Financial Aid Code of Conduct
As a participant in the Federal Student Aid program, Goddard College 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 publication of the code and annual disclosures.
The Code bans on:
- revenue-sharing arrangements with any lender,
- steering borrowers to particular lenders or delaying loan certifications, and
- offers of funds for private loans to students in exchange for providing concessions or promises to the lender for a specific number of FSA loans, a specified loan volume, or a preferred lender arrangement.
The code of conduct applies to the officers, employees, and agents of the school and must also prohibit employees of the financial aid office from receiving gifts from a lender, guaranty agency or loan servicer. The code also prohibits financial aid office staff (or other employees or agents with responsibilities with respect to education loans) from accepting compensation for:
- any type of consulting arrangement or contract to provide services to or on behalf of a lender relating to education loans; and
- service on an advisory board, commission, or group established by lenders or guarantors, except for reimbursement for reasonable expenses.
Goddard College also conducts its business in accord with the NASFAA Statement of Ethical Principles and Code of Conduct for Financial Aid Professionals.