Conditions for approval of employer-related educational loan programs: Employment

Once a loan has been awarded, it may not be terminated because the recipient or the recipient's parent no longer works for the employer, regardless of the reason for terminating employment.  If a loan is awarded for one academic year and the recipient must reapply for an additional loan or loans to continue studies for a later year, the recipient may not be considered ineligible for a subsequent loan simply because that individual or the individual's parent is no longer employed by the employer.  If a loan is awarded for more than one academic year, subject to renewal, renewal standards must be based only on non-employment-related factors such as need and maintenance of scholastic standards.  When the loan is awarded or renewed, there must be no requirement, condition, or suggestion, express or implied, that the recipient or the recipient's parent is expected to perform future employment services for the foundation or the employer, or be available for future employment, even though the future employment is at the discretion of the foundation or the employer.