Shortly before the student borrower of a Federal Direct Stafford Loan or Federal Direct PLUS Loan ceases at least half-time study, the student is required to complete Exit Counseling. The exit counseling sessions include information on the following:

• Average anticipated monthly repayment amounts
• Repayment plan options
• Repayment Incentives
• Debt management strategies
• Options for not being able to make payments on borrowed loans
• Default Consequences
• Consolidation
• Conditions for Canceling All or Part of your loans
• Tax benefits for borrowers
• Reporting to NSLDS

More information including Entrance and Exit Counseling can also be found online at

www.studentloans.gov.

 

For more general information on Financial Aid programs:

www.studentaid.ed.gov

Employee Compensation Prohibition

No Employee of the school or “school-affiliated organization” shall accept or solicit anything from a student loan lender.

Lender Advisory Board Restrictions

A School employee shall not accept any remuneration or reimbursement of expenses for serving as a member of or otherwise participating on a student loan lender’s advisory board or committee, consistent with applicable federal student loan requirements.

Financial Relationship Prohibition

A School employee shall not accept from any lender of affiliate of any lender any fee, payment, or other financial benefit (including the opportunity to purchase stock) as compensation for any type of consulting arrangement or other contract to provide services to a lender or on behalf of a lender relating to education loans.

In addition, a person employed in the financial aid office of the school, or who otherwise has direct responsibilities with respect to educational loans or other financial aid, shall:

a. Avoid any equity or other interest in any student loan lender other than a remote interest;

b. Avoid consulting or similar financial relationships with student loan lenders and comply with the School’s Conflict of Interest Policies & Procedures.

Institutional Compensation Prohibition

The School will not accept anything of value from a student loan lender in exchange for any advantage or consideration provided to the lender related to its education loan activity. This prohibition shall include, but not be limited to: (1) the School’s receipt from any lender of any computer hardware for which the School pays below market prices, (2) Preferential rates for, or access to, a lender’s other financial products and (3) printing costs or services.

Notwithstanding anything else in this paragraph, the School may accept assistance as contemplated by 34 C.F.R. 682.200(b).

The School shall not engage in revenue sharing with a student loan lender. “Revenue sharing” means any arrangement under which a student loan lender pays a higher education institution or an affiliated entity or organization a certain sum, fee, percentage or other material benefit calculated in relationship to the volume of loans received by the lender from students of the institution.

Preferred Lender List Requirements

If the School decides to develop and/or publish any list of suggested, recommended or preferred student loan lenders (“preferred lender list” or “lender list”), the school shall develop and maintain any lender list based solely on the best interests of student and parent borrowers.

Promotion of Preferred Lenders Prohibited

The School shall not allow a lender included on a preferred lender list to use the name, emblem, mascot or logo of the school or other words, pictures, or symbols readily identified with the school in the marketing of private educational loans to the students attending the School that implies the School endorses the private educational loans offered by the lender.

Master Promissory Notes

The School shall inform borrowers of the procedure(s) for completing the Master Promissory Note or other loan agreement with the lender of the borrower’s choice, whether or not the lender appears in the School’s preferred lender list.

Lender Restriction Prohibition

The School shall not restrict borrowers to any particular type of lender (e.g., those that process loans electronically).

Private Loans as a Last Resort

The School shall not certify student eligibility for a private educational loan without first informing the borrower that (a) federal financial assistance (including grants and loans under Title IV) may be available and (b) federal loans may provide more advantageous terms to the borrower than private loans.

Opportunity Loans

The School shall not enter into an opportunity loan agreement with a student loan lender under which the school provides concessions or promises to the lender that prejudice other borrowers. An “opportunity” loan means a student loan provided to borrowers with poor or no credit history, or who otherwise would not meet the student loan lender’s eligibility criteria. The School shall not request or accept from any lender any offer of funds to be used for private education loans, including funds for an opportunity loan, to students in exchange for the School 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 specified lender arrangement for such loans.

The School shall not certify student eligibility for an opportunity loan made available pursuant to an agreement between the School and a lender unless (a) the agreement includes the option of short term or partial loans not to exceed one year and (b) the School informs the borrower of the short term or partial loan option, so the borrower can consider different or less expensive financing if the borrower’s financial condition improves.

Beverly Hills Design Institute do not have Preferred Lender Lists at this time.