---
kind: "section"
citation: "20 U.S.C. § 1019a"
title: "20"
title_heading: "Education"
number: "1019a"
heading: "Responsibilities of covered institutions, institution-affiliated organizations, and lenders"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/20/1019a"
units:
  - "Chapter 28 — Higher Education Resources and Student Assistance"
  - "Subchapter I — General Provisions"
  - "Part E — Lender and Institution Requirements Relating to Education Loans"
---

# §1019a. Responsibilities of covered institutions, institution-affiliated organizations, and lenders

- (a) **Responsibilities of covered institutions and institution-affiliated organizations—**
  - (1) **Disclosures by covered institutions and institution-affiliated organizations—**
    - (A) **Preferred lender arrangement disclosures—** In addition to the disclosures required by subsections (a)(27) and (h) of [section 1094 of this title](/usc/20/1094.md) (if applicable), a [covered institution](/usc/20/1019.md?p=2), or an [institution-affiliated organization](/usc/20/1019.md?p=5) of such [covered institution](/usc/20/1019.md?p=2), that participates in a [preferred lender arrangement](/usc/20/1019.md?p=8) shall disclose—
      - (i) on such [covered institution](/usc/20/1019.md?p=2)’s or [institution-affiliated organization](/usc/20/1019.md?p=5)’s website and in all informational materials described in [subparagraph (C)](#a-1-C) that describe or discuss [education loans](/usc/20/1019.md?p=3)—
        - (I) the maximum amount of Federal grant and [loan](/usc/20/1066a.md?p=2) aid under subchapter IV available to students, in an easy to understand format;
        - (II) the information required to be disclosed pursuant to [section 1019b(a)(2)(A)(i) of this title](/usc/20/1019b.md?p=a-2-A-i), for each type of [loan](/usc/20/1066a.md?p=2) described in [section 1019(3)(A) of this title](/usc/20/1019.md?p=3-A) that is offered pursuant to a [preferred lender arrangement](/usc/20/1019.md?p=8) of the institution or organization to students of the institution or the families of such students; and
        - (III) a statement that such institution is required to process the documents required to obtain a [loan](/usc/20/1066a.md?p=2) under part B of subchapter IV from any [eligible lender](/usc/20/1019.md?p=4) the student selects; and
      - (ii) on such [covered institution](/usc/20/1019.md?p=2)’s or [institution-affiliated organization](/usc/20/1019.md?p=5)’s website and in all informational materials described in [subparagraph (C)](#a-1-C) that describe or discuss [private education loans](/usc/20/1019.md?p=3)—
        - (I) in the case of a [covered institution](/usc/20/1019.md?p=2), the information that the Board of Governors of the Federal Reserve System requires to be disclosed under [section 1638(e)(11) of title 15](/usc/15/1638.md?p=e-11), for each type of [private education loan](/usc/20/1019.md?p=3) offered pursuant to a [preferred lender arrangement](/usc/20/1019.md?p=8) of the institution to students of the institution or the families of such students; and
        - (II) in the case of an [institution-affiliated organization](/usc/20/1019.md?p=5) of a [covered institution](/usc/20/1019.md?p=2), the information the Board of Governors of the Federal Reserve System requires to be disclosed under [section 1638(e)(1) of title 15](/usc/15/1638.md?p=e-1), for each type of [private education loan](/usc/20/1019.md?p=3) offered pursuant to a [preferred lender arrangement](/usc/20/1019.md?p=8) of the organization to students of such institution or the families of such students.
    - (B) **Private education loan disclosures—** A [covered institution](/usc/20/1019.md?p=2), or an [institution-affiliated organization](/usc/20/1019.md?p=5) of such [covered institution](/usc/20/1019.md?p=2), that provides information regarding a [private education loan](/usc/20/1019.md?p=3) from a [lender](/usc/20/1019.md?p=6) to a prospective borrower shall—
      - (i) provide the prospective borrower with the information the Board of Governors of the Federal Reserve System requires to be disclosed under [section 1638(e)(1) of title 15](/usc/15/1638.md?p=e-1) for such [loan](/usc/20/1066a.md?p=2);
      - (ii) inform the prospective borrower that—
        - (I) the prospective borrower may qualify for [loans](/usc/20/1066a.md?p=2) or other assistance under subchapter IV; and
        - (II) the terms and conditions of [loans](/usc/20/1066a.md?p=2) made, insured, or guaranteed under subchapter IV may be more favorable than the provisions of [private education loans](/usc/20/1019.md?p=3); and
      - (iii) ensure that information regarding [private education loans](/usc/20/1019.md?p=3) is presented in such a manner as to be distinct from information regarding [loans](/usc/20/1066a.md?p=2) that are made, insured, or guaranteed under subchapter IV.
    - (C) **Informational materials—** The informational materials described in this subparagraph are publications, mailings, or electronic messages or materials that—
      - (i) are distributed to prospective or current students of a [covered institution](/usc/20/1019.md?p=2) and families of such students; and
      - (ii) describe or discuss the financial aid opportunities available to students at an [institution of higher education](/usc/20/1001.md?p=a).
  - (2) **Use of institution name—** A [covered institution](/usc/20/1019.md?p=2), or an [institution-affiliated organization](/usc/20/1019.md?p=5) of such [covered institution](/usc/20/1019.md?p=2), that enters into a [preferred lender arrangement](/usc/20/1019.md?p=8) with a [lender](/usc/20/1019.md?p=6) regarding [private education loans](/usc/20/1019.md?p=3) shall not agree to the [lender](/usc/20/1019.md?p=6)’s use of the name, emblem, mascot, or logo of such institution or organization, or other words, pictures, or symbols readily identified with such institution or organization, in the marketing of [private education loans](/usc/20/1019.md?p=3) to students attending such institution in any way that implies that the [loan](/usc/20/1066a.md?p=2) is offered or made by such institution or organization instead of the [lender](/usc/20/1019.md?p=6).
  - (3) **Use of lender name—** A [covered institution](/usc/20/1019.md?p=2), or an [institution-affiliated organization](/usc/20/1019.md?p=5) of such [covered institution](/usc/20/1019.md?p=2), that enters into a [preferred lender arrangement](/usc/20/1019.md?p=8) with a [lender](/usc/20/1019.md?p=6) regarding [private education loans](/usc/20/1019.md?p=3) shall ensure that the name of the [lender](/usc/20/1019.md?p=6) is displayed in all information and documentation related to such [loans](/usc/20/1066a.md?p=2).
- (b) **Lender responsibilities—**
  - (1) **Disclosures by lenders—**
    - (A) **Disclosures to borrowers—**
      - (i) **Federal education loans—** For each [education loan](/usc/20/1019.md?p=3) that is made, insured, or guaranteed under part B or D of subchapter IV (other than a [loan](/usc/20/1066a.md?p=2) made under [section 1078–3 of this title](/usc/20/1078–3.md) or a Federal Direct Consolidation [Loan](/usc/20/1066a.md?p=2)), at or prior to the time the [lender](/usc/20/1019.md?p=6) disburses such [loan](/usc/20/1066a.md?p=2), the [lender](/usc/20/1019.md?p=6) shall provide the prospective borrower or borrower, in writing (including through electronic means), with the disclosures described in subsections (a) and (c) of [section 1083 of this title](/usc/20/1083.md).
      - (ii) **Private education loans—** For each of a [lender](/usc/20/1019.md?p=6)’s [private education loans](/usc/20/1019.md?p=3), the [lender](/usc/20/1019.md?p=6) shall comply with the disclosure requirements under [section 1638(e) of title 15](/usc/15/1638.md?p=e).
    - (B) **Disclosures to the Secretary—**
      - (i) **In general—** Each [lender](/usc/20/1019.md?p=6) of a [loan](/usc/20/1066a.md?p=2) made, insured, or guaranteed under part B of subchapter IV shall, on an annual basis, report to the [Secretary](/usc/20/1003.md?p=17)—
        - (I) any reasonable expenses paid or provided under [section 1085(d)(5)(D) of this title](/usc/20/1085.md?p=d-5-D) or paragraph (3)(B) or (7) of [section 1094(e) of this title](/usc/20/1094.md?p=e) to any [agent](/usc/20/1019.md?p=1) of a [covered institution](/usc/20/1019.md?p=2) who—
          - (aa) is employed in the financial aid office of a [covered institution](/usc/20/1019.md?p=2); or
          - (bb) otherwise has responsibilities with respect to [education loans](/usc/20/1019.md?p=3) or other financial aid of the institution; and
        - (II) any similar expenses paid or provided to any [agent](/usc/20/1019.md?p=1) of an [institution-affiliated organization](/usc/20/1019.md?p=5) who is involved in the practice of recommending, promoting, or endorsing [education loans](/usc/20/1019.md?p=3).
      - (ii) **Contents of reports—** Each report described in [clause (i)](#b-1-B-i) shall include—
        - (I) the amount for each specific instance in which the [lender](/usc/20/1019.md?p=6) provided such expenses;
        - (II) the name of any [agent](/usc/20/1019.md?p=1) described in [clause (i)](#b-1-B-i) to whom the expenses were paid or provided;
        - (III) the dates of the activity for which the expenses were paid or provided; and
        - (IV) a brief description of the activity for which the expenses were paid or provided.
      - (iii) **Report to Congress—** The [Secretary](/usc/20/1003.md?p=17) shall summarize the information received from the [lenders](/usc/20/1019.md?p=6) under this subparagraph in a report and transmit such report annually to the [authorizing committees](/usc/20/1003.md?p=1).
  - (2) **Certification by lenders—** Not later than 18 months after August 14, 2008—
    - (A) in addition to any other disclosure required under Federal law, each [lender](/usc/20/1019.md?p=6) of a [loan](/usc/20/1066a.md?p=2) made, insured, or guaranteed under part B of subchapter IV that participates in one or more [preferred lender arrangements](/usc/20/1019.md?p=8) shall annually certify the [lender](/usc/20/1019.md?p=6)’s compliance with the requirements of this chapter; and
    - (B) if an audit of a [lender](/usc/20/1019.md?p=6) is required pursuant to [section 1078(b)(1)(U)(iii) of this title](/usc/20/1078.md), the [lender](/usc/20/1019.md?p=6)’s compliance with the requirements under this section shall be reported on and attested to annually by the auditor of such [lender](/usc/20/1019.md?p=6).

## Source credit

(Pub. L. 89–329, title I, § 152, as added Pub. L. 110–315, title I, § 120, Aug. 14, 2008, 122 Stat. 3119.)