Revenue Sharing of a Covered Educational Institution Law and Legal Definition
Pursuant to 15 USCS § 1650 (8), [Title 15. Commerce and Trade; Chapter 41. Consumer Credit Protection; Consumer Credit Cost Disclosure; Credit Transactions] the term revenue sharing means “an arrangement between a covered educational institution and a private educational lender under which--
(A) a private educational lender provides or issues private education loans with respect to students attending the covered educational institution;
(B) the covered educational institution recommends to students or others the private educational lender or the private education loans of the private educational lender; and
(C) the private educational lender pays a fee or provides other material benefits, including profit sharing, to the covered educational institution in connection with the private education loans provided to students attending the covered educational institution or a borrower acting on behalf of a student.”
