Student Loan Code of Conduct

I. Introduction and Purpose

Lewis & Clark employees are expected to act in the best interest of Lewis & Clark students. This includes advocating for appropriate and compliant student loan access. Federal regulations, particularly the Higher Education Opportunity Act (HEOA), mandate the adoption of a student loan Code of Conduct prohibiting conflicts of interest with respect to student education loans.

The purpose of this Code is to prohibit conflicts of interest between Lewis & Clark personnel and education loan lenders, guarantors, and servicers, thereby ensuring the integrity of the student financial aid process and providing students and their families with objective, unbiased information regarding education financing.

II. Scope and Applicability

This Code applies to all officers, employees, and agents of Lewis & Clark who have responsibilities with respect to education loans or other student financial aid. This includes, but is not limited to, all employees of the Financial Aid Office, and any college official who otherwise makes substantive decisions, administers policy, or counsels prospective borrowers regarding education loans.

Employees of the Financial Aid Office, and any others reasonably likely to be involved in such matters, will be annually informed of the provisions of this Code of Conduct.

III. The Code of Conduct: Prohibited Activities

The following practices are prohibited:

1. Prohibition on Revenue-Sharing Arrangements

Lewis & Clark and its employees shall not enter into any revenue-sharing arrangement with any lender. A revenue-sharing arrangement is defined as any agreement between the College and a lender under which:

• The lender makes education loans to students enrolled in the College (or to the families of those students); and,
• The College recommends the lender or the loan products of the lender in exchange for the lender providing a fee or other material benefits, including revenue or profit sharing, to the College or an employee or agent of the College.

2. Prohibition on Gifts

No officer, employee, or agent of Lewis & Clark who has responsibilities with respect to education loans shall solicit or accept any gift from a lender, guarantor, or servicer of education loans. A gift to a family member of an employee, or to any other individual based on that individual’s relationship with the employee, is considered a gift if the gift is given with the knowledge and acquiescence of the employee and the employee has reason to believe the gift was given because of the official position of the employee.

• A “gift” is defined as any gratuity, favor, discount, entertainment, hospitality, loan, or other item having a monetary value of more than a de minimus amount.
• Exceptions to this prohibition include:

• Standard materials, activities, or programs on issues related to a loan, default aversion, default prevention, or financial literacy.
• Food, refreshments, training, or informational material furnished to an employee as part of a training session designed to improve the service of a lender, guarantor, or servicer if such training contributes to the professional development of the staff member.
• Favorable terms and benefits on an education loan provided to a student employed by the College if those terms are comparable to those provided to all students.
• Entrance and Exit counseling services provided to borrowers to meet the institution’s responsibilities as long as such counseling does not promote the products or services of any specific lender.
• Philanthropic contributions to an institution from a lender, servicer, or guarantor that is not made in exchange for any advantage related to private education loans.
• State education grants, scholarships, or financial aid funds administered by or on behalf of a State.

3. Prohibition on Consulting Arrangements

No officer, employee, or agent of Lewis & Clark who has responsibilities with respect to education loans shall accept from any lender or affiliate of any lender any fee, payment, or other financial benefit as compensation for any type of consulting arrangement or other contract to provide services to or on behalf of a lender relating to education loans.

4. Prohibition on Accepting Funds for Opportunity Pool Loans.

Lewis & Clark will not request or accept from any lender any offer of funds to be used for private education loans, including funds for an opportunity pool loan as described in 34 CFR 601.21(c)(5)(ii), to students in exchange for the institution providing concessions or promises regarding providing the lender with: 1) a specified number of private education loans; 2) a specified loan volume of such loans; or 3) a preferred lender arrangement for such loans

5. Prohibition on Assigning Students to Particular Lenders.

Lewis & Clark will not assign a lender to a student or delay certification of a loan based on the borrower’s selection of a particular lender.

6. Prohibition on Staffing Assistance

Lewis & Clark will not request or accept from any lender any assistance with Financial Aid Office staffing (e.g., call center or other staffing services). However, a lender may provide professional development training, educational counseling materials (as long as the materials clearly identify the lender), or staffing services on a short-term, nonrecurring basis during emergencies or disasters.

7. Prohibition on Advisory Board Compensation

Any Lewis & Clark employee who has responsibilities with respect to education loans and who serves on an advisory board, commission, or group established by a lender, guarantor, or group of lenders or guarantors is prohibited from receiving anything of value from the lender or group of lenders in connection with serving on such advisory board, commission, or group.

IV. Preferred Lender Lists

If Lewis & Clark chooses to develop or maintain a list of suggested, recommended, or preferred lenders for private education loans, the College will adhere to the following requirements:

• The list will be compiled only after research and evaluation, based solely on the best interests of students and their families.
• The College will clearly and prominently disclose the methodology and criteria used to select and place lenders on the list.
• The list will include a minimum of three unaffiliated lenders.
• The list will clearly inform borrowers that they are not required to use any lender on the list and that they may choose any eligible lender.

V. Compliance and Enforcement

Lewis & Clark officers, employees, and agents are responsible for ensuring compliance with this Code of Conduct. Violations of this Code may result in disciplinary action, up to and including dismissal.