Preferred Lender Arrangement Law and Legal Definition
Pursuant to 20 USCS § 1019 (8), [Title 20. Education; Chapter 28. Higher Education Resources and Student Assistance; General Provisions; Lender and Institution Requirements Relating to Education Loans] the term preferred lender arrangement--
“(A) means an arrangement or agreement between a lender and a covered institution or an institution-affiliated organization of such covered institution--
(i) under which a lender provides or otherwise issues education loans to the students attending such covered institution or the families of such students; and
(ii) that relates to such covered institution or such institution-affiliated organization recommending, promoting, or endorsing the education loan products of the lender; and
(B) does not include--
(i) arrangements or agreements with respect to loans under part D of title IV [20 USCS §§ 1087a et seq.]; or
(ii) arrangements or agreements with respect to loans that originate through the auction pilot program under section 499(b) [20 USCS § 1099d(b)].”
