The lenders are adopting a code of conduct that bans a variety of marketing practices, such as using logos or seals that look like
federal emblems, providing
incentives to induce students to borrow from the lender (e.g., gift cards, iPods, prizes and sweepstakes), providing false rebate checks, paying students referral fees to encourage friends to borrow, advertising interest rates and
discounts that few borrowers will realize (including using such rates and loan terms in repayment examples and examples illustrating loan costs), misrepresenting the advantages of private loans over
federal loans.