Code of Conduct for Educational Loans

Iowa Code Section 261E.2 and Sections 487(a) (25) and 487(e) of the Higher Education Act of 1965, as amended, require the development, administration, and enforcement of a code of conduct governing educational loan activities. The University of Northern Iowa and its officers, employees, trustees and agents-including the Alumni Association, booster clubs and other organizations associated with the University agree to the provisions of this Code of Conduct and will refrain from:

  • Packaging private educational loans in a student’s financial aid award, except under either or both of the following conditions:
    • The borrower is ineligible for additional funding
    • The borrower has exhausted the limits of his or her eligibility for Title IV loans (Federal Perkins, Stafford, and, as applicable, parent or Grad PLUS)
  • Accepting impermissible gifts, goods, or services from a lender, lender servicer, or guarantor. Certain services, materials or other items of a nominal value ($3.00 or less) may be accepted. Family members are also prohibited from receiving such gifts, goods, or services.
  • Accepting philanthropic contributions from a lender, lender servicer, or guarantor that are related to the educational loans provided by the lender, lender servicer, or guarantor.
  • Serving on or otherwise participating as a member of an advisory council for a lender, lender affiliate, lender servicer, or guarantor.
  • Accepting from a lender or its affiliate any fee, payment, or other financial benefit as compensation for any type of consulting arrangement or other contract to provide services to or on behalf of the lender relating to education loans.
  • Requesting or accepting fees, competitive rates, or other benefits in exchange for a specified amount of loan activity, or exchange for endorsing a lender or the lender’s loan products.
  • Entering into any revenue sharing arrangement with a lender.
  • Assigning a first time borrower’s loans to a particular lender or refusing or delaying certification of any loans based on a borrower’s selection of a particular lender or guaranty agency.
  • Requesting or accepting any lender assistance with call center or financial aid office staffing. This does not generally apply to professional development training, educational or information materials, or staffing services on a short-term nonrecurring basis during an emergency.

The University of Northern Iowa is committed to providing the information and resources necessary to help every student achieve educational success. To accomplish this goal the financial aid staff will consider each student’s individual needs. This code of conduct was written with guidance from the Iowa College Student Aid Commission in consultation with the Office of the Attorney General.