Page:United States Statutes at Large Volume 100 Part 2.djvu/345

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1447

provisions of section 463(a)(8), shall, at or prior to the time such institution makes a loan to a student borrower which is made under this part, provide thorough and adequate loan information on such loan to the student borrower. Any disclosure required by this subsection may be made by an institution of higher education as part of the written application material provided to the borrower, or as part of the promissory note evidencing the loan, or on a separate written form provided to the borrower. The disclosures shall include— "(1) the name of the institution of higher education, and the address to which communications and payments should be sent; "(2) the principal amount of the loan; "(3) the amount of any charges collected by the institution 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; h "(5) the yearly and cumulative maximum amounts that may be borrowed; "(6) an explanation of when repa3mient 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 institution may impose, and the minimum monthly payment required by law and a description of any 0 penalty imposed as a consequence of default, such as liability for expenses reasonably incurred in attempts by the Secretary or institutions to collect on a loan; "(8) a statement of the total cumulative balance owed by the student to that institution, the projected level of indebtedness of the student based on a 2- or 4-year college career, and an estimate of the projected monthly repayment given the level of indebtedness over a 2-, 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); J* "(11) a definition of default and the consequences to the borrower if the borrower defaults, including a statement that the default may 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) DISCLOSURE REQUIRED PRIOR TO REPAYMENT.—Each institu-

tion of higher education shall enter into an agreement with the Secretary under which the institution will, prior to the start of the repayment period of the student borrower on loans made under this part, disclose to the student borrower the information required under this subsection. Any disclosure required by this subsection may be made by an institution of higher education either in a

�