Financial Aid Code of Conduct
The following Code of Conduct was last updated by a vote from NASFAA's Board of Directors
in November 2020, and published in January 2021. Subject to enforcement procedures
that went into effect July 1, 2015, NASFAA institutional members of NASFAA will ensure
that:
1. No action will be taken by financial aid staff that is for their personal benefit
or could be perceived to be a conflict of interest.
a. Employees within the financial aid office will not award aid to themselves
or their immediate family members. Staff will reserve this task to an institutionally
designated person, to avoid the appearance of a conflict of interest.
b. If a preferred lender list is provided, it will be compiled without prejudice
and for the sole benefit of the students attending the institution. The information
included about lenders and loan terms will be transparent, complete, and accurate.
The complete process through which preferred lenders are selected will be fully and
publicly disclosed. Borrowers will not be auto-assigned to any particular lender.
c. A borrower's choice of a lender will not be denied, impeded, or unnecessarily
delayed by the institution, even if that lender is not included on the institution's
preferred lender list.
d. No amount of cash, gift, or benefit in excess of a de minimis amount shall
be accepted by a financial aid staff member from any financial aid applicant (or his/her
family), or from any entity doing business with or seeking to do business with the
institution (including service on advisory committees or boards beyond reimbursement
for reasonable expenses directly associated with such service).
b. Information provided by the financial aid office is accurate, unbiased, and does
not reflect preference arising from actual or potential personal gain.
c. Institutional financial aid offers and/or other institutionally provided materials
shall include the following:
• Breakdown of estimated individual Cost of Attendance components, including which
are direct (billed by the institution) costs vs. indirect (not billed by the institution)
costs
• Clear identification and proper grouping of each type of aid offered indicating
whether the aid is
a grant/scholarship, loan, or work program
• Estimated net price
• Standard terminology and definitions, using NASFAA's glossary of terms
• Renewal requirements for each aid type being offered as well as next steps and financial
aid office contact information
d. All required consumer information is displayed in a prominent location on the institutional
web site(s) and in any printed materials, easily identified and found, and labeled
as "Consumer Information."
e. Financial aid professionals will disclose to their institution any involvement,
interest in, or potential conflict of interest with any entity with which the institution
has a business relationship.