§ 626 — Loan disclosure and prohibition of quid pro quo high risk loans

New York § 626

• 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

§ 626. Loan disclosure and prohibition of quid pro quo high risk\nloans. 1. Should a borrower or potential borrower consult a covered\ninstitution's financial aid office in connection with obtaining an\neducational loan to pay for or finance higher education expenses, the\ncovered institution shall inform the borrower or potential borrower of\nall available financing options under Title IV of the Federal Higher\nEducation Act of nineteen hundred sixty-five, as amended, including\ninformation on any terms and conditions of available loans under such\ntitle that are more favorable to the borrower, before a lending\ninstitution may provide a private educational loan to a borrower\nattending a covered institution.\n 2. A lending institution shall not enter into an agreement or\notherwise provide any high risk loans, in exchange for the covered\ninstitution providing concessions or promises to the lending institution\nthat may prejudice other borrowers or potential borrowers.\n 3. A covered institution shall not enter into an agreement or\notherwise provide any high risk loans, in exchange for the covered\ninstitution providing concessions or promises to the lending institution\nthat may prejudice other borrowers or potential borrowers.\n