§1083a — Title 20 Education | U.S. Code

Summary

Guaranty agencies (the groups that back federal student loans) must work with colleges to make and share clear, easy-to-understand training and materials for students and families about budgeting, managing debt, and other money skills. The info must include the costs and risks of using high-interest loans for college, be available before, during, and after enrollment, and counts as an effort to reduce loan defaults under section 1072. Agencies can use materials they already have. They can offer similar programs to schools that only use Part D loans. Lenders and loan servicers may also give this kind of outreach and financial aid information.

Title 20, §1083a

Education — Source: USLM XML via OLRC

(a)Each guaranty agency participating in a program under this part, working with the institutions of higher education served by such guaranty agency, shall develop and make available high-quality educational programs and materials to provide training for students and families in budgeting and financial management, including debt management and other aspects of financial literacy, such as the cost of using high interest loans to pay for postsecondary education, particularly as budgeting and financial management relates to student loan programs authorized by this subchapter. Such programs and materials shall be in formats that are simple and understandable to students and families, and shall be provided before, during, and after the students’ enrollment in an institution of higher education. The activities described in this section shall be considered default reduction activities for the purposes of section 1072 of this title.

(b)Nothing in this section shall be construed to prohibit—

(1)a guaranty agency from using existing activities, programs, and materials in meeting the requirements of this section;

(2)a guaranty agency from providing programs or materials similar to the programs or materials described in subsection (a) to an institution of higher education that provides loans exclusively through part D; or

(3)a lender or loan servicer from providing outreach or financial aid literacy information in accordance with subsection (a).

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 1083a, Pub. L. 89–329, title IV, § 433A, as added Pub. L. 96–374, title IV, § 418, Oct. 3, 1980, 94 Stat. 1423; amended Pub. L. 97–301, § 13(a), Oct. 13, 1982, 96 Stat. 1404; Pub. L. 98–79, § 3(a), Aug. 15, 1983, 97 Stat. 476; Pub. L. 99–272, title XVI, § 16012(c), Apr. 7, 1986, 100 Stat. 340, related to student loan information to be provided by eligible lenders, prior to the general revision of this part by Pub. L. 99–498. See section 1083 of this title.

§1083a Consumer education information

Summary

Title 20, §1083a

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

Citations & Metadata