Lending Code of Conduct

Policy Statement

Tompkins Cortland Community College, as a participant in federal loan programs, is required to have a code of conduct applicable to the institution’s officers, employees, and agents. The code of conduct requirements are set forth in the Higher Education Opportunity Act (HEOA) signed into law on August 14, 2008.

The Code of Conduct Related to Student Loan Activities is a requirement specific to certain transactions and activities related to financial aid matters. In addition, the law includes requirements related to the publication of the code and annual disclosures.

Reason for Policy

The HEOA program participation agreement requires all institutions participating in Title IV financial aid programs, including student loan programs, to have a code of conduct that institutional officers, employees, and agents must follow.

This code must:

  • Prohibit conflicts of interest in student loan matters.
  • Include the provisions set forth in the HEOA regarding conflicts.
  • Be displayed prominently on the institution’s website.
  • Ensure that all officers, employees, and agents annually acknowledge the provisions of the code of conduct.

Tompkins Cortland Community College also adheres to the Student Lending, Accountability, Transparency, and Enforcement (SLATE) Act.

Code of Conduct

Tompkins Cortland Community College adopts the following provisions from HEOA, Section 493 as its Code of Conduct Related to Student Loan Activities. This code will be annually reviewed with all institutional officers, employees, and agents involved in student loan activities.

Where New York State law under the SLATE Act is stricter than federal law, those stricter provisions are in bold.

1. Ban on Revenue-Sharing Arrangements

  • (A) Prohibition – The institution shall not enter into any revenue-sharing arrangement with any lender.
  • (B) Definition – A revenue-sharing arrangement means:
    1. A lender provides or issues a loan to students or their families that is made, insured, or guaranteed under this title.
    2. The institution recommends the lender or its loan products in exchange for fees or material benefits, including revenue or profit sharing, paid to the institution or its officers.

2. Gift Ban

  • (A) Prohibition – Officers or employees responsible for education loans shall not solicit or accept any gift from a lender, guarantor, or servicer of education loans.

  • (B) Definition of Gift

    • (i) In General – A "gift" includes:

      • Gratuities, favors, discounts, entertainment, hospitality, loans, stocks, or any item valued over $25 per year.
      • Services, transportation, lodging, meals, or other benefits provided at below-market value.

    • (ii) Exceptions – The term "gift" does not include:

      • Standard educational materials on loan issues, default prevention, or financial literacy.
      • Training sessions that are designed to improve financial aid services.
      • Favorable loan terms provided to all students on a non-preferential basis.
      • Entrance and exit counseling services, provided that:
        • The institution’s staff controls the counseling.
        • The counseling does not promote the products or services of a specific lender.
      • Philanthropic contributions from lenders that are unrelated to student loans.
      • State-funded scholarships or grants.

    • (iii) Rule for Gifts to Family Members – A gift to a family member of an institutional officer or employee is considered a gift if:

      1. The officer/employee is aware of it.
      2. The gift was given due to the officer’s or employee’s institutional position.

3. Contracting Arrangements Prohibited

  • (A) Prohibition – Officers, employees, or agents shall not accept any compensation, consulting arrangement, or contract from a lender for services relating to education loans.

  • (B) Exceptions – This does not prohibit:

    1. Employees outside the Financial Aid Office who do not handle education loans from serving on a board of directors of a lender, guarantor, or servicer.
    2. Employees with student loan responsibilities from serving on a lender’s board, provided they recuse themselves from decisions related to student loans at their institution.
    3. Employees of a lender, guarantor, or servicer from serving on an institution’s board, provided they excuse themselves from any student loan-related matters.

Sanctions

Violations of this policy, including failure to disclose conflicts of interest or engaging in prohibited activities, will result in disciplinary action, up to and including termination from the institution.

Final Notes

This Lending Code of Conduct ensures the integrity of Tompkins Cortland Community College’s student loan processes, protecting students from conflicts of interest and maintaining compliance with federal and state laws.