# LCMS Convention Workbook_St. Louis Missouri_2019_S58 # Machine transcription, uncorrected — CHI Digital Archive (demonstration) 58 OFFICER, BOARD, AND COMMISSION REPORTS determine the feasibility of privatizing student lending at the seminaries; and be it further Resolved, That the preferred lender for student loans at the seminaries be a synodwide corporate entity; and be it finally Resolved, That if this group identifies a reasonable alternative and lenders are willing to participate, the seminaries be encouraged to withdraw from the Title IV Student Financial Aid Program.” Student Lending Task Force Randy Boehm (Consultant) Kevin Tilden (CFO, Concordia Irvine) Rev. Ben Haupt (Asst. Professor, Concordia Seminary, St. Louis/LCEF Board) Rev. Mark Sheafer (Financial Aid Director, Concordia Seminary, Fort Wayne) Gerald Kirk (CCO, LCEF) Larry Crume (VP National Lending, LCEF) Tim Ramberger (VP Compliance, LCEF) Rev. Ken Krueger (President, LFCU) Jennifer Rutherford (VP, LFCU) Task Force Goal Evaluate the feasibility of creating a Lutheran student loan program through LCEF/LFCU in lieu of the Federal Student Loan Program. Prominent Issues •• What are the legal and regulatory issues? •• Must create a product that competes in the marketplace. •• Feasibility of all students at all CUS institutions and seminaries will be considered by the Task Force (market potential). What Prompted the Task Force? Potential government intervention, namely: •• California SB 1146 •• Title IV (Higher Education Act) •• Title IX compliance Legal Issues LFCU •• LFCU can only lend to LCMS members, based on the authorized LFCU field of membership •• Per NCUA; LFCU can only have a certain percentage of unsecured loans on its books LCEF •• LCEF can only lend to rostered church workers, per its charter •• Changes to bylaws would require oo IRS letter agreement oo Synod approval as well as bylaw changes at convention 2019 Convention Workbook oo New state and federal regulations would apply to origination and servicing of student loans. Considerations The team considered the following: •• Who takes out a private loan? •• What does the competition look like? •• Big players in private student loan industry? •• Analysis of private loan usage FY2015–2016 •• Analysis of federal loan usage FY2015–2016 •• Potential student loan origination (CUS institutions and seminaries) •• Implications of leaving federal loan program Conclusion The task force determined that creating an alternative to the federal loan program was not feasible for the following reasons: •• LFCU can only lend to LCMS members, based on the authorized LFCU field of membership. •• LCEF is limited to lending to rostered church workers, based on current charter. •• Voluntary withdrawal from Title IV by the Concordias could have a material impact on our seminaries and universities. LCEF and LFCU cannot afford to replace the federal student loan program to accommodate Concordia students, nor does it make sense to create a new unsecured loan product for a very small potential market at the seminaries. Mission Advancement (MADV)—Mr. Mark Hofman, Executive Director This unit report begins with a sincere “thank you” to all who gave of themselves to the national and international work of the LCMS from the 2016 Convention to this one. Beyond the generosity shown to congregations, local agencies, districtlevel and regional work, you—the people of the LCMS—were God’s instruments for advancing our mission to vigorously make known the love of Jesus in our churches, communities, and the world. MADV’s purpose is to facilitate each person’s joyful response to the Gospel made visible in the form of charitable contributions motivated by the Holy Spirit. MADV exists to serve those who desire to deliver the Gospel of Christ to others in word and deed by supporting the work of the LCMS. Over the past triennium, our MADV team has heightened its sensitivity to the importance of listening to contributors, learning and connecting God’s people to the opportunities He is providing. It worked—and continues to work—in concert with the CMO and others to favorably influence and shape the organization’s culture when it comes to philanthropy and stewardship. Please note: This MADV unit report speaks only from the financial perspective of annual revenues (income), which God supplies primarily through His baptized disciples in Synod congrega-