MCC Code of Conduct for Private Loan Program
1. Revenue Sharing Ban: MCC will not enter into any revenue‐sharing arrangements with any lenders, under any circumstances.
2. Gift Ban: No officer, employee or agent of MCC who is employed in the Financial Aid office or who otherwise has responsibilities with respect to student loans, will solicit or accept any gift or other thing of value from any lender, guarantor, or servicer. The term “gift” refers to any gratuity, favor, discount, entertainment, hospitality, loan or other item having a monetary value of more than $10.00. This does not include educational materials provided by lenders, such as training materials and brochures that are solely for educational purposes and do not promote the services of a specific lender.
3. Advisory Board Compensation: No officer, employee or agent of MCC who is employed in the Financial Aid office will accept compensation for serving on the advisory board of any lending institution or guarantor.
4. Opportunity Pools: MCC will not request or accept gifts from lenders, guarantors, or servicers in exchange for promotion or referrals of student loan volume to that agency.
5. Contract Arrangement Prohibition: Financial Aid staff will not receive any compensation from any lender, nor will they make any type of consulting arrangement or contract to provide private lending services to students.
6. Staffing Assistance Ban: MCC does not allow staffing assistance to be offered by or obtained from any lender, servicer, or guarantor.
7. Assignment of Lenders: MCC will not assign a loan to a particular lender for any borrower.
8. Recommended Lender List: The MCC Financial Aid office does not have a “preferred lender list.”
Students who decide to obtain a loan from a private lending institution are free to select a lender of their choice. When making this choice, students are encouraged to rate lenders on things like repayment terms and origination fees.
9. Loan Certification: MCC will not refuse to certify or delay certification of a loan based upon a student’s choice of lender.
10. Private Loans as a Last Resort: The Financial Aid staff at MCC will explain the benefits of federal grants before certifying a loan from a private lending institution. Students should be aware that other Title IV grants may be more favorable than private student loans. Students may consult with a financial aid counselor to discuss other options.