Page:United States Statutes at Large Volume 99 Part 1.djvu/557

 PUBLIC LAW 99-129—OCT. 22, 1985

99 STAT. 535

be available for allotment under this subpart, in such fiscal year and the fiscal year succeeding such fiscal year, to schools which, during the period beginning on July 1, 1972, and ending on September 30, 1985, established student loan funds with Federal capital contributions under this subpart.". (h) Subpart II of part C of title VII (as amended by subsection (a)(4) of this subsection) is further amended— (1) by redesignating section 745 (as added by subsection (a)(4) 42 USC 294q-3. of this section) as section 747; and (2) by inserting after section 744 the following new sections: "STUDENT LOAN INFORMATION BY INSTITUTIONS

"SEC. 745. (a) With respect to loans made by a school under this 42 USC 294q-i. subpart after June 30, 1986, each school, in order to carry out the provisions of sections 740 and 741, shall, at any time such school Ante, p. 532. makes such a loan to a student under this subpart, provide thorough and adequate loan information on loans made under this subpart to the student. The loan information required to be provided to the student by this subsection shall include— "(1) the yearly and cumulative maximum amounts that may be borrowed by the student; "(2) the terms under which repayment of the loan will begin; "(3) the maximum number of years in which the loan must be repaid; "(4) the interest rate that will be paid by the borrower and the minimum amount of the required monthly payment; "(5) the amount of any other fees charged to the borrower by the lender; "(6) any options the borrower may have for deferral, cancellation, prepayment, consolidation, or other refinancing of the loan; "(7) a definition of default on the loan and a specification of the consequences which will result to the borrower if the borrower defaults, including a description of any arrangements which may be made with credit bureau organizations; "(8) to the extent practicable, the effect of accepting the loan on the eligibility of the borrower for other forms of student assistance; and "(9) a description of the actions that may be taken by the Federal Government to collect the loan, including a description of the type of information concerning the borrower that the Federal Government may disclose to (A) officers, employees, or agents of the Department of Health and Human Services, (B) officers, employees, or agents of schools with which the Secretary has an agreement under this subpart, or (C) any other person involved in the collection of a loan under this subpart. "(b) Each school shall, immediately prior to the graduation from such school of a student who receives a losm under this subpart after June 30, 1986, provide such student with a statement specifying— "(1) each amount borrowed by the student under this subpart; "(2) the total amount borrowed by the student under this subpart; and "(3) a schedule for the repayment of the amounts borrowed under this subpart, including the number, amount, and frequency of payments to be made.

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