Private Loan Partnerships:
 Legal Risks and Compliance for Institutions

As new federal student loan limits under the One Big Beautiful Bill Act increase reliance on private borrowing, lenders are expanding partnerships with colleges and using student ambassadors to promote loan products on campus. This brief explores the legal and compliance risks these arrangements can create under federal lending, advertising, and consumer protection laws. It emphasizes that institutions must ensure students receive clear, unbiased information and carefully oversee lender and third-party marketing activities to reduce potential legal, regulatory, and reputational risks.