Sec. 4. Application of prepayment amounts for private education loans
210 words·~1 min read·
/bill/113/hr/4236/ih/section-4A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 128(e) of the Truth in Lending Act ( 15 U.S.C. 1638(e) ) is amended by adding at the end the following: Notwithstanding any other provision of law, with respect to a borrower with more than one private education loan which are held by the same holder and which have different applicable rates of interest, the holder of such loans shall, except as otherwise requested by the borrower in writing, apply the borrower’s prepayment amount (within the meaning of section 682.209(b) of title 34, Code of Federal Regulations, or a successor regulation) for one or more of such loans, first toward the outstanding balance of principal due on the loan with the highest applicable rate of interest among such loans.
Subparagraph
(A)shall not apply to any prepayment amount made by a borrower to a holder if the borrower has an outstanding balance of fees, including collection costs and authorized late charges, due on any private education loan held by such holder. A prepayment amount (as described in subparagraph (A)) made by a borrower described in subparagraph
(B)to a holder shall be applied first toward the borrower’s outstanding balance of fees, including collection costs and authorized late charges, due on any private education loan held by such holder. .
Connectionstraces to 1
Traces to 1 document
Citation graph
cites case law
Sec. 4
Application of prepayment amounts for private education loans
Cites 1Cited by 0 across 0 sources