The National Association of Student Financial Aid Administrators defended the ethical practices of its members Wednesday, after the New York attorney general accused administrators of misconduct earlier this week.

New York Attorney General Andrew Cuomo said Friday that colleges and universities were receiving financial incentives from student loan companies.

In a letter obtained by The Badger Herald, Cuomo said preferred-lender lists form a financial relationship that provides benefits to universities — specifically financial aid administrators — in exchange for inclusion of the company on those lists.

The problem, Cuomo said in the letter, is that preferred-lender lists do not provide students and parents with a basis for the selection of the loan companies, such as competitive up-front rates and repayment benefits or services.

Cuomo said students and parents are misled by the lack of information and consequently feel as though they are required to use the companies only on the preferred-lender list.

Larry Chambers, president of the Eastern Association of Student Financial Aid Administrators — a division of the national organization — responded to Cuomo's recent allegations in a letter Wednesday, saying financial aid officers do an enormous amount of work promoting financial aid, access to education, community service and loan default prevention.

"It is unfortunate that you have begun to paint a picture in the minds of those we serve that aid officers and lenders may not be trusted," Chambers said in his letter to Cuomo. "It undermines the outstanding work that most all in our profession do, which is finding the appropriate resources for students to meet higher education costs."

Chambers added in the letter that he denounces any individual or organization within the financial aid profession that violates the law. He also wrote that he supports any effort to identify and prosecute those who do break the law.

Dallas Martin, president of NASFAA, clarified the student aid process in a letter to Cuomo and said the principal concern of financial aid administrators is to provide as much student aid as possible.

Despite Martin's denial of Cuomo's accusations, Martin did agree that any misconduct should end, adding there should "greater transparency" of school's preferred-lender list.

Susan Fischer, director of student financial services at the University of Wisconsin, said she is pleased that NASFAA came out with a statement.

"They did a great job in responding in a very heartful manner," Fischer said. "We are glad that the professional association has come out with a reaction."

The primary concern Cuomo's letter has caused, Fischer said, is people questioning the advice of financial aid administrators — breaking the trust that has been in place for years between students and financial aid administrators.

"We are worried for our students," Fischer said. "Please don't be afraid of us; we are here to help."