Page:United States Statutes at Large Volume 100 Part 2.djvu/306

 100 STAT. 1408''

PUBLIC LAW 99-498—OCT. 17, 1986 "(4) the stated interest rate on the loan or loans, or the combined interest rate of loans with different stated interest rates; "(5) the nature of any fees which may accrue or be charged to the borrower during the repayment period; "(6) the repayment schedule for all loans covered by the disclosure including the date the first installment is due, and the number, amount, and frequency of required payments; "(V an explanation of any special options the borrower may have for loan consolidation or other refinancing of the loan and of the availability and terms of such other options; "(8) the projected total of interest charges which the borrower will pay on the loan or loans, assuming that the borrower makes payments exactly in accordance with the repayment schedule; and "(9) a statement that the borrower has the right to prepay all or part of the loan or loans covered by the disclosure at any time without penalty.

Claims.

Contracts.

15 USC 1601 »»ote.

"(c) CoST OF DISCLOSURE AND CONSEQUENCES OF NONDISCLOSURE.—

Such information shall be available without cost to the borrower. The failure of an eligible lender to provide information as required by this section shall not (1) relieve a borrower of the obligation to repay a loan in accordance with its terms, (2) provide a basis for a claim for civil damages, or (3) be deemed to abrogate the obligation of the Secretary under a contract of insurance or reinsurance, or the obligation of a guaranty agency under a contract of guaranty. Nothing in this section shall be construed as subjecting the lender to the Truth in Lending Act with regard to loans made under this part. The Secretary may limit, suspend, or terminate the continued participation of an eligible lender in making loans under this part for failure by that lender to comply with this section. "(d) SEPARATE STATEMENT.—Each eligible lender shall, at the time such lender makes the first disbursement of a loan with respect to a borrower which is insured or guaranteed under this part, provide the borrower with a separate paper which summarizes (in plain English) the rights and responsibilities of the borrower with respect to the loan, including a statement of the consequences of defaulting on the loan and a statement that each borrower who defaults will be reported to a credit bureau. The requirement of this subsection shall be in addition to the information required by subsection (a) of this section. "PARTICIPATION BY FEDERAL CREDIT UNIONS IN FEDERAL, STATE, AND PRIVATE STUDENT LOAN INSURANCE PROGRAMS

20 USC 1084.

" S E C 434. Notwithstanding any other provision of law. Federal credit unions shall, pursuant to regulations of the National Credit Union Administration, have power to make insured loans to student members in accordance with the provisions of this part relating to federally insured loans, or in accordance with the provisions of any State or nonprofit private student loan insurance program which meets the requirements of section 428(a)(1)(B)., j, j,?; " DEFINITIONS FOR STUDENT LOAN INSURANCE PROGRAM

20 USC 1085.

"SEC. 435. As used in this part: (a) ELIGIBLE INSTITUTION.—

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