Consultant Position

October, 2003

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 people who present themselves as “financial aid consultants.” Schools should be aware of the differences between the services provided by these consultants 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 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 some cases, consultants – and their clients – have been convicted of defrauding the Federal Government.

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 maneuver 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 the form, as required by law?

Another trap families should avoid are web sites where they will be charged to file the Free Application for Federal Student Aid (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, at no cost to the applicant.

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 our advice and expertise are always free of charge. 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 sometimes try to paint a picture of financial aid officers as unwilling or too busy 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 also 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’ anxieties. We will continue to monitor this trend and provide information to you as needed.

Sincerely,
David Sheridan, President
New Jersey Association of Student Financial Aid Administrators