{"id":7013,"date":"2023-09-22T14:12:45","date_gmt":"2023-09-22T21:12:45","guid":{"rendered":"https:\/\/nau.edu\/office-scholarships-financial-aid\/?page_id=7013"},"modified":"2024-02-02T14:17:46","modified_gmt":"2024-02-02T21:17:46","slug":"arizona-student-loan-conduct","status":"publish","type":"page","link":"https:\/\/in.nau.edu\/office-scholarships-financial-aid\/policies\/arizona-student-loan-conduct\/","title":{"rendered":"Arizona Student Loan of Conduct"},"content":{"rendered":"<div class=\"nau-block nau-block-left-nav-top-bound\">\n    \t<button id=\"left-nav-toggle-btn\" onclick=\"toggleNav();\">\n\t\tON THIS PAGE \n\t\t<i id=\"chevron-icon\" class=\"fas fa-solid fa-chevron-down\"><\/i>\n\t<\/button>\n\t<div id=\"left-nav-menu-track\">\n\t\t<div id=\"left-nav-wrapper\">\n\t\t\t<div class=\"rfi-above-anchor-tags\">\n\t\t\t\t<div class=\"ri-container\">\n\t\t\t\t\t<a href=\"https:\/\/nau.edu\/admissions\/request-information\/\" id=\"request-info\" class=\"btn bg-true-blue left-nav-menu-bottom-button display-mobile\">Request info&nbsp;&nbsp;<\/a>\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t<div id=\"left-nav-menu\">\n\t\t\t\t<div class=\"menu-section menu-section-links\"><h6 class=\"hidden-mobile left-nav-list-header\">ON THIS PAGE<\/h6><ul class=\"left-nav-menu-list left-nav-automatic on-this-page\"><\/ul><div class=\"ri-container\"><a href=\"https:\/\/nau.edu\/admissions\/request-information\/\" id=\"request-info\" class=\"btn bg-true-blue left-nav-menu-bottom-button display-mobile\">Request info&nbsp;&nbsp;<\/a><\/div><\/div>\t\t\t\t\t\t\t\t<div class=\"menu-section backcolor\">\n\t\t\t\t\t<div class=\"header\">\n\t\t\t\t\t\tHOW CAN WE HELP?\t\t\t\t\t<\/div>\n\t\t\t\t\t<ul class=\"responsive-icons\">\n\t\t\t\t\t\t\t\t\t\t\t\t<li>\n\t\t\t\t\t\t\t<button class=\"link-button\" onclick=\"embedLouieChatbot();\">\n\t\t\t\t\t\t\t\t<img decoding=\"async\" style=\"width: 20px;\" src=\"https:\/\/in.nau.edu\/wp-content\/themes\/nau-marketing-2021\/img\/icon-chat.svg\" alt=\"Live chat:\">\n\t\t\t\t\t\t\t\tChat\t\t\t\t\t\t\t<\/button>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li><a href=\"tel:928-523-4951\"><img decoding=\"async\" src=\"https:\/\/in.nau.edu\/wp-content\/themes\/nau-marketing-2021\/img\/icon-phone.svg\" alt=\"Telephone:\"> 928-523-4951<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t\t<li><a href=\"mailto:financial.aid@nau.edu\"><img decoding=\"async\" src=\"https:\/\/in.nau.edu\/wp-content\/themes\/nau-marketing-2021\/img\/icon-email.svg\" alt=\"Email:\"><span class=\"left-nav-email\"> financial.aid&#8203;@nau.edu <\/span><\/a><\/li>\n\t\t\t\t\t<\/ul>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/div>\n\n<section class=\"nau-block left-nav-section\"><header class=\"entry-header\"><div class=\"breadcrumb\"><ol class=\"breadcrumbs\"><li><a href=\"https:\/\/in.nau.edu\">IN<\/a><span class=\"breadcrumb-chevron\" aria-hidden=\"true\">&gt;<\/span><\/li><li><a href=\"https:\/\/in.nau.edu\/office-scholarships-financial-aid\">OSFA<\/a><span class=\"breadcrumb-chevron\" aria-hidden=\"true\">&gt;<\/span><\/li><li class=\"current\">Pages<\/li><\/ol><\/div><h1 class=\"entry-title text-left \">Arizona Student Loan of Conduct<\/h1><hr class=\"h1-hr  text-left \" role=\"none\"><\/header><!-- .entry-header --><\/section><!-- <section class=\"nau-block left-nav-section grid-md-12\">\n    <header class=\"entry-header\">\n        <h1 class=\"entry-title text-left \" tabindex=\"0\" id=\"h1-first\">Dummy H1<\/h1>\n        <hr class=\"h1-hr  text-left \" role=\"none\">\n    <\/header>\n<\/section> -->\n\n<section class=\"nau-block left-nav-section grid-md-12\">\n    <div class=\"page-content\">\n        \n\n<h2 class=\"wp-block-heading\">Definitions<\/h2>\n\n\n\n<ol class=\"wp-block-list\"><li>\u00a0&#8220;Employee&#8221; or &#8220;School employee&#8221; means any employee, agent, student financial aid contractor, director, officer, or trustee of the School. For purposes of the Code provisions relating to\u00a0gifts and stock ownership, this term includes family members of the Employee. For purposes of Paragraph 2 of this Code, this term includes family members living in the same household as the Employee.<\/li><li>&#8220;School&#8221; means all colleges, campuses, departments, or other components of the higher education institution adopting this Code of Conduct that are either located in Arizona or that offer online classes to Arizona residents, including alumni associations if the associations are under the institution&#8217;s control and are not separately incorporated. <\/li><li>&#8220;Student loan lender&#8221; or &#8220;lender&#8221; means any entity involved in making, holding, consolidating, originating, servicing, or guaranteeing any loan to students or parents to finance higher education expenses. This includes lenders who provide private educational loans as well as lenders who provide loans that are made, insured, or guaranteed by the US Department of Education, except loans under the William D. Ford Direct Loan Program.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\">Employee Compensation Prohibition<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">No employee of the School or &#8220;school\u2010affiliated organization&#8221; (as defined in 34 CFR&nbsp;682.20O(b)(s)(i)(A)(8)) shall accept or solicit anything of other than nominal value from a student loan lender. &#8220;Nominal&nbsp;value&#8221; means a&nbsp;total&nbsp;retail&nbsp;value&nbsp;of&nbsp;not more&nbsp;than ten dollars ($10.00) as&nbsp;calculated&nbsp;over a&nbsp;12\u2010month period,&nbsp;or as defined by a School policy consistent with applicable federal and state law. This paragraph shall not prohibit School employees&nbsp;from conducting&nbsp;non\u2010student lending business with any lender or accepting or soliciting anything of other than nominal value in any activity unrelated to student loans.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Lender Advisory Board Restrictions<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A&nbsp;School employee shall not accept any remuneration or reimbursement of expenses for serving as a member of or otherwise participating on a student loan lender&#8217;s advisory board or committee, consistent with applicable federal student loan requirements.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Financial Relationship Prohibition<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A person employed in the financial aid office of the School, or who otherwise has direct responsibilities with respect to educational loans or other financial aid, shall:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>avoid any equity or other interest in any student loan lender other than a remote interest<strong><sup>1<\/sup><\/strong>;<\/li><li>avoid consulting or similar financial relationships with student loan lenders, and<\/li><li>comply with the School&#8217;s Conflict of Interest Policies &amp; Procedures.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Institutional Compensation Prohibition<\/h2>\n\n\n\n<ol class=\"wp-block-list\"><li>The School will not accept anything of value from a student loan lender in exchange for any advantage or consideration provided to the lender related to its education loan activity. This prohibition shall include, but not be limited to: (1) the School&#8217;s receipt from any lender of any&nbsp;computer hardware&nbsp;for which the School pays below market prices, (2) preferential rates for, or&nbsp;access to,&nbsp;a&nbsp;lender&#8217;s&nbsp;other financial&nbsp;products&nbsp;and (3) printing&nbsp;costs&nbsp;or&nbsp;services. Notwithstanding&nbsp;anything&nbsp;else in&nbsp;this&nbsp;paragraph,&nbsp;the&nbsp;School&nbsp;may&nbsp;accept&nbsp;assistance&nbsp;as contemplated by 34 CFR 682.200(b).<\/li><li>The School shall not engage in revenue sharing with a student loan lender. &#8220;Revenue sharing&#8221; means any arrangement under which a student loan lender pays a higher education institution or an affiliated entity or organization a certain sum, fee, or percentage calculated in relationship to the volume of loans received by the lender from students of the institution.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\">Preferred Lender List Requirements<\/h2>\n\n\n\n<ol class=\"wp-block-list\"><li>Best Interests of Students Paramount. If the School decides to develop and\/or publish any list of suggested, recommended, or preferred student loan lenders (&#8220;preferred lender&nbsp;list&#8221; or &#8220;lender list&#8221;), the School shall develop and maintain any lender list based solely on the best&nbsp;interests of students and parents borrowers.<\/li><li>Required Disclosures. The School shall prominently disclose on all publications of a&nbsp;preferred lender list:<ol><li>the process and criteria by which the list was assembled,<\/li><li>comparative information regarding interest rates and other benefits offered&nbsp;by the lenders; and<\/li><li>that borrowers have the right and ability to select lenders not included on&nbsp;the list.<\/li><\/ol><\/li><li>Prompt Certification of Loans&nbsp;from Any Lender. The School will timely certify any&nbsp;loan from any lender selected by the borrower that offers the loan, to the extent consistent with applicable federal student loan requirements. The School will not cause unnecessary certification&nbsp;delays for borrowers who use a lender that has not been recommended or suggested by the School.<\/li><li>Minimum Number of Lenders Required. The School shall ensure there are at least three&nbsp;(3)&nbsp;student loan lenders named on each preferred lender list which are not &#8220;affiliates&#8221; of each other, as described in 34 C.F.R. \u00a7 682.212 (h)(3).<\/li><li>Review&nbsp;and&nbsp;Update of Preferred Lender Lists. Preferred lender lists must be reviewed and updated at least once a year. When publishing preferred lender lists, the School shall&nbsp;either rotate or randomize the list of lenders or list them alphabetically.<\/li><li>Loan&nbsp;Resale. The School shall require that all lenders on a preferred list commit in writing to disclose to the borrower before a loan agreement is signed whether there is an existing agreement to sell loans to another lender, and if so, the contact information for the lender who will be purchasing the borrower&#8217;s loan.&nbsp;The School&nbsp;shall inform student&nbsp;and&nbsp;parent borrowers that lenders can, and do, sell student loans, and encourage borrowers to contact&nbsp;their&nbsp;lenders for more information. Further, the School may remove a lender from its preferred lender list&nbsp;if&nbsp;that&nbsp;lender&nbsp;sells&nbsp;loans&nbsp;without ensuring that the advertised loan terms and benefits are honored with the new lender.<\/li><li>Different&nbsp;Types of Loans. The School shall not include a student loan lender on a preferred lender list for one type of a loan in exchange for benefits provided by the lender with respect to a different type of loan.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\">Promotion of Preferred Lenders Prohibited<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The School&nbsp;shall not allow a lender included&nbsp;on a preferred lender list&nbsp;to use&nbsp;the&nbsp;name, emblem, mascot or logo of the School or other words, pictures, or symbols readily identified&nbsp;with the School, in the marketing of private educational loans to the students attending the School&nbsp;that implies the School endorses the private educational loans offered by the lender.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Master Promissory Notes<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The School shall inform borrowers of&nbsp;the procedure(s)&nbsp;for completing&nbsp;the Master&nbsp;Promissory Note or other loan agreement with the lender of the borrower&#8217;s choice, whether or not the lender appears on the School&#8217;s preferred lender list.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Lender Restriction Prohibition<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The School shall not restrict borrowers to any particular type of lender (e.g., those that process loans electronically).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">School as Lender<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If the School participates in the School as Lender program under 20U.S.C. \u00a7 1085(d)(l)(E) and has an agreement to sell student loans to another lender, it must (a) disclose the&nbsp;existence&nbsp;of the agreement to the borrower and provide contact information for the lender who will be purchasing the borrower&#8217;s loan and (b) require that any lender to whom the loans are sold&nbsp;honors the loan terms and benefits the School advertised to borrowers.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Private Loans a Last Resort<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The School shall not certify student eligibility for a private educational loan without&nbsp;first informing the borrower that (a) federal financial assistance (including grants and loans under&nbsp;Title IV) may be available and (b) federal loans may provide more advantageous terms to the borrower than private loans.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Opportunity Loans<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The School shall not enter into an opportunity loan agreement with a student loan lender under which the School provides concessions or promises to the lender that prejudice other&nbsp;borrowers. An&nbsp;&#8220;opportunity&#8221; loan means&nbsp;a&nbsp;student loan&nbsp;provided to&nbsp;borrowers with&nbsp;poor&nbsp;or no&nbsp;credit history, or who otherwise would not meet the student loan lender&#8217;s eligibility criteria.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The School shall&nbsp;not certify student eligibility for an opportunity loan made available pursuant to an agreement between the School and a lender unless (i) the agreement includes the option of short term or partial loans not to exceed one year and (ii) the School informs the borrower of the short term or partial loan option, so the borrower can consider different or less expensive financing if the borrower&#8217;s financial condition improves.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Staffing Assistance from Lenders<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The School shall not request or accept from any lender any assistance with call center or financial aid office staffing, including in-person school-required initial or exit counseling, except as permitted by applicable federal student loan requirements. The School shall ensure that any lender employees on campus are accurately represented as such and not misidentified as School agents or employees. While lenders may provide professional development training to financial aid administrators and participate in financial literacy outreach activities, lender employees must clearly disclose the name of the entity preparing any written materials and may&nbsp;not promote the lender&#8217;s products<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Implementation<\/h2>\n\n\n\n<ol class=\"wp-block-list\"><li>The&nbsp;School agrees to publish the Arizona Student Loan Code of Conduct prominently on its website within ten business days of its adoption by the School.<\/li><li>The School shall require all of its employees with direct responsibilities relating to&nbsp;student loans to obtain training concerning the Arizona Student Loan Code of Conduct, applicable federal and state student loan laws and regulations, and related School policies and procedures within 90 days of the date the School adopts this Code or, for new employees, within 90 days of the date of hire. The&nbsp;School&nbsp;shall&nbsp;adopt&nbsp;procedures&nbsp;to ensure&nbsp;these&nbsp;employees maintain current knowledge of the Code and applicable regulations.<\/li><\/ol>\n\n\n\n<section id=\"AZ-student-loan\" \n    class=\"nau-block nau-block-panels   \" \n    data-layout_mobile=\"groupLayout-Stack gutter_Default panelLayoutPhotoTextVertical  photoAspect-16-9\"\n        data-layout_tablet=\"groupLayout-Stack gutter_Default panelLayoutPhotoTextVertical  photoAspect-16-9\"\n        data-layout_desktop=\"groupLayout-Stack gutter_Default panelLayoutPhotoTextVertical  photoAspect-16-9\"\n        data-layout_xl=\"groupLayout-Stack gutter_Default panelLayoutPhotoTextVertical  photoAspect-16-9\">\n\n    <div class=\"background-wrapper\">\n        <div class=\"block-main-content\">\n            \n            \n            \n            \n            \n            <div class=\"panel-wrapper\">\n                \n                                \n                        <div class=\"panel   panelTypeAccordion  noHover \"\n                            data-role=\"tabpanel\"\n                            data-panel=\"panel-AZ-student-loan-0\"\n                            id=\"panel-AZ-student-loan-0\">\n\n                            \n                                                                                                        \n                                \n                                                        <\/div>\n                                                <\/div>\n\n                    <\/div>\n    <\/div>\n<\/section>\n\n\n<p class=\"wp-block-paragraph\"><strong><sup>1<\/sup> For the purposes of this Code, &#8220;Remote interest&#8221; is defined as:<\/strong><br>&#8220;the ownership of less than three percent of the shares of a corporation for profit, provided the total annual income from dividends, including the value of stock dividends, from the corporation does not exceed five percent of the total annual income of such officer or employee and any other payments made to him by the corporation do not exceed five percent of his total annual income.&#8221; See generally A.R.S. \u00a7 38\u2010502(e).<\/p>\n\n\n    <\/div>\n<\/section>\n\n<div class=\"nau-block nau-block-left-nav-bottom-bound\">\n\n<\/div>","protected":false},"excerpt":{"rendered":"","protected":false},"author":326,"featured_media":8601,"parent":196,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"ring_central_script_selection":"","footnotes":""},"class_list":["post-7013","page","type-page","status-publish","has-post-thumbnail","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/in.nau.edu\/office-scholarships-financial-aid\/wp-json\/wp\/v2\/pages\/7013","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/in.nau.edu\/office-scholarships-financial-aid\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/in.nau.edu\/office-scholarships-financial-aid\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/in.nau.edu\/office-scholarships-financial-aid\/wp-json\/wp\/v2\/users\/326"}],"replies":[{"embeddable":true,"href":"https:\/\/in.nau.edu\/office-scholarships-financial-aid\/wp-json\/wp\/v2\/comments?post=7013"}],"version-history":[{"count":74,"href":"https:\/\/in.nau.edu\/office-scholarships-financial-aid\/wp-json\/wp\/v2\/pages\/7013\/revisions"}],"predecessor-version":[{"id":11929,"href":"https:\/\/in.nau.edu\/office-scholarships-financial-aid\/wp-json\/wp\/v2\/pages\/7013\/revisions\/11929"}],"up":[{"embeddable":true,"href":"https:\/\/in.nau.edu\/office-scholarships-financial-aid\/wp-json\/wp\/v2\/pages\/196"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/in.nau.edu\/office-scholarships-financial-aid\/wp-json\/wp\/v2\/media\/8601"}],"wp:attachment":[{"href":"https:\/\/in.nau.edu\/office-scholarships-financial-aid\/wp-json\/wp\/v2\/media?parent=7013"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}