The primary goal of the University’s financial aid office is to help students achieve their educational potential by providing or directing students toward appropriate financial resources. In doing so, staff members of the Monmouth University Office of Financial Aid shall continue to conduct themselves in an ethical and professional manner, in accordance with the “Statement of Ethical Principles” set forth by the National Association of Student Financial Aid Administrators and other requirements set forth in this policy.
A. The University’s Office of Financial Aid is a member of the National Association of Student Financial Aid Administrators (“NASFAA”) which is the professional organization serving college and university financial aid officers. In furtherance of its organization and membership, NASFAA has adopted a Statement of Ethical Principles which governs the conduct of its members. That Statement of Ethical Principles is hereby incorporated into this policy and is applicable to employees of the University serving within the Office of Financial Aid and their superiors.
B. National Association of Student Financial Aid Administrators Statement of Ethical Principles
A. Prohibited Activities. In addition to the above statement of ethical principles, employees of the University’s Office of Financial Aid, as well as all other University employees and trustees, who serve as their superiors, shall also adhere to the following requirements.
Preferred Lender Lists. In the event that the University promulgates a list of preferred or recommended lenders or similar ranking or designation (“Preferred Lender List”), then the following procedures shall be followed:
Lender Staffing of Office of Financial Aid. The following procedures shall be followed with regard to the staffing of the Office of Financial Aid by employees of lending institutions:
Electronic Loan Documents and Processing. The following procedures shall be followed with regard to electronic loan documents and processing:
Miscellaneous. The University shall not arrange with a lending institution to provide any Loan of any nature if the provision of such loans prejudices any other borrower, including but not limited to Opportunity Loans.
Any employee who believes that any provision of this policy has been violated shall report such possible violation to the Office of the General Counsel.
A.“Borrower” means a student attending the University, or a parent or guardian of the student, who obtains a Student Loan from a Lending Institution to pay for or finance higher education expenses.
B. Lending Institution” means any entity that directly or through an affiliate engages in the business of making or securitizing Student Loans, or any entity or association of entities that guarantees Student Loans.
C “Opportunity Loans” means Student Loans that a Lending Institution agrees to make up to a specified aggregate amount to students with poor or no credit history, who the Lending Institution claims would otherwise not be eligible for the lender’s alternative loan program, which are made in exchange for certain minimum loan volume or other benefit that the University agrees to provide the Lending Institution.
D. “Preferred Lender List” means any list of Lending Institutions published in print or any other medium or form that recommends or suggests Lending Institutions to borrowers.
E. “Revenue Sharing” means any arrangement in which a Lending Institution pays the University or an affiliated entity or organization of the University a percentage of the principle of each loan directed towards the University from a Borrower at the University or any form of commission related to the loan.
F. “Student Loan” means any loan that is made, insured, or guaranteed under “Part B of Title IV of the federal “Higher Education Act of 1965” or any private loan issued by a Lending Institution or any loan issued pursuant to a New Jersey statutorily established loan program for the purposes of paying for or financing higher education expenses but not including credit cards or home equity loans.
Original Issue Date: April 2, 2007
Revision Date: December 7, 2007