20 U.S.C. § 1019 — Definitions

Page 238 TITLE 20—EDUCATION § 1019 Editorial Notes PRIOR PROVISIONS Prior sections 1018b to 1018f were omitted in the gen- eral amendment of this subchapter by Pub. L. 102–325. Section 1018b, Pub. L. 89–329, title I, § 143, as added Pub. L. 100–418, title VI, § 6201, Aug. 23, 1988, 102 Stat. 1515, related to use of funds. Section 1018c, Pub. L. 89–329, title I, § 144, as added Pub. L. 100–418, title VI, § 6201, Aug. 23, 1988, 102 Stat. 1515; Pub. L. 101–610, title II, § 221(a), (b), Nov. 16, 1990, 104 Stat. 3180, related to applications. Section 1018d, Pub. L. 89–329, title I, § 145, as added Pub. L. 100–418, title VI, § 6201, Aug. 23, 1988, 102 Stat. 1516, related to technical assistance and coordination contracts. Section 1018e, Pub. L. 89–329, title I, § 146, as added Pub. L. 100–418, title VI, § 6201, Aug. 23, 1988, 102 Stat. 1516; Pub. L. 101–305, § 5, May 30, 1990, 104 Stat. 258; Pub. L. 101–610, title II, § 221(c), Nov. 16, 1990, 104 Stat. 3180, related to authorization of appropriations. Section 1018f, Pub. L. 89–329, title I, § 147, as added Pub. L. 100–418, title VI, § 6201, Aug. 23, 1988, 102 Stat. 1516, defined ‘‘public community agency’’, ‘‘institution of higher education’’ and ‘‘Secretary’’. PART E—LENDER AND INSTITUTION REQUIREMENTS RELATING TO EDUCATION LOANS § 1019. Definitions In this part: (1) Agent The term ‘‘agent’’ means an officer or em- ployee of a covered institution or an institu- tion-affiliated organization. (2) Covered institution The term ‘‘covered institution’’ means any institution of higher education, as such term is defined in section 1002 of this title, that re- ceives any Federal funding or assistance. (3) Education loan The term ‘‘education loan’’ (except when used as part of the term ‘‘private education loan’’) means— (A) any loan made, insured, or guaranteed under part B of subchapter IV; (B) any loan made under part D of sub- chapter IV; or (C) a private education loan. (4) Eligible lender The term ‘‘eligible lender’’ has the meaning given such term in section 1085(d) of this title. (5) Institution-affiliated organization The term ‘‘institution-affiliated organiza- tion’’— (A) means any organization that— (i) is directly or indirectly related to a covered institution; and (ii) is engaged in the practice of recom- mending, promoting, or endorsing edu- cation loans for students attending such covered institution or the families of such students; (B) may include an alumni organization, athletic organization, foundation, or social, academic, or professional organization, of a covered institution; and (C) notwithstanding subparagraphs (A) and (B), does not include any lender with respect to any education loan secured, made, or ex- tended by such lender. (6) Lender The term ‘‘lender’’ (except when used as part of the terms ‘‘eligible lender’’ and ‘‘private educational lender’’)— (A) means— (i) in the case of a loan made, insured, or guaranteed under part B of subchapter IV, an eligible lender; (ii) in the case of any loan issued or pro- vided to a student under part D of sub- chapter IV, the Secretary; and (iii) in the case of a private education loan, a private educational lender as de- fined in section 1650 of title 15; and (B) includes any other person engaged in the business of securing, making, or extend- ing education loans on behalf of the lender. (7) Officer The term ‘‘officer’’ includes a director or trustee of a covered institution or institution- affiliated organization, if such individual is treated as an employee of such covered insti- tution or institution-affiliated organization, respectively. (8) Preferred lender arrangement The term ‘‘preferred lender arrangement’’— (A) means an arrangement or agreement between a lender and a covered institution or an institution-affiliated organization of such covered institution— (i) under which a lender provides or oth- erwise issues education loans to the stu- dents attending such covered institution or the families of such students; and (ii) that relates to such covered institu- tion or such institution-affiliated organi- zation recommending, promoting, or en- dorsing the education loan products of the lender; and (B) does not include— (i) arrangements or agreements with re- spect to loans under part D of subchapter IV; or (ii) arrangements or agreements with re- spect to loans that originate through the auction pilot program under section 1099d(b) of this title. (9) Private education loan The term ‘‘private education loan’’ has the meaning given the term in section 1650 of title 15. (Pub. L. 89–329, title I, § 151, as added Pub. L. 110–315, title I, § 120, Aug. 14, 2008, 122 Stat. 3117.) Editorial Notes PRIOR PROVISIONS A prior section 1019, Pub. L. 89–329, title I, § 119, as added Pub. L. 96–374, title I, § 101(a), Oct. 3, 1980, 94 Stat. 1383, authorized appropriations for education outreach programs, prior to the general amendment of this sub- chapter by Pub. L. 99–498. Page 239 TITLE 20—EDUCATION § 1019a § 1019a. Responsibilities of covered institutions, institution-affiliated organizations, and lend- ers (a) Responsibilities of covered institutions and institution-affiliated organizations (1) Disclosures by covered institutions and in- stitution-affiliated organizations (A) Preferred lender arrangement disclo- sures In addition to the disclosures required by subsections (a)(27) and (h) of section 1094 of this title (if applicable), a covered institu- tion, or an institution-affiliated organiza- tion of such covered institution, that par- ticipates in a preferred lender arrangement shall disclose— (i) on such covered institution’s or insti- tution-affiliated organization’s website and in all informational materials de- scribed in subparagraph (C) that describe or discuss education loans— (I) the maximum amount of Federal grant and loan aid under subchapter IV available to students, in an easy to un- derstand format; (II) the information required to be dis- closed pursuant to section 1019b(a)(2)(A)(i) of this title, for each type of loan described in section 1019(3)(A) of this title that is offered pur- suant to a preferred lender arrangement of the institution or organization to stu- dents of the institution or the families of such students; and (III) a statement that such institution is required to process the documents re- quired to obtain a loan under part B of subchapter IV from any eligible lender the student selects; and (ii) on such covered institution’s or insti- tution-affiliated organization’s website and in all informational materials de- scribed in subparagraph (C) that describe or discuss private education loans— (I) in the case of a covered institution, the information that the Board of Gov- ernors of the Federal Reserve System re- quires to be disclosed under section 1638(e)(11) of title 15, for each type of pri- vate education loan offered pursuant to a preferred lender arrangement of the in- stitution to students of the institution or the families of such students; and (II) in the case of an institution-affili- ated organization of a covered institu- tion, the information the Board of Gov- ernors of the Federal Reserve System re- quires to be disclosed under section 1638(e)(1) of title 15, for each type of pri- vate education loan offered pursuant to a preferred lender arrangement of the or- ganization to students of such institu- tion or the families of such students. (B) Private education loan disclosures A covered institution, or an institution-af- filiated organization of such covered institu- tion, that provides information regarding a private education loan from a lender to a prospective borrower shall— (i) provide the prospective borrower with the information the Board of Governors of the Federal Reserve System requires to be disclosed under section 1638(e)(1) of title 15 for such loan; (ii) inform the prospective borrower that— (I) the prospective borrower may qual- ify for loans or other assistance under subchapter IV; and (II) the terms and conditions of loans made, insured, or guaranteed under sub- chapter IV may be more favorable than the provisions of private education loans; and (iii) ensure that information regarding private education loans is presented in such a manner as to be distinct from infor- mation regarding loans that are made, in- sured, or guaranteed under subchapter IV. (C) Informational materials The informational materials described in this subparagraph are publications, mail- ings, or electronic messages or materials that— (i) are distributed to prospective or cur- rent students of a covered institution and families of such students; and (ii) describe or discuss the financial aid opportunities available to students at an institution of higher education. (2) Use of institution name A covered institution, or an institution-af- filiated organization of such covered institu- tion, that enters into a preferred lender ar- rangement with a lender regarding private education loans shall not agree to the lender’s use of the name, emblem, mascot, or logo of such institution or organization, or other words, pictures, or symbols readily identified with such institution or organization, in the marketing of private education loans to stu- dents attending such institution in any way that implies that the loan is offered or made by such institution or organization instead of the lender. (3) Use of lender name A covered institution, or an institution-af- filiated organization of such covered institu- tion, that enters into a preferred lender ar- rangement with a lender regarding private education loans shall ensure that the name of the lender is displayed in all information and documentation related to such loans. (b) Lender responsibilities (1) Disclosures by lenders (A) Disclosures to borrowers (i) Federal education loans For each education loan that is made, in- sured, or guaranteed under part B or D of subchapter IV (other than a loan made under section 1078–3 of this title or a Fed- eral Direct Consolidation Loan), at or prior to the time the lender disburses such loan, the lender shall provide the prospec- tive borrower or borrower, in writing (in- cluding through electronic means), with