Each covered institution, and each institution-affiliated organization of such covered institution, that participates in a preferred lender arrangement, must—

1. (a) Prepare and submit to the Secretary an annual report, by a date determined by the Secretary, that includes, for each lender that participates in a preferred lender arrangement with such covered institution or organization—

   1. (1) The information described in § 601.10(c); and
   2. (2) A detailed explanation of why such covered institution or institution-affiliated organization participates in a preferred lender arrangement with the lender, including why the terms, conditions, and provisions of each type of education loan provided pursuant to the preferred lender arrangement are beneficial for students attending such institution, or the families of such students, as applicable; and

2. (b) Ensure that the report required under this section is made available to the public and provided to students attending or planning to attend such covered institution and the families of such students.

   (Approved by the Office of Management and Budget under control number 1845-XXXA)

   (Authority:20 U.S.C. 1019b(c)(2))