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The members and leadership of NJASFAA are keenly aware of the need for reliable and timely information to your students and families about financing a college education. |
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The "F" in FAFSA Means Free Submitted by Dave Sheridan The following letter was composed for high school principals and guidance counselors. It will be sent to all NJ High Schools in September to make them aware of the services provided by financial aid professionals and what differentiates us from other consultants and advisors who give presentations at schools and elsewhere around the state. The importance and cost of a college education are both at an all-time high. The members and leadership of the New Jersey Association of Student Financial Aid Administrators (NJASFAA) are keenly aware of the need for reliable and timely information to your students and families about financing a college education. We rely on a working partnership with our colleagues in secondary schools to make sure that accurate and timely information is provided to the students and families we serve. And we encourage you to work with us to make sure that accurate and timely information is there for them. Many school districts (through the Guidance Office, Adult Education or elsewhere) have distributed materials or hosted presentations or seminars given by investment professionals, scholarship search services or people who present themselves as "financial aid consultants." Schools should be aware of the differences between the services provided by these groups and the aid professionals employed in the Financial Aid Offices on college campuses. Financial Aid Consultants The reason that private "Financial Aid Consultants" present seminars is to create a client base. The initial presentation is always free, but follow up consultations are not. Clients (your students' parents) are charged hundreds or even thousands of dollars, despite no real evidence that consultants help families get aid that they wouldn't have received anyway. Some consultants are unscrupulous and of questionable ethics, showing families how to "beat the system" and qualify for aid that is really intended for families in very different situations. And in more severe cases, consultants - and their clients - have been investigated, arrested and convicted of defrauding the Federal Government. There are many consultants who do nothing illegal, but should a family take their chances that following bad advice might result in legal problems? A family considering using a consultant should ask: Where did the consultant receive his or her training regarding financial aid policies and procedures? Has he or she ever had a job at which they were responsible for making financial aid decisions? If a consultant claims to know about different schools' financial aid policies, how does he or she learn them? If a consultant advises a family to manipulate their assets to increase eligibility, what safeguards are they taking to make sure that there are no unforeseen results, such as an increased tax liability? And if the consultant prepares the student's FAFSA, is the consultant willing to sign it, as required by law? Another trap families should avoid are web sites where they will be charged to file a FAFSA online. These sites misrepresent the process and make it sound as though filing a FAFSA by oneself is virtually impossible, despite the fact that millions of students manage to do so each year. For those who need assistance in completing forms, help is always available from guidance, financial aid or admissions personnel, always free of charge. Remember, the first F in FAFSA stands for "Free." It should stay that way. Investment Advisors Investment advisors provide a valuable service if you are in need of advice on investments. But many families with a significant amount of money to invest will not qualify for need-based aid no matter what advice they receive. For families who really need financial aid and facts about paying for college, investment advice is of very limited use. Scholarship Scams Virtually all of your students receive solicitations in the mail from scholarship search services that "guarantee" results. In a best-case scenario, these services go to a web site and collect information that anyone with access to a computer can easily obtain for free. In a worst-case scenario, they are doing nothing but cashing the family's check. There are numerous free scholarship search web sites (such as www.fastweb.com, www.collegenet.com or www.srnexpress.com), and students should be very wary of offers that sound too good to be true. Phrases such as "guaranteed results" and "or your money back," being asked for a deposit, a credit card or bank account number to "hold" a scholarship, or being notified that they've won a scholarship that they didn't apply for, from an organization they have never heard of, are all tell-tale signs of a scam. For more information, visit www.finaid.org (The Smart Student's Guide to Financial Aid) or www.ftc.gov (The Federal Trade Commission). NJASFAA - Financial Aid Professionals In contrast, the financial aid professionals at colleges are the people who make aid decisions every day and are fully trained in how aid works, ethically and legally. We work with students and their families throughout their college career, and families need not bring their checkbooks when they come to us for advice. We are committed to assisting students and families obtain the resources to attend our institutions - it's what we do. The hundreds of professionals who belong to NJASFAA have helped countless thousands of students reach their goals by providing thoughtful and accurate guidance as well as important financial assistance. Consultants try to paint a picture of financial aid officers as unwilling to provide the information students need, yet millions of students attend the nation's colleges with the help of trained financial aid professionals. NJASFAA is committed to helping you locate an experienced aid professional in your area to speak at your school when needed. Go to www.njasfaa.org and click on the "Speakers Bureau" link for more information. Also, please feel free to share this with your staff, students and families when they ask for your advice on Financial Aid Consultants or scholarship scams. NJASFAA is committed to alerting students, families and our colleagues about these issues. Challenging economic times only serve to heighten the anxiety families experience about paying for college. That can be a breeding ground for unscrupulous practitioners trying to "make a buck" by preying on families' worries. We will continue to monitor this trend and provide information to you as needed.
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