Financial Aid
Reed College Loan Code of Conduct
Reed College follows the Oregon College Loan Code of Conduct*
- REVENUE SHARING PROHIBITION –
Reed College and its employees are prohibited from receiving anything of value
from any education loan lending institution in exchange for promoting the education
loan products of that lending institution. This provision does not prohibit
Reed College employees from receiving compensation for conducting non-college
business with any education loan lending institution or from accepting
compensation that is offered to the general public. This provision also does
not prohibit Reed College from accepting charitable contributions from an
education loan lending institution, so long as the college gives no competitive
advantage or preferential treatment to the education loan lending institution
related to its education loan activity in exchange for such support.
- GIFT AND TRIP PROHIBITION --
Reed College employees are prohibited from receiving anything of more than
nominal value ($50) from any education loan lending institution during any
12-month period. This prohibition includes trips for college employees paid for
by education loan lenders; except that this provision shall not be construed to
prohibit any college employee from receiving compensation for the conduct of
non-college business with any education loan lending institution, or from
accepting compensation that is offered to the general public.
- ADVISORY BOARD COMPENSATION
RULES -- Reed College employees are prohibited from serving on the advisory
board of any education loan lending institution. Education loan lending
institutions may obtain advice and opinions of financial aid officials on financial
aid products and services through Trade Associations, industry surveys or other
mechanisms that do not require service on education loan lending institution
advisory boards, provided such person receives no compensation for such
service. This provision shall not apply to participation on advisory boards
that are unrelated in any way to financial aid or higher education loans.
- PREFERRED LENDER GUIDELINES --
Reed College “preferred lender lists” must be based on the characteristics of
the education loan products – including interest rates, borrower benefits, and
services to borrowers – offered by the listed education loan lending institutions
rather than on the financial interests of the college. If Reed College also
makes education loans, the education loan(s) it provides must have
characteristics that are comparable to or better than those of the other education
loan lending institutions listed.
- PREFERRED LENDER DISCLOSURE --
All preferred lender lists must clearly and fully disclose the criteria and
process used to select preferred lenders. Every brochure, web page or other
document that sets forth a preferred lender list shall state in the same font
and same manner as the predominant text on the document that students and their
parents have the right and ability to select the lender of their choice and are
not required to use any lenders on the preferred lender list.
- USE OF MASCOT, LOGO, EMBLEM, OR
NAME BY LENDERS -- Reed College shall not authorize or permit an education loan
lending institution to use the name, emblem, mascot, or logo of the college; or
words, pictures, marks, or symbols readily identified with the college; in the
marketing of education loans in any way that implies that the college endorses
those loans.
- LOAN RESALE DISCLOSURE -- To be
eligible to appear on a preferred lender list, a lender must disclose any
agreement(s) to sell its loans to another entity. In addition, no lender may
bargain to be a preferred lender with respect to a certain type of loan by providing
benefits to a college as to another type of loan.
- LENDER IDENTIFICATION
REQUIREMENT – Reed College will not permit employees of education loan lending
institutions on campus to identify themselves as employees of the college, and
no employee of an education loan lender may work in or provide staffing
assistance to a college financial aid office; except that employees of colleges
that also make education loans may perform their normal functions as long as those
functions comply with relevant laws and regulations, and with the other items
of this Code of Conduct.
*This Code was prepared by the Oregon Department
of Justice with the assistance of a multi-institution committee coordinated by
the Oregon Independent Colleges Association and composed of representatives
from independent institutions and community colleges.
