The UNC
Policy Manual
800.5.1[R]
Adopted
05/29/07
The
purpose of the federal student loan program is to provide the best possible loan
terms for students and parents who borrow to help finance higher
education. Private student loans are an
important additional resource for many students. Students and families must receive
trustworthy, reliable guidance from our institutions about financial aid. The University’s first
priority in conducting business with student loan providers is the best
interest of student borrowers. The
following system-wide effort endeavors to provide the best possible loan terms
and choices for students served by the University of North Carolina, to ensure
that students are well informed of their loan choices and to avoid conflicts or
the appearance of conflicts of interest by the University.
1. Lender Advisory Boards. Financial Aid personnel may participate on lender
advisory boards for the purpose of communicating the needs of the University and
its students to lenders, but these employees shall not receive any financial
remuneration for their participation or from the lenders, other than meals
associated with the meeting.
2. Campus-Based Lender List. Campuses must offer a list of lenders to
students that is completely transparent and is solely based upon the best
interest of the student including but not limited to interest rates, terms,
fees, customer service, borrower benefits, and ease of application. Campuses must have no fewer than three lenders
on a lender list. The lender list shall
be prominently displayed on the campus website and provided to students during
the financial aid process.
3. Lender List Disclosure. The process by which lenders are selected for
the campus-based lender list must be fully disclosed to students. The process must be prominently displayed on
the campus website and provided to students during the financial aid process. Students must be informed that they have the
right to use a lender of their own choosing, will not be penalized in any way
for exercising such an option and will receive assistance from the campus in
processing the loan of the student’s choice.
4. Lender
List Review. Lender list status must be
reviewed by the campus on an annual basis.
Chancellors shall forward a copy of the campus-based lender list that is
provided to students, with an explanation of the process by which the list was
compiled, to the President on an annual basis.
5. Exclusive Lender Agreements. Campuses and University associated entities shall
not enter into any exclusive agreement with a student lender through the
Federal Family Educational Loan Program, The William D. Ford Direct Lending
Program, or for a private educational loan expressly for postsecondary
educational expenses. Campuses with an
existing exclusive agreement with the federal government shall work with the
Department of Education to amend the agreement to permit participation in both
the William D. Ford Direct Lending Program and Federal Family Education Loan
Program.
6. Private
Loan Disclosure to Students. Campuses
that provide information to any student or parent regarding a private
educational loan from a lender shall prior to or concurrent with providing such
information inform the student or parent of:
a. the
student’s or parent's eligibility for assistance and loans under Title IV of
the Higher Education Act; and
b. the
terms and conditions of such private educational loan that are less favorable
than the terms and conditions of educational loans for which the student or
parent is eligible, including interest rates, repayment options, and loan
forgiveness.
Campuses
providing this information shall ensure that information regarding such private
educational loan is presented in such a manner as to be distinct from
information regarding loans that are made, insured, or guaranteed under Title
IV of the Higher Education Act.
7. Use
of Mascot, Logo, Emblem or Name by Lenders.
No lender shall be permitted to use the name, emblem, mascot, or logo of
an institution, or other words, pictures, or symbols readily identified with or
marks of an institution in the marketing of private educational loans to the
students attending an institution in any way that implies that the institution
endorses the private educational loans offered by the lender.
8. Acceptable
Gifts by University Personnel. Campuses
and associated entity personnel whose duties relate to student admissions,
student financial aid or student loans shall not accept gifts from a lender or
consolidator of student loans, other advertising items those of nominal value
to the extent permitted by N.C.G.S. 14-234. Such University personnel shall
report unacceptable gifts offered by lenders to the Campus Director of Student
Financial Aid and the Chancellor’s Office.
9. Professional Development Conferences
and Meetings. The professional
development of financial aid office personnel is encouraged. Reasonable travel,
conference registration fees and other miscellaneous expenses relating to
professional development conferences must be paid by the individual or campus and
should be specifically approved by the traveler’s supervisor as travel that
will benefit the University.
Reimbursement of any expenses by a lender is prohibited.
10. Lender Gifts to the University. Campuses and associated entities should not
accept any gift from a lender in exchange for or as an inducement for or result
of advantage, including revenue sharing arrangements, computer equipment,
printing costs and other inducements or gifts from a lender under circumstances
that a reasonable person would conclude the gift was in exchange or inducement
for or as a result of such advantage. Any gift to the University that is accepted
must be reported to and subsequently approved by the Supervisor of the person
receiving the gift. If the approval is
not forthcoming then the gift must be returned. Chancellors
shall report to the President any such gifts offered by lenders promptly.
11. Student Loan Consolidation Programs. Campuses and associated entities should not enter into a preferred student loan consolidation
arrangement with any lender.