Financial Aid Code of Conduct
The Financial Aid Office at LaGrange College is committed to providing exemplary
customer service and unbiased advice to students and families regarding all aspects
of financial aid eligibility and programs. As a member of the National Association
of Federal Student Aid Administrators (NASFAA), we abide by NASFAA's
Statement of Ethical Principles
. In addition to these principles, the Higher Education Opportunity Act requires
institutions of higher education participating in the administration of educational
loan programs to develop and publish a Code of Conduct prohibiting any potential
conflicts of interest. Any LaGrange College officer, employee, or agent who has
responsibilities with respect to student educational loans is required to comply
with this Code of Conduct as outlined below.
Neither LaGrange College as an institution nor any employee of the financial aid
office shall enter into any revenue-sharing arrangement with any lender.
No officer or employees of LaGrange College's financial aid office shall accept
or solicit any gift from a lender, guarantor, or servicer of education loans. For
purposes of this prohibition, the term "gift" means any gratuity, favor, discount,
entertainment, hospitality, loan or other item having a monetary value of more
than a nominal value. Gifts and favorable terms and benefits do not include: a
brochure, workshop or training using standard materials relating to a loan, default
aversion, or financial literacy, such as a part of a training session. Entrance
and exit counseling as long as the institution's staff are in control of the counseling
and the counseling does not promote the services of a specific lender.
No officer or employee of LaGrange Colleges financial aid office may accept from
a lender, or an affiliate of any lender, any fee, payment, or financial benefit
as compensation for any type of consulting arrangement or contract to provide services
to or on behalf of a lender relating to education loans.
The financial aid office shall not for any first-time borrower, assign through
the award packaging or other methods, the borrower's loan to a particular lender;
refuse to certify, or delay certification, of any loan based on the borrower's
selection of a particular lender or guaranty agency.
The financial aid office shall not request or accept from any lender any offer
of funds for private loans, including funds from an opportunity pool loan, to students
in exchange for providing concessions or promises to the lender for a specific
number of Title IV loans made, insured, guaranteed, a specific loan volume, or
a preferred lender arrangement.
The Financial aid Office shall not request or accept from any lender any assistance
with call center staffing or financial aid office staffing, except that a lender
may provide professional development training, educational counseling material
(as long as the materials identify the lender that assisted in preparing the materials),
or staffing services on a short-term, nonrecurring basis during emergencies or
An employee of the financial aid office who otherwise has responsibilities with
respect to education loans or financial aid) who serves on an advisory board, commission,
or group established be a lender, guarantor, or group of lenders or guarantors,
shall be prohibited from receiving anything of value from the lender, guarantor,
or group, except for reimbursement fro reasonable expenses incurred by the employee
for serving on the board.