The College of William and Mary’s Committee on Audit and Compliance passed a resolution Wednesday repealing the Code of Conduct Governing Student Loan Practices.
“The real impetus of that code was to make sure that there was no undue influence by lending institutions through what was essentially amounting to bribery in some of the worst and high profile instances of it nationwide in order for a lending institution to achieve a place on preferred lender risk,” Associate Provost for Enrollment and Dean of Admission Henry Broaddus said.
The Code was made redundant by changes on the federal level and at the College since its adopted in July 2007.
The Health Care and Education Reconciliation Act of 2010, signed by President Barack Obama in March 2010, moved all lending to Direct Lending, cutting out lending institutions as the middlemen in the administration of federal loans.
“That event in 2010 eliminated the possibility of what this code of conduct intended to prevent,” Broaddus said.
The adoption of the College’s Code of Ethics in April 2009 also overlapped with the Code of Conduct, further eliminating the need for the Code of Conduct, according to Broaddus.
The Committee also passed a resolution approving the Office of Internal Audit’s 2013 Work Plan, which outlines future audit initiatives.
