Misleading identification — covered institution — lending institutions’ employees

1. A lending institution shall prohibit an employee or agent of the lending institution from being identified to borrowers or prospective borrowers of a covered institution as an employee, representative, or agent of the covered institution. 2. A covered institution shall prohibit an employee or agent of a lending institution from being identified as an employee, representative, or agent of the covered institution. 3. An employee, representative, or agent of a lending institution included on a covered institution’s preferred lending list shall not staff a covered institution’s financial aid offices or call center and shall not prepare any of the covered institution’s materials related to educational loans. 4. A covered institution that has entered into a preferred lender arrangement with a lender regarding private educational loans shall not agree to the lender’s use of the name, emblem, mascot, or logo of the institution, or other words, pictures, or symbols readily identified with the institution, in the marketing of private educational loans to the students attending the institution in any way that implies that the institution endorses the private educational loans offered by the lender. However, the covered institution may allow the use of its name if it is part of the lending institution’s legal name. 5. Nothing in this section shall prohibit a covered institution from requesting or accepting the following assistance from a lender related to any of the following: a. Providing educational counseling materials, financial literacy materials, or debt management materials to borrowers, provided that such materials disclose to borrowers the identification of any lender that assisted in preparing or providing such materials. b. Staffing services on a short-term, nonrecurring basis to assist the institution with financial aid-related functions during emergencies, including state-declared or federally declared natural disasters, federally declared national disasters, and other localized disasters and emergencies identified by the attorney general. 6. The attorney general shall adopt rules providing for the disclosure, for lenders with a preferred lender arrangement, of philanthropic contributions made as specified in section 261F.1, subsection 5, paragraph “d”.