15 U.S.C. § 1650: Preventing unfair and deceptive private educational lending practices and eliminating conflicts of interest

means any individual who is liable for the obligation of another without compensation, regardless of how designated in the contract or instrument with respect to that obligation, other than an obligation under a private education loan extended to consolidate a consumer’s pre-existing private education loans; includes any person the signature of which is requested as condition to grant credit or to forbear on collection; and does not include a spouse of an individual described in subparagraph (A), the signature of whom is needed to perfect the security interest in a loan. means any educational institution that offers a postsecondary educational degree, certificate, or program of study (including any institution of higher education); and includes an agent, officer, or employee of the educational institution; means any gratuity, favor, discount, entertainment, hospitality, loan, or other item having more than a de minimis monetary value, including services, transportation, lodging, or meals, whether provided in kind, by purchase of a ticket, payment in advance, or reimbursement after the expense has been incurred; and the item is provided with the knowledge and acquiescence of the officer, employee, or agent; and the officer, employee, or agent has reason to believe the item was provided because of the official position of the officer, employee, or agent; and standard informational material related to a loan, default aversion, default prevention, or financial literacy; food, refreshments, training, or informational material furnished to an officer, employee, or agent of a covered educational institution, as an integral part of a training session or through participation in an advisory council that is designed to improve the service of the private educational lender to the covered educational institution, if such training or participation contributes to the professional development of the officer, employee, or agent of the covered educational institution; favorable terms, conditions, and borrower benefits on a private education loan provided to a student employed by the covered educational institution, if such terms, conditions, or benefits are not provided because of the student’s employment with the covered educational institution; applications for private education loans or private education loan volume; applications or loan volume for any loan made, insured, or guaranteed under title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1070 et seq.); or the purchase of a product or service of a specific private educational lender; philanthropic contributions to a covered educational institution from a private educational lender that are unrelated to private education loans and are not made in exchange for any advantage related to private education loans; or State education grants, scholarships, or financial aid funds administered by or on behalf of a State; the term “institution of higher education” has the same meaning as in section 102 of the Higher Education Act of 1965 ( 20 U.S.C. 1002 ); the term “postsecondary educational expenses” means any of the expenses that are included as part of the cost of attendance of a student, as defined under section 472 of the Higher Education Act of 1965 ( 20 U.S.C. 1087 ll ); the term “preferred lender arrangement” has the same meaning as in section 151 of the Higher Education Act of 1965 [ 20 U.S.C. 1019 ]; a financial institution, as defined in section 1813 of title 12 that solicits, makes, or extends private education loans; a Federal credit union, as defined in section 1752 of title 12 that solicits, makes, or extends private education loans; and any other person engaged in the business of soliciting, making, or extending private education loans; is not made, insured, or guaranteed under of 1 title IV of the Higher Education Act of 1965 ( 1 So in original. The word “of” probably should not appear. 20 U.S.C. 1070 et seq.); and is issued expressly for postsecondary educational expenses to a borrower, regardless of whether the loan is provided through the educational institution that the subject student attends or directly to the borrower from the private educational lender; and does not include an extension of credit under an open end consumer credit plan, a reverse mortgage transaction, a residential mortgage transaction, or any other loan that is secured by real property or a dwelling; and a private educational lender provides or issues private education loans with respect to students attending the covered educational institution; the covered educational institution recommends to students or others the private educational lender or the private education loans of the private educational lender; and the private educational lender pays a fee or provides other material benefits, including profit sharing, to the covered educational institution in connection with the private education loans provided to students attending the covered educational institution or a borrower acting on behalf of a student. offer or provide any gift to a covered educational institution in exchange for any advantage or consideration provided to such private educational lender related to its private education loan activities; or engage in revenue sharing with a covered educational institution. A private educational lender may not use the name, emblem, mascot, or logo of the covered educational institution, or other words, pictures, or symbols readily identified with the covered educational institution, in the marketing of private education loans in any way that implies that the covered educational institution endorses the private education loans offered by the private educational lender. Any person who is employed in the financial aid office of a covered educational institution, or who otherwise has responsibilities with respect to private education loans or other financial aid of the institution, and who serves on an advisory board, commission, or group established by a private educational lender or group of such lenders shall be prohibited from receiving anything of value from the private educational lender or group of lenders. Nothing in this subsection prohibits the reimbursement of reasonable expenses incurred by an employee of a covered educational institution as part of their service on an advisory board, commission, or group described in this subsection. It shall be unlawful for any private educational lender to impose a fee or penalty on a borrower for early repayment or prepayment of any private education loan. An institution of higher education shall publicly disclose any contract or other agreement made with a card issuer or creditor for the purpose of marketing a credit card. on the campus of an institution of higher education; near the campus of an institution of higher education, as determined by rule of the Bureau; or at an event sponsored by or related to an institution of higher education. That any card issuer that markets a credit card on the campus of such institution notify the institution of the location at which such marketing will take place. That the number of locations on the campus of such institution at which the marketing of credit cards takes place be limited. That credit card and debt education and counseling sessions be offered as a regular part of any orientation program for new students of such institution. With respect to a private education loan involving a student obligor and 1 or more cosigners, the creditor shall not declare a default or accelerate the debt against the student obligor on the sole basis of a bankruptcy or death of a cosigner. The holder of a private education loan, when notified of the death of a student obligor, shall release within a reasonable timeframe any cosigner from the obligations of the cosigner under the private education loan. A holder or servicer of a private education loan, as applicable, shall within a reasonable time-frame notify any cosigners for the private education loan if a cosigner is released from the obligations of the cosigner for the private education loan under this paragraph. Any lender that extends a private education loan shall provide the student obligor an option to designate an individual to have the legal authority to act on behalf of the student obligor with respect to the private education loan in the event of the death of the student obligor.