ยง 626. Loan disclosure and prohibition of quid pro quo high risk
loans. 1. Should a borrower or potential borrower consult a covered
institution's financial aid office in connection with obtaining an
educational loan to pay for or finance higher education expenses, the
covered institution shall inform the borrower or potential borrower of
all available financing options under Title IV of the Federal Higher
Education Act of nineteen hundred sixty-five, as amended, including
information on any terms and conditions of available loans under such
title that are more favorable to the borrower, before a lending
institution may provide a private educational loan to a borrower
attending a covered institution.
2. A lending institution shall not enter into an agreement or
otherwise provide any high risk loans, in exchange for the covered
institution providing concessions or promises to the lending institution
that may prejudice other borrowers or potential borrowers.
3. A covered institution shall not enter into an agreement or
otherwise provide any high risk loans, in exchange for the covered
institution providing concessions or promises to the lending institution
that may prejudice other borrowers or potential borrowers.
Structure New York Laws
Article 13-B - Student Lending Accountability, Transparency and Enforcement Act
621 - Prohibition of Gifts Made by Lending Institutions to Covered Institutions and Their Employees.
622 - Prohibition of Receipt of Gifts by Covered Institutions.
623 - Prohibition of Receipt of Gifts by Covered Institution Employees.
624 - Covered Institution Employee Prohibitions and Reporting Requirements.
625 - Misleading Identification of Lending Institutions' Employees.
626 - Loan Disclosure and Prohibition of Quid Pro Quo High Risk Loans.
627 - Standards for Preferred Lender Lists.
628 - Proper Execution of Master Promissory Notes.