12 2 STA T .3 31 7PUBLIC LA W 11 0– 31 5— AU G .1 4, 200 8‘ ‘ (i ii )tha tth es t ud e n ts attendin g the instituti o n , o r the f a m i l ies of su c h students, do not ha v eto b orro w from a lender on the p referred lender list
‘‘( B ) ensure, through the use of the list of lender affili - ates provided b y the S ecretary under paragraph ( 2 ), that — ‘‘(i) there are not less than three lenders of loans made under part B that are not affiliates of each other included on the preferred lender list and, if the institution recommends, promotes, or endorses private education loans, there are not less than two lenders of private education loans that are not affiliates of each other included on the preferred lender list; and ‘‘(ii) the preferred lender list under this para- graph— ‘‘( I ) specifically indicates, for each listed lender, whether the lender is or is not an affiliate of each other lender on the preferred lender list; and ‘‘(II) if a lender is an affiliate of another lender on the preferred lender list, describes the details of such affiliation; ‘‘( C ) prominently disclose the method and criteria used by the institution in selecting lenders with which to enter into preferred lender arrangements to ensure that such lenders are selected on the basis of the best interests of the borrowers, including— ‘‘(i) payment of origination or other fees on behalf of the borrower; ‘‘(ii) highly competitive interest rates, or other terms and conditions or provisions of loans under this title or private education loans; ‘‘(iii) high- q uality servicing for such loans; or ‘‘(iv) additional benefits beyond the standard terms and conditions or provisions for such loans; ‘‘( D )e x ercise a duty of care and a duty of loyalty to compile the preferred lender list under this paragraph without pre j udice and for the sole benefit of the students attending the institution, or the families of such students; ‘‘( E ) not deny or otherwise impede the borrower ’ s choice of a lender or cause unnecessary delay in loan certification under this title for those borrowers who choose a lender that is not included on the preferred lender list; and ‘‘( F ) comply with such other requirements as the Sec- retary may prescribe by regulation . ‘‘(2) LEND E RAF F IL IA T E S LIST.— ‘‘( A )IN G ENERAL.— T he Secretary shall maintain and regularly update a list of lender affiliates of all eligible lenders, and shall provide such list to institutions for use in carrying out paragraph ( 1 )(B). ‘‘(B) U SE O F M OST RE C ENT LIST.—An institution shall use the most recent list of lender affiliates provided by the Secretary under subparagraph (A) in carrying out para- graph (1)(B).’’. (d) DEFINITIONS.—Section 487 (i) (as redesignated by subsection (c)(1)) (2 0 U.S.C. 1087(i)) is further amended— (1) by stri k ing ‘‘(i) DEFINITION OF ELIGI B LE INSTIT U TION.— For the purpose of this section, the’’ and inserting the following
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0 94.
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