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Agreement formalizes ongoing initiatives at the Higher Education Student Assistance Authority
Trenton, NJ – The State Authority that provides financial aid and other assistance to New Jersey students announced today that it has reached an agreement with New Jersey Attorney General Anne Milgram formalizing Authority initiatives that advance its mission of making higher education affordable and accessible.
The New Jersey Higher Education Student Assistance Authority (HESAA) and the New Jersey Office of the Attorney General (NJ OAG) signed an Assurance of Voluntary Compliance Agreement last week. Most of the provisions were developed and effectuated by HESAA over the past year and include adoption of a formal Code of Conduct, adoption of a Best Practices Manual along with staff training, hiring a Chief Compliance Officer, and discontinuing certain marketing practices.
“The Agreement memorializes the mutual desire of HESAA and the OAG to promote choice and competition in the student-loan marketplace,” said HESAA Executive Director E. Michael Angulo. “HESAA has always identified those student loan providers that offer the best borrower benefits and has never designated any as ‘preferred’ based on service agreements or any other factor. HESAA and the State’s financial aid community have consistently had the students’ best interest at heart.” Since 1999, HESAA has saved New Jersey students over $40 million in default fees charged on federal loans.
Following a national trend, the NJ OAG began an investigation into student lending practices in May 2007. A number of post secondary institutions, lenders, and HESAA were investigated by the NJ OAG. Executive Director Angulo added, “From day one, HESAA worked cooperatively with the Attorney General's office in developing a Code of Conduct and other measures, the vast majority of which had already been implemented or were in the process of being implemented on HESAA's own initiative prior to the investigation."
The Agreement resolves all issues pertaining to HESAA.
“We are pleased, but not surprised, that our efforts to address the Attorney General’s concerns have been successful, resulting in this mutually agreeable resolution that allows us to continue to focus entirely on serving New Jersey students and families,” says Executive Director Angulo. “As a non-profit organization, everything we do is to benefit over 1 million students and constituents HESAA serves each year. Since April of 2007, HESAA has instituted measures to ensure operational integrity and strict compliance with governing regulations. We are committed to staying in step with the rapidly evolving financial aid regulatory landscape,” the Executive Director said.
“We look forward to continuing HESAA’s proud tradition of assisting New Jersey students and families” he concluded.
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HESAA is one of 34 guaranty agencies in the nation. It administers State scholarships, grants, and loans, delivering approximately |