Washington, -- U.S. Representative Neil Abercrombie announced today that the House of Representatives has passed the Student Loan Sunshine Act, legislation to outlaw lavish gifts and financial kickbacks from private student loan companies to college student financial aid officers.  The bill responds to a New York investigation that found student loan officers, responsible for helping students find and arrange for college financial aid, were being given lavish gifts by private student loan companies, and that some schools received a portion of loan proceeds from lenders who had been given preferred status.  These practices raised concerns that instead of looking out for the best interest of students, some loan officers have been steering students to higher interest loans and benefiting from the various kickbacks.

"It is unconscionable for college loan officers or their schools to enrich themselves at the expense of middle-class families," said Representative Abercrombie.  "This bill will help students save money and ensure that loan officers look out for the best interest of students.  I will continue to work with my colleagues to eliminate further corruption of the system, which helps make higher education more affordable."

The legislation would:

• Require education institutions and lenders to adopt strict codes of conduct that adhere to specific guidelines;
  
• Ban all gifts, participation on advisory boards and revenue sharing agreements between schools and lenders;
  
• Require institutions to disclose all relationships with lenders;
  
• Only allow "preferred lender lists" on campuses with strict assurances that the list was created with the students' best interests in mind;
  
• Ensure that students have access to all lenders of their choice, including those not on the preferred lender lists;
  
• Ban staffing of school financial aid offices by lenders;
  
• Require that students receive full and fair information when taking out and repaying loans;
  
• Protect students from aggressive marketing practices; and
  
• Provide students with information on all federal student aid opportunities through a new "one-stop" link on the Department of Education Web site.

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