Ethics in Financial Aid

1
Ethics in Financial Aid

• Panel
• Susan Little, U of Georgia
• Dave Cecil, Transylvania U.
• Dr. Barry Simmons, Virginia Tech
• Moderator
• Todd Woodlee, Education Finance Partners
• SASFAA Conference, February 13, 2006 Greensboro,
  NC

2
Agenda

• Ethics defined
• Why such attention?
• Why Unethical behaviors?
• Guidelines for Ethical Decision making
• The Financial Aid Ethical Issues
• Susan-A culture of Ethics in the Aid Office
• Dave-Financial Aid procedures and Ethics
• Barry-Financial Aid procedures, cont. and process
  of establishing vendor partnerships, etc.

3
Ethics

• A body of principles of human conduct that govern
  the behavior of individuals and groups.
• A guiding Philosophy.

4
Why the sudden interest

• Where were you on
• November 8, 2001
• March 27, 2002
• June 3, 2002
• June 26, 2002
• The Summer of Mistrustand it continues

5
Lets Discuss

• Why do people make unethical choices?
• We do whats most convenient.
• We do what we must to win.
• We rationalize our choices with relativism.
• Source Theres no such thing as Business Ethics
  John Maxwell

6
5 Factors Impacting Decisions

• Pressure
• Pleasure
• Power
• Pride
• Priorities

7
Ethics in workplace

• Questions to answer
• What are the values, principles, policies of
  your organization?
• What is your responsibility?

8
Financial Aid Ethical Liability

• Consistent application of institutional aid
  policies.
• Development of equitable packaging policies.
• Professional Judgment decisions SAP.
• Treatment of overawards.
• Lender List development.
• Understanding Federal Methodology
• Respectful treatment of those served by
  institution.

9
Financial Aid Ethical Issues

• PRESSURES RESPONSIBILITIES
• State funding reduced and rising tuition.
• Competition for best students.
• Pressure to increase enrollment.
• Increasing costs (money/resources) to administer
  Financial Aid programs.
• Financial Literacy/Debt. Mgt/Default Prevention.
  
• Changing roletax review

10
Ethical Decision Making ACT

• Alternatives Identify all choices
• Consequences Project Outcomes
• Tell your Story Prepare defense
• Source Southwestern Law Enforcement Center of
  Law Enforcement Ethics

11
Ethical Checklist

• Is the decision Legal? Or will actions violate
  laws, codes or constitutional rights?
• Is this decision balanced? Is this decision fair
  to everyone concerned?
• How will I feel about myself after this decision?
  Will it withstand public scrutiny?
• Blanchard and Peal, The Power of Ethical
  Management

12
Guidelines to review/consider

• College/Employer Code of Ethics
• NASFAA Statement of Ethical Principles
• FFELP Industry Practices