(1) Interest Rates.
(i) The interest rate or range of interest
rates applicable to the loan and actually offered by the creditor
at the time of application or solicitation. If the rate will depend,
in part, on a later determination of the consumer’s creditworthiness
or other factors, a statement that the rate for which the consumer
may qualify will depend on the consumer’s creditworthiness and other
factors, if applicable.
(ii) Whether the interest rates applicable
to the loan are fixed or variable.
(iii) If the interest rate may increase
after consummation of the transaction, any limitations on the interest
rate adjustments, or lack thereof; a statement that the consumer’s
actual rate could be higher or lower than the rates disclosed under
paragraph (a)(1)(i) of this section, if applicable; and, if the limitation
is determined by applicable law, that fact.
(iv) Whether the applicable interest
rates typically will be higher if the loan is not co-signed or guaranteed.
(2) Fees and default or late payment costs.
(i) An itemization of the fees or range
of fees required to obtain the private education loan.
(ii) Any fees, changes
to the interest rate, and adjustments to principal based on the consumer’s
defaults or late payments.
(3) Repayment
terms.
(i) The term of the loan, which is the
period during which regularly scheduled payments of principal and
interest will be due.
(ii) A description of any payment deferral options, or, if the consumer
does not have the option to defer payments, that fact.
(iii) For each payment
deferral option applicable while the student is enrolled at a covered
educational institution:
(A) Whether interest will accrue during the
deferral period; and
(B)
If interest accrues, whether payment of interest may be deferred and
added to the principal balance.
(iv) A statement that if the consumer
files for bankruptcy, the consumer may still be required to pay back
the loan.
(4) Cost estimates. An example of
the total cost of the loan calculated as the total of payments over
the term of the loan:
(i) Using the highest rate of interest
disclosed under paragraph (a)(1) of this section and including all
finance charges applicable to loans at that rate;
(ii) Using an amount financed of $10,000,
or $5000 if the creditor only offers loans of this type for less than
$10,000; and
(iii)
Calculated for each payment option.
(5) Eligibility. Any age or school enrollment eligibility requirements relating to
the consumer or co-signer.
(6) Alternatives
to private education loans.
(i) A statement that the
consumer may qualify for federal student financial assistance through
a program under title IV of the Higher Education Act of 1965 (20 U.S.C.
1070 et seq.).
(ii) The interest rates available under each program under title
IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.) and whether the rates are fixed or variable.
(iii) A statement that the consumer
may obtain additional information concerning federal student financial
assistance from the institution of higher education that the student
attends, or at the website of the U.S. Department of Education, including
an appropriate website address.
(iv) A statement that a covered educational
institution may have school-specific education loan benefits and terms
not detailed on the disclosure form.
(7) Rights of
the consumer. A statement that if the loan is approved, the terms
of the loan will be available and will not change for 30 days except
as a result of adjustments to the interest rate and other changes
permitted by law.
(8) Self-certification information. A statement
that, before the loan may be consummated, the consumer must complete
the self-certification form and that the form may be obtained from
the institution of higher education that the student attends.
(1) Interest
rate.
(i) The interest rate applicable to
the loan.
(ii) Whether
the interest rate is fixed or variable.
(iii) If the interest rate may increase
after consummation of the transaction, any limitations on the rate
adjustments, or lack thereof.
(2) Fees and
default or late payment costs.
(i) An itemization of
the fees or range of fees required to obtain the private education
loan.
(ii) Any fees,
changes to the interest rate, and adjustments to principal based on
the consumer’s defaults or late payments.
(3) Repayment terms.
(i) The principal amount of the loan
for which the consumer has been approved.
(ii) The term of the loan, which is
the period during which regularly scheduled payments of principal
and interest will be due.
(iii) A description of the payment deferral
option chosen by the consumer, if applicable, and any other payment
deferral options that the consumer may elect at a later time.
(iv) Any payments required
while the student is enrolled at a covered educational institution,
based on the deferral option chosen by the consumer.
(v) The amount of any unpaid interest
that will accrue while the student is enrolled at a covered educational
institution, based on the deferral option chosen by the consumer.
(vi) A statement that
if the consumer files for bankruptcy, the consumer may still be required
to pay back the loan.
(vii) An estimate of the total amount of payments calculated based
on:
(A) The interest rate applicable to the loan.
Compliance with section 226.18(h) constitutes compliance with this
requirement.
(B) The maximum
possible rate of interest for the loan or, if a maximum rate cannot
be determined, a rate of 25%.
(C) If a maximum rate cannot be determined,
the estimate of the total amount for repayment must include a statement
that there is no maximum rate and that the total amount for repayment
disclosed under paragraph (b)(3)(vii)(B) of this section is an estimate
and will be higher if the applicable interest rate increases.
(viii) The maximum monthly
payment based on the maximum rate of interest for the loan or, if
a maximum rate cannot be determined, a rate of 25%. If a maximum cannot
be determined, a statement that there is no maximum rate and that
the monthly payment amount disclosed is an estimate and will be higher
if the applicable interest rate increases.
(4) Alternatives to private education loans.
(i) A statement
that the consumer may qualify for federal student financial assistance
through a program under title IV of the Higher Education Act of 1965
(20 U.S.C. 1070 et seq.).
(ii) The interest rates available under
each program under title IV of the Higher Education Act of 1965 (20
U.S.C. 1070 et seq.), and whether the rates are fixed or variable.
(iii) A statement that
the consumer may obtain additional information concerning federal
student financial assistance from the institution of higher education
that the student attends, or at the website of the U.S. Department
of Education, including an appropriate website address.
(5) Rights of the consumer.
(i) A statement
that the consumer may accept the terms of the loan until the acceptance
period under section 226.48(c)(1) has expired. The statement must
include the specific date on which the acceptance period expires,
based on the date upon which the consumer receives the disclosures
required under this subsection for the loan. The disclosure must also
specify the method or methods by which the consumer may communicate
acceptance.
(ii)
A statement that, except for changes to the interest rate and other
changes permitted by law, the rates and terms of the loan may not
be changed by the creditor during the period described in paragraph
(b)(5)(i) of this section.
(1) Interest
rate. Information required to be disclosed under section 226.47(b)(1).
(2) Fees and default or late payment costs. Information required to be disclosed under section 226.47(b)(2).
(3) Repayment terms. Information required to
be disclosed under section 226.47(b)(3).
(4) Cancellation
right. A statement that:
(i) the consumer has the right to cancel
the loan, without penalty, at any time before the cancellation period
under section 226.48(d) expires, and
(ii) loan proceeds will not be disbursed
until after the cancellation period under section 226.48(d) expires.
The statement must include the specific date on which the cancellation
period expires and state that the consumer may cancel by that date.
The statement must also specify the method or methods by which the
consumer may cancel. If the creditor permits cancellation by mail,
the statement must specify that the consumer’s mailed request will
be deemed timely if placed in the mail not later than the cancellation
date specified on the disclosure. The disclosures required by this
paragraph (c)(4) must be made more conspicuous than any other disclosure
required under this section, except for the finance charge, the interest
rate, and the creditor’s identity, which must be disclosed in accordance
with the requirements of section 226.46(c)(2)(iii).
