Travels with Nick

Submitted by Nick Prewett, MASFAA Past President

Representing MASFAA on the state conference circuit has been a highlight of my service as president.  As you know, MASFAA consists of nine states and the MASFAA presidents split up the
states and visit three conferences per year.  I was even lucky enough to visit one state twice!  Through my travels, I drove 2,080 miles and flew 7,642 miles.  I had the distinct pleasure of attending four 50th anniversary parties and celebrating all things that are financial aid association related.  I thought I would share something that I will always treasure from my state visits.

Indiana (January 2017): I will recall Indiana as the first state that I visited.  The memory I will always treasure is cruising around greater Indy with Alex DeLonis in his sweet vanilla smelling car as fluffy flakes of snow fell from the sky.

Illinois (April 2017): This was an exciting conference in the suburbs of Chicago.  By far, Illinois had a unique set-up for snacks at a conference with different types of beef jerky.  A shout out to Michelle Trame for letting me ride in the third row (or torture row) of her SUV.  I am sure that my back and I will always remember that.

Minnesota (May 2017): When I think of Minnesota I think of lakes, so of course this was held at Madden’s on Gull Lake.  I am not sure you could get much more stereotypical Minnesota than having a conference on a lake, with pontoon boats, fried walleye, glow in the dark golf, bingo, and a buffet of hot dishes.

West Virginia (November 2017): Any visit to West Virginia is not complete without listening to some John Denver.  I will never forget attending the board meeting and someone saying that the board is just like Mayberry, where everyone has different hats and they trade them around the table each year.  What a fun place to visit is Charleston.  Who doesn’t love Karaoke at a conference?

Missouri (November 2017): This was by far the largest state conference that I attended and had pomp and circumstance associated more with the Academy Awards than a conference.  There was a red carpet walk, photographers, tuxedos, and stars of the past, present, and future.

Michigan (January 2018): The Henry Hotel in Dearborn overlooks the Ford offices and is in a great location.  This was the 2nd 50th that I was able to attend.  Professional casino games, great charities, and cool sessions.  I could even see Canada from my hotel room.

Iowa (April 2018): Iowa stands out for their 50th, not because they brought back their past presidents, but because they also brought back their first IASFAA president.  Dueling pianos led by the son of a former financial aid director lead you to one heck of a celebration.  I also learned that in Iowa adding a lime to Busch Light was a way to “make it a classy beer.”

Ohio (October 2018): 50th parties and casino themes seem to be a thing.  OASFAA threw a formal night and had their past presidents share some inspirational quotes and inside jokes that made a number of people blush.  As a first, the entertainment crew had so much fun that they stayed late at no charge.

Wisconsin (April 2019): When I heard that WASFAA was going to be held in Green Bay, I hoped there was one activity that we’d have, so of course, we were able to tour Lambeau field!  Financial aid folks at a football stadium is one heck of a party.  WASFAA had a number of new attendees and the future of their association looks bright.  If you were curious, there was a lot of cheese to be found at the conference.   

Iowa (April 2019): IASFAA was worth a second trip to discuss the finer points of financial aid.  I learned a great deal about Bacon, the maple kind, or as most people call it Bacon.

It was a great pleasure to serve MASFAA and meet so many great people throughout the MASFAA region.  I would encourage everyone to take the opportunity and become active in our association and you too may have a once in a lifetime experience.

Purdue in Forbes: What's up with Income Sharing Agreements?

Purdue's Income Sharing Agreement Solution To The Student Debt Crisis

Jon Hartley, Forbes Contributor

As the new school year commences, many college students will finance their skyrocketing tuition through student debt, adding on to the existing $1.3 trillion in total student loans outstanding in the United States. Over 100 students entering their third and fourth years at Purdue University are taking an alternative path, by pledging a portion (or percent) of their future salaries as part of a new Income Sharing Agreement (ISA) initiative known as "Back-A-Boiler." The average Purdue student enrolled will receive $13,789 in funding with the promise to pay it back as a small fraction of their income over 6 to 10 years after graduation. A brainchild of Milton Friedman now championed by former Indiana Governor and current Purdue President Mitch Daniels, ISAs provide an alternative financing option for Purdue students that puts less pressure on students to meet high-interest payments while facing uncertain job prospects. After having spoken to President Daniels and students enrolling in Back-A-Boiler like Purdue management major Amy Wroblewski who is entering a $13,514 contract to fund her junior year, I am confident Purdue’s Income Sharing funding mechanism should assuage the chief concerns of ISA critics and provide a template for other schools across the country to replicate.

Over 60 different majors at Purdue from liberal arts majors to computer engineering majors receive ISA backing

First, no student major is ineligible for ISA funding from Purdue (which is backed by Purdue's research foundation as well as an external investor) despite the liberal belief that only computer science or engineering majors could receive funding under such a framework. The 60 different majors at Purdue receiving Back-A-Boiler ISA funding include but are not limited to various liberal arts majors, business majors and science majors. Indeed, those with higher paying job prospects face lower repayment rates. For instance, a computer science senior will pay 2.57% of post-grad pre-tax income over 7.3 years for $10,000 of tuition paid through an ISA while a liberal arts senior will pay 4.52% of their post-grad pre-tax income over 9.7 years for the same amount. Purdue’s "Back-A-Boiler" program dispels the myth that liberal arts majors could never get funded under an ISA system. Those in majors with lower earning power post-graduation are simply given a longer pay back runway along with a higher payback rate that remains within reason.

Gradually students will be incentivized to pursue majors with better post-college prospects

Second, if scaled to the national level, such differences in ISA repayment rates over time would slowly incentivize students to study majors with better post-college prospects improving the efficiency of our education system in preparing students for higher income earning jobs. Sen. Marco Rubio, who has previously introduced legislation to create a better national legal framework for ISAs, made a related argument when in the fourth Republican primary debate he suggested that “we need more welders and less philosophers,” insinuating that structural education reform should focus more on vocational training career paths with more stable post-college career outcomes. ISAs would create better incentives for students to pursue more stable career outcomes rather than saddle many college graduates with debt and weak job prospects.

Compared to federal student loans, ISAs which offer post-collegiate risk diversification can hardly be called "usury"

Finally, such repayment rates at Purdue are relatively low compared to federal student loans that they could never honestly be called “usury” or “indentured servitude." Purdue prevents even the possibility of so-called “usury” by capping any potential ISA at 15% of total post-grad pre-tax income. Recent analysis of government data finds that the average 2015 college graduate with student debt will have to pay back slightly more than $35,000, many with little or no grace period, meaning interest payments are due immediately upon graduation unlike ISAs which only require payments contingent on a post-college income stream. Given this fact, how can anyone possibly continue to call ISAs “usury” while not apply the same label to federal student loans? For these reasons, ISAs could be near ready to be brought to national level and could play an integral part in education reform. The possibility of a recession occurring in the next few years is a real one. Academic economists like Lisa Kahn at the Yale School of Management have found that recessions can have a seriously negative long-run impact on college students who graduate in Recession years and ISAs offer students an opportunity to insure against recession risk. Sallie Mae student loans demand fixed interest payments upon graduation regardless of macroeconomic conditions. That being said, ISAs alone will not quell rising tuition borne by guaranteed government debt that gives Universities every incentive to increase tuition without any accountability for student outcomes. A recent study by researchers at the Federal Reserve Bank of New York confirms this phenomenon. Education reform plans that impose risk sharing on colleges that accept government backed Sallie Mae loans need to be implemented to solve the national tuition problem. In addition, ISAs may still need a better legal framework in some states to ensure that investors are protected from students refusing to pay their agreed upon income shares. The Purdue "Back-A-Boiler" program in time should also provide some evidence that a legal framework for ISAs exists, assuming student default rates are low. In the meantime, ISAs in some states can give students some immediate financial relief through diversifying the risk associated with their post-college income. For over 100 students at Purdue, they already have.

You can read the original article here

MASFAA Leadership Spotlight - Christy Miller

Name, title, school, role in MASFAA

Christy Miller, Associate Director of Financial Aid Operations, University of Notre Dame

MASFAA Indiana State Representative (ISFAA President-Elect)

How did you get started in financial aid?

I will have been in Financial Aid for 14 years in June 2016 – all at Notre Dame. After working as a temporary employee in the Notre Dame MBA Admissions Office, I was hooked on higher education and knew that I had figured out what “I wanted to be when I grew up”well, sort of. After being offered an entry level position in both MBA and Financial Aid, I flipped a coin (I was 22, how else was I supposed to choose?!). I was in that entry level customer service role in the Office of Financial Aid for six months before being promoted to the first of five other positions I have held in this office. Now I manage staff in the same position I started in (they hate that they can’t get away with anything!) and find myself a Financial Aid “lifer”.

How did you first become involved in your state and regional associations?

My very first experience with any association (I think) was when my supervisor encouraged me to attend our ISFAA Leadership Symposium where I met two VERY wonderful ladies, Heidi Carl and Sue Allmon, who have served as mentors but more importantly friends in the many years since. It’s kind of a blur since then as I immediately jumped into ISFAA with both feet, serving on and chairing too many committees to list and in between serving on ISFAA Executive Committee as Delegate, Treasurer, and now President-Elect. I have a similar MASFAA involvement story that starts with my nomination to participate in the MASFAA Leadership Symposium. Since, I have served on several Program and Local Arrangements Committees, chaired Awards Committee, and now serve as a liaison for my state to the Executive Board.

Why were you interested in a MASFAA leadership role?

For my role as Indiana State Representative, it “comes with the job” so to speak, however, I look forward to being able to continue to serve MASFAA in many different ways in years to come. Anyone who knows me, knows that being involved in our financial aid associations is very important to me. I believe that participation in our associations at any level is critical to the survival of our profession collectively – we cannot continue to do what we do and deal with what we have to deal with, without supporting each other, networking, growing our experience, and mentoring others.

What have you learned through your state or regional association that you were not expecting?

I think the most surprising thing about my participation in ISFAA and MASFAA is how quickly acquaintances become friends and friends become family. It is so great to be a member of an organization where Ohio State can beat Notre Dame in the Fiesta Bowl but the next day my friend Emily Haynam-Janero from Ohio State can call me up with a compliance question and I totally ignore her phone call. Just kidding! Of course I answer that phone call because we are all financial aid professionals with the same goal of assisting students in making post-secondary education a possibility (all while dealing with budget and staffing shortages, regulatory burden, etc., etc.).

What advice do you have for someone new to financial aid?

Absolutely do not hesitate to get involved and meet people! Someway, somehow. I cannot stress how much easier your life will be if you have a network of financial aid folks that you can reach out to with questions, concerns, or to bounce ideas off of.

What advice do you have for someone interested in becoming more involved in MASFAA?

This may sound backwards but get involved at the state level first. The more experience and connections you can gain in your state associations, the more you will be able to bring to MASFAA.

What are you looking forward to learning during your leadership term? Or What did you learn during your leadership term?

This is my second year serving on the MASFAA Executive Board but my first as a voting member and I’m really enjoying learning how MASFAA (and the other state associations) structures their leadership as well as things that I can bring back to ISFAA in terms of process improvements and best practices.

What do you enjoy doing when you are outside the aid office?

You mean we get to LEAVE the financial aid office?!!! Leisure time, what a novel idea. Well, I actually love to read (my inner nerd loves fantasy fiction), college football, and cooking (but not baking – too scientific). I have been known to be artsy from time to time (making things sparkle is what I do best). Also, secretly I want to be a wedding planner when I grow up – totally J Lo style!

Any final thoughts?

At the risk of sounding cliché, don’t wait for someone to ask you to serve on a committee. You have to put yourself out there, fill out a volunteer form for your state association or MASFAA, and start growing your professional network. We work way too hard for too little credit and without the mentorship and support that can be found in our associations, our jobs would be much harder and a lot less fulfilling.

ISFAA Update

(by Ben Burton, Indiana Representative)

What an interesting couple of weeks for financial aid professionals in the state of Indiana! 

First, we held our Winter ISFAA Conference in Indianapolis.  This year we transitioned our winter conference from December to January.  Unlike last year, Mother Nature was smiling on us and the weather was cold but there was no snow/sleet/ice or any of those other wonderful winter weather gifts.  Big THANK YOU to Kristi Fuller from Iowa who was our MASFAA exchange representative. 

Second, President Obama visited Ivy Tech Community College.   If you have not listened to the President’s speech I want to encourage you to do so.  It is available here.  He spent a great deal of time talking about the costs of education and how his free community college initiative would address that issue.  I have to say that his responses to some of the student questions were interesting.  Although, as financial aid professionals we often have to respond to questions like: Why do books costs so much?” to hear the President of the United States answer that question is a very different equation.



So, your trivia question of the day and NO you do not get to google the answer, no cheating:  Prior to the completion of the Coliseum in Charlotte, North Carolina, in 1955, what building had the largest free-spanning dome in the United States and was the largest in the world from 1902 to 1913?

ANSWER: West Baden hotel and casino in French Lick Indiana.  What else will be in French Lick Indiana in May?  The ISFAA Summer conference! I would like to personally invite all of you to join us at our Summer Conference.  Check out our webpage for the all of the information.

So that is quick breakdown of what is happening in Indiana. 

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SPONSOR MESSAGE

A Visit to Indiana

(by Kristi Fuller, Iowa Representative)

During the last week of January, I was privileged to be able to attend the ISFAA (Indiana Student Financial Aid Association) Conference in Indianapolis, Indiana as part of the MASFAA State Exchange program. The theme of the conference “Sailing Away the Winter Blues” was a reminder of warmer and sunny days to come, especially during these cold and blustery days of winter. The best part was being able to return to Des Moines before we received our foot of snow!

Everyone in ISFAA was very welcoming and made me feel right at home as if I was still in Iowa! From the welcome at the airport when I arrived, to my departure from the hotel, I was always welcomed into every activity and session. I was also excited to catch up with MASFAA members from Indiana I had met at the MASFAA Leadership Symposium last year in Columbus, Ohio.

This experience reminded me of how it feels to be a newcomer at a conference and that we must always help out our newer financial aid professionals. The Indiana members were so very kind and went out of their way to introduce themselves to me and make me feel included. I found that one ISFAA member had been a mentor to a current student at Drake University, where I work, while the student had been in high school. Another member had raised her family in Iowa in the same county where I live. Some even knew a former Drake employee or two! What a fun reminder of Iowa while being in Indiana!

Being able to attend another state’s conference was a wonderful experience. Indiana President, Debbie Schumm and her Executive Board were so fun to get to know and learn from. I was able to bring back some ideas of different ways to do things, but was also reminded that no matter where we live, we all have the same rules and regulations to follow, and the same desire to help student’s fulfill their dreams of a higher education.

Thank you ISFAA for your gracious welcome and I hope to see some of you in October here in Iowa!

Kristi Fuller
Drake University
Iowa President-Elect