Loan Code of Conduct
As a part of the Program Participation Agreement for participating in Title IV financial aid programs, institutions are required to develop and comply with a loan code of conduct that prohibits conflicts of interest for financial aid personnel with respect to all student loans. Any Azusa Pacific University financial aid officer or employee who has responsibilities with respect to student educational loans must annually be reminded to comply with this code of conduct. The following provisions bring Azusa Pacific University into compliance with the federal law [CFR 34 601.21 and HEOA 487].
- Neither Azusa Pacific University as an institution nor any individual financial aid officer or financial aid employee shall enter into any revenue-sharing arrangement with any lender which makes loans to students attending the institution.
- No financial aid officer or financial aid employee of Azusa Pacific University who has responsibilities with respect to education loans, or any of their family members, shall solicit or accept any gift from a lender, guarantor, or servicer of education loans.
- For purposes of this prohibition, the term “gift” means any gratuity, favor, discount, entertainment, hospitality, loan or other item having a monetary value of more than a nominal value.
- Gifts and favorable terms and benefits do not include: a brochure, workshop or training using standard materials relating to a loan, default aversion, or financial literacy, such as a part of a training session. 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.
- assign a lender to a first-time borrower through award packaging or any other method; or
- refuse to certify or delay certification of any loan based on the borrower’s selection of a particular lender or guaranty agency.
- a specific loan volume of such loans; or
- a preferred lender arrangement for such loans.
- an “opportunity pool loan” is defined as a private education loan made by a lender to a student (or the student’s family) that involves a payment by the institution to the lender for extending credit to the student.