42 U.S.C. § 292v — Provision by schools of information to students

submitted 82 years ago by Pub. L. 102-408 to r/title-42-THE-PUBLIC-HEALTH-AND-WELFARE · 398 words · no verdicts yet

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Schools that give out these loans after June 1986 must fully explain the loan's terms to each borrower. They must cover borrowing limits, repayment terms, interest, fees, and what happens if the borrower defaults. Before graduation, the school must also give a summary of everything the student borrowed.

(a) In general: For loans made after June 30, 1986, a school must give each borrower thorough, clear loan information at the time it makes the loan. That information must include: (1) the most a student can borrow in one year and in total; (2) when repayment starts; (3) the maximum number of years to repay it; (4) the interest rate and the smallest required monthly payment; (5) any other fees the lender charges; (6) any options the borrower has to defer, cancel, prepay, consolidate, or refinance the loan; (7) what counts as a "default," and what happens to the borrower if they default, including whether it's reported to credit bureaus; (8) as much as possible, how taking this loan affects the borrower's eligibility for other student aid; and (9) how the federal government might act to collect the loan, including what borrower information it might share with (A) staff of the Department of Health and Human Services, (B) staff at other schools with agreements under this subpart, or (C) anyone else involved in collecting a loan under this subpart. (b) Statement regarding loan: Right before a borrower graduates, the school must give them a written statement listing: (1) each amount the student borrowed under this subpart; (2) the total amount borrowed under this subpart; and (3) a repayment schedule — how many payments, how much each one is, and how often they're due.

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

(a) In general

With respect to loans made by a school under this subpart after June 30, 1986, each school, in order to carry out the provisions of sections 292q and 292r of this title, shall, at any time such school 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) Statement regarding loan

Each school shall, immediately prior to the graduation from such school of a student who receives a loan 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.

Source credit: (July 1, 1944, ch. 373, title VII, § 726, as added Pub. L. 102–408, title I, § 102, Oct. 13, 1992, 106 Stat. 2020.)

history & why it existsrecord from the source credit

1944Enacted · Pub. L. 102-408 · 106 Stat. 2020

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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