Sec. 2. Required periodic disclosures during periods when loan payments are not required
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Section 433 of the Higher Education Act of 1965 ( 20 U.S.C. 1083 ) is amended by adding at the end the following: During any period of time when a borrower of one or more loans, made, insured, or guaranteed under this part or part D is not required to make a payment to an eligible lender on the borrower's loan from that eligible lender, such eligible lender shall provide such borrower with a statement that corresponds to each payment installment time period in which a payment would be due if payments were required to be made, and that includes, in simple and understandable terms— the original principal amount of each of the borrower's loans, and the original principal amount of those loans in the aggregate; the borrower's current balance, as of the time of the statement, as applicable; the interest rate on each loan; the total amount the borrower has paid in interest on each loan; the aggregate amount the borrower has paid for each loan, including the amount the borrower has paid in interest, the amount the borrower has paid in fees, and the amount the borrower has paid against the balance; the lender's or loan servicer's address and toll-free phone number for payment and billing error purposes; an explanation— that the borrower has the option to pay the interest that accrues on each loan while the borrower is a student at an institution of higher education or during a period of deferment or forbearance, if applicable; and if the borrower does not pay such interest while attending an institution or during a period of deferment or forbearance, any accumulated interest on the loan will be capitalized when the loan goes into repayment, resulting in more interest being paid over the life of the loan; the amount of interest that has accumulated since the last statement based on the typical installment time period and the aggregate interest accrued to date; and a suggested payment amount equal to the interest charged since the last installment time period. .
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Sec. 2
Required periodic disclosures during periods when loan payments are not required
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