Hendrix College, as a participant in
the federal loan programs, is required to have a code of conduct applicable to
the institutions officers, employees, and agents. This code of conduct requirement is set forth
in the Higher Education Act (HEOA) signed into law on August 14, 2008. This
code prohibits a conflict of interest with the responsibilities of an officer,
employee, or agent of the college with respect to student education loans.
Federal law specifies that the code shall be displayed prominently on the
institution’s website and that all officers, employees and agents with
responsibilities related to education loans be annually informed of the
provisions of the code of conduct.
Ban On Revenue-Sharing Arrangements
The college shall not enter into any
revenue-sharing arrangement with any lender or other vendor working with any of
its offices that are responsible for carrying out financial aid
functions. The university shall not accept any fee or other material
benefit in exchange for recommending a lender to its students.
Gift Ban
No college officer or employee with
financial aid responsibilities shall solicit or accept a gift having a monetary
value of more than a de minimus amount from a lender, guarantor, or service
provider of education loans.
Contracting Arrangements Prohibited
No college officer or employee with
financial aid responsibilities shall accept from any lender or lender affiliate
payment or other financial benefit as compensation for any type of consulting
arrangement or other contract to provide services to a lender.
Interaction with Borrowers
The college shall not automatically
assign a particular lender to any borrower, unless required to do so by law,
and shall not refuse to certify or delay certification of any loan based on the
lender or guarantee agency selected by the borrower.
Prohibition On Offers of Funds for
Private Loans
The college shall not request or
accept from a lender an offer of funds to be used for private education loans
in exchange for the university’s providing the lender with a specified number
or volume of federal loans or in exchange for placement on a preferred lender
list.
Ban On Staffing Assistance
The college shall not request or
accept from any lender assistance with the office of financial aid unless any
such assistance has been legislatively defined as acceptable. Lenders, for
example, may provide professional development training to financial aid
administrators, educational advising materials to borrowers, or assistance in
state or federally-declared natural disasters.
Advisory Board Assistance
All employees with financial aid
responsibilities shall be prohibited from receiving anything of value from a
lender or guarantor in return for service on its advisory board. Reimbursement
for or payment of reasonable expenses incurred in connection with such service,
however, is permitted.