Page:United States Statutes at Large Volume 97.djvu/510

 97 STAT. 478 PUBLIC LAW 98-79—AUG. 15, 1983 limit, suspend, or terminate the continued participation of an eligi- ble lender in making loans under this part for failure by that lender to comply with this section.". 20 USC 1087CC-1. (b) Section 463A of the Act is amended to read as follows: 20 USC 1087CC. Information disclosure. 10 USC 2141 note. STUDENT LOAN INFORMATION BY ELIGIBLE INSTITUTIONS "SEC. 463A. (a) Each institution of higher education, in order to carry out the 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 informa- tion on such loan to the student borrower. Any disclosure required by this subsection may be made by an institution of higher educa- tion 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; "(5) the yearly and cumulative maximum amounts that may be borrowed; "(6) an explanation of when repayment of the loan will be required and when the borrower will be obligated to pay inter- est 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; "(8) an explanation of any special options the borrower may have for loan consolidation or other refinancing of the loan; "(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, in 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 institution 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 disclosures re- quired by this subsection may be made by an institution of higher

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