Ethics in the Financial Aid Profession

1. Ethics in the Financial Aid Profession Sherri Avery, Brandeis University Tony Erwin, Northeastern University Gail Holt, Mt. Holyoke College

2. Agenda • Ethics: What are they and what do they mean to us? • NASFAA’s Statement of Ethical Principles • NASFAA’s new Code of Conduct • MASFAA’s response to recent ethical challenges • Steps for making ethical decisions • Case studies

3. What are ethics? • The discipline dealing with what is good and bad and with moral duty and obligation. • a) a set of moral principles: a theory or system of moral values; b: the principles of conduct governing an individual group; c: a guiding philosophy (Merriam-Webster Dictionary) What do “ethics” mean to you?

4. Ethics in the FinancialAid Profession • How do ethics affect our profession? • What are some of the ethical dilemmas we face in our daily work?

5. NASFAA Statement ofEthical Principles(Adopted April 1999) The primary goal of the financial aid professional is to help students achieve their educational potential by providing appropriate financial resources. To this end, this Statement provides the Financial Aid Professional with a set of principles that serves as a common foundation for accepted standards of conduct.

6. Statement of EthicalPrinciples, Cont‘d The Financial Aid Professional shall: • Be committed to removing financial barriers for those who wish to pursue postsecondary learning. • Make every effort to assist students with financial need. • Be aware of the issues affecting students and advocate their interests at the institutional, state, and federal levels. • Support efforts to encourage students, as early as the elementary grades, to aspire to and plan for education beyond high school.

7. Statement of EthicalPrinciples, Cont’d • Educate students and families through quality consumer information. • Respect the dignity and protect the privacy of students, and ensure the confidentiality of student records and personal circumstances. • Ensure equity by applying all need analysis formulas consistently across the institution's full population of student financial aid applicants. • Provide services that do not discriminate on the basis of race, gender, ethnicity, sexual orientation, religion, disability, age, or economic status.

8. Statement of EthicalPrinciples, Cont’d • Recognize the need for professional development and continuing education opportunities. • Promote the free expression of ideas and opinions, and foster respect for diverse viewpoints within the profession. • Commit to the highest level of ethical behavior and refrain from conflict of interest or the perception thereof. • Maintain the highest level of professionalism, reflecting a commitment to the goals of the National Association of Student Financial Aid Administrators.

9. Code of Conduct for Institutional Financial Aid Professionals Adopted by the NASFAA Board of Directors, May 2007

10. Code of Conduct for Institutional Financial Aid Professionals An institutional financial aid professional is expected to always maintain exemplary standards of professional conduct in all aspects of carrying out his or her responsibilities, specifically including all dealings with any entities involved in any manner in student financial aid, regardless of whether such entities are involved in a government sponsored, subsidized, or regulated activity.

11. In doing so, a financialaid professional should: • Refrain from taking any action for his or her personal benefit. • Refrain from taking any action he or she believes is contrary to law, regulation, or the best interests of the students and parents he or she serves.

12. In doing so, a financial aid professional should: • Ensure that the information he or she provides is accurate, unbiased, and does not reflect any preference arising from actual or potential personal gain • Be objective in making decisions and advising his or her institution regarding relationships with any entity involved in any aspect of student financial aid.

13. In doing so, a financialaid professional should: • Refrain from soliciting or accepting anything of other than nominal value from any entity (other than an institution of higher education or a governmental entity such as the U.S. Department of Education) involved in the making, holding, consolidating or processing of any student loans, including anything of value (including reimbursement of expenses) for serving on an advisory body or as part of a training activity of or sponsored by any such entity.

14. In doing so, a financial aid professional should: • Disclose to his or her institution, in such manner as his or her institution may prescribe, any involvement with or interest in any entity involved in any aspect of student financial aid.

15. In doing so, a financialaid professional should: • Disclose to his or her institution, in such manner as his or her institution may prescribe, any involvement with or interest in any entity involved in any aspect of student financial aid.

16. MASFAA’s Response Adoption of NASFAA’s Statement of Ethical Principals and Code of Conduct Programming: Public Relations Events Conference planning MEFA Ambassador/College Goal Sunday Communications: White Paper regarding budget Newsletter article Future letters

17. MASFAA’s Response Changes to Sponsorship: Silver, Gold and Diamond levels eliminated One fee to exhibit at the Conference and to support training Exhibitor replaces Sponsor Banner advertisements discontinued Newsletter advertisements discontinued

18. MASFAA’s Response Adoption of NASFAA’s exhibitor policies: Require exhibitors' gifts or giveaways to be of nominal value (i.e., less than $10 fair market value). Prohibit all prize drawings, including scholarships. Prohibit exhibitors and sponsors from organizing, sponsoring or conducting any social activities directed towards Annual Conference attendees. Allow exhibitors or sponsors to organize, sponsor, or conduct non-social events, such as focus, advisory, or user groups, where only non-alcoholic beverages and light snacks may be served.

19. “The softest pillow is a clear conscience” --N. R. Narayana Murthy Chairman of the Board, Infosys, Inc.

20. Good Practices • Examine • Disclose • Don’t Wait for Attention • Seek Personal Certifications • Look for Other Benefits On Campus • Collect and Evaluate Existing Policies • Set a Comprehensive Conflict of Interest Policy • Use Professional Associations as Part of the Solution

21. Ethical Considerations • Perception Is Not Always Reality • Promote High Standards of Practice • Define Acceptable/Unacceptable Behavior • Benchmark for Self-Evaluation • Framework for Professional Behavior and Responsibilities

22. Ethical Considerations • As a leader your role is to work through others • Identify your own cultural values and those that define the culture of the organization. • Research the cultural patterns of your work force and how those culture based values affect individual employees performance. • Accept the fact that we all have perceptions (which we confuse with knowledge) and ours is not the only reality; others see things differently.

23. Ethical Considerations 5. Control your assumptions – both about individuals and about job requirements. 6. Periodically assess your own agenda(s). 7. Pay attention to process: stop and ask, “What’s going on here?’ 8. Hold people accountable for valuing ethics. Reward appropriately.

24. Workplace Ethics • What does your organization stand for? • What is your responsibility in representing those values as an employee? • Are there discussions within your reporting lines? • Are there discussions Institution wide?

25. Steps for MakingEthical Decisions • Identify the Issue • List the Facts • Identify Affected Parties and Anyone with a Stake in the Outcome • Explain the Outcome Desired by Affected Parties • List Alternative Actions • Best and Worst Case Scenario for Each • Determine Course of Action • Reflect on Decision

26. Case Studies • Overawards • Mary’s financial aid package was completed in April and met her financial need. In September you were notified that she received a $1000 scholarship from a local organization. The scholarship has created an overaward. • Outside Requests • John is a good student, but not a top performer and does not receive federal grants. A state senator contacts you with a request to “do what you can for this student”.

27. Case Studies • Professional Judgment • You have two students who submitted similar requests for reconsideration. One is the president of the student government association with a 3.67 GPA. The other has made it clear she doesn’t like your office and has a 2.1 GPA. • Non-Custodial Parent • Sally is a high school senior and needs help completing the FAFSA for the first time. Her parents are divorced and she lives with her mother and younger brother. Her father is a wealthy lawyer who makes regular child support payments. The support combined with the mother’s income is only about $30,000 annually.

28. Resources • NASFAA Statement of Ethical Principles (1999) • NASFAA Code of Conduct (2007) • NASFAA Webinar on Code of Conduct (2007) • Questions? – email - Ethics@nasfaa.org