42 U.S.C. § 292n — Additional requirements for institutions and lenders

submitted 82 years ago by Pub. L. 102-408 to r/title-42-THE-PUBLIC-HEALTH-AND-WELFARE · 421 words · no verdicts yet

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The Secretary can make rules covering financial audits of schools, minimum financial standards for schools, penalties for schools that break the rules, information collection, tuition fairness for borrowers, and reporting on individual loans. Schools must keep records on borrowers, hold a yearly workshop for student borrowers, and can withhold services from borrowers who default (unless they've filed for bankruptcy).

(a) In general Despite anything else in this subpart, the Secretary can write regulations covering: (1) a financial audit of a school regarding money it got from a borrower with an insured loan; (2) setting reasonable financial-responsibility and management standards for a school running its student financial aid program, regarding money from a borrower with an insured loan; (3) limiting, suspending, or ending a school's eligibility under this subpart, after notice and a hearing, if the Secretary finds the school violated or ignored a regulation under this subpart; (4) collecting information from the borrower, lender, or school to make sure section 292d is being followed; (5) making sure borrowers aren't charged more in tuition or fees than students who don't borrow; (6) requiring the school or lender to report loan information to the Office of Health Education Assistance Loan Default Reduction — including when each loan started, when it was sold, who holds it, and any change in the borrower's status; (7) letting a school withhold services — like transcripts, financial-aid transcripts, and alumni services — from a borrower who has defaulted, unless that borrower has filed for bankruptcy; and (8) requiring lenders to offer borrowers a variety of repayment plans — fixed-rate, graduated repayment (which can let the balance grow for a while), and income-based payments for a limited time followed by level payments. (b) Recording by institution of information on students The Secretary can require a school to record — and share with the lender and the Secretary on request — the name, address, post-graduation destination, and other reasonably identifying information for each of its students who has an insured loan under this subpart. (c) Workshop for student borrowers Every participating school must hold a workshop at the start of each academic year, explaining this subpart's rules, and every student borrower must attend.

the actual law source: uscode.house.gov ↗public domain

(a) In general

Notwithstanding any other provision of this subpart, the Secretary is authorized to prescribe such regulations as may be necessary to provide for—

(1)

a fiscal audit of an eligible institution with regard to any funds obtained from a borrower who has received a loan insured under this subpart;

(2)

the establishment of reasonable standards of financial responsibility and appropriate institutional capability for the administration by an eligible institution of a program of student financial aid with respect to funds obtained from a student who has received a loan insured under this subpart;

(3)

the limitation, suspension, or termination of the eligibility under this subpart of any otherwise eligible institution, whenever the Secretary has determined, after notice and affording an opportunity for hearing, that such institution has violated or failed to carry out any regulation prescribed under this subpart;

(4)

the collection of information from the borrower, lender, or eligible institution to assure compliance with the provisions of section 292d of this title;

(5)

the assessing of tuition or fees to borrowers in amounts that are the same or less than the amount of tuition and fees assessed to nonborrowers;

(6)

the submission, by the institution or the lender to the Office of Health Education Assistance Loan Default Reduction, of information concerning each loan made under this subpart, including the date when each such loan was originated, the date when each such loan is sold, the identity of the loan holder and information concerning a change in the borrower’s status;

(7)

the withholding of services, including academic transcripts, financial aid transcripts, and alumni services, by an institution from a borrower upon the default of such borrower of a loan under this subpart, except in case of a borrower who has filed for bankruptcy; and

(8)

the offering, by the lender to the borrower, of a variety of repayment options, including fixed-rate, graduated repayment with negative amortization permitted, and income dependent payments for a limited period followed by level monthly payments.

(b) Recording by institution of information on students

The Secretary shall require an eligible institution to record, and make available to the lender and to the Secretary upon request, the name, address, postgraduate destination, and other reasonable identifying information for each student of such institution who has a loan insured under this subpart.

Each participating eligible institution must have, at the beginning of each academic year, a workshop concerning the provisions of this subpart that all student borrowers shall be required to attend.

Source credit: (July 1, 1944, ch. 373, title VII, § 715, as added Pub. L. 102–408, title I, § 102, Oct. 13, 1992, 106 Stat. 2009.)

history & why it existsrecord from the source credit

1944Enacted · Pub. L. 102-408 · 106 Stat. 2009

A history note hasn’t been published yet. The record shows enactment by Pub. L. 102-408 on 1944-07-01.

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