PRIA, Government Policy, Made Personal

Summary

When a school makes a loan after June 30, 1986, it must give the student clear, full information about that loan. The information must cover nine topics: yearly and total borrowing limits; when paying back starts and the longest time allowed to repay; the interest rate and smallest monthly payment; any extra fees; choices for deferring, canceling, prepaying, consolidating, or refinancing; what counts as default and the consequences (including credit bureau actions); how the loan may affect other student aid; and what federal collection actions may be used and what borrower data the government can share with Department of Health and Human Services staff, staff of participating schools, or other collection agents. Right before a student who got such a loan graduates, the school must give that student a statement listing each amount borrowed, the total borrowed, and a repayment schedule that shows how many payments, how much each is, and how often they must be made.

Title 42, §292v

The Public Health and Welfare, Source: USLM XML via OLRC

(a)In general

With respect to loans made by a school under this subpart after June 30, 1986, each school, in order to carry out the provisions of section 292q and 292r of this title, shall, at any time such school makes such a loan to a student under this subpart, provide thorough and adequate loan information on loans made under this subpart to the student. The loan information required to be provided to the student by this subsection shall include—

(1)the yearly and cumulative maximum amounts that may be borrowed by the student;

(2)the terms under which repayment of the loan will begin;

(3)the maximum number of years in which the loan must be repaid;

(4)the interest rate that will be paid by the borrower and the minimum amount of the required monthly payment;

(5)the amount of any other fees charged to the borrower by the lender;

(6)any options the borrower may have for deferral, cancellation, prepayment, consolidation, or other refinancing of the loan;

(7)a definition of default on the loan and a specification of the consequences which will result to the borrower if the borrower defaults, including a description of any arrangements which may be made with credit bureau organizations;

(8)to the extent practicable, the effect of accepting the loan on the eligibility of the borrower for other forms of student assistance; and

(9)a description of the actions that may be taken by the Federal Government to collect the loan, including a description of the type of information concerning the borrower that the Federal Government may disclose to (A) officers, employees, or agents of the Department of Health and Human Services, (B) officers, employees, or agents of schools with which the Secretary has an agreement under this subpart, or (C) any other person involved in the collection of a loan under this subpart.

(b)Statement regarding loan

Each school shall, immediately prior to the graduation from such school of a student who receives a loan under this subpart after June 30, 1986, provide such student with a statement specifying—

(1)each amount borrowed by the student under this subpart;

(2)the total amount borrowed by the student under this subpart; and

(3)a schedule for the repayment of the amounts borrowed under this subpart, including the number, amount, and frequency of payments to be made.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 726 of act

July 1, 1944, was classified to section 293f of this title prior to the general revision of this subchapter by Pub. L. 102–408. Another prior section 726 of act

July 1, 1944, was classified to section 293f of this title prior to repeal by Pub. L. 94–484.

§292v Provision by Schools of Information to Students

Summary

Title 42, §292v

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

Citations & Metadata