Sec. 141. Modification of preferred lender arrangements

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Part E of title I ( 20 U.S.C. 1019 et seq.) is amended— in section 151 ( 20 U.S.C. 1019(2) )— in paragraph (2), by striking section 102 and inserting section 101 or 102 ; in paragraph (3)— by striking or at the end of subparagraph (B); by redesignating subparagraph

(C)as subparagraph (D); and by inserting after subparagraph (B), the following: any loan made under part E of title IV after the date of enactment of the PROSPER Act ; or ; in paragraph (6)(A)— by striking and at the end of clause (ii); by redesignating clause

(iii)as clause (iv); and by inserting after clause (ii), the following: in the case of a loan issued or provided to a student under part E of title IV on or after the date of enactment of the PROSPER Act ; ; in paragraph (8)(B)— by striking or at the end of clause (i); by redesignating clause

(ii)as clause (iii); and by inserting after clause (i), the following: arrangements or agreements with respect to loans under part E of title IV; or ; in section 152 ( 20 U.S.C. 1019 )— in subsection (a)(1)— in subparagraph (B), by amending clause

(i)to read as follows: make available to the prospective borrower on a website or with informational material, the information the Board of Governors of the Federal Reserve System requires the lender to provide to the covered institution under section 128(e)(11) of the Truth in Lending Act ( 15 U.S.C. 1638(e)(11) ) for such loan; ; and by adding at the end the following: Notwithstanding any other provision of law, a covered institution, or an institution-affiliated organization of such covered institution, shall not be required to provide any information regarding private education loans to prospective borrowers except for the information described in subparagraph (B). ; and in subsection (b)(1)(A)(i), by striking part B or D and inserting part B, D, or E ; in section 153 ( 20 U.S.C. 1019b )— in subsection (a)— in paragraph (1)(B)— in clause (i), by adding and at the end; in clause (ii), by striking ; and at the end and inserting a period; and by striking clause (iii); and in paragraph (2), by amending subparagraph

(C)to read as follows: update such model disclosure form not later than 180 after the date of enactment of the PROSPER Act , and periodically thereafter, as necessary. ; and by amending subsection

(c)to read as follows: Each covered institution, and each institution-affiliated organization of such covered institution, that has a preferred lender arrangement, shall comply with the code of conduct requirements of subparagraphs

(A)through

(C)of section 487(a)(23). For purposes of subparagraph (A), an institution-affiliated organization of a covered institution shall— comply with the code of conduct developed and published by such covered institution under subparagraphs

(A)and

(B)of section 487(a)(23); if such institution-affiliated organization has a website, publish such code of conduct prominently on the website; and administer and enforce such code of conduct by, at a minimum, requiring that all of such organization’s agents with responsibilities with respect to education loans be annually informed of the provisions of such code of conduct. ; and in section 154 ( 20 U.S.C. 1019c )— in the section heading, by inserting before the period at the end the following: ; or the Federal ONE Loan Program by striking William D. Ford Direct Loan Program each place it appears and inserting William D. Ford Direct Loan Program or the Federal ONE Loan Program by striking part D each place it appears and inserting part D or E ; and in subsection (a)— by striking the development and inserting the first update ; by striking section 153(a)(2)(B) and inserting section 153(a)(2)(C) ; and by striking Federal Direct Stafford Loans, Federal Direct Unsubsidized Stafford Loans, and Federal Direct PLUS and inserting undergraduate, graduate, and parent . The Secretary of Education shall not impose, administer, or enforce any requirements on a covered institution or an institution-affiliated organization of a covered institution relating to preferred lender lists or arrangements unless explicitly authorized by sections 152(a)(1)(B), 153(c), or 487(h)(1) of the Higher Education Act of 1965 ( 20 U.S.C. 1019a(a)(1)(B) , 1019b(c), or 1094(h), respectively) as amended by this Act.

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Sec. 141

Modification of preferred lender arrangements

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