warren Buffett, or a guy from Vermont, except Ben and Jerry.

   Only a direct loan school financial aid director should be allowed to head the board. They’ve got no idealogical axes to grind, other than thinking that schools should decide where students get their loans.

   — Full Monty Hall    Sep 30, 06:48 PM    #

7. Scott is a great choice!

   — Just Testing    Oct 1, 10:49 AM    #

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