§ 620 — Definitions

New York § 620

• Jurisdiction: New York
• Law EDN: Education
• Title 1: General Provisions Article 1 Short Title and Definitions (§§
• Art. 13-B: Student Lending Accountability, Transparency and Enforcement Act

Text

§ 620. Definitions. As used in this article, the following terms shall\nhave the following meanings unless otherwise specified:\n 1. "Borrower" shall mean a student attending a covered institution in\nthis state, or a parent or person in parental relation to such student,\nwho also obtains an educational loan from a lending institution to pay\nfor or finance higher education expenses.\n 2. "Covered institution" shall mean any college, vocational\ninstitution, or approved program as defined in section six hundred one\nof this title.\n 3. "Covered institution employee" shall mean any employee, agent,\ncontractor, director, officer or trustee of a covered institution.\n 4. "Educational loan" shall mean any loan that is made, insured, or\nguaranteed under Part B of Title IV of the Federal Higher Education Act\nof nineteen hundred sixty-five, as amended, any high risk loan or any\nprivate loan issued by a lending institution for the purposes of paying\nfor or financing higher education expenses.\n 5. "Gift" shall mean any discount, favor, gratuity, inducement, loan,\nstock, thing of value, or other item having more than nominal value.\n a. The term "gift" shall include, but is not limited to:\n (1) Any money, service, loan, entertainment, honoraria, hospitality,\nlodging costs, meals, registration fees, travel expenses, discount,\nforbearance or promise;\n (2) Gifts provided in kind, by purchase of a ticket, payment in\nadvance, or reimbursement after expenses have been incurred;\n (3) Any computer hardware for which the recipient pays below-market\nprices;\n (4) Any printing costs or services.\n b. The term "gift" shall not include any of the following:\n (1) A lending institution's own brochure or promotional literature;\n (2) Food, refreshments, training, or informational material furnished\nto a covered institution employee as an integral part of a training\nsession, if such training contributes to the professional development of\nthe covered institution employee.\n c. Nothing in this article shall be construed to affect the private\nphilanthropic activities of banks or other lending institutions that are\nunrelated to educational loans.\n 6. "High risk loans" shall mean any agreement between a lending\ninstitution and a covered institution that provides for the lending\ninstitution to provide loans to students with a poor or no credit\nhistory, who would otherwise not be eligible for educational loans.\n 7. "Higher education expenses" shall include the following:\n a. tuition and fees;\n b. costs incurred for books, supplies, transportation, and\nmiscellaneous personal expenses; and\n c. room and board costs.\n 8. "Lending institution" shall mean:\n a. any entity that itself or through an affiliate makes educational\nloans to pay for or finance higher education expenses or that\nsecuritizes such loans;\n b. any entity, or association of entities, that guarantees educational\nloans; or\n c. any industry, trade or professional association or other entity\nthat receives money, related to educational loan activities, from any\nentity described above in paragraphs a and b of this subdivision.\n 9. "Preferred lender list" shall mean a list of one or more\nrecommended or suggested lending institutions that a covered institution\nmakes available for use, in print or any other medium or form, by\nborrowers, potential borrowers or others.\n 10. "Revenue sharing" shall mean any arrangement whereby a lending\ninstitution pays a covered institution or an affiliated entity or\norganization of such covered institution a percentage of the principal\nof each loan directed towards the lending institution from a borrower at\nthe covered institution.\n