Sec. 3. Amendment to the higher education act of 1965
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Section 487(a) of the Higher Education Act of 1965 ( 20 U.S.C. 1094(a) ) is amended by striking paragraph
(28)and inserting the following: The institution shall— upon the request of a private educational lender, acting in connection with an application initiated by a borrower for a private education loan in accordance with section 128(e)(3) of the Truth in Lending Act, provide certification to such private educational lender— that the student who initiated the application for the private education loan, or on whose behalf the application was initiated, is enrolled or is scheduled to enroll at the institution; of such student’s cost of attendance at the institution as determined under part F of this title; and of the difference between— the cost of attendance at the institution; and the student’s estimated financial assistance received under this title and other assistance known to the institution, as applicable; and provide the certification described in clause (i), or notify the creditor that the institution has received the request for certification and will need additional time to comply with the certification request— within 15 business days of receipt of such certification request; and only after the institution has completed the activities described in subparagraph (B). The institution shall, upon receipt of a certification request described in subparagraph (A)(i), and prior to providing such certification— determine whether the student who initiated the application for the private education loan, or on whose behalf the application was initiated, has applied for and exhausted the Federal financial assistance available to such student under this title and inform the student accordingly; and provide the borrower whose loan application has prompted the certification request by a private education lender, as described in subparagraph (A)(i), with the following information and disclosures: The availability of, and the borrower’s potential eligibility for, Federal financial assistance under this title, including disclosing the terms, conditions, interest rates, and repayment options and programs of Federal student loans. The borrower’s ability to select a private educational lender of the borrower’s choice. The impact of a proposed private education loan on the borrower’s potential eligibility for other financial assistance, including Federal financial assistance under this title. The borrower’s right to accept or reject a private education loan within the 30-day period following a private educational lender’s approval of a borrower’s application and about a borrower’s 3-day right to cancel period. For purposes of this paragraph, the terms private educational lender and private education loan have the meanings given such terms in section 140 of the Truth in Lending Act ( 15 U.S.C. 1650 ). . The amendment made by subsection
(a)shall take effect on the effective date of the regulations described in section 2(c).
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