Page:United States Statutes at Large Volume 122.djvu/3506

 12 2 STA T .348 3 PUBLIC LA W 11 0– 31 5— AU G .14 , 2008 SEC.10 1 3 .C L E RI C A LA M E ND MEN T . Thetabl e ofs e c t i o n sfo r cha p ter 2 of title I of the Tr u th in L en d in gA ct (15U.S . C . 1 63 1etse q . ) isa m ended b y adding at the end the follo w ing

‘ 140.Prev e nti n gu n fa ir an d de c e p tive private educati o na l lending practice s and eli m inating conflicts of interest. ’ ’. Subti t leB—Improv e dD i sc losures f or P riv a te E ducatio nL oans SEC. 10 2 1. P RI V ATE ED U CATI O N LOAN DISCLOSURES AND LIMITA - TIONS. (a) T RUTHIN L E N D IN G A C T. — Section 12 8 of the Truth in Lending Act (15 U.S.C. 1638) is amended by adding at the end the following: ‘ ‘(e) TER MSA ND D ISC LO SURE W ITH R ES P ECT TO P RI V ATE E DU - CATION LOANS.— ‘‘(1) DISCLOSURES RE Q UIRED IN PRIVATE EDUCATION LOAN APPLICATIONS AND SOLICITATIONS.—In any application for a pri- v ate education loan , or a solicitation for a private education loan without requiring an application, the private educational lender shall disclose to the borrower, clearly and conspicu- ously— ‘‘(A) the potential range of rates of interest applicable to the private education loan ‘‘( B ) whether the rate of interest applicable to the private education loan is fi x ed or variable; ‘‘(C) limitations on interest rate ad j ustments, both in terms of frequency and amount, or the lac k thereof, if applicable; ‘‘(D) requirements for a co-borrower, including any changes in the applicable interest rates without a co-bor- rower; ‘‘(E) potential finance charges, late fees, penalties, and adjustments to principal, based on defaults or late pay- ments of the borrower; ‘‘( F ) fees or range of fees applicable to the private education loan; ‘‘( G ) the term of the private education loan; ‘‘( H ) whether interest will accrue while the student to whom the private education loan relates is enrolled at a covered educational institution; ‘‘(I) payment deferral options; ‘‘( J ) general eligibility criteria for the private education loan; ‘‘( K ) an example of the total cost of the private edu- cation loan over the life of the loan— ‘‘(i) which shall be calculated using the principal amount and the maximum rate of interest actually offered by the private educational lender; and ‘‘(ii) calculated both with and without capitali z a- tion of interest, if an option exists for postponing interest payments;

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