§ 261F.1 — Definitions

Iowa § 261F.1

• Jurisdiction: Iowa
• Title VII: EDUCATION, HISTORY, AND CULTURE
• Ch. 261F: EDUCATIONAL LOANS

Text

As used in this chapter, unless otherwise specified:
1. “Borrower” means a student attending a covered institution in this state, or a parent or
person in parental relation to such student, who obtains an educational loan from a lending
institution to pay for or finance a student’s higher education expenses.
2. “Covered institution” means any educational institution that offers a postsecondary
educational degree, certificate, or program of study and receives any Tit. IV funds under the
federal Higher Education Act of 1965, as amended, or state funding or assistance. “Covered
institution” includes an authorized agent of the educational institution, including an alumni
association, booster club, or other organization directly or indirectly associated with or
authorized by the institution or an employee of the institution.
3. “Covered institution employee” means any employee, agent, contract employee,
director, officer, or trustee of a covered institution.
4. “Educational loan” means any loan that is made, insured, or guaranteed under Tit. IV
of the federal Higher Education Act of 1965, as amended, directly to a borrower solely for
educational purposes, or any private educational loan.
5. “Gift”meansanygratuity,favor,discount,entertainment,hospitality,loan,orotheritem
having a monetary value of more than a de minimus amount. “Gift” includes a gift of services,
transportation, lodging, or meals, whether provided in kind, by purchase of a ticket, payment
in advance, or reimbursement after the expense has been incurred. “Gift” does not include
any of the following:
a. Standard material, activities, or programs on issues related to a loan, default aversion,
default prevention, or financial literacy.
b. Food or refreshments furnished to an officer, employee, or agent of an institution as
an integral part of a training session or conference that is designed to contribute to the
professional development of the officer, employee, or agent of the institution.
c. Favorable terms, conditions, and borrower benefits on an educational loan provided
to a borrower employed by the covered institution if such terms, conditions, or benefits are
comparable to those provided to all students of the institution.
d. Philanthropiccontributionstoacoveredinstitutionfromalender,guarantor,orservicer
of educational loans that are unrelated to educational loans, provided, as applicable, that the
contributions are disclosed pursuant to section 261F.4, subsection 6.
e. State education grants, scholarships, or financial aid funds administered under chapter
256, subchapter VII, part 4.
f. Toll-free telephone numbers for use by covered institutions or other toll-free telephone
numbers open to the public to obtain information about loans available under Tit. IV of the
federal Higher Education Act of 1965, as amended, or private educational loans, or free data
transmission service for use by a covered institution to electronically submit applicant loan
processing information or student status confirmation data for loans available under Tit. IV
of the federal Higher Education Act of 1965.
g. A reduced origination fee.
h. A reduced interest rate.
i. Payment of federal default fees.
j. Purchase of a loan made by another lender at a premium.
§261F.1, EDUCATIONAL LOANS 2
k. Other benefits to a borrower under a repayment incentive program that requires, at
a minimum, one or more scheduled payments to receive or retain the benefit or under a
loan forgiveness program for public service or other targeted purposes approved by the
attorney general, provided these benefits are not marketed to secure loan applications or
loan guarantees.
l. Items of nominal value to a covered institution, covered institution employee, covered
institution-affiliated organization, or borrower that are offered as a form of generalized
marketing or advertising, or to create goodwill.
m. Items of value which are offered to a borrower or to a covered institution employee
that are also offered to the general public.
n. Other services as identified and approved by the attorney general through a public
announcement, such as a notice on the attorney general’s internet site.
6. “Lender”or“lendinginstitution”meansacreditorasdefinedinsection103ofthefederal
Truth in Lending Act, 15 U.S.C. §1602.
7. “Postsecondary educational expenses” means any of the expenses that are included
as part of a student’s cost of attendance as defined in Tit. IV, part F, of the federal Higher
Education Act of 1965, as amended.
8. “Preferred lender arrangement” means an arrangement or agreement between a lender
and a covered institution under which the lender provides or otherwise issues educational
loans to borrowers and which relates to the covered institution recommending, promoting,
or endorsing the educational loan product of the lender. “Preferred lender arrangement” does
not include arrangements or agreements with respect to loans under part D or E of Tit. IV of
the federal Higher Education Act of 1965, as amended.
9. “Preferred lender list” means a list of at least three recommended or suggested,
unaffiliated lending institutions that a covered institution makes available for use, in print or
any other medium or form, by borrowers, prospective borrowers, or others.
10. “Private educational loan” means a private loan provided by a lender that is not
made, insured, or guaranteed under Tit. IV of the federal Higher Education Act of 1965,
as amended, and is issued by a lender solely for postsecondary educational expenses to a
borrower, regardless of whether the loan involves enrollment certification by the educational
institution that the student for which the loan is made attends. “Private educational loan”
does not include a private educational loan secured by a dwelling or under an open-end
credit plan. For purposes of this subsection, “dwelling” and “open-end credit plan” have the
meaningsgivensuchtermsinsection103ofthefederalTruthinLendingAct,15U.S.C.§1602.
11. “Revenue sharing arrangement” means an arrangement between a covered institution
and a lender in which the lender provides or issues educational loans to persons attending
the institution or on behalf of persons attending the institution and the covered institution
recommends the lender or the educational loan products of the lender, in exchange for
which the lender pays a fee or provides other material benefits, including revenue or profit
sharing, to the institution or officers, employees, or agents of the institution. “Revenue
sharing arrangement” does not include arrangements related solely to products which are
not educational loans.