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2008 SESSION

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SB 510 Higher educational institutions; policies addressing student loan vendors.

Introduced by: A. Donald McEachin | J. Chapman Petersen | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED:

Institutions of higher education; student lending policies; report.  Requires the State Council of Higher Education to develop policies and procedures for disclosing certain information to students on student lending practices.  This information shall include (i) the criteria used to determine which lenders, if any, are recommended or endorsed by the school, and (ii) explicit notification that students are free to borrow from any lender of their choosing and are not limited to a list offered by the school.  Also, the bill prohibits public institutions of higher education from entering into exclusive agreements with vendors regarding student loans, and prohibits employees from accepting gifts to induce endorsement of certain vendors.

SUMMARY AS PASSED SENATE:

Institutions of higher education; student lending policies; report.  Requires the State Council for Higher Education to develop policies and procedures for disclosing certain information to students on student lending practices.  This information shall include (i) the criteria used to determine which lenders, if any, are recommended or endorsed by the school, and (ii) explicit notification that students are free to borrow from any lender of their choosing and are not limited to a list offered by the school.  Also the bill prohibits public institutions of higher education from entering into exclusive agreements with vendors, and prohibits employees from accepting gifts to induce endorsement of certain vendors and makes a violation of this section a misdemeanor.

SUMMARY AS INTRODUCED:

Institutions of higher education; student lending policies; report.  Requires the governing boards of public institutions of higher education to develop policies and procedures for disclosing certain information to students on student lending practices, and to report this information annually to the State Council for Higher Education.  This information shall include (i) disclosure of the for-profit status of private vendors, (ii) the criteria used to determine which lenders, if any, are recommended or endorsed by the school, and (iii) explicit notification that students are free to borrow from any lender of their choosing and are not limited to a list offered by the school.  Also the bill prohibits public institutions of higher education from entering into exclusive agreements with vendors, and prohibits employees from accepting gifts to induce endorsement of certain vendors.