Rep. Naomi D. Jakobsson
Filed: 4/26/2007
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1 | AMENDMENT TO HOUSE BILL 2186
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2 | AMENDMENT NO. ______. Amend House Bill 2186 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 1. Short title. This Act may be cited as the | ||||||
5 | Student Loan Code of Conduct Act. | ||||||
6 | Section 5. Definitions. In this Act: | ||||||
7 | "Institution of higher learning" has the meaning ascribed | ||||||
8 | to that term in the Higher Education Student Assistance Act. | ||||||
9 | "Lender" means a lending institution that is a student loan | ||||||
10 | provider. | ||||||
11 | Section 10. Code of conduct. In order to sever any | ||||||
12 | inappropriate financial arrangements between lenders and | ||||||
13 | institutions of higher learning, all of the following are | ||||||
14 | prohibited: | ||||||
15 | (1) An institution of higher learning is prohibited |
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1 | from receiving anything of value from a lender in exchange | ||||||
2 | for any advantage sought by the lender. | ||||||
3 | (2) An institution of higher learning and a lender are | ||||||
4 | prohibited from entering into any revenue-sharing | ||||||
5 | arrangements. | ||||||
6 | (3) A lender is prohibited from paying to get on an | ||||||
7 | institution of higher learning's preferred lender list. | ||||||
8 | (4) Employees and members of the governing entity of an | ||||||
9 | institution of higher learning, as well as the family | ||||||
10 | members of these persons, are prohibited from taking | ||||||
11 | anything of more than nominal value from a lender, | ||||||
12 | including without limitation trips for financial aid | ||||||
13 | officers and other officials of the institution of higher | ||||||
14 | learning that are paid for by the lender. | ||||||
15 | (5) Employees and members of the governing entity of an | ||||||
16 | institution of higher learning, as well as the family | ||||||
17 | members of these persons, are prohibited from receiving | ||||||
18 | anything of value for serving in any governing, management, | ||||||
19 | or advisory capacity for a lender, including without | ||||||
20 | limitation serving on the lender's board of directors. | ||||||
21 | Section 15. Preferred lender list. | ||||||
22 | (a) In order to ensure that preferred lenders are those | ||||||
23 | that an institution of higher learning has determined should be | ||||||
24 | preferred by students as opposed to preferred by the | ||||||
25 | institution of higher learning, a preferred lender list of an |
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1 | institution of higher learning must be based solely on the best | ||||||
2 | interests of the students or parents who may use the list, | ||||||
3 | without regard to the financial interests of the institution of | ||||||
4 | higher learning. | ||||||
5 | (b) On all preferred lender lists, the institution of | ||||||
6 | higher learning must clearly and fully disclose the criteria | ||||||
7 | and process used to select preferred lenders. Students must | ||||||
8 | also be informed that they have the right and ability to select | ||||||
9 | the lender of their choice regardless of the preferred lender | ||||||
10 | list. | ||||||
11 | (c) No lender may appear on a preferred lender list if the | ||||||
12 | lender has an agreement to sell its loans to another lender | ||||||
13 | without disclosing this fact to the institution of higher | ||||||
14 | learning. In addition, no lender may bargain to be a preferred | ||||||
15 | lender with respect to a certain type of loan by providing | ||||||
16 | benefits to an institution of higher learning as to another | ||||||
17 | type of loan. | ||||||
18 | Section 20. Employees of lender. An institution of higher | ||||||
19 | learning must ensure that employees of lenders never identify | ||||||
20 | themselves to students as employees of the institution of | ||||||
21 | higher learning. No employee of a lender may work in or provide | ||||||
22 | staffing assistance to the financial aid office of an | ||||||
23 | institution of higher learning. | ||||||
24 | Section 80. Violation of Act. The Board of Higher Education |
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1 | may impose a civil penalty for a violation of this Act. A | ||||||
2 | student is entitled to cost reimbursement, including without | ||||||
3 | limitation legal fee costs, by the institution of higher | ||||||
4 | learning for any violation of this Act. | ||||||
5 | Section 90. Rules. The Board of Higher Education may adopt | ||||||
6 | any rules necessary for the implementation of this Act.".
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