Sec. 1015. Revenue sharing and disclosure of affiliation
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Chapter 2 of title I of the Truth in Lending Act ( 15 U.S.C. 1631 et seq. ) is amended by adding at the end the following: In this section: The term affiliate means any person that controls, is controlled by, or is under common control with another person. The term affiliated , when used with respect to a consumer financial product or service and an institution of higher education, means an association between such institution and product or service resulting from— the name, emblem, mascot, or logo of the institution being used with respect to such product or service; or some other word, picture, or symbol readily identified with the institution in the marketing of the consumer financial product or service in any way that implies that the institution endorses the consumer financial product or service.
Nothing in subparagraph
(A)shall be construed to deem an association between an institution of higher education and a consumer financial product or service to be affiliated if such association is solely based on an advertisement by a financial institution that is delivered to a wide and general audience consisting of more than enrolled students at the institution of higher education. The term consumer financial product or service has the meaning given the term in section 1002 of the Consumer Financial Protection Act of 2010 ( 12 U.S.C. 5481 ). The term financial institution means— any person that engages in offering or providing a consumer financial product or service; and any affiliate of such person described in subparagraph
(A)if such affiliate acts as a service provider to such person. The term institution of higher education has the meaning given that term in section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002). The term person means an individual, partnership, company, corporation, association (incorporated or unincorporated), trust, estate, cooperative organization, or other entity. The term revenue-sharing arrangement — means an arrangement between an institution of higher education and a financial institution under which— a financial institution provides or issues a consumer financial product or service to college students attending the institution of higher education; the institution of higher education recommends, promotes, sponsors, or otherwise endorses the financial institution, or the consumer financial products or services offered by the financial institution; and the financial institution pays a fee or provides other material benefits, including revenue or profit sharing, to the institution of higher education, or to an officer, employee, or agent of the institution of higher education, in connection with the consumer financial products and services provided to college students attending the institution of higher education; and does not include an arrangement solely based on a financial institution paying a fair market price to an institution of higher education for the institution of higher education to advertise or market the financial institution to the general public. The term service provider — means any person that provides a material service to another person in connection with the offering or provision by such other person of a consumer financial product or service, including a person that— participates in designing, operating, or maintaining the consumer financial product or service; or processes transactions relating to the consumer financial product or service (other than unknowingly or incidentally transmitting or processing financial data in a manner that such data is undifferentiated from other types of data of the same form as the person transmits or processes); and does not include a person solely by virtue of such person offering or providing to another person— a support service of a type provided to businesses generally or a similar ministerial service; or time or space for an advertisement for a consumer financial product or service through print, newspaper, or electronic media. Not later than 180 days after the date of enactment of the Higher Education Affordability Act, and annually thereafter, each financial institution shall submit a report to the Bureau containing the terms and conditions of all business, marketing, and promotional agreements that the financial institution has with any institution of higher education, or an alumni organization or foundation that is an affiliate of or related to an institution of higher education, relating to any consumer financial product or service offered to college students at institutions of higher education. The information required to be reported under subparagraph
(A)includes— any memorandum of understanding between or among the financial institution and an institution of higher education, alumni association, or foundation that directly or indirectly relates to any aspect of an agreement referred to in subparagraph
(A)or controls or directs any obligations or distribution of benefits between or among the entities; and the number and dollar amount outstanding of consumer financial products or services accounts covered by any such agreement that were originated during the period covered by the report, and the total number and dollar amount of consumer financial products or services accounts covered by the agreement that were outstanding at the end of such period. The information required to be reported under subparagraph
(A)shall be aggregated with respect to each institution of higher education or alumni organization or foundation that is an affiliate of or related to the institution of higher education. The Bureau shall submit to Congress, and make available to the public, an annual report that lists the information submitted to the Bureau under paragraph (1). Each financial institution shall establish and maintain an Internet site on which the financial institution shall post the written agreement between the financial institution and the institution of higher education for each affiliated consumer financial product or service. Each financial institution shall provide to the Bureau, in electronic format, the written agreements that it publishes on its Internet site pursuant to this paragraph. The Bureau shall establish and maintain on its publicly available Internet site a central repository of the agreements received from financial institutions pursuant to this paragraph, and such agreements shall be easily accessible and retrievable by the public. This paragraph shall not apply to individually negotiated changes to contractual terms, such as individually modified workouts or renegotiations of amounts owed by an institution of higher education. A financial institution that offers a consumer financial product or service that is affiliated with an institution of higher education may not enter into a revenue-sharing arrangement with the institution of higher education. Nothing in this section shall be construed to prohibit a financial institution from establishing a consumer product or service affiliated with an institution of higher education if— the consumer product or service will— assist college students in reducing costs or fees associated with the use of consumer financial products or services; increase consumer choice; and enhance consumer protections; and the financial institution is in compliance with the requirements of this Act. .
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