The Arizona Attorney General has recommended that all postsecondary institutions in the state adopt the Arizona Student Loan Code of Conduct. The Attorney General’s action was prompted by revelations that financial aid lenders in other states had engaged in questionable practices through their relationships with various postsecondary institutions. Moreover, evidence came to light that financial aid officers at other colleges and universities had financial interests in affiliated lenders that created potential conflicts of interest.
Adoption of the Arizona Student Loan Code of Conduct represents a proactive measure to ensure arms-length relationships between college officials and lenders. Specifically, it imposes conflict-of-interest requirements beyond those already required under state law. It also mandates that both colleges and lenders make available to student borrowers information about preferred lenders. Moreover, the Code promotes transparency in all aspects of financial aid administration, and is therefore congruent with the many other Board policies that promote openness in college and District operations.
Page Updated 05/05/16