Student Loan Code of Conduct
- CACC/CASPN, in recognition of the need to preserve the integrity of the student loan program, and in compliance with the Student Loan Code of Conduct requirements outlined in the Higher Education Opportunity Act of 2008 (HEOA), adopts the following Code of Conduct. This Code of Conduct is based upon Section 493 of HEOA. The requirements set forth in Section 493 of the HEOA shall take precedence over any section of this Code of Conduct that is in conflict with Section 493 of HEOA except that the more restrictive part of either this Code of Conduct or Section 493 of HEOA shall take precedence over the less restrictive part.
- This Code of Conduct shall be published prominently on CACC/CASPN’s website.
- CACC/CASPN shall administer and enforce this Code of Conduct. A violation of this Code of Conduct by any employee, officer or agent in the financial aid office or with responsibilities with respect to education loans shall be grounds for discipline, including discharge. All new employees with responsibilities with respect to education loans shall be supplied with a copy of the Code of Conduct within 30 days of being hired. All employees, officers and agents with responsibilities with respect to education loans shall be annually informed of the content and provisions of this Code of Conduct.
Prohibition against Remuneration to CACC/CASPN
- CACC/CASPN will not solicit, accept or agree to accept anything of value from any Lending Institution, Guarantee Agency or Servicer in exchange for any advantage or consideration provided by the Lending Institution related to its student loan activity. This prohibition includes but is not limited to:
- Revenue Sharing Agreements
- Any goods (such as computer hardware) for which CACC/CASPN pays below market price
- Any computer software used to manage loans unless the software can manage disbursements from all lenders
- Any printing costs, postage or services
- This does not prevent CACC/CASPN from soliciting, accepting or agreeing to favorable terms and conditions where the benefit is made directly to student borrowers.
Prohibition against Remuneration to CACC/CASPN Employees
- CACC/CASPN will require and enforce that no officer, trustee, director, employee or agent of the school will accept anything more than a nominal value on his or her own behalf or on behalf of another during any 12 month period from or on behalf of any Lending Institution, Guarantee Agency, or Servicer.
- This prohibition will include, but not be limited to a ban on any payment or reimbursement from any Lending Institution, Guarantee Agency or Servicer to CACC/CASPN employees for lodging, meals, or travel to conferences or training seminars.
- This does not preclude any officer, trustee, director, employee or agent of CACC/CASPN from receiving compensation for conducting non-school business with a Lending Institution, Guarantee Agency or Servicer of from accepting compensation that is offered to the general public.
- This prohibition does not prevent CACC/CASPN officers, trustees, directors, employees or agents from holding membership in any non-profit professional associations.
Ban on Gifts
- No CACC/CASPN employee involved in the affairs of the school’s financial aid office shall solicit or accept any gift from a lender, guarantor, or servicer of education loans.
- Gifts are defined as but not limited to:
- Any type of gratuity, favor, discount, entertainment, hospitality, loan or other item having more than a token monetary value. The term includes a gift of services, transportation, lodging, or meals, whether provided in kind, by purchase of a ticket, payment in advance or reimbursement after the expense has been incurred.
- The following would not be considered “gifts”:
- Standard material, activities, or programs on issues related to a loan, default aversion, default prevention, or financial literacy, such as a brochure, a workshop or training.
- Food, refreshments, training, or informational material furnished to any officer, trustee, director or school employee, as an integral part of a training session that is designed to improve the service of a lender, guarantor, or servicer of education loans to the institution, if such training contributes to the professional development of the officer, trustee, director or employee.
- Favorable terms, conditions, and borrower benefits on an education loan provided to all students.
- Entrance and Exit counseling services provided to borrowers to meet the institution’s responsibilities for entrance and exit counseling as required by law as long as the institution’s staff are in control of the counseling and such counseling does not promote the products or services of any specific lender.
- Philanthropic contributions to CACC/CASPN from a lender, servicer, or guarantor that are unrelated to education loans or that are not made in exchange for any advantage related to education loans.
- State education grants, scholarships, or financial aid funds administered by or on behalf of a state.
Ban on Gifts to Family Members
Gifts to family members of any officer, trustee, director or employee of CACC/CASPN will be considered a gift to said officer, trustee, director or employee of CACC/CASPN if:
- The gift is given with knowledge and acquiescence of the officer, trustee, director or employee of CACC/CASPN, and
- The office, trustee, director or employee of CACC/CASPN has reason to believe the gift was given because of the official position of said officer, trustee, director or employee of CACC/CASPN.
Limits on CACC/CASPN Employees Participating on Lender Advisory Boards
- Any employee who is employed in CACC/CASPN’s financial aid office, or who otherwise has responsibilities with respect to education loans or other student financial aid, and who serves on an advisory board, commission, or group established by a lender, guarantor or group of lenders or guarantors, shall be prohibited from receiving anything of value from the lender, guarantor, or group of lenders or guarantors, except that the employee may be reimbursed for reasonable expenses incurred in serving on such advisory board, commission, or group.
- This does not preclude any officer, trustee, director or employee from participating on any lender advisory boards that are unrelated to student loans.
- This does not preclude any CACC/CASPN employee not involved in the affairs of CACC/CASPN’s financial aid office from serving on the Board of Directors of a publicly traded or privately held company.
Contracting Arrangements Prohibited
Any officer, trustee, director or employee of CACC/CASPN is prohibited from accepting any payments of any kind from a lender in exchange for any type of consulting services related to educational loans.
- This does not prevent anyone else in the institution who has nothing to do with student loans from entering into these arrangements.
- This does not prevent anyone not employed in the financial aid office who has “some” responsibility for student loans from entering into these agreements if that individual in writing, recuses himself or herself from any decision regarding educational loans.
- This does not prevent anybody from serving on a Board of Directors or trustee of an institution if the individual, in writing, recuses himself or herself from any decision regarding educational loans.
Revenue Sharing Agreements Prohibited
CACC/CASPN will not enter any revenue sharing agreement where:
- A lender provides or issues a loan that is made, insured, or guaranteed under this title to students attending the institution or to the families of such students; and
- The institution recommends the lender and in exchange the lender pays a fee or provides other material benefits.
Prohibition on Offers of Funds for Private Loans
CACC/CASPN will not request or accept any agreement of offer of funds for priviate loans in exchange for concessions or promises of:
- A specified number of loans made, insured or guaranteed
- A specified loan volume
- A preferred lender arrangement
Ban on Staffing Assistance
- CACC/CASPN will not request or accept from any lender any assistance will financial aid office staffing.
- This does not inclued:
- Professional development training for financial aid administrators
- Educational counseling materials, financial literacy materials or debt management materials to borrowers, provided that such materials disclose to borrowers the identification of any lender that assisted in preparing or providing such materials.
- Staffing services on a short-term, non-recurring basis to assist the institution with financial aid-related functions during emergencies, including State-declared or federally declared natural disasters.
Interaction with Borrowers
- CACC/CASPN participates in the Federal Family Education Loan Program (FFELP) and all student and parent borrowers are packaged under the program.
- CACC/CASPN will not assign, through award packaging or other methods, the borrower’s loan to a specific lender.
- CACC/CASPN will not refuse to certify, or delay certification of, any loan based on the borrower’s selection of a particular lender or guaranty agency.