Page:United States Statutes at Large Volume 97.djvu/509

 PUBLIC LAW 98-79—AUG. 15, 1983 97 STAT. 477 "(9) 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); "(10) 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 report- ing agency; "(11) to the extent practicable, the effect of accepting the loan on the eligibility of the borrower for other forms of student assistance; and "(12) an explanation of any cost the borrower may incur in the making or collection of the loan. "(b) 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 informa- tion 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 disclosures 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); "(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; "(7) an explanation of any special options the borrower may have for loan consolidation or other refinancing of the loan; "(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. "(c) Such information shall be available without cost to the bor- rower. 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 reinsur- ance, or the obligation of a State or nonprofit private agency or organization which has an agreement with the Secretary under section 428(b) under a contract of guaranty. The Secretary may 10 USC 2141 note. Information disclosure. Loan repayment, obligation. 20 USC 1078.

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