We use cookies to improve security, personalize the user experience,
enhance our marketing activities (including cooperating with our marketing partners) and for other
business use.
Click "here" to read our Cookie Policy.
By clicking "Accept" you agree to the use of cookies. Read less
Revenue Sharing of a Covered Educational Institution
Understanding Revenue Sharing of a Covered Educational Institution
Definition & Meaning
Revenue sharing of a covered educational institution refers to a financial arrangement between an educational institution and a private lender. In this agreement, the lender provides private education loans to students attending the institution. The institution may recommend the lender or the loans to students, and in return, the lender compensates the institution with fees or other benefits. This can include profit-sharing arrangements linked to the loans provided.
Table of content
Legal Use & context
This term is primarily used in the context of consumer credit protection laws, particularly those governing educational loans. It is relevant in areas such as education law and consumer finance. Institutions and lenders must comply with specific regulations to ensure transparency and fairness in these arrangements. Users can manage related legal forms and documents through platforms like US Legal Forms, which offer templates drafted by qualified attorneys.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A university partners with a private lender to offer student loans. The university promotes the lender's loans during orientation, and in return, the lender pays the university a fee for each loan disbursed.
Example 2: A community college recommends a specific lender to its students, and the lender provides financial incentives to the college based on the number of loans taken by students (hypothetical example).
Relevant laws & statutes
Pursuant to 15 USCS § 1650, revenue sharing arrangements are defined and regulated under consumer credit protection laws. This statute outlines the responsibilities and requirements for educational institutions and lenders engaged in such agreements.
State-by-state differences
State
Key Differences
California
Requires additional disclosures about revenue sharing arrangements.
New York
Has specific regulations governing the fees that can be charged to institutions.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Difference
Revenue Sharing
Arrangement for sharing profits between institutions and lenders.
Specifically involves educational institutions and private lenders.
Loan Origination Fee
Fee charged by lenders to process a loan.
Not necessarily tied to a revenue-sharing agreement.
Common misunderstandings
What to do if this term applies to you
If you are a student considering loans from a lender recommended by your institution, review the terms carefully. Ensure you understand any fees or benefits involved in the revenue-sharing arrangement. You can explore US Legal Forms for templates that may help you manage your educational loan agreements. If you have concerns or complex questions, seeking professional legal advice is advisable.
Find the legal form that fits your case
Browse our library of 85,000+ state-specific legal templates.