Sec. 4. Application of prepayment and underpayment amounts for private education loans
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/bill/114/hr/3947/ih/section-4·A 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 one or more private education loans which are held by the same holder and which have different applicable rates of interest, the holder of such loans shall 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 any outstanding balance of fees, including collection costs and authorized late charges, due on any private education loan held by such holder; and then, except as otherwise requested by the borrower in writing, toward the outstanding balance of principal due on the loan with the highest applicable rate of interest among such loans.
Notwithstanding any other provision of law, with respect to a borrower with one or more private education loans which are held by the same holder and which have different applicable rates of interest, the holder of such loans shall apply any payment made by the borrower which is less than the amount due at the time of the payment for one or more of such loans— first toward any outstanding balance of fees, including collection costs and authorized late charges, due on any private education loans held by such holder; and then, except as otherwise requested by the borrower in writing, toward the balance of the loan with the smallest balance of principal and interest among such loans. .
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Sec. 4
Application of prepayment and underpayment amounts for private education loans
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