2019 New York Laws
EDN - Education
Title 1 - General Provisions
Article 13-B - Student Lending Accountability, Transparency and Enforcement Act
620 - Definitions.

§ 620. Definitions. As used in this article, the following terms shall
have the following meanings unless otherwise specified:
  1.  "Borrower" shall mean a student attending a covered institution in
this state, or a parent or person in parental relation to such  student,
who  also  obtains an educational loan from a lending institution to pay
for or finance higher education expenses.
  2.  "Covered  institution"  shall   mean   any   college,   vocational
institution,  or  approved program as defined in section six hundred one
of this title.
  3. "Covered institution employee"  shall  mean  any  employee,  agent,
contractor, director, officer or trustee of a covered institution.
  4.  "Educational  loan"  shall mean any loan that is made, insured, or
guaranteed under Part B of Title IV of the Federal Higher Education  Act
of  nineteen  hundred  sixty-five, as amended, any high risk loan or any
private loan issued by a lending institution for the purposes of  paying
for or financing higher education expenses.
  5.  "Gift" shall mean any discount, favor, gratuity, inducement, loan,
stock, thing of value, or other item having more than nominal value.
  a. The term "gift" shall include, but is not limited to:
  (1) Any money, service, loan, entertainment,  honoraria,  hospitality,
lodging  costs,  meals,  registration  fees,  travel expenses, discount,
forbearance or promise;
  (2) Gifts provided in kind,  by  purchase  of  a  ticket,  payment  in
advance, or reimbursement after expenses have been incurred;
  (3)  Any  computer  hardware for which the recipient pays below-market
prices;
  (4) Any printing costs or services.
  b. The term "gift" shall not include any of the following:
  (1) A lending institution's own brochure or promotional literature;
  (2) Food, refreshments, training, or informational material  furnished
to  a  covered  institution  employee  as an integral part of a training
session, if such training contributes to the professional development of
the covered institution employee.
  c. Nothing in this article shall be construed to  affect  the  private
philanthropic activities of banks or other lending institutions that are
unrelated to educational loans.
  6.  "High  risk  loans"  shall  mean  any  agreement between a lending
institution and a covered institution  that  provides  for  the  lending
institution  to  provide  loans  to  students  with  a poor or no credit
history, who would otherwise not be eligible for educational loans.
  7. "Higher education expenses" shall include the following:
  a. tuition and fees;
  b.  costs  incurred   for   books,   supplies,   transportation,   and
miscellaneous personal expenses; and
  c. room and board costs.
  8. "Lending institution" shall mean:
  a.  any  entity  that itself or through an affiliate makes educational
loans  to  pay  for  or  finance  higher  education  expenses  or   that
securitizes such loans;
  b. any entity, or association of entities, that guarantees educational
loans; or
  c.  any  industry,  trade  or professional association or other entity
that receives money, related to educational loan  activities,  from  any
entity described above in paragraphs a and b of this subdivision.
  9.  "Preferred  lender  list"  shall  mean  a  list  of  one  or  more
recommended or suggested lending institutions that a covered institution
makes available for use, in print  or  any  other  medium  or  form,  by
borrowers, potential borrowers or others.

  10.  "Revenue  sharing"  shall  mean any arrangement whereby a lending
institution pays a  covered  institution  or  an  affiliated  entity  or
organization  of  such covered institution a percentage of the principal
of each loan directed towards the lending institution from a borrower at
the covered institution.