2008 Woodie Awards
Congress enacts sweeping changes in financial aid
Issue date: 10/9/08
The combined efforts of New York Attorney General Andrew Cuomo's office and the United States Congress have brought sweeping change to the complicated world of student loans over the past year, creating a set of reforms that intimately involves Hopkins students and employees.
Since several scandals involving financial aid officers received national attention, including a perceived conflict of interest centering around Hopkins's former Director of Student Financial Services Ellen Frishberg in spring of last year, members of Congress have attempted to make the college loan process more affordable, accessible and simple.
"[Hopkins] was not considered to be more of a player than some of the other schools [that were investigated]," Delicia Reynolds, the legislative counsel to Congressman John Sarbanes (D-MD), who is a member of the House Education and Labor Committee and one of the bill's co-sponsors, said.
But, she continued, "as one of the higher-profile schools on the list, [Hopkins] definitely was carefully considered by both the attorney general and Congress in the crafting of this bill."
The most important recent development was the passing of House's Higher Education Opportunity and Affordability Act (HEOA) of 2008. Passed in August, the bill combines a number of old and new plans targeting both the rising cost of college and the problems surrounding student loans.
The Private Student Loan Transparency and Improvement Act of 2008 (Article X in the larger bill), specifically deals with the regulation of student loans and addresses the problems highlighted by the questionable actions of Frishberg here and by financial aid officers at other colleges and universities.
The bill's reforms deal strictly with private loans that are not subsidized or guaranteed by the federal government.
"Tightening of regulations surrounding these loans will be seen as a welcome move by most," Vincent Amoroso, who replaced Frishberg as Director of Student Financial services, said.
Since several scandals involving financial aid officers received national attention, including a perceived conflict of interest centering around Hopkins's former Director of Student Financial Services Ellen Frishberg in spring of last year, members of Congress have attempted to make the college loan process more affordable, accessible and simple.
"[Hopkins] was not considered to be more of a player than some of the other schools [that were investigated]," Delicia Reynolds, the legislative counsel to Congressman John Sarbanes (D-MD), who is a member of the House Education and Labor Committee and one of the bill's co-sponsors, said.
But, she continued, "as one of the higher-profile schools on the list, [Hopkins] definitely was carefully considered by both the attorney general and Congress in the crafting of this bill."
The most important recent development was the passing of House's Higher Education Opportunity and Affordability Act (HEOA) of 2008. Passed in August, the bill combines a number of old and new plans targeting both the rising cost of college and the problems surrounding student loans.
The Private Student Loan Transparency and Improvement Act of 2008 (Article X in the larger bill), specifically deals with the regulation of student loans and addresses the problems highlighted by the questionable actions of Frishberg here and by financial aid officers at other colleges and universities.
The bill's reforms deal strictly with private loans that are not subsidized or guaranteed by the federal government.
"Tightening of regulations surrounding these loans will be seen as a welcome move by most," Vincent Amoroso, who replaced Frishberg as Director of Student Financial services, said.
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