Code of Conduct for Education Loans
The Higher Education Opportunity Act (HEOA), which reauthorizes the Higher Education
Act (HEA) of 1965, was passed into law on August 14, 2008. The HEOA stipulates that
an institution of higher education participating in the Title IV loan programs must
create, manage, and implement a code of conduct with respect to education loans.
This Code of Conduct applies to all of the officers, employees, and agents of Utah
Valley University Financial Aid and Scholarships who have responsibilities related
to education loans, and also includes officers, employees, or agents who otherwise
have responsibilities with respect to education loans (hereafter known as “employees”).
This Code of Conduct is to reinforce the university’s commitment to maintaining the
highest standards for education loan borrowers.
The Code of Conduct reads as follows:
- All employees who deal directly with educational loans shall not enter into any revenue-sharing
arrangement with any lender, including Title IV or private education loan lenders.
Thus, UVU will not recommend a lender or its products to a student or a student’s
family in exchange for the lender paying a fee or providing any other material benefits,
including revenue or profit-sharing to the institution or its officers, employees,
- No employees may solicit or accept any gift from a lender, guarantor, or servicer
of education loans.No employee may accept from a lender, or an affiliate of any lender,
any fee, payment, or other financial benefit as compensation for any type of consulting
arrangement or contract to provide services to or on behalf of a lender relating to
- A "gift" is defined as any gratuity, favor, discount, entertainment, hospitality,
loan or other item having monetary value of more than a nominal amount. However, a
gift does not include: (1) brochures, a workshop, or training using standard materials
relating to a loan, default aversion, or financial literacy; (2) food, training, or
informational material provided as part of a training session designed to improve
the service of a lender, guarantor, or servicer if the training contributes to the
professional development of the institution’s officer, employee, or agent; (3) favorable
terms and benefits on an education loan provided to a student employed by the institution
if those terms and benefits are comparable to those provided to all students at UVU;
(4) entrance and exit counseling as long as the institution's staff are in control
of the counseling and the counseling does not promote the services of a specific lender;
(5) philanthropic contributions from a lender, guarantor, or servicer that are unrelated
to education loans or any contribution that is not made in exchange for advantage
related to education loans, and; (6) state education grants, scholarships, or financial
aid funds administered by or on behalf of a state.
- No employee will steer borrowers to particular lenders. For any first time borrower,
the employee will not assign, through award packaging or other methods, the borrower's
loan to a particular lender. In addition, the employee may not refuse to certify,
or delay the certification of any loan based on the borrower's selection of a particular
lender or guaranty agency.
- No employee may receive offers of funds for private loans. The employee may not request
or accept from any lender any offer of funds for private loans, including funds for
an opportunity pool loan, to students in exchange for providing concessions or promises
to the lender for a specific number of Title IV loans made, insured or guaranteed,
a specific loan volume, or a preferred lender arrangement. An "opportunity pool loan"
is defined as a private education loan by a lender to a student (or the student's
family) that involves a payment by the institution to the lender of extending credit
to the student.
- UVU Financial Aid and Scholarships Office may not request or accept from any lender
any assistance with call center staffing or financial aid office staffing, except
as permitted through The Higher Education Opportunity Act where it is allowable for
a lender to provide professional development training, educational counseling materials
(as long as the materials identify the lender that assisted in preparing the materials),
or staffing services on a short-term, nonrecurring basis during emergencies or disasters.
- No employee who serves on an advisory board, commission, or group established by a
lender or guarantor (or a group of lenders or guarantors) may receive anything of
value from the lender, guarantor, or group except for reimbursement for reasonable
expenses incurred by the employee for serving on the board.
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