Code of Conduct for Loans
Student Loan Code of Conduct
Hampden-Sydney College complies with all federal regulations and provisions regarding the Code of Conduct required to be adopted and enforced by institutions participating in educational loan programs. All Hampden-Sydney College employees with responsibilities for the administration of student educational loans are informed annually of the provisions of the Student Loan Code of Conduct.
The key principles we follow are:
- Our goals are to help students and parents receive, in an accurate and timely manner, the loans for which they are eligible.
- We shall encourage students and families to borrow only what they absolutely need.
- We, as financial aid professionals, support the integrity of the financial aid process and our responsibility to assist students and parents.
- We shall fairly and accurately disclose all terms and conditions related to loan products to students and parents.
- Any participating lender, while not defined as preferred, will disclose and be transparent in its consumer information about loan products offered; including but not limited to, interest rates, terms and conditions on federal loans.
- Any lender listed as a participating lender will demonstrate high quality loan servicing and define additional benefits beyond the standard terms and conditions.
- A participating lender list is not restrictive and allows students and parents to select any lender and understand the process for selecting a lender and applying for a loan. The school will promptly certify at the appropriate time and within the appropriate guidelines any loan from any lender selected by the borrower. The school will not assign for any borrower, through award packaging or other methods, a loan to a particular lender.
- A lender will not be included on a list of participating lenders in exchange for a prohibited inducement.
- We shall practice the Statement of Ethical Principles and Code of Conduct for Institutional Financial Aid Professionals as adopted by the National Association of Student Financial Aid Professionals (NASFAA).
"An institutional financial aid professional is expected to always maintain exemplary standards of professional conduct in all aspects of carrying out his or her responsibilities, specifically including all dealings with any entities involved in any manner in student financial aid, regardless of whether such entities are involved in a government sponsored, subsidized, or regulated activity. In doing so, a financial aid professional should:
- Refrain from taking any action for his or her personal benefit.
- Refrain from taking any action he or she believes is contrary to law, regulation, or the best interests of the students and parents he or she serves.
- Ensure that the information he or she provides is accurate, unbiased, and does not reflect any preference arising from actual or potential personal gain.
- Be objective in making decisions and advising his or her institution regarding relationships with any entity involved in any aspect of student financial aid.
- Refrain from soliciting or accepting anything of other than nominal value from any entity (other than an institution of higher education or governmental entity such as the US Department of Education) involved in the making, holding, consolidating or processing of any students loans, including anything of value (including reimbursement of expenses) for serving on an advisory body or a part of a training activity of or sponsored by any such entity.
- Refrain from participating in any revenue-sharing arrangements.
- Refrain from entering into any type of consulting arrangement or other contract to provide to a lender services relating to educational loans.
- Prohibits external lenders' employees, representatives, or agents from providing staffing services to the financial aid office.
- Disclose to his or her institution, in such manner as his or her institution may prescribe, any involvement with or interest in any entity involved in any aspect of student financial aid."
Excerpt from NASFAA's Statement of Ethical Principals and Code of Conduct for Financial Aid Professionals.