261F.4 - MISLEADING IDENTIFICATION -- COVERED INSTITUTION -- LENDING INSTITUTIONS' EMPLOYEES.
261F.4 MISLEADING IDENTIFICATION -- COVERED
INSTITUTION -- LENDING INSTITUTIONS' EMPLOYEES.
1. A lending institution shall prohibit an employee or agent of
the lending institution from being identified to borrowers or
prospective borrowers of a covered institution as an employee,
representative, or agent of the covered institution.
2. A covered institution shall prohibit an employee or agent of a
lending institution from being identified as an employee,
representative, or agent of the covered institution.
3. An employee, representative, or agent of a lending institution
included on a covered institution's preferred lending list shall not
staff a covered institution's financial aid offices or call center
and shall not prepare any of the covered institution's materials
related to educational loans.
4. A covered institution that has entered into a preferred lender
arrangement with a lender regarding private educational loans shall
not agree to the lender's use of the name, emblem, mascot, or logo of
the institution, or other words, pictures, or symbols readily
identified with the institution, in the marketing of private
educational loans to the students attending the institution in any
way that implies that the institution endorses the private
educational loans offered by the lender. However, the covered
institution may allow the use of its name if it is part of the
lending institution's legal name.
5. Nothing in this section shall prohibit a covered institution
from requesting or accepting the following assistance from a lender
related to any of the following:
a. Providing educational counseling materials, financial
literacy materials, or debt management materials to borrowers,
provided that such materials disclose to borrowers the identification
of any lender that assisted in preparing or providing such materials.
b. Staffing services on a short-term, nonrecurring basis to
assist the institution with financial aid-related functions during
emergencies, including state-declared or federally declared natural
disasters, federally declared national disasters, and other localized
disasters and emergencies identified by the attorney general.
6. The attorney general shall adopt rules providing for the
disclosure, for lenders with a preferred lender arrangement, of
philanthropic contributions made as specified in section 261F.1,
subsection 5, paragraph "d". Section History: Recentrm
2008 Acts, ch 1132, §6
Referred to in § 261F.1