Page:United States Statutes at Large Volume 122.djvu/3270

 12 2 STA T .3 2 47PUBLIC LA W 11 0– 31 5— AU G .14 , 200 8SEC.43 3. L E GA L POW E R SA ND RESPONS IB ILI T IES. (a)SET T L E M E N T OFC L AI M S.— S ection432 ( b )(2 0U .S.C. 1 0 8 2(b)) i s a m en d edb y addin g att h e end the f o l lo w ing

‘ T he Sec r etary may not enter into any settlement of any claim u nder this title that e x ceeds $ 1, 000,000 unless— ‘‘(1) the Secretary re q uests a re v iew of the p roposed settle - ment of such claim by the A ttorney G eneral and ‘‘(2) the Attorney General responds to such request, which may include, at the Attorney General ’ s discretion, a written opinion related to such proposed settlement.’’. (b) COMMON F O R MS AN D FORMATS.—Section 432(m)(1)( D )(i) (20 U.S.C. 1082(m)(1)(D)(i)) is amended by adding at the end the fol- lowing: ‘‘Unless otherwise notified by the Secretary, each institution of higher education that participates in the program under this part or part D may use a master promissory note for loans under this part and part D.’’. SEC. 434. ST U DENT LOAN IN F OR M ATION B Y ELIGIBLE LENDERS. (a) AMENDMENT.—Section 433 (20 U.S.C. 1083) is amended to read as follows: ‘ ‘SEC. 433. STUDENT LOAN INFORMATION BY ELIGIBLE LENDERS. ‘‘(a) R E QU IRED DIS C LOSURE B EFORE DIS B URSEMENT.— E ach eligible lender, at or prior to the time such lender disburses a loan that is insured or guaranteed under this part (other than a loan made under section 428C), shall provide thorough and accurate loan information on such loan to the borrower in simple and understandable terms. Any disclosure required by this sub- section may be made by an eligible lender by written or electronic means, including as part of the application material provided to the borrower, as part of the promissory note evidencing the loan, or on a separate written form provided to the borrower. Each lender shall provide to each borrower a telephone number, and may provide an electronic address, through which additional loan information can be obtained. The disclosure shall include— ‘‘(1) a statement prominently and clearly displayed and in bold print that the borrower is receiving a loan that must be repaid; ‘‘(2) the name of the eligible lender, and the address to which communications and payments should be sent; ‘‘(3) the principal amount of the loan; ‘‘(4) the amount of any charges, such as the origination fee and Federal default fee, and whether those fees will be— ‘‘(A) collected by the lender at or prior to the disbursal of the loan; ‘‘(B) deducted from the proceeds of the loan; ‘‘(C) paid separately by the borrower; or ‘‘(D) paid by the lender; ‘‘( 5 ) the stated interest rate on the loan; ‘‘( 6 ) for loans made under section 428 H or to a student borrower under section 428B, an explanation— ‘‘(A) that the borrower has the option to pay the interest that accrues on the loan while the borrower is a student at an institution of higher education; and ‘‘(B) if the borrower does not pay such interest while attending an institution, when and how often interest on the loan will be capitali z ed;

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