Student Loan Code of Conduct

As a participant in the Federal Direct Loan Program, the University of Dayton will issue Federal loans including the Direct Subsidized and Direct Unsubsidized Student Loans, the Direct Parent PLUS Loans, and the Direct Graduate PLUS Loans.  Additionally, the University of Dayton will process private educational loans for students who request these (via a credit application).

In order to comply with the 2008 Higher Education Opportunity Act, the University of Dayton adheres to the Student Loan Code of Conduct. The guidelines listed are principles that ensure the integrity of the student aid process and ethical conduct of all University of Dayton employees in regard to student loan practices.

1. Revenue Sharing

The University of Dayton and its employees will not enter into any type of revenue-sharing arrangement with any lender, guarantor or servicer. The term “revenue-sharing arrangement” refers to an arrangement between an institution and a lender where

  • a lender provides or issues a loan that is made, insured, or guaranteed to students under the Higher Education Act attending the institution or to the families of such students; and
  • the institution recommends the lender or the loan products of the lender and in exchange, the lender pays a fee or provides other material benefits, including revenue or profit sharing, to the institution, an officer or employee of the institution. All loans are processed without regard to lender or mode of transmission (i.e., electronic or paper).

The University of Dayton will neither recommend a private loan lender nor accept material benefits including revenue or profit sharing to the institution, an officer, or an employee of the institution or an agent. 

2. Gifts
University of Dayton employees are prohibited from soliciting or accepting any gift from a lender, guarantor, or servicer of education loans. 

  • Gifts include any gratuity, favor, discount, entertainment, hospitality, loan or other item.  This 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 incurred.
  • Gifts to family members of a University of Dayton employee are considered to be a gift to the employee if the gift is given with the knowledge and acquiescence of the employee and there is reason to believe the gift was given because of the official position of that employee.

3. Contracting Arrangements
University of Dayton employees are not accept from any lender or affiliate of any lender any fee, payment, or other financial benefit (including opportunity to purchase stock) as compensation for any consulting arrangement or other contract to provide services to a lender or on behalf of a lender relating to education loans.

4. Preferred Lender Status
The University of Dayton will certify private loans from any lender. We do provide a list of preferred lenders based on low interest rates, no origination fees, timely processing, total loan volume, and electronic funds transfer capabilities.  We do provide a comprehensive list of all lenders that are utilized by our students and update this annually.

5. Interaction with Borrowers
All decisions will be made by the borrower in his/her independent review of borrower benefits and lender services. The University of Dayton will not refuse to certify, or delay certification of, any loan based on the borrower’s selection of a particular lender or guaranty agency.

6. Opportunity Pool Loan
The University of Dayton will not request or accept from any lender any offer of funds to be used for private education loans (defined in section 140 of the Truth in Lending Act) including funds for an opportunity pool loan in exchange for the University of Dayton providing concessions or promises regarding providing the lender with a specified number of loans made, insured or guaranteed; a specified loan volume of such loans; or a preferred lender arrangement for such loans.

7. Staffing Assistance
The University of Dayton will not request or accept from any lender, guarantor, or servicer of student loans any assistance with call center staffing or financial aid office staffing.

8. Advisory Board Compensation
University of Dayton employees who serve on an advisory board, commission, or group established by a lender, guarantor, or group of lenders or guarantors, are prohibited from receiving anything of value from the lender, guarantor, or group of lenders or guarantors, except that the employee may be reimbursed for reasonable expenses incurred in serving on such advisory board, commission, or group.