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LMC Financial Aid Issue Proves Bogus

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Contrary to accusations by now terminated Lake Michigan College President Dr. Jennifer Spielvogel, the Benton Harbor community college is not out of compliance with federal financial aid regulations, and Vice President of Student and Enrollment Management Doug Schaffer delivered the proof to the college's Board of Trustees in a special meeting this afternoon. The entire issue has proven to be bogus. 

Rather than attacking the charges levied by Spielvogel during her show cause hearing earlier this month, Schaffer called the resulting investigation "a golden opportunity to show how we operate our business." He told trustees, "I'm proud of the team in the financial aid office, and we have a long history of compliance with both Title IV Funds and Title IX as well." Both are federally regulated. 

Schaffer proceeded to lay out the process in which the school handles federal aid for loans, Pell grants, and federal work study programs and the checks and balances the institution employs through such bodies as the Higher Learning Commission and individual, self-directed audits such as ones performed in 2011 and earlier this year.

Schaffer and the financial aid team responded very quickly when the allegations surfaced in the middle of the show cause hearing. He produced what he called a "133 audit" which "shows a history of 15 consecutive years of unqualified and unmodified reports reflecting absolutely no, ZERO, instances of non-compliance with federal regulations.

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Schaffer also pointed to routine self-assessments to review programs and policies in an independent manner. He called that process "very helpful, and it uncovered another golden opportunity to improve our student loan default rate" which had escalated to 33.2-percent several years ago. "Our independent review opened our own eyes to that issue and we implemented plans to reduce the default rate." As a result, corrective actions reduced the rate to 25.9-percent last year, and 18.4-percent this year, "cutting the rate nearly in half!" 

In light of the non-compliance accusations levied by Spielvogel, the college brought in a self-assessment team from Cuyahoga Community College and sought the guidance of a Washington D.C. legal firm that specializes in such situations. The law firm delivered a formal legal opinion saying that LMC was "doing everything we can" to be compliant, "and there is no reason for alarm." 

The original suggestions of non-compliance may well have stemmed from a misunderstanding in the absence of a key player in the financial aid office who was out for an extended health issue leave during the time in question. 

Board Chair Mary Jo Tomasini thanked Schaffer and the finance team for their quick work "during a major disruption," and for their thorough assessment. 

Vice President for Academic Services Leslie Kellogg also recounted the step by step contact she has maintained with the Higher Learning Council throughout the presidential ordeal, and says that the HLC is confident that the LMC Board "handled things professionally, and well," and the organization has no plans to get involved in the issue. She notes that the relationship with the HLC and LMC "has not been damaged in any way."

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