Page:United States Statutes at Large Volume 100 Part 2.djvu/305

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1407

"(2) the principal amount of the loan; "(3) the amount of any charges, such as the origination fee and insurance premium, collected by the lender at or prior to the disbursal of the loan and whether such charges are deducted from the proceeds of the loan or paid separately by the borrower; "(4) the stated interest rate on the loan; "(5) the yearly and cumulative maximum amounts that may be borrowed; "(6) an explanation of when repayment of the loan will be required and when the borrower will be obligated to pay interest that accrues on the loan; "(7) a statement as to the minimum and maximum repayment term which the lender may impose, and the minimum annual payment required by law; "(8) a statement of the total cumulative balance, including the loan applied for, owed by the student to that lender, the projected level of indebtedness of the student based on a 4-year college career, and an estimate of the projected monthly repayment given the level of indebtedness over a 4- or 5-year college career; "(9) an explanation of any special options the borrower may have for loan consolidation or other refinancing of the loan; "(10) a statement that the borrower has the right to prepay all or part of the loan, at any time, without penalty, a statement summarizing circumstances in which repayment of the loan or interest that accrues on the loan may be deferred, and a brief notice of the program for repayment of loans, on the basis of military service, pursuant to section 902 of the Department of Defense Authorization Act, 1981 (10 U.S.C. 2141, note); "(11) a definition of default and the consequences to the borrower if the borrower defaults, including a statement that the default will be reported to a credit bureau or credit reporting agency; "(12) to the extent practicable, the effect of accepting the loan on the eligibility of the borrower for other forms of student assistance; and "(13) an explanation of any cost the borrower may incur in the making or collection of the loan. "(b)

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REQUIRED DISCLOSURE BEFORE REPAYMENT.—Each eligible

lender shall, at or prior to the start of the repayment period of the student borrower on loans made, insured, or guaranteed under this part, disclose to the borrower the information required under this subsection. Any disclosure required by this subsection may be made by an eligible lender either in a promissory note evidencing the loan or loans or in a written statement provided to the borrower. The disclosure shall include— "(1) the name of the eligible lender, and the address to which communications and payments should be sent; "(2) the scheduled date upon which the repayment period is to begin; "(3) the estimated balance owed by the borrower on the loan or loans covered by the disclosure as of the scheduled date on which the repayment period is to begin (including, if applicable, the estimated amount of interest to be capitalized);

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