Proposed legislation threatens to set back the accomplishments of non-profit student loan lender/guarantors like the Connecticut Student Loan Foundation.

For over 40 years, CSLF has promoted access to higher education, helped families find financing for college, and assisted high school guidance professionals to shepherd first-generation and under-served populations into programs to help them discover and fulfill their dreams.

Current media coverage has tended to lump together large lenders and banks with smaller, non-profit companies like CSLF. All companies providing student loans have the potential to serve well and provide good products, but small-scale operations like the Connecticut Student Loan Foundation have always realized the real dividends are service, satisfaction and connection.

So here we are — and this is who we are: mothers, wives, husbands, musicians, mechanics, writers, cyclists, fathers, activists, bakers, readers and crafters.

We live in your town, we’re standing in the same long line at the DMV, our kids sit next to each other in school and we all want the same thing: people who really care about our shared future. That’s the person who answers the phone when you call CSLF.

Help save the Federal Family Education Loan program: click here for more information and learn how you can lend your voice to the fight for student choice and a solution that can work for us all.

http://www.cslf.com

“I am CSLF and I’m here to help you.”

Also see  http://www.keepstudentloanslocal.org

CSLF president Mark Valenti addresses recent statements made in the media in an open letter to school partners, pointing out the nature of economic stressors to the company, the nature of the recent State of Connecticut audit by Johnston and Jaekle, as well as by other regulating bodies, and the need for transparency and clarification of the student loan industry itself.

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March 13, 2009

Dear School Partners:

Recent erroneous reports appearing in one media outlet have questioned the viability and business practices of the Connecticut Student Loan Foundation (CSLF).  Regrettably, this media outlet made no attempt to contact CSLF leadership or staff prior to publishing this information.  Had they done so the release of misinformation and inaccurate reporting could have been avoided.  We feel it is important to set the record straight.

First and foremost, CSLF has funding readily available to make Federal Stafford, Federal PLUS, and Federal Graduate PLUS loans for the 2009-2010 academic year.  In fact, CSLF presently has more than $150 million in funding which we are ready to lend to students.

Further, improving the services we offer to our clients remains a top priority.  We are nearing completion of a major system conversion that will provide state-of-the-art products and services to all of its clients.  These upgrades to our operational processes will help us continue to provide high-quality services to all members of the FFELP community.

CSLF is a non-profit organization dedicated to providing access to funding for higher education.  We are neither an agency nor a quasi-public agency of the State of Connecticut, and as such receive no funding from the State.  Additionally, CSLF has no debts or obligations that are a liability of the State.

Media reports also failed to make clear that the present challenges are solely in the guarantee component of CSLF and were not in any way created by CSLF’s spending, but rather by the current capital market crisis and cuts to student loan programs through the Higher Education Reconciliation Act of 2005 and the College Cost Reduction and Access Act of 2007.  CSLF is working diligently to address these challenges and it bears repeating: CSLF has more than $150 million in funding readily available to make Federal Stafford, Federal PLUS, and Federal Graduate PLUS loans for the 2009-2010 academic year.

In addition to regular internal audits conducted by independent reviewers, CSLF is also subject to oversight from a variety of State and Federal entities.  All of these evaluations and audits of CSLF, from our operating procedures and salaries to management of funds have consistently been positive and have reflected the diligence and commitment CSLF makes to its clients.  Recent reports to the contrary are unfortunately the result of incomplete data collection, inaccurate assumptions and a basic lack of understanding of how the student loan industry operates.  We will be making a concerted effort to educate all interested parties on the intricacies of our business as well as CSLF’s solid record of success.

Our record of supporting students in higher education has been one of success.  Since 2003 alone, CSLF has:

•    Made student, parent and consolidation loans in excess of $1.2 billion.
•    Provided “second chance” loans to individuals totaling more than $313 million.
•    Paid or waived fees on behalf of students amounting to more than $13.4 million.
•    Guaranteed more than 200,000 loans to parents and students amounting to over $1.7 billion and tens of thousands of loan consolidations amounting to over $1.1 billion.

CSLF remains focused on its mission of providing quality education loan products and services to students, parents, and business partners.  As we continue in our work, we will make every effort to ensure that the media, policy makers and most importantly our clients understand CSLF and appreciate the vital role we play in helping students access higher education.  We look forward to continuing our mission and are ready, willing and able to discuss at length CSLF’s operations, funding accounting, trust requirements or any other issues.

Sincerely,

Mark Valenti
President
Connecticut Student Loan Foundation

In an open letter to industry partners submitted to be published to the NASFAA (National Association of Financial Aid Administrators) website, CSLF president Mark Valenti responds powerfully to recent media coverage in one Connecticut newspaper in order to set the record straight. With over $150,000,000 to lend, a pending systems conversion to bring state-of-the-art products and services to students and schools, CSLF exists in 2009 as a free-market success story, prevailing in a difficult regulatory  environment compounded by intense economic pressures.

Valenti emphasized that despite what has been recently said about the Connecticut Student Loan Foundation, CSLF has operated as a non-profit, non-State agency and has received no state or tax monies to assist it. CSLF’s challenges are not unique to CSLF: all across the country, small FFEL lenders like the Foundation have been hit hard by changes in legislation, the condition of the capital market, and cuts to federal student loan programs.

We hope that we continue to provide an opportunity to better understand the challenges and rewards of serving the higher education community.  Mark’s letter, available here as a .pdf file at the link below, provides an in-depth response and notes that CSLF remains focused on its mission to provide quality education loan products and services to students, families and business partners.

Please click on the link to view or download the letter, available here in .pdf.

These posts are in response to recent press regarding The Connecticut Student Loan Foundation. In accordance with CSLF’s business practices, we are posting our responses. We hope they reveal a continuity of ethical, market-appropriate strategies in as timely and transparent fashion as possible.

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CONNECTICUT STUDENT LOAN FOUNDATION

FACT SHEET

CT Student Loan Foundation – Overview

The Connecticut Student Loan Foundation is a non-profit corporation that administers, guarantees, and finances loans within the Federal Family Education Loan Program (FFELP). CSLF promotes access to higher education by helping students and their families plan for and pursue a postsecondary education.

Since 2003, CSLF has:
•    Guaranteed more than 200,000 loans, made to parents and students, amounting to over $1.7 billion dollars.   CSLF has also guaranteed tens of thousands of loan consolidations during that same time amounting to over $1.1 billion dollars
•    Issued student, parent and consolidation loans in excess of $1.2 billion dollars
•    Provided “second chance” loans to individuals amounting to $313 million dollars by purchasing previously defaulted loans of borrowers who have proven they have matured enough to meet their responsibilities

These significant accomplishments have been performed without funding from or liability to the State of Connecticut.

Structure & Oversight

•    CSLF is not a state agency or a quasi-public agency
•    CSLF receives no funding from the State of Connecticut
•    The Foundation’s bonds, note and other obligations are not a debt or liability of the State of CT
•    CSLF is regularly audited by both the U.S. Department of Education and independent auditors

Compensation & Benefits

•    There have been no executive salary increases for nearly 18 months
•    The CSLF President’s salary was recently reduced by 7%
•    Other executives and managers took a 5 % salary cut
•    Other employees have taken either a three (3) percent salary cut or a one-day per pay period furlough
•    All employees, including executives,  have taken an additional 2 % cut in compensation as a result of suspending company contributions to the Foundation’s  defined contribution pension plan
•    A car allowance is a common form of compensation, particularly in a competitive industry that requires frequent visits to clients.  There was never a time when 25 employees received a car allowance.

Marketing activities

•    The nature of CSLF’s business requires it to compete with both for-profit and not-for-profit entities.  Competing in business requires expenditures on marketing activities and materials
•    CSLF has in the past, used golf tournaments and event tickets to entertain and market its products and services to schools and lenders in a competitive environment.  These have also been used to support scholarship fund raisers
•    Changes in Federal and State regulation and adoption of codes of conduct no longer allow schools to accept invitations to such events

CSLF in the Community

•    CSLF has directly provided or has been instrumental in providing scholarships to numerous individuals over the years.  Since the 2002-2003 fiscal year, this funding has exceeded 700,000
•    CSLF has supported scholarship funds raising conducted by both public and private educational institutions in Connecticut.  This includes supporting the Barnard Scholarship Program as a sponsor and forgiving more than $170,000 of loans to Barnard scholars
•    Over the past six years, CSLF alone has conducted approximately nine hundred (900) college planning sessions, financial aid workshops, Free Application for Federal Student Aid (FAFSA) workshop, money management workshops and other seminars and training and professional development sessions for students, parents, guidance counselors and financial aid administrators
•    Between 2003 and 2008, CSLF paid or waived fees on behalf of students amounting to more than $13.4 million dollars in addition to lowering and negotiating lower interest rates for borrowers

3/11/09

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A Statement by President Mark Valenti:

State Auditors, working at the request of Michael Meotti, Commissioner of the Department of Higher Education, have written a letter dated March 5, 2009 which addresses operations at the Connecticut Student Loan Foundation (CSLF).  Copies of this letter were distributed to you as well as legislative leaders.  Although I have obtained a copy of that letter, incredibly, neither I nor the CSLF Board of Directors were officially provided with a copy.  While it would appear that the Commissioner has had a number of conversations with State auditors, neither I nor the members of the CSLF Board were ever contacted during the “research” process.   There was not a single discussion with me or my executive staff concerning these findings.  The Auditors of Public Accounts and Commissioner Meotti have made no attempt to discuss with me CSLF’s operation or documentation as a result of these “findings.”  Had the auditors spoken with me they would have realized the extent of their misrepresentations prior to releasing this information.  As both President of CSLF and as a Certified Public Accountant, I find the approach used by the auditors to be highly unacceptable, incomplete and grossly unprofessional.

As part of its mission, CSLF provides services for Connecticut residents and Connecticut schools free of charge.  There is no cost to the individuals, the schools or the State.  CSLF is not a state agency or a quasi-public agency and as acknowledged by the State auditors in their letter to Mr. Meotti, “The State does not provide funding for the Foundation nor is its bonds, notes or other obligations a debt or liability of the State.”  The majority of CSLF’s revenues come from interest earned on the student loans it originates and fees it receives for services provided to the United States Government through the U. S. Department of Education (ED).  CSLF’s operating performance, including its expenses, is regularly audited by both ED and independent auditors.

The State auditors’ lack of understanding of the student loan industry has resulted in a letter that serves to create a misleading picture of CSLF, its business model and what it does to fulfill its mission. The nature of CSLF’s business requires it to compete with both for-profit and not-for-profit entities. Like other businesses in a highly competitive marketplace, CSLF makes expenditures on marketing activities and materials.  For instance, CSLF has in the past, used golf tournaments and event tickets to both support school and charitable events and to entertain and market its products and services to schools and lenders in a competitive environment.  All such expenditures and related activities were well within the industry norm, both with regard to the amount and type of activity.

The auditors made no attempt to understand the CSLF business model.  If they had, they would have learned that the capital market turmoil coupled with recent severe cuts made by Congress  to the Federal Family Education Loan Program (FFELP), and not excessive spending, has created CSLF’s current financial dilemma.

CSLF’s primary mission, to improve educational opportunity, is largely accomplished through participation in the FFELP.  Since 2003 (which is the earliest year that has been cited by the auditors and a year that was previously covered by a State of Connecticut audit) , CSLF has guaranteed more than two hundred thousand loans made to parents and students amounting to over $1.7 billion and has guaranteed tens of thousands of loan consolidations amounting to over $1.1 billion.  Since 2003, CSLF has made student, parent and consolidation loans in excess of $1.2 billion.  CSLF has also provided “second chance” loans to individuals amounting to $313 million since 2003 by purchasing previously defaulted loans of borrowers who have proven they have matured enough to meet their responsibilities.

CSLF has directly provided or has been instrumental in providing scholarships to numerous individuals over the years.  Since 2003, sponsorships or scholarship fund raisers and direct scholarship funding has exceeded $700,000.  CSLF has supported scholarship fund raising conducted by both public and private educational institutions in Connecticut.   Barnard Scholar award winners, all of who attend Connecticut State universities, received more than $170,000 since 2003 in scholarships from CSLF by way of loan forgiveness.

CSLF has touched the lives of tens of thousands of Connecticut residents.  Providing one-on-one sessions with families who are in need of detailed assistance concerning the college application and financial aid process is commonplace.  In addition, during the past six years, CSLF has conducted approximately nine hundred (900) college planning sessions, financial aid workshops, Free Application for Federal Student Aid (FAFSA) workshops, money management workshops and other seminars, training and professional development sessions for students, parents, guidance counselors and financial aid administrators.

In order to provide student loan borrowers additional benefits, CSLF has reduced interest rates on its loans and has contracted with other lenders to obtain additional reduced interest rates for borrowers.  In addition, between 2003 and 2008, CSLF paid or waived fees on behalf of students amounting to more than $13.4 million.

The audit letter of March 5, 2009 raises concerns about cash flow.  Addressing this negative cash flow would require a specific understanding of the intricacies of CSLF’s business model, the trust securing its bonds and Federal regulations regarding the establishment of funds.  It requires understanding of the long-term positive future benefits of current cash outlays and how that has been disrupted by legislation and the capital market crisis.

CSLF has consistently been forthright with information.  I have advised the Office of Policy and Management, the Treasurer’s

office, State legislators and others including the Commissioner of Department of Higher Education on a number of occasions beginning over a year ago, that the current crisis in the capital markets coupled with recent severe cuts made by Congress  to the Federal Family Education Loan Program is what has created CSLF’s current financial difficulties.

In fact, it is CSLF’s current operating concerns that provide the impetus behind Raised Senate Bill No. 802.  As I stated in my testimony before the Higher Education and Employment Advancement Committee at a public hearing on February 10, 2009, CSLF can no longer sustain its operation through its current business model.   CSLF’s business model no longer works due to recent federal legislative cuts and the capital market crisis.  My staff and I welcome the opportunity to sit down with state policymakers to discuss CSLF’s business and federally mandated structure.

The auditors appeared to have concerns about negotiations being conducted with an outside company.  Although negotiations with an outside company have been taking place on a confidential basis, no one from the State auditors has made an inquiry to me concerning that issue.  The comment in the March 5, 2009 letter “…however, the Foundation has not provided us with any information concerning these negotiations,…”  is misleading.

Another misleading presentation being made by the auditors is suggesting that CSLF is a top-heavy organization.  In addition to the auditors’ apparent misidentification of managers, managers and supervisors have assumed increased workloads and greater responsibilities due to staff reductions.  This has led to inaccurate conclusions by the auditors.

The issue of compensation is another topic of the auditor’s letter of March 5, 2009.  At least three (3) executive compensation studies have been conducted in recent years on behalf of Connecticut Student Loan Foundation’s Board of Directors.  Most recently, a compensation study was conducted in 2007 by Hire Expectations, a consulting firm that had specific expertise in this area.  The study indicates the executive salaries at CSLF to be at, or below, comparable industry norms.  Auditors also neglected to report recent salary cuts which reduce the compensation being presented in the letter.

Additionally, without the knowledge of the business, the industry or the business model, the auditors fail to appreciate the need for CSLF staff to travel to schools and lending institutions to promote CSLF’s products and services, to provide their staffs and students with training sessions and seminars and to assist families with completing forms and applications.  As such, a car allowance is a normal and necessary form of compensation.

The auditors also made questionable representations regarding holiday parties, support for the retirement party for a financial aid director and other matters.  CSLF has not had an off-site holiday gathering for its Board and managers since 2006.  CSLF verified, in advance, that our participation in the retirement party was within the limits that would allow State employees to participate based on Connecticut State Ethics Regulations.

There are other issues raised in the auditor’s letter which I would be willing to discuss with anyone.  Issues such as the building foreclosure have not been properly presented.  This pending legal issue can be discussed privately.

To say the least, I am thoroughly disappointed by the lack of communication which led to the March 5, 2009 correspondence.  All additional documentation that was needed and all answers to questions would have been provided if I or my senior staff had been allowed to be involved in this process.  I am gravely concerned that recent information provided to the media by Mr. Meotti and the March 5, 2009 letter have severely impacted CSLF’s ability to negotiate with an outside entity.  These negotiations have been conducted with the intent of providing continuation of State jobs and services.

As I have stated, and as the auditors have pointed out, CSLF receives no funding from the State of Connecticut and has no debts or obligations that are a liability of the State.  The Connecticut Student Loan Foundation is neither a State agency nor a quasi-public agency.  It is a 501(c)3 non-profit organization created by State statute that participates in the Federal student loan program.  CSLF is thoroughly audited by both federal and independent auditors.

I invite anyone interested in gaining a complete and accurate understanding of Connecticut Student Loan Foundation to visit me and my staff.  We are ready and willing to discuss at length the results of any audits, CSLF operations, its fund accounting, its trust requirements or any other issues.

Mark W. Valenti
President

Notes:
____________

1. Cuts to the FFELP were made through The Higher Education Reconciliation Act of 2005 and the College Cost Reduction and Access Act of 2007.
2. State Audit Reports for years 2002 through 2005 are included.
3. The Barnard Scholar Award is presented to exceptional students attending any one of the four Connecticut State Universities.  CSLF has both been a sponsor of the Award dinner and has forgiven student loans of Award winners.
4. Cuts to the FFELP were made through The Higher Education Reconciliation Act of 2005 and the College Cost Reduction and Access Act of 2007.
5. This attachment is a document presented at a recent Board of Directors meeting which discusses some background of CSLF’s loan servicing and lending activities.  Loan servicing (which began in the early 1980’s) was addressed in the audit letter during a discussion of staff reductions.

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A letter to the Editor by Senior Vice President & CFO Diane Del Rosso:

March 11, 2009

Regarding:  Don Michak, “Student Groans”, Journal Inquirer, Monday, March 9, 2009 2:21 PM EDT

Dear Editor:

I guess this is a lesson in not believing everything you read.  What happened to responsible reporting?  The Auditors of Public Accounts for the State of Connecticut sent a letter to the Commissioner of Higher Education (Michael Meotti) reporting on information that Mr. Meotti asked them to report on.  Mr. Meotti is an Ex-Officio member of the Connecticut Student Loan Foundation’s (CSLF) Board.   The letter contained errors and insinuations regarding CSLF.  Not reported in the letter or article is the good work done by CSLF’s staff, nor the number of students and families that have been assisted by CSLF, either through guaranteeing their student loans, providing student loans or with counseling them in their education choices.  Also not reported is a lengthy list of prudent and successful business decisions that have helped CSLF continue its mission despite numerous and frequent changes to the industry

There are two very important facts that were not reported.  First, CSLF is not a State agency or a quasi-state agency and does not receive State money.  Second, no one at CSLF has been accused of misappropriating or stealing funds.  Why would the Auditors of Public Accounts spend their time reviewing information of an entity that does not receive State funds?   More importantly, why was CSLF not afforded the opportunity to review this information with the auditors, as is customary?  Someone set out to hurt CSLF, but what is the motivation?

CSLF operated, until recently, three distinct business lines – loan guarantee, loan servicing and student loan lending.  The student loan industry is a highly regulated industry that must follow complex laws and regulations. CSLF is regularly audited and reviewed by its independent auditors, Federal Auditors and State Auditors.   While I have sometimes disagreed with conclusions reached by auditors and reviewers in the twenty-one years that I have been employed at CSLF, I have always been given an opportunity to represent and defend CSLF’s actions, until now.  The letter written by Mr. Johnston and Mr. Jaekle has misconstrued information for some specific, unknown reason that I find completely unwarranted and offensive.

I have learned that anyone can take information and misconstrue it to harm others for their own purpose.  Thank you for helping the Auditors of Public Accounts and Mr. Meotti accomplish this.

Respectfully,
Diane Del Rosso
Senior Vice President & Chief Financial Officer
Connecticut Student Loan Foundation
525 Brook Street, Rocky Hill, CT 06067
(860)257-4001, extension 228

Brad J. Ward of http://squaredpeg.com refers in January to a broad study done by the University of Massachusetts at Dartmouth about Social Media within college admissions offices (http://www.umassd.edu/cmr/studiesresearch/mediaandadmissions.cfm) and not surprisingly, social media usage trends universally up, in some cases remarkably so, even over last year.

The Center for Marketing Research at UMass compares adoption of social media by admissions offices in 2007 and 2008 across “… all of the accredited four-year institutions in the United States.”  All.  Of note is that though the evidence points to broader application of such tools as blogs, facebook, twitter and YouTube, that schools have yet to fully utilize the potential of social media.

While the strategies and commitment of institutions in higher ed using social media may seem as of yet tentative or lacking depth, the study points out that higher ed seems to be more hip to social media than most Fortune 500 companies. As pointed out astutely in the comments on Mr. Ward’s blog, this isn’t much of an epiphany: the deeper pockets and bigger budgets of the high flying corporate marketing department still feels free to only dabble in social media and still doubts the return on investment that community engagement brings. Colleges and universities (many of whom have seen their endowments shrink this year as the stock market took a down-turn) are taking their cues from smaller, local and non-profit companies, leveraging the connection and loyalty that social media can bring.

A new Fortune 500 Business Blogging Wiki shows a mere 13% percent of major corporations investing in social media, while UMass Dartmouth’s longitudinal study indicates a whopping 41% of admissions offices at colleges and universities diving into social media.

Not too surprisingly, the private schools still have deeper pockets and outpace public colleges and universities in their use of social media, with 72% of private schools utilizing new technology to reach out to potential students, versus the 28% of public institutions. Since public institutions rely heavily on in-state students’ near automatic application to their admissions’ offices, these statistics would reveal the smaller budgets and less pressing need to recruit students. As the economy continues to shift and families choose even less expensive community colleges over state schools, I predict we’ll see another shift in one to two years.  State colleges and universities will see the ROI inherent in local and national engagement of prospective students.

According to the study, a full 85% of schools are using at least one form of social media.  Will the social media programs in higher education flow to where the technology will be in one to two years?  If they’re savvy, they’ll listen to their built-in experts: their students. They’ll already be using whatever the “new” new media will be.

For more information on Web 2.0 for Higher Education, please see our comprehensive primer on social media: http://cslf.wordpress.com/2008/09/09/what-is-web-20-for-higher-education/

To interact on Twitter, please follow http://twitter.com/Mariana_66

To interact on Facebook, become a fan at http://www.facebook.com/pages/Rocky-Hill-CT/Connecticut-Student-Loan-Foundation-CSLFSusie-Mae/7001899781

Don’t forget to friend us on MySpace! Many blogs and podcasts are available – no mP3 hardware needed except the one you’re already using – your computer! Go to http://www.myspace.com/first_rate.

For a rich array of information on student loans, college access and planning and much more, go to http://www.cslf.com.

By Mariana Evica

September 4, 2008

The internet has permanently changed and accelerated the way we communicate: as individuals, Financial Aid and allied professionals, and as institutions.  Web 2.0, or Social Networking, is the next phase in the evolution of communication on the internet.  Here’s information pertaining to who is using it, how it can support higher education and why you need to become involved.

What is Web 2.0 and Social Networking?

To understand the term “Web 2.0″ is to grasp a little bit of tech-savvy slang.  Web 2.0 as a descriptor is intended to imply, that like a new software upgrade, that this version of the Web is “New!” and “Improved!”  Or course, it’s the same old internet, technically, but what has changed and why is it an improvement?

Very simply, the “old” internet was about presentation – one way communication. Web pages were static sites that people would visit, look at, and often not return to if the site lacked additional value.  That version of the web was like traditional publishing and didn’t offer a lot of interaction.

Gradually, as access to creation and maintenance of web content became easier and less expensive, media-rich ways of two-way communication such as blogs and social networks emerged.  The internet-using public discovered it had a lot to say, create, distribute and discuss.

The Pew Internet & American Life Project defines a social networking site as:

“…an online place where a user can create a profile and build a personal network that connects him or her to other users.”

In other words, a social network is an online community for social interaction, connection and sharing. They range from age-specific spaces for children to professional career networking sites.  Any given social network may use any or all of the current methods for communication and sharing common to Web 2.0.

How are people collaborating and using Web 2.0 and Social Networking now?

• Blog – short for Web Log, like an online column or diary, often about a single topic or theme, blogs fall along a spectrum from personal to professional.  A blog can be individually or collaboratively written, and invites comments and further discussion.
• Wiki – collaborative reference sources, where authorized contributors add to the knowledge base. Ex: Wikipedia. Can be used on smaller, more specialized and controlled scale as well
• Social Networking Platform – membership-based online “spaces” with user-friendly interfaces designed for members to interact with each other. Ex.: MySpace, Facebook, LinkedIn, Ning
• Forums – message board or thread-based online discussions where users can post initial messages to spark discussions on a topic or solicit feedback
• Media Sharing – Users share media content (pictures, video, and audio) via many methods of distribution: email, posting on one another’s social media profiles, subscribing to friends’ channels, etc. Example: YouTube and Flickr.

Who uses Social Networking?

“In the past five years, such sites have rocketed from a niche activity into a phenomenon that engages tens of millions of internet users. More than half (55%) of all online American youths ages 12-17 use online social networking sites….”

~ Pew Internet & American Life Project national survey of teenagers 1/3/07

http://www.pewinternet.org/pdfs/PIP_SNS_Data_Memo_Jan_2007.pdf

How can the higher education community use this and why?

Members of the Higher Education community have a common need to share information and resources with each other as well as to reach students, families, and members of the academic community. The flexibility of the platforms, coupled by the fact that students enthusiastically embraced the methods and technology first make this an ideal match.

• Vertical information sharing to connect with students and families
• Horizontally to share information and resources within the higher ed community
• Because social media promotes not just two-way, but many-way  community-style sharing, resources are shared efficiently
• Knowledge is accessible to many and many get to contribute and be heard

Chronicle of Higher Education

The Chronicle of Higher Education has been the standard bearer for information and communication for the post-secondary education community for many years. Its online version supports 1 million unique visits and 12 million page visits per month.  Now The Chronicle has embraced social networking and Web 2.0 for all it has to offer.  Users can communicate, interact and share information globally with media, opinion and shared resources:

• The Chronicle of Higher Education has eight different blogs available on their website, aimed at a variety of topics and users, from Post-Secondary Education news, fund-raising, the impact of the 2008 election on higher ed, the impact of culture and the arts, and others: http://chronicle.com/blogs/
• The Chronicle also has a very rich Facebook page, with nearly 700 members, news feeds, audio broadcasts, and video: http://www.new.facebook.com/pages/Chronicle-of-Higher-Education/12692955711

Classroom/learning uses

• Classrooms go digital: course info, lesson plans, supplementary materials, etc., are posted and allow for questions, comments and discussions by students
• Example: http://blog.lib.umn.edu/raim0007/wost3307/ – the public blog for the University of Minnesota course GWSS 3307 – Feminist Film Studies: On Media, Representation, and Women Who Make Movies
• Example: http://uchicagolaw.typepad.com/ – The University of Chicago School of Law has this faculty blog with podcasts to discuss curriculum, lectures and current events that impact teaching at the school

Distribution of School/Community Information

• Blogs and social networks announce community events
• Many schools now using blogs and mobile phone alerts for crisis communication. If comments are allowed, students and families can provide valuable personal assistance to one another. Example:  Tulane University’s recent blog for Hurricane Gustav on their emergency notice page: http://emergency.tulane.edu/
• Libraries connect with students, faculty and other libraries: Temple Univ Library http://blog.library.temple.edu/liblog/
• School blogs range from informal to official, numbering in the thousands, many substituting for or enhancing PR communications
• Example: Stanford Univ Press blog http://stanfordpress.typepad.com/
• Example: Dickinson College http://blog.dickinson.edu/

Recruiting/Marketing/Admissions

• A Google search for “admissions blogs” returns over 1 million results
• Schools now routinely use blogs as a tool for recruiting students, affording them an insight into the school and an opportunity to interact: asking questions about the admissions process, the school and its community, and other questions. Questions regarding other areas, such as Financial Aid, can be effectively redirected to the appropriate people.
• Example:  A recent entry on MIT’s Admissions blog that addresses admissions statistics at MIT: http://www.mitadmissions.org/topics/apply/admissions_statistics/mit_admissions_statistics_2008_1.shtml
• Example: Oregon State University’s admissions blog that provides a context for how OSU relates to the world: http://oregonstate.edu/admissions/blog/

Best Practices for Higher Ed and Non-Profits in the Web 2.0 Environment

• Previously uncharted waters are now gaining more defined boundaries as Social Media professionals like Heather Mansfield of Diosa Communications ( http://www.diosacommunications.com ) aggregate and share information:
• For example, institutional users of MySpace and Facebook are encouraged to maximize all social networking platforms by using their profiles and pages to drive traffic not just to their primary domain, but also to presences on YouTube, Flickr, or other social networking sites in order to broaden the opportunity for visitors to get to know the organization.  Heather also encourages users to funnel an organization’s social network visitors to join their organization’s email marketing/newsletter campaigns, to use every opportunity to bolster connections from prospective students through alumni.

Reaching Teens and Post-Secondary Students Where They Are

• The Pew Internet & American Life Project also cites that 48% of teens visit social networking websites daily or more often; 26% visit once a day, 22% visit several times a day
• Also cited: statistics suggest that demographics do not drive teen social networking usage over all: by household income (greater than and lesser than $50,000) 55 and 56% respectively are active users and by ethnicity (White, non-Hispanic versus Non-White) 53 and 58% respectively are users. With a +/- 5% margin of error, this indicates the statistical differences are insignificant
• Data from 2007 from MySpace itself indicated over 65 million users. More recent stats cite more than 110 million monthly active users
• Recent research by Jeremiah Owyang of Forrester Research (http://www.web-strategist.com/blog/2008/01/09/social-network-stats-facebook-myspace-reunion-jan-2008/) indicates a huge surge in Facebook use, however, with growth soon to approach use on MySpace:

• More than 60 million active Facebook users, an average of 250,000 new Facebook registrations per day since Jan. 2007, an average of 3% weekly growth since Jan. 2007 and active users doubling every 6 months
• Facebook maintains a 85 percent market share of 4-year U.S. universities

• Michael Wesch, a professor of cultural Anthropology at Kansas State University caught a lot of people’s attention with a YouTube video that summarized the impact of Web 2.0 on students and the academic environment.  He helped 200 of his students at KSU collaboratively survey their own media habits. These 200 students came up with the following statistics:
• My average class size is 115
• I will read: 8 books this year, 2300 web pages and 1281 Facebook profiles
• I will write 42 pages for class this semester and over 500 pages of email
• The video and his findings are here on his website: http://mediatedcultures.net/ksudigg/?p=119

Some Examples of Schools Using Social Networking

• Wide variety of school pages, ranging from student/alumni-produced, un-official “fan” and “scoop” pages to more officially/professionally created and administrated pages
• Currently in use at all levels and categories: community colleges, public and private institutions, etc.

MySpace:

• University of Connecticut at Storrs:   http://www.myspace.com/uconnec
• Post University in Waterbury: www.myspace.com/postuniversity
• Unofficial University of New Hampshire: http://www.myspace.com/univofnh

Facebook:

• Southern Connecticut State University: http://www.new.facebook.com/pages/New-Haven-CT/Southern-Connecticut-State-University/27523407609
• University of Hartford: http://www.new.facebook.com/pages/West-Hartford-CT/University-of-Hartford/22750936843
• Wesleyan University: http://www.new.facebook.com/pages/Middletown-CT/Wesleyan-University/8643976193
• Housatonic Community College: http://www.new.facebook.com/pages/Bridgeport-CT/Housatonic-Community-College/14796165514

Lenders:

A very small number of lenders currently have Facebook and/or MySpace Pages:

• Connecticut Student Loan Foundation on Facebook and MySpace: http://www.new.facebook.com/pages/Rocky-Hill-CT/Connecticut-Student-Loan-Foundation-CSLFSusie-Mae/7001899781 and http://www.myspace.com/first_rate
• It should be noted that while there is a paucity of lenders on Facebook, there are over 500 student loan discussion groups populated exclusively by Facebook users. There are also Education, College-Planning, Student lending, Admissions Counseling and allied communication professionals represented by their individual profiles on Facebook.
• Edvisors/Student Loan Network: http://www.myspace.com/financialaidpodcast

Lenders who blog on separate platforms:

• NextStudent (industry and company-specific news, both original content and aggregated reporting): http://www.nextstudent.com/student-loan-blog/blogs/sample_weblog/
• Edvisors/Student Loan Network has multiple blogs:  http://www.studentloannetwork.com/student-loan-help/, http://www.financialaidpodcast.com

So What Now?

The time is now to become acquainted with social networks and all the associated media: blogs, video content and their social sharing sites, such as YouTube, Flickr, MySpace, Facebook, and other independent blogs and social sites.

How to begin?

Sign up!  Social networks make it free and easy to start.  Become familiar with privacy controls and functionality at your own pace, deciding how much or how little you wish to present. Then, search for existing contacts among friends, professional contacts, family members and institutions. Search based on your personal and professional interests – discover what is already out there and what is not (yet!)

http://www.myspace.com

http://facebook.com

Join the CT Financial Aid group on Facebook!

After you sign up for Facebook, find us and join the discussion!  You can either search for the group using the search feature or try this link to join (you must be logged in):   http://www.new.facebook.com/group.php?gid=25281497645

Visit CSLF on MySpace and Facebook:

Come and find CSLF and friend us and take advantage of a very rich resource for parents and students on MySpace and Facebook:

http://www.myspace.com/first_rate

http://www.myspace.com/susie_mae_loans

http://www.new.facebook.com/pages/Rocky-Hill-CT/Connecticut-Student-Loan-Foundation-CSLFSusie-Mae/7001899781

For more information on best practices in higher education, visit and explore the website of Heather Mansfield, called Diosa Communications. Heather Mansfield has pioneered best practices in social networking for a variety of Non-Profits and schools on MySpace and Facebook:

http://www.diosacommunications.com

For a list of schools on various social media sites:

http://www.edustyle.net/gallery_other.php