Gift Prohibition

Guarantors are prohibited from providing anything of more than nominal value to a College or College employee in exchange for any advantage or consideration provided to such Guarantor related to its educational loan activities. Gifts do not include: (a) the Guarantor’s own brochures or promotional literature, and (b) food, refreshments, training, or informational material furnished as part of a training session.

Revenue Sharing Prohibition

Guarantors are prohibited from engaging in revenue sharing with Colleges.

Advisory Board Compensation Limitations

College employees are prohibited from receiving any remuneration (or reimbursement of expenses) for serving as a member or participant of a Guarantor’s Advisory Board. Since HESC’s School Advisory Council meetings provide training, food and refreshments may be provided.

Staffing and Misrepresentation Prohibitions

Colleges must ensure that employees of Guarantors never identify themselves to students as employees of the College. No employee of a Guarantor shall staff a College Financial Aid Office.

Loan Disclosure and Prohibition of Quid Pro Quo High Risk Loans

Before a Guarantor may provide a private educational loan to a borrower attending a College with which the Guarantor has an educational loan arrangement, the College must inform the student of all available financing under Title IV.

A Guarantor shall not provide high risk loans in exchange for a College providing concessions or promises to such Guarantor.

Requested Disclosures

Colleges may request information from Guarantors regarding certain non-federal educational loans.