CONFLICT OF INTEREST POLICY AND CODE OF CONDUCT
The Higher Education Opportunity Act Of 2008 (HEOA) requires institutions of higher education to establish and follow a Code of Conduct with respect to student loans that prohibits conflicts of interest for any financial aid professional participating in the administration of educational loan programs. Young Harris College (the “College”) is an eligible institution under the Federal Insured Student Loan Program.
In accordance with this requirement, the Office of Admissions and Financial Aid at Young Harris College has issued the following conflict of interest policy and code of conduct.
The purpose of this policy is to prohibit conflicts of interests in situations involving student financial aid and to establish standards of conduct for employees with responsibility for student financial aid.
This Policy applies to all employees who work in the Office of Admissions and Financial Aid and all other College employees who have responsibilities related to education loans or other forms of student financial aid. Agents of the College with responsibility for education loans or other student financial aid are also expected to abide by the terms of this policy.
A. Conflict of Interest: A conflict of interest exists when an employee’s financial interests or other opportunities for personal benefit may compromise, or reasonably appear to compromise, the independence of judgment with which the employee performs his/her responsibilities at the College.
B. Gift: 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:
1. Standard materials, activities or programs on issues related to a loan, default aversion, default prevention or financial literacy, such as a brochure, a workshop or training.
2. Training or informational material furnished to the College as an integral part of a training session that is designed to improve the service of a lender, guarantor or servicer of educational loans to the College, if such training contributes to the professional development of the College’s employees.
3. Favorable terms, conditions and borrower benefits on an education loan provided to a student employed by the College or an employee who is the parent of a student if such terms, conditions or benefits are comparable to those provided to all students of the College and are not provided because of the student’s or parent’s employment with the College.
4. Exit counseling services provided to borrowers to meet the College’s responsibilities for entrance and exit counseling under federal law, so long as the College’s employees are in control of the counseling, and such counseling does not promote the products or services of any specific lender.
5. 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.
6. State education grants, scholarships or financial aid funds administered by or on behalf of a State.
C. Opportunity pool loan: A private education loan made by a lender to a student attending the College or the family member of such a student that involves a payment, directly or indirectly, by the College of points, premiums, additional interest or financial support to such lender for the purpose of such lender extending credit to the student or the family.
D. Revenue-sharing arrangement: An arrangement between the College and a lender under which (a) a lender provides or issues a loan to students attending the College or to their families; and (b) the College recommends the lender or the loan products of the lender, and in exchange, the lender pays a fee or provides other material benefits, including revenue or profit sharing, to the College or its employees.
4. Institutional Policy Regarding Education Loans and Student Financial Aid
A. Revenue-Sharing Arrangements. The College or any agent of the College will not enter into any revenue-sharing arrangement with any lender.
B. Interaction with Borrowers. When participating in the Federal Family Education Loan Program (FFELP), the College will not assign a first-time borrower’s federal loan, through award packaging or other methods, to a particular lender. The College will not refuse to certify, or delay certification of, any federal loan based on the borrower’s selection or a particular lender or guaranty agency. Under no circumstances will the College assign a student’s private student loan to a particular lender, or refuse to certify or delay certification of any private loan, based upon the borrower’s selection of lender or guaranty agency.
C. Private Loans. The College 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, to students in exchange for the College providing concessions or promises regarding providing the lender with (i) a specified number of federal loans; (ii) a specified federal loan volume; or (iii) a preferred lender arrangement for federal loans.
D. Co-Branding. The College will not permit a private educational lender to use the College’s name, emblem, mascot, logo, or any other words, pictures or symbols associated with the College to imply endorsement of private educational loans by that lender.
E. Staffing Assistance. The College will not request or accept from any lender any assistance with call center staffing or financial aid office staffing. Nothing in this section, however, prevents the College from accepting assistance from a lender related to (i) professional development training for its staff; (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, non-recurring basis to assist the College with financial aid-related functions during emergencies, including state-declared natural disasters, federally-declared national disasters and other localized disasters and emergencies identified by the Secretary of Education.
5. Code of Conduct
A. Conflicts of Interest
1. No employee shall have a conflict of interest with respect to any education loan or other student financial aid for which the employee has responsibility.
2. No employee may process any transaction related to his/her own personal financial aid eligibility or that of a relative.
B. Prohibited Contracting Arrangements. No employee shall 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.
C. Advisory Board Compensation. No employee who serves on an advisory board, commission or group established by a lender, guarantor or group of lenders or guarantors may receive anything of value from the lender, guarantor or group of lenders or guarantors in return for that service.
D. Reimbursement of Expenses. Expenses incurred while attending professional association meetings, conferences or in connection with service on an advisory board, commission or group described in Section V. Entertainment expenses such as concert or sports tickets or greens fees may not be accepted. Employees are expected to personally pay for such expenses or request reimbursement from the College in accordance with College policy.
E. Meals. Employees may occasionally need to share meals with employees of lenders, guaranty agencies, the State of Georgia or other colleges or universities in the course of business. Meals offered as a part of meetings, conferences or other events may be accepted if all participants in the meeting or event are offered the meals or if the meals are included as a part of a registration fee.
6. Policy Violations
Violations of this policy may result in disciplinary action, up to and including dismissal.