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Save Student Aid

Save Student Aid! is a campaign led by the Student Aid Alliance, a coalition of higher education organizations united in support of federal student aid programs.

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Financial Aid Regulation

Looking for help with your student loans? Visit AAMC’s FIRST for Medical Education.

Truth in Lending Act (TILA): On February 14, 2010, new Truth in Lending Act (TILA) disclosure regulations on private education loans took effect. The new TILA regulations―prompted by the Higher Education Opportunity Act of 2008 (HEOA, P.L. 110-315)―define “private education loans” as non-Title IV federal loans. The Federal Reserve now treats Title VII and VIII health professions loans offered by HRSA as private education loans and such loans are required to comply with TILA disclosure requirements, despite the fact that they are federal loans. Amendments to exempt federal health professions loans were considered as part of broad Wall Street reform legislation (H.R. 4173), but appear to have been left out of the final House and Senate versions sent to the conference committee.

TILA is designed to protect consumers in credit transactions by requiring clear disclosure of key terms, lending arrangements, and total costs associated with lending transactions. The revisions under Title X of HEOA were designed to improve and increase transparency of private education loans.

Financial Aid "Sunshine": HEOA provides for regulation and oversight of the financial aid community similar to the Student Loan Sunshine Act (H.R. 890) passed by the House on May 9, 2007. Among other provisions, the new law:

  • Requires institutions to develop and administer a code of conduct for their financial aid offices;
  • Requires institutions to disclose all relationships with lenders;
  • Requires "preferred lender lists" to include at least three unaffiliated lenders and the process that was used to develop the list;
  • Prohibits financial aid administrators who participate on lender advisory boards from receiving compensation for such activities, and requires such administrators to report lender support provided for travel and related activities;
  • Prohibits staffing of campus financial aid offices by lenders or their employees, excluding services provided in exit and entrance interviews for borrowers;
  • Bans all gifts, opportunity pools, and revenue-sharing between lenders and institutions, with the exception of favorable loan benefits/terms, informational material, professional training programs, and exit/entrance interview services by lenders (under the direction of the institution's financial aid administrator); and
  • Requires certain lender disclosures in private education loan applications, solicitations, and approvals.

AAMC Statement of Effective Interactions in Financial Aid: In response to the increased attention to the relationships among commercial lenders, educational institutions, and their financial aid administrators, the AAMC Committee on Student Financial Assistance (COSFA) developed a "Statement of Effective Interactions in Financial Aid" to assist member medical schools as they consider the creation and implementation of institutional guidelines in this area of financial aid. The document was approved by the AAMC Council of Deans on September 6, 2007.

Contact

For non-legislative questions contact AAMC FIRST:
Financial Information Resources Services and Tools
Email: first@aamc.org


Joseph Bañez
Legislative Analyst
Telephone: 202-739-2995
Email: jbanez@aamc.org

On Government Affairs


Testimony and Correspondence





External Resources