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<ref>{{cite web |url=http://video.msnbc.msn.com/nightly-news/46828327/#46828327 |title=Nation's college debt exceeds credit card debt |date=March 22, 2012 |deadurl=no |accessdate=19 January 2013}}</ref> '''American Student Assistance®''' ('''ASA®''') is a [[non-profit]] organization whose mission is to help students successfully complete the financing and repayment of higher education. It is headquartered in downtown [[Boston, Massachusetts]].
'''American Student Assistance''' ('''ASA''') is a national [[non-profit]] organization to help students make informed choices to achieve their education and career goals. It is headquartered in downtown [[Boston, Massachusetts]].


== History ==
== History ==


[http://www.asa.org American Student Assistance] was founded in 1956 under the name '''Massachusetts Higher Education Assistance Corporation''' ('''MHEAC'''). The organization began when a group of people approached [[Massachusetts]] local businesses for [[philanthropic]] donations with the idea of creating a pool of money to guarantee loans for higher education.<ref name="NEJHE">[http://findarticles.com/p/articles/mi_qa3895/is_200610/ai_n16810371 "What the World Needs Now: Cross-National Student Loan Programs"], by Thomas D. Parker, ''[[The New England Journal of Higher Education]]'', Fall 2006. Online at FindArticles.com.</ref> MHEAC went on to become the nation’s first student loan guarantor. Its model of a student loan program—funded by local banks and insured by a non-profit organization—was replicated across the country and by 1965, there were 14 loan guarantors in the United States.<ref name="ASA50Years">American Student Assistance. 50 Years of Making a Difference. 2006.</ref>
[http://www.asa.org American Student Assistance] was founded in 1956 under the name '''Massachusetts Higher Education Assistance Corporation''' ('''MHEAC'''). The organization began when a group of people approached [[Massachusetts]] local businesses for [[philanthropic]] donations with the idea of creating a pool of money to guarantee loans for higher education.<ref name="NEJHE">[http://findarticles.com/p/articles/mi_qa3895/is_200610/ai_n16810371 "What the World Needs Now: Cross-National Student Loan Programs"], by Thomas D. Parker, ''[[The New England Journal of Higher Education]]'', Fall 2006. Online at FindArticles.com.</ref> MHEAC went on to become the nation's first student loan guarantor. Its model of a student loan program—funded by local banks and insured by a non-profit organization—was replicated across the country and by 1965, there were 14 loan guarantors in the United States.<ref name="ASA50Years">American Student Assistance. 50 Years of Making a Difference. 2006.</ref>


In 1990, the [[United States Department of Education]] designated MHEAC as the guarantor for [[Washington, D.C.]] By 1992, MHEAC had begun to expand its services nationwide, so the organization adopted a trade name of American Student Assistance to reflect that its services were available to U.S. student loan borrowers everywhere.<ref name="ASA50Years"/>
In 1990, the [[United States Department of Education]] designated MHEAC as the guarantor for [[Washington, D.C.]] By 1992, MHEAC had begun to expand its services nationwide, so the organization adopted a trade name of American Student Assistance to reflect that its services were available to U.S. student loan borrowers everywhere.<ref name="ASA50Years"/>
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== Voluntary Flexible Agreement ==
== Voluntary Flexible Agreement ==


In 2001, ASA became one of four guarantors to enter into a [[Voluntary Flexible Agreement]] with the US federal government, changing its focus from back-end [[Collection agency|default collections]] to an emphasis on delinquency and default prevention. The Voluntary Flexible Agreement enabled [[Federal Family Education Loan Program]] guarantors to develop programs and techniques to help borrowers avoid student-loan default and all of its negative consequences. ASA’s Wellness program was designed to deliver debt management information to borrowers at critical points along the life of their loan in order to prevent repayment problems before they start.
In 2001, ASA became one of four guarantors to enter into a [[Voluntary Flexible Agreement]] (VFA) with the US federal government, changing its focus from back-end [[Collection agency|default collections]] to an emphasis on delinquency and default prevention. The Voluntary Flexible Agreement enabled [[Federal Family Education Loan Program]] guarantors to develop programs and techniques to help borrowers avoid student-loan default and all of its negative consequences. ASA's Wellness program was designed to deliver debt management information to borrowers at critical points along the life of their loan in order to prevent repayment problems before they start.


Results of these Wellness activities proved that the proactive approach to giving student loan borrowers the right information at exactly the right time were effective in preventing repayment problems. According to ASA studies, graduates who received financial literacy and career information from ASA during the first two years of repayment were half as likely to default as those who did not; since 2002, ASA has beaten national [[Cohort Default Rates]] (borrowers newly entering repayment) by more than 46 percent, with 95 percent of the loans in its portfolio in good standing, on average; and ASA saved taxpayers approximately $120 million dollars through prevented student loan defaults between fiscal years 2001 and 2008.<ref>{{cite web |url=http://www.asa.org/ed-prof/solutions/results/default.aspx |title=Wellness Results - Decrease Delinquency and Default. Saving Taxpayers Money - American Student Assistance |deadurl=no |accessdate=19 January 2013}}</ref>
Results of these Wellness activities proved that the proactive approach to giving student loan borrowers the right information at exactly the right time were effective in preventing repayment problems. According to ASA studies, graduates who received financial literacy and career information from ASA during the first two years of repayment were half as likely to default as those who did not; since 2002, ASA has beaten national [[Cohort default rate|Cohort Default Rates]] (borrowers newly entering repayment) by more than 46 percent, with 95 percent of the loans in its portfolio in good standing, on average; and ASA saved taxpayers approximately $120 million through prevented student loan defaults between fiscal years 2001 and 2008.<ref>{{cite web|url=http://www.asa.org/ed-prof/solutions/results/default.aspx |title=Wellness Results - Decrease Delinquency and Default. Saving Taxpayers Money - American Student Assistance |url-status=dead |accessdate=19 January 2013 |archiveurl=https://web.archive.org/web/20130330090641/http://www.asa.org/ed-prof/solutions/results/default.aspx |archivedate=30 March 2013 }}</ref>


All student loan guarantor VFAs were canceled by the U.S. Department of Education in 2008.
All student loan guarantor VFAs were canceled by the U.S. Department of Education in 2008.



== Looking forward ==
== Looking forward ==
In 2010, federal legislation ended privately financed, federally guaranteed education loans under the Federal Family Education Loan Program, in favor of Direct Loans originated directly by the federal government. Therefore, ASA has guaranteed no new education loans since July 1, 2010. The organization continues to fulfill its obligations as a student loan guarantor to the U.S. Department of Education for its remaining FFELP portfolio, which stands at approximately $35 billion and 1.3 million borrowers.
In 2010, federal legislation ended privately financed, federally guaranteed education loans under the Federal Family Education Loan Program, in favor of Direct Loans originated directly by the federal government. Therefore, ASA has guaranteed no new education loans since July 1, 2010. The organization continues to fulfill its obligations as a student loan guarantor to the U.S. Department of Education for its remaining FFELP portfolio, which stands at approximately $35 billion and 1.3 million borrowers.


Additionally, in 2012 ASA launched “SALT™,”<ref>{{cite web |url=https://www.saltmoney.org/index.html |title=SALT |deadurl=no |accessdate=19 January 2013}}</ref> a financial education membership program that teaches students how to borrow less and more wisely for higher education; how to repay student loans successfully; and how to build better overall financial skills in life. ASA’s goal with SALT is to revolutionize the way students finance and repay higher education, transforming them from passive financial aid recipients to instead proactive, financially savvy consumers who truly own their student loans and finances.
Additionally, in 2012 ASA launched “SALT,”<ref>{{cite web |url=https://www.saltmoney.org/index.html |title=SALT |accessdate=19 January 2013}}</ref> a financial education membership program that teaches students how to borrow less and more wisely for higher education; how to repay student loans successfully; and how to build better overall financial skills in life. ASA's goal with SALT is to revolutionize the way students finance and repay higher education, transforming them from passive financial aid recipients to instead proactive, financially savvy consumers who truly own their student loans and finances.

⚫
ASA is often cited as an expert reference on student loans by national and local media.<ref>{{cite news |last=Martin |first=Andrew |title=Debt Collectors Cashing in on Student Loans |url=https://www.nytimes.com/2012/09/09/business/once-a-student-now-dogged-by-collection-agencies.html?_r=2&pagewanted=all& |newspaper=New York Times |date=September 8, 2012}}</ref><ref>{{cite news |last=Block |first=Sandra |title=Grads Neck-Deep in Debt Have Options |url=http://usatoday30.usatoday.com/educate/college/careers/Car_foc/12-1-06.htm |newspaper=USA Today |date=December 1, 2006}}</ref><ref>{{cite news |title=College Loans Could Cost Some Their Retirement |url=http://boston.cbslocal.com/2012/10/19/college-loans-could-cost-some-their-retirement/}}</ref><ref>{{cite news |title=Student Loan Chat with Betsy Mayotte |url=http://www.boston.com/business/personalfinance/articles/2008/08/07/student_loan_chat_with_betsy_mayotte/ | work=The Boston Globe | date=7 August 2008}}</ref><ref name="Nation's college debt">{{cite web|url=http://video.msnbc.msn.com/nightly-news/46828327/#46828327|archive-url=https://web.archive.org/web/20120326002908/http://video.msnbc.msn.com/nightly-news/46828327#46828327|url-status=dead|archive-date=March 26, 2012|title=Nation's college debt exceeds credit card debt|date=March 22, 2012|accessdate=19 January 2013}}</ref>

In February 2020, a $1.5 million grant from American Students Assistance was awarded to Skills for Rhode Island's Future for its PrepareRI internship program. The announcement was given by Gov. [[Gina Raimondo]] at a news conference at the Citizens Bank headquarters.<ref>{{Cite web|url=https://www.providencejournal.com/news/20200224/ri-nonprofit-group-gets-15-million-grant-to-expand-student-internships|title=R.I. nonprofit group gets $1.5-million grant to expand student internships|last=List|first=Madeleine|website=providencejournal.com|language=en|access-date=2020-02-25}}</ref>


In April 2024, American Student Assistance announced its intention to invest $25 million in mission-aligned funds, companies with diverse founders, and in businesses focused on fostering innovation in career-focused education, postsecondary pathways, and workforce development.<ref>{{cite web |last1=Dawkins |first1=Sandy |title=American Student Assistance Announces Intention to Invest $25 Million in Funds, Early-Stage Firms, and Companies with Diverse Management Focused on Increasing Equitable Access to Impactful Career Readiness and Future of Work Opportunities for Young People from All Backgrounds |url=https://www.prnewswire.com/news-releases/american-student-assistance-announces-intention-to-invest-25-million-in-funds-early-stage-firms-and-companies-with-diverse-management-focused-on-increasing-equitable-access-to-impactful-career-readiness-and-future-of-work-oppor-302110193.html |website=PR Newswire |access-date=8 April 2024}}</ref>
⚫
ASA is often cited as an expert reference on student loans by national and local media.<ref>{{cite news |last=Martin |first=Andrew |title=Debt Collectors Cashing in on Student Loans |url=http://www.nytimes.com/2012/09/09/business/once-a-student-now-dogged-by-collection-agencies.html?_r=2&pagewanted=all& |newspaper=New York Times |date=September 8, 2012}}</ref><ref>{{cite news |last=Block |first=Sandra |title=Grads Neck-Deep in Debt Have Options |url=http://usatoday30.usatoday.com/educate/college/careers/Car_foc/12-1-06.htm |newspaper=USA Today |date=December 1, 2006}}</ref> Both the Boston Globe and the Boston Business Journal have named the organization as one of the best places to work in Boston since 2008. The company currently has approximately 500 employees.<ref>{{cite news |title=College Loans Could Cost Some Their Retirment |url=http://boston.cbslocal.com/2012/10/19/college-loans-could-cost-some-their-retirement/}}</ref><ref>{{cite web |title=Student Loan Chat with Betsy Mayotte |url=http://www.boston.com/business/personalfinance/articles/2008/08/07/student_loan_chat_with_betsy_mayotte/}}</ref><ref>{{cite web |url=http://video.msnbc.msn.com/nightly-news/46828327/#50485093 |title=Nation's college debt exceeds credit card debt}}</ref>


In July 2024, American Student Assistance partnered with Jobs for the Future to create a new center to empower individuals ages 16-24 to navigate education and career pathways after high school by providing access to career resources and opportunities.<ref>{{cite web |last1=Dawkins |first1=Sandy |title=American Student Assistance and Jobs for the Future Partner to Create New Center to Help Gen Z Navigate High-Quality Postsecondary Education and Career Options |url=https://www.prnewswire.com/news-releases/american-student-assistance-and-jobs-for-the-future-partner-to-create-new-center-to-help-gen-z-navigate-high-quality-postsecondary-education-and-career-options-302202052.html |website=PR Newswire |access-date=22 July 2024}}</ref>
Both the Boston Globe and the Boston Business Journal have named the organization as one of the best places to work in Boston since 2008.<ref>{{cite web |url=http://www.asa.org/about-us/careers/awards-and-recognition/default.aspx}}</ref> The company currently has approximately 500 employees.


== References ==
== References ==
{{reflist}}
{{Reflist}}


{{Authority control}}
== External links ==
* [http://www.asa.org American Student Assistance] official web site
* [http://www.saltmoney.org]


[[Category:Education finance]]
[[Category:Education finance in the United States]]
[[Category:Education in the United States]]
[[Category:Organizations based in Boston]]
[[Category:Non-profit organizations based in Massachusetts]]
[[Category:Non-profit organizations based in Boston]]
[[Category:Organizations established in 1956]]
[[Category:Organizations established in 1956]]
[[Category:Assistance]]

Latest revision as of 05:40, 29 July 2024

American Student Assistance (ASA) is a national non-profit organization to help students make informed choices to achieve their education and career goals. It is headquartered in downtown Boston, Massachusetts.

History

[edit]

American Student Assistance was founded in 1956 under the name Massachusetts Higher Education Assistance Corporation (MHEAC). The organization began when a group of people approached Massachusetts local businesses for philanthropic donations with the idea of creating a pool of money to guarantee loans for higher education.[1] MHEAC went on to become the nation's first student loan guarantor. Its model of a student loan program—funded by local banks and insured by a non-profit organization—was replicated across the country and by 1965, there were 14 loan guarantors in the United States.[2]

In 1990, the United States Department of Education designated MHEAC as the guarantor for Washington, D.C. By 1992, MHEAC had begun to expand its services nationwide, so the organization adopted a trade name of American Student Assistance to reflect that its services were available to U.S. student loan borrowers everywhere.[2]

Voluntary Flexible Agreement

[edit]

In 2001, ASA became one of four guarantors to enter into a Voluntary Flexible Agreement (VFA) with the US federal government, changing its focus from back-end default collections to an emphasis on delinquency and default prevention. The Voluntary Flexible Agreement enabled Federal Family Education Loan Program guarantors to develop programs and techniques to help borrowers avoid student-loan default and all of its negative consequences. ASA's Wellness program was designed to deliver debt management information to borrowers at critical points along the life of their loan in order to prevent repayment problems before they start.

Results of these Wellness activities proved that the proactive approach to giving student loan borrowers the right information at exactly the right time were effective in preventing repayment problems. According to ASA studies, graduates who received financial literacy and career information from ASA during the first two years of repayment were half as likely to default as those who did not; since 2002, ASA has beaten national Cohort Default Rates (borrowers newly entering repayment) by more than 46 percent, with 95 percent of the loans in its portfolio in good standing, on average; and ASA saved taxpayers approximately $120 million through prevented student loan defaults between fiscal years 2001 and 2008.[3]

All student loan guarantor VFAs were canceled by the U.S. Department of Education in 2008.

Looking forward

[edit]

In 2010, federal legislation ended privately financed, federally guaranteed education loans under the Federal Family Education Loan Program, in favor of Direct Loans originated directly by the federal government. Therefore, ASA has guaranteed no new education loans since July 1, 2010. The organization continues to fulfill its obligations as a student loan guarantor to the U.S. Department of Education for its remaining FFELP portfolio, which stands at approximately $35 billion and 1.3 million borrowers.

Additionally, in 2012 ASA launched “SALT,”[4] a financial education membership program that teaches students how to borrow less and more wisely for higher education; how to repay student loans successfully; and how to build better overall financial skills in life. ASA's goal with SALT is to revolutionize the way students finance and repay higher education, transforming them from passive financial aid recipients to instead proactive, financially savvy consumers who truly own their student loans and finances.

ASA is often cited as an expert reference on student loans by national and local media.[5][6][7][8][9]

In February 2020, a $1.5 million grant from American Students Assistance was awarded to Skills for Rhode Island's Future for its PrepareRI internship program. The announcement was given by Gov. Gina Raimondo at a news conference at the Citizens Bank headquarters.[10]

In April 2024, American Student Assistance announced its intention to invest $25 million in mission-aligned funds, companies with diverse founders, and in businesses focused on fostering innovation in career-focused education, postsecondary pathways, and workforce development.[11]

In July 2024, American Student Assistance partnered with Jobs for the Future to create a new center to empower individuals ages 16-24 to navigate education and career pathways after high school by providing access to career resources and opportunities.[12]

References

[edit]
  1. ^ "What the World Needs Now: Cross-National Student Loan Programs", by Thomas D. Parker, The New England Journal of Higher Education, Fall 2006. Online at FindArticles.com.
  2. ^ a b American Student Assistance. 50 Years of Making a Difference. 2006.
  3. ^ "Wellness Results - Decrease Delinquency and Default. Saving Taxpayers Money - American Student Assistance". Archived from the original on 30 March 2013. Retrieved 19 January 2013.
  4. ^ "SALT". Retrieved 19 January 2013.
  5. ^ Martin, Andrew (September 8, 2012). "Debt Collectors Cashing in on Student Loans". New York Times.
  6. ^ Block, Sandra (December 1, 2006). "Grads Neck-Deep in Debt Have Options". USA Today.
  7. ^ "College Loans Could Cost Some Their Retirement".
  8. ^ "Student Loan Chat with Betsy Mayotte". The Boston Globe. 7 August 2008.
  9. ^ "Nation's college debt exceeds credit card debt". March 22, 2012. Archived from the original on March 26, 2012. Retrieved 19 January 2013.
  10. ^ List, Madeleine. "R.I. nonprofit group gets $1.5-million grant to expand student internships". providencejournal.com. Retrieved 2020-02-25.
  11. ^ Dawkins, Sandy. "American Student Assistance Announces Intention to Invest $25 Million in Funds, Early-Stage Firms, and Companies with Diverse Management Focused on Increasing Equitable Access to Impactful Career Readiness and Future of Work Opportunities for Young People from All Backgrounds". PR Newswire. Retrieved 8 April 2024.
  12. ^ Dawkins, Sandy. "American Student Assistance and Jobs for the Future Partner to Create New Center to Help Gen Z Navigate High-Quality Postsecondary Education and Career Options". PR Newswire. Retrieved 22 July 2024.
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