New York Laws
Article 13-B - Student Lending Accountability, Transparency and Enforcement Act
627 - Standards for Preferred Lender Lists.

§ 627. Standards for preferred lender lists. A covered institution
that provides or makes available a preferred lender list must comply
with the following standards:

1. A preferred lender list must disclose the process by which the
covered institution selected lending institutions for such preferred
lender list, including, but not limited to, the method and criteria used
to choose the lending institutions and the relative importance of those
criteria;

2. A preferred lender list must state in the same font size and same
manner as the predominant text on the document that borrowers have the
right and ability to select the education loan provider of their choice,
are not required to use any of the lenders on such preferred lender
list, and will suffer no penalty for choosing a lender that is not on
such preferred lender list;

3. The covered institution's decision to include a lending institution
on any preferred lender list and the covered institution's decision as
to where on the preferred lender list the lending institution's name
appears shall be determined solely by consideration of the best
interests of the borrowers who may use such preferred lender list
without regard to the pecuniary interests of the covered institution;

4. The contents of any preferred lender list shall be reviewed and
updated no less than annually;

5. No lending institution shall be placed on a preferred lender list
unless such lending institution provides assurance to the covered
institution and to borrowers who take out loans from such lending
institution that the advertised benefits upon repayment will continue to
inure to the benefit of borrowers regardless of whether the lending
institution's loans are sold;

6. No lending institution that, to the covered institution's knowledge
after reasonable inquiry, has an agreement to sell its loans to another
unaffiliated lending institution shall be included on a preferred lender
list unless such agreement is disclosed therein in the same font size
and same manner as the predominant text on the document in which the
preferred lender list appears;

7. No lending institution shall be placed on a covered institution's
preferred lender lists or in favored placement on a covered
institution's preferred lender lists for a particular type of loan, in
exchange for benefits provided to the covered institution or to the
covered institution's students in connection with a different type of
loan.