PRIA, Government Policy, Made Personal

Summary

The Secretary, working with the Federal Reserve Board, must create a standard self-certification form for private student loans to meet the requirement in 15 U.S.C. 1638(e)(3). The form must be in a set format and the college or university must give it to a student if the student asks, on paper or online. It can only say that the student might qualify for federal, state, or school aid; that the student should talk with financial aid staff; that a private loan can change eligibility for other aid; and that the needed information is available from the financial aid office. The form must have spaces for the school’s cost of attendance (under part F of subchapter IV), the school’s estimate of financial aid (including amounts replacing the student aid index for FAFSA filers), the difference between those amounts, and a place for the student’s signature (paper or electronic). No one can bring a private lawsuit against a college or university over the form.

Title 20, §1019d

Education, Source: USLM XML via OLRC

(a)In general

The Secretary, in consultation with the Board of Governors of the Federal Reserve System, shall develop the self-certification form for private education loans that shall be used to satisfy the requirements of section 1638(e)(3) of title 15. Such form shall—

(1)be developed in a standardized format;

(2)be made available to the applicant by the relevant institution of higher education, in written or electronic form, upon request of the applicant;

(3)contain only disclosures that—

(A)the applicant may qualify for Federal student financial assistance through a program under subchapter IV of this chapter, or State or institutional student financial assistance, in place of, or in addition to, a private education loan;

(B)the applicant is encouraged to discuss the availability of Federal, State, and institutional student financial assistance with financial aid officials at the applicant’s institution of higher education;

(C)a private education loan may affect the applicant’s eligibility for free or low-cost Federal, State or institutional student financial assistance; and

(D)the information that the applicant is required to provide on the form is available from officials at the financial aid office of the institution of higher education;

(4)include a place to provide information on—

(A)the applicant’s cost of attendance at the institution of higher education, as determined by the institution under part F of subchapter IV;

(B)the applicant’s estimated financial assistance, including amounts of financial assistance used to replace the student aid index, as determined by the institution, in accordance with subchapter IV, for students who have completed the Free Application for Federal Student Aid; and

(C)the difference between the amounts under subparagraphs (A) and (B), as applicable; and

(5)include a place for the applicant’s signature, in written or electronic form.

(b)Limit on liability

Nothing in this section shall be construed to create a private right of action against an institution of higher education with respect to the form developed under subsection (a).

Notes & Related Subsidiaries

Editorial Notes

Amendments

2020—Subsec. (a)(4)(B). Pub. L. 116–260 substituted “the student aid index” for “the expected family contribution”. 2009—Subsec. (a)(4). Pub. L. 111–39 added par. (4) and struck out former par. (4) which read as follows: “include a place to provide information on— “(A) the applicant’s cost of attendance at the institution of higher education, as determined by the institution under Part F of subchapter IV; “(B) the applicant’s expected family contribution, as determined under Part F of subchapter IV, as applicable, for students who have completed the free application for Federal student aid; “(C) the applicant’s estimated financial assistance, as determined by the institution, in accordance with subchapter IV, as applicable; “(D) the difference between the amounts under subparagraphs (A) and (C), as applicable; and “(E) the sum of the amounts under subparagraphs (B) and (D), as applicable; and”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2020 AmendmentAmendment by Pub. L. 116–260 effective July 1, 2024, except as otherwise expressly provided, and applicable with respect to award year 2024–2025 and each subsequent award year, as determined under this chapter, see section 701(b) of Pub. L. 116–260, set out as a note under section 1001 of this title.

Effective Date

of 2009 AmendmentAmendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.

§1019d Self-certification Form for Private Education Loans

Summary

Title 20, §1019d

Notes & Related Subsidiaries

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Citations & Metadata