The Higher Education Opportunity Act of 2008 (HEOA) Section 493 requires schools participating in the Title IV Loan Program to establish a code of conduct that prohibits a conflict of interest with respect to education loans. As a participant in the Federal Direct Loan Program, Pearl River Community College processes federal loans directly through the federal government. PRCC is committed to the following code of conduct which applies to the officers, employees and agents of the institution:
- PRCC will not enter into any revenue-sharing arrangement with any lender. The HEOA defines “revenue-sharing arrangement” as any arrangement between an institution and a lender under which the lender makes loans to students attending the institution (or to the families of those students), the institution recommends the lender or the loan products of the lender and, in exchange, the lender pays a fee or provides other material benefits, including revenue or profit-sharing, to the institution or to its officers, employees or agents.
- PRCC will not solicit any gift and will not accept any gift from a lender, guarantor or servicer of education loans. A “gift” is defined as any gratuity, favor, discount, entertainment, hospitality, loan, or other items having more than nominal monetary value.
- No officer or employee of the PRCC financial aid office (or employee or agent who has responsibilities with respect to financial aid or education loans) shall accept from any lender or an affiliate of the lender any fee, payment or other financial benefit as compensation of any type of consulting arrangement or other contract to provide services to or on behalf of a lender relating to education loans.
- PRCC will not assign a borrower to any particular lender or refuse/delay loan certification based on the borrower’s selection of lender.
- PRCC will not request or accept from any lender any offer of funds for private loans, including funds for an opportunity pool loan, in exchange for certain number of loans or a specific loan volume.
- PRCC will not allow employees of lenders and lender affiliates to provide assistance with call center or financial aid office staffing or to answer student or parent calls.
- PRCC employees whose work relates to financial aid and who serve on an advisory board, commission, or group established by a lender, guarantor, or group of lenders may not accept anything of value in return for the service. However, any employee may be reimbursed for reasonable expenses incurred in serving the board, commission or group.
- PRCC does not offer any preferred lender arrangements.
