Code of Conduct for Educational Loans
The University of Puget Sound complies with the Higher Education Opportunity Act’s (HEOA) provisions with regard to the Code of Conduct and education loans as described in CFR 601.21. Puget Sound is committed to upholding the ethical, professional and legal standards we use as the basis for our daily and long-term decisions and actions.
The purpose of this policy is to establish standards of conduct in the administration of student loans. It is applicable to all Puget Sound staff with responsibility for the administration of federal and private education loans.
- Revenue-Sharing Agreements with Lenders. Puget Sound does not enter into revenue-sharing arrangements with lenders.
- Gifts. Puget Sound staff do not solicit or accept gifts from lenders, guarantors or loan servicers. We do, from time to time, accept materials or programs related to default aversion, default prevention, exit or entrance counseling, and financial literacy, such as brochures, workshops or training.
- Consulting or Other Contracting Arrangements. Student Financial Services staff do not accept from any lender or affiliate of any lender any fee, payment, or other financial benefit (including the opportunity to purchase stock) as compensation for any type of consulting arrangement or other contract to provide services to a lender or on behalf of a lender relating to FFEL Program Loan or private education loans.
- Assigning Lenders or Delaying Loan Certifications. Puget Sound does not assign a lender to a first-time borrower of private education loans, and we are committed to working with the lender of choice to certify eligibility and process loans promptly. We participate exclusively in the Federal Direct Loan program, and as such all Stafford/Direct and PLUS student loans are funded by the Federal Government.
- Offers of Funds for Private Loans. Puget Sound does not accept funds from lenders to be used for private education loans, including funds for an opportunity pool loan, in exchange for the institution providing concessions or promises to lenders regarding loan volume or preferred lender arrangements.
- Staffing Assistance. Professional development training, loan counseling, and financial literacy programs and materials provided by lenders or their agents is permitted. Puget Sound will not request or accept from any lender any assistance with call center staffing, nor will we accept from lenders office staffing that is not related to an emergency.}
- Advisory Board Compensation. Staff are permitted to participate on lender or guarantor advisory boards and commissions. Student Financial Services staff can be reimbursed for reasonable expenses incurred in serving on such an advisory board but may not accept any gifts or compensation.
Note: The University of Puget Sound participates in the Federal Direct Loan program, effective with the 2009-10 academic year.