Institutional Code of Conduct
for Educational Loans
Institutional Code of Conduct for Educational Loans
Introduction
Section 487 (a) (25) (A) of the Higher Educational Act (HEA) requires all schools to
develop and enforce a code of conduct governing educational loan activities. Educational
loan activities at the Academy of Art University (AAU) are those associated with any
loan made under the Federal Direct Loan Program or any private educational loan.
A private educational loan is any loan that is not made or guaranteed under Title IV of
the HEA and is issued to a borrower expressly for postsecondary educational expenses.
All of the following individual entities associated with the Academy of Art University
must comply with this code of conduct governing educational loan activities:
• An employee
• A Director or Officer
• A trustee
• A contract employee
• Any agent – such as the alumni board or other organization directly or indirectly
associated with or authorized or employed by AAU.
Revenue – Sharing Arrangements
The AAU offices, employees, or agents will not solicit or accept a fee, revenue –
or profit sharing, or other material benefit provided by a private lender that issues loans to
or on behalf of our students in exchange for the AAU recommending the lender or
lender’s educational loan products.
Gifts
Impermissible Activities
An officer, employee, or agent of AAU who is employed in the financial aid office or
who otherwise has direct responsibilities with respect to federal and private educational
loans must not solicit or accept any gift from a private or direct loans educational loan
lender, lender servicer, or guarantor. See exceptions below under “Permissible
Activities.”
Gifts to Family Members or Others
A gift to a family member of AAU officer, employee, or agent, or a gift to an individual
based on that individuals’ relationship with an officer, employee, or agent of AAU is not
permissible if either of the following applies: