Code of Conduct for Educational Loans

The Higher Education Opportunity Act conditions the eligibility of educational institutions to participate in Title IV student aid programs on the development of and compliance with a code of conduct, prohibiting conflicts of interest for its financial aid personnel. Jefferson State Community College’s officers, employees, and agents are required to comply with the code of conduct.

The Code of Conduct bans:

  1. Participating in any revenue‐sharing arrangements with lenders. This is defined as any arrangement between school and lender that results in the lender paying benefits or a share of its profits as a result of the College recommending a lender to its students or their families.
  2. Solicit or receiving gifts from any lender, guaranty agency, or loan servicer.
  3. Accepting a fee, payment or financial benefit as compensation to provide services to or on behalf of a lender.
  4. Steering borrowers to particular lenders by assigning students lenders through award packaging or through other practices.
  5. Delaying loan certifications based on a borrower’s choice in lenders.
  6. Accepting any offers of funds for private loans, including funds for an opportunity pool loan in exchange for providing a lender with a specific number or volume of loans, or for a preferred lender arrangement for such loans.
  7. Accepting offers of assistance from any lender with call center or financial aid office staffing.
  8. Accepting compensation provided to College employees with financial aid or education loan-related responsibilities for service on advisory boards, commissions, or groups established by a lender or guarantor (or a group of lenders or guarantors), except for reimbursement of reasonable expenses incurred for such service.