(1) The term "covered educational institution" means any educational institution that offers a postsecondary educational degree, certificate, or program of study (including any institution of higher education) and includes an agent, officer, or employee of the educational institution.

(2) (a)The term "gift" means any gratuity, favor, discount, entertainment, hospitality, loan, or other item having more than a de minimis monetary value, including services, transportation, lodging, or meals, whether provided in kind, by purchase of a ticket, payment in advance, or reimbursement after the expense has been incurred. Gift includes an item described in this paragraph provided to a family member of an officer, employee, or agent of a covered educational institution, or to any other individual based on that individual's relationship with the officer, employee, or agent, if the item is provided with the knowledge and acquiescence of the officer, employee, or agent; and the officer, employee, or agent has reason to believe the item was provided because of the official position of the officer, employee, or agent.

(b)Gift does not include:

(i)standard informational material related to a loan, default aversion, default prevention, or financial literacy;

(ii)food, refreshments, training, or informational material furnished to an officer, employee, or agent of a covered educational institution, as an integral part of a training session or through participation in an advisory council that is designed to improve the service of the private educational lender to the covered educational institution, if such training or participation contributes to the professional development of the officer, employee, or agent of the covered educational institution;

(iii)favorable terms, conditions, and borrower on a private education loan provided to a student employed by the covered educational institution, if such terms, conditions, or benefits are not provided because of the student's employment with the covered educational institution;

(iv)the provision of financial literacy counseling or services, including counseling or services provided in coordination with a covered educational institution, to the extent that such counseling or services are not undertaken to secure:

(aa)applications for private education loans or private education loan volume;

(bb)applications or loan volume for any loan made, insured, or guaranteed under Title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.);

(cc)the purchase of a product or service of a specific private educational lender;

(dd)philanthropic contributions to a covered educational institution from a private educational lender that are unrelated to private education loans and are not made in exchange for any advantage related to private education loans; or

(ee)state education grants, scholarships, or financial aid funds administered by or on behalf of a state.

(3) The term "institution of higher education" has the same meaning as in 20 U.S.C. 1002.

(4) The term "postsecondary educational expenses" means any of the expenses that are included as part of the cost of attendance of a student, as defined in 20 U.S.C. 1087.

(5) The term "preferred lender arrangement" has the same meaning as in Section 151 of the Higher Education Act of 1965.

(6) The term "private educational lender" means:

(a)a financial institution, as defined in 12 U.S.C. 1813 that solicits, makes, or extends private education loans;

(b)a Federal credit union, as defined in 12 U.S.C. 1752 that solicits, makes, or extends private education loans; and

(c)any other person engaged in the business of soliciting, making, or extending private education loans.

(7) The term "private education loan" means a loan provided by a private educational lender that:

(a)is not made, insured, or guaranteed under 20 U.S.C. 1070 et seq.;

(b)is issued expressly for postsecondary educational expenses to a borrower, regardless of whether the loan is provided through the educational institution that the subject student attends or directly to the borrower from the private educational lender; and

(c)does not include an extension of credit under an open-end consumer credit plan, a reverse mortgage transaction, a residential mortgage transaction, or any other loan that is secured by real property or a dwelling.

(8) The term "revenue sharing" means an arrangement between a covered educational institution and a private educational lender under which:

(a)a private educational lender provides or issues private education loans with respect to students attending the covered educational institution;

(b)the covered educational institution recommends to students or others the private educational lender or the private education loans of the private educational lender; and

(c)the private educational lender pays a fee or provides other material benefits, including profit sharing, to the covered educational institution in connection with the private education loans provided to students attending the covered educational institution or a borrower acting on behalf of a student.

Added by Laws 2013, c. 99, § 8, eff. July 1, 2013.