2019 New York Laws
EDN - Education
Title 1 - General Provisions
Article 13-B - Student Lending Accountability, Transparency and Enforcement Act
627 - Standards for Preferred Lender Lists.

§  627.  Standards  for  preferred lender lists. A covered institution
  that provides or makes available a preferred  lender  list  must  comply
  with the following standards:
1.  A  preferred  lender  list  must disclose the process by which the
  covered institution selected lending  institutions  for  such  preferred
  lender list, including, but not limited to, the method and criteria used
  to  choose the lending institutions and the relative importance of those
  criteria;
2. A preferred lender list must state in the same font size  and  same
  manner  as  the predominant text on the document that borrowers have the
  right and ability to select the education loan provider of their choice,
  are not required to use any of the  lenders  on  such  preferred  lender
  list,  and  will  suffer no penalty for choosing a lender that is not on
  such preferred lender list;
3. The covered institution's decision to include a lending institution
  on any preferred lender list and the covered institution's  decision  as
  to  where  on  the  preferred lender list the lending institution's name
  appears  shall  be  determined  solely  by  consideration  of  the  best
  interests  of  the  borrowers  who  may  use  such preferred lender list
  without regard to the pecuniary interests of the covered institution;
4. The contents of any preferred lender list  shall  be  reviewed  and
  updated no less than annually;
5.  No  lending institution shall be placed on a preferred lender list
  unless such  lending  institution  provides  assurance  to  the  covered
  institution  and  to  borrowers  who  take  out  loans from such lending
  institution that the advertised benefits upon repayment will continue to
  inure to the benefit of borrowers  regardless  of  whether  the  lending
  institution's loans are sold;
6. No lending institution that, to the covered institution's knowledge
  after  reasonable inquiry, has an agreement to sell its loans to another
  unaffiliated lending institution shall be included on a preferred lender
  list unless such agreement is disclosed therein in the  same  font  size
  and  same  manner  as  the predominant text on the document in which the
  preferred lender list appears;
7. No lending institution shall be placed on a  covered  institution's
  preferred   lender   lists   or   in  favored  placement  on  a  covered
  institution's preferred lender lists for a particular type of  loan,  in
  exchange  for  benefits  provided  to  the covered institution or to the
  covered institution's students in connection with a  different  type  of
  loan.