Student Loan Policy
5.010
POLICIES AND PROCEDURES Originator: Subject: Date:
Financial Aid Department Student Loans November 2007 A. BACKGROUND
To establish specific policies relative to student loans and the operation of the Financial Aid Department in activities pertaining to student loans. B. POLICY No officer, trustee, or employee of the University shall accept anything of more than nominal value on his or her own behalf, or on behalf of another, from or on behalf of any entity that makes or guarantees education loans, except that no officer, trustee, employee, or agent of the University shall be prohibited from conducting (a) business with any such entity unrelated to the University; or (b) business of the University unrelated to education loans. No officer or employee of the University shall accept any remuneration for serving as a member or participant of an advisory board of any entity that makes or guarantees education loans, or accept any reimbursement of expenses for so serving, provided, however, that participation on advisory boards that are unrelated in any way to higher education loans shall not be prohibited. The University shall not accept on its own behalf anything of value from any entity that makes or guarantees education loans in exchange for any advantage or consideration provided to the such entity related to its education loan activity. This prohibition shall include, but not be limited to, (i) “revenue sharing” by the entity with the University, (ii) the University’s receipt from any such entity of any computer hardware for which the University pays below-market prices and (iii) printing costs or services. Notwithstanding the foregoing, the University may accept assistance as contemplated in 34 CFR 682.200(b)(definition of “Lender”)(5)(i). The Financial Aid Department of the University may promulgate a list of “preferred lenders” for education loans provided that the Department complies with the following: 1. Inclusion on such list and the decision as to where on the list the lender’s name appears, if ranked, shall be determined solely by consideration of the best interests of the students or parents who may use said list without regard to the pecuniary interests of the University. 2. The criteria for placement on the list shall be based upon the customer service provided by the lender and whether the lender is established within the student lending industry with a sufficient history of offering a variety of benefits to students. Consideration will also be given to whether the post-graduate servicing of the loan is provided by MOHELA or some other organization that provides benefits similar to those provided by MOHELA. 3. Each place where such a list is posted shall include the following information: a. The criteria for placement on the list. ppm.5.010
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