(Washington, DC) - Acting Attorney General Peter J. Nickles announced today that nine of the District’s colleges and universities have agreed to adopt a code of conduct for their relationships with educational loan providers. The Code of Conduct for Relationships Between Universities In The District of Columbia and Educational Loan Providers resulted in a collaborative effort between the universities and the Office of the Attorney General (OAG) after concerns about student lending practices were identified in other parts of the country. 

The Office of the Attorney General determined that the best way to proceed was to work with the universities in the District to develop a Code that would incorporate best practices and express the continuing commitment of the District’s institutions of higher education to high standards of ethical principles for financial aid. 

“We in the Attorney General’s Office appreciate the collaborative effort by the major universities in the District in agreeing to a Code of Conduct that should reassure students and parents that the financial aid offices are committed to working in the best interests of the borrowers,” said Attorney General Nickles.

The Code includes commitments that persons involved in the lending process at the universities will not take gifts of more than nominal value from lending institutions or provide consulting services to lending institutions.  The universities further commit that they will not take money or gifts in exchange for giving advantages to a particular lender or allow lending institutions to provide staff for financial aid offices.

The Code also provides that all lists of preferred lenders given to students will be based on the best interests of the borrowers.  The universities will disclose to students and parents information about various loans that will help borrowers to make informed decisions when they decide which loan to take. 

The nine signatories to the Code of Conduct are:  American University, The Catholic University, Gallaudet University, Georgetown University, The George Washington University, Howard University, Southeastern University, Trinity and the University of the District of Columbia.

Contact: Leslie Kershaw
(202) 727-2320