NEW ENGLAND INSTITUTE OF TECHNOLOGY
TITLE IV LOAN CODE OF CONDUCT
New England Institute of Technology (NEIT) is committed to providing students and their families with the best information and processing alternatives available regarding student borrowing. In support of this and in an effort to rule out any perceived or actual conflict of interest between New England Institute of Technology officers, employees or agents and education loan lenders, New England Institute of Technology has adopted the following Code of Conduct:
• New England Institute of Technology does not participate in any revenue-sharing arrangements with any lender.
• NEIT shall not enter into any revenue-sharing arrangement with any lender.
• New England Institute of Technology does not permit any officer, employee or agent of the school who is employed in the financial aid office or is otherwise involved in the administration of education loans to accept any gifts of greater than a nominal value from any lender, guarantor or servicer.
• No officer or employee of NEIT who is employed in the financial aid office of NEIT or who otherwise has responsibilities with respect to education loans, or agent who has responsibilities with respect to education loans, shall solicit or accept any gift from a lender, guarantor, or servicer of education loans. The term ‘gift’ means any gratuity, favor, discount, entertainment, hospitality, loan, or other item having a monetary value of more than a de minimus amount. The term includes a gift of services, transportation, lodging, or meals, whether provided in kind, by purchase of a ticket, payment in advance, or reimbursement after the expense has been incurred.
The term ‘gift’ does not include any of the following: ‘‘(I) Standard material, activities, or programs on issues related to a loan, default aversion, default prevention, or financial literacy, such as a brochure, a workshop, or training. ‘‘(II) Food, refreshments, training, or informational material furnished to an officer or employee of an institution, or to an agent, as an integral part of a training session that is designed to improve the service of a lender, guarantor, or servicer of education loans to NEIT, if such training contributes to the professional development of the officer, employee, or agent. ‘‘(III) Favorable terms, conditions, and borrower benefits on an education loan provided to a student employed by NEIT if such terms, conditions, or benefits are comparable to those provided to all students of NEIT. ‘‘(IV) Entrance and exit counseling services provided to borrowers to meet NEIT’s responsibilities for entrance and exit counseling as required by subsections (b) and (l) of section 485, as long as ‘‘(aa) NEIT’s staff are in control of the counseling, (whether in person or via electronic capabilities); and ‘‘(bb) such counseling does not promote the products or services of any specific lender. ‘‘(V) Philanthropic contributions to an institution from a lender, servicer, or guarantor of education loans that are unrelated to education loans or any contribution from any lender, guarantor, or servicer that is not made in exchange for any advantage related to education loans. ‘‘(VI) State education grants, scholarships, or financial aid funds administered by or on behalf of a State.
A gift to a family member of an officer or employee of an institution, to a family member of an agent, or to any other individual based on that individual’s relationship with the officer, employee, or agent, shall be considered a gift to the officer, employee, or agent if ‘‘(I) the gift is given with the knowledge and acquiescence of the officer, employee, or agent; and ‘‘(II) the officer, employee, or agent has reason to believe the gift was given because of the official position of the officer, employee, or agent.
• New England Institute of Technology does not permit any officer, employee or agent of the school who is employed in the financial aid office or is otherwise involved in the administration of education loans to accept any fee, payment or other financial benefit (including a stock purchase option) from a lender or affiliate of a lender as compensation for any type of consulting arrangement or contract to provide services to a lender or on behalf of a lender relating to education loans.
• An officer or employee who is employed in the financial aid office of NEIT or who otherwise has responsibilities with respect to education loans, or an agent who has responsibilities with respect to education loans, shall 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 education loans.
Nothing in this subsection shall be construed as prohibiting ‘‘(i) an officer or employee of NEIT who is not employed in NEIT’s financial aid office and who does not otherwise have responsibilities with respect to education loans, or an agent who does not have responsibilities with respect to education loans, from performing paid or unpaid service on a board of directors of a lender, guarantor, or servicer of education loans; ‘‘(ii) an officer or employee of NEIT who is not employed in NEIT’s financial aid office but who has responsibility with respect to education loans as a result of a position held at NEIT, or an agent who has responsibility with respect to education loans, from performing paid or unpaid service on a board of directors of a lender, guarantor, or servicer of education loans, if NEIT has a written conflict of interest policy that clearly sets forth that officers, employees, or agents must recuse themselves from participating in any decision of the board regarding education loans at NEIT; or ‘‘(iii) an officer, employee, or contractor of a lender, guarantor, or servicer of education loans from serving on a board of directors, or serving as a trustee, of an institution, if NEIT has a written conflict of interest policy that the board member or trustee must recuse themselves from any decision regarding education loans at NEIT.
• New England Institute of Technology does not permit any officer, employee or agent of the school who is employed in the financial aid office or is otherwise involved in the administration of education loans to accept anything of value from a lender, guarantor, or group of lenders and/or guarantors in exchange for service on an advisory board, commission or other group established by such a lender, guarantor group of lenders and/or guarantors. New England Institute of Technology does allow for the reasonable reimbursement of expenses associated with participation in such boards, commissions or groups by lenders, guarantors, or groups of lenders and/or guarantors.
(See above.)
• New England Institute of Technology does not assign a lender to any first-time borrower through financial aid packaging or any other means.
• NEIT shall not ‘‘(A) for any first-time borrower, assign, through award packaging or other methods, the borrower’s loan to a particular lender; or ‘‘(B) refuse to certify, or delay certification of, any loan based on the borrower’s selection of a particular lender or guaranty agency.
• New England Institute of Technology recognizes that a borrower has the right to choose any lender from which to borrow to finance his/her education. New England Institute of Technology will not refuse to certify or otherwise deny or delay certification of a loan based on the borrower’s selection of a lender and/or guarantor.
(See above).
• New England Institute of Technology will not request or accept any offer of funds to be used for private education loans to students from any lender in exchange for providing the lender with a specified number or volume of Title IV loans, or a preferred lender arrangement for Title IV loans.
• NEIT shall not request or accept from any lender any offer of funds to be used for private education loans (as defined in section 140 of the Truth in Lending Act), including funds for an opportunity pool loan, to students in exchange for NEIT providing concessions or promises regarding providing the lender with— ‘‘(i) a specified number of loans made, insured, or guaranteed under this title; ‘‘(ii) a specified loan volume of such loans; or ‘‘(iii) a preferred lender arrangement for such loans.
• New England Institute of Technology will not request or accept any assistance with call center or financial aid office staffing.
• NEIT shall not request or accept from any lender any assistance with call center staffing or financial aid office staffing. This shall not be construed to prohibit NEIT from requesting or accepting assistance from a lender related to ‘‘(i) professional development training for financial aid administrators; ‘‘(ii) providing educational counseling materials, financial literacy materials, or debt management materials to borrowers, provided that such materials disclose to borrowers the identification of any lender that assisted in preparing or providing such materials; or ‘‘(iii) staffing services on a short-term, nonrecurring basis to assist NEIT with financial aid-related functions during emergencies, including State-declared or federally declared natural disasters, federally declared national disasters, and other localized disasters and emergencies identified by the Secretary.
• Any employee who is employed in the financial aid office of NEIT, or who otherwise has responsibilities with respect to education loans or other student financial aid of NEIT, and who serves on an advisory board, commission, or group established by a lender, guarantor, or group of lenders or guarantors, shall be prohibited from receiving anything of value from the lender, guarantor, or group of lenders or guarantors, except that the employee may be reimbursed for reasonable expenses incurred in serving on such advisory board, commission, or group.
This code will be evaluated periodically and enforced by NEIT. Any officer, employee or agent of NEIT in violation of any part of this code will be subject to disciplinary proceedings up to termination of employment if so warranted.
• NEIT shall administer and enforce this code by, at a minimum, requiring that all of the institution’s officers, employees, and agents with responsibilities with respect to such loans be annually informed of the provisions of this code of conduct. Any officer, employee or agent of NEIT in violation of any part of this code will be subject to disciplinary proceedings up to termination of employment if so warranted.