Sec. 3. Annual estimate of student loan borrowing costs
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/bill/115/s/2224/is/section-3A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 485 of the Higher Education Act of 1965 ( 20 U.S.C. 1092 ) is amended by adding at the end the following: Beginning on July 1, 2019, each eligible institution shall provide a cost estimate described in paragraph
(2)to each enrolled student who receives an education loan to attend the institution, not later than 30 days before the first day of each academic year beginning after the academic year for which the student first received such a loan to attend such institution. The estimate under paragraph
(1)shall contain the following information: A notice to the student of— the cumulative balance of education loans owed by the student as of the date of the notice; and projected monthly payment amounts based on the cumulative balances described in clause (i), assuming a standard repayment schedule. The interest rate of each education loan, except that interest rates for a private education loan may be based on average private education loan interest rates if the institution cannot reasonably determine the actual interest rate of such loan. A clear and conspicuous notice stating that any information provided under paragraph
(1)is an estimate, accurate to the best of the institution’s knowledge, and that an interest rate provided under subparagraph (B)— in the case of a loan described in paragraph (6)(A)(i), is the applicable rate of interest of such loan; in the case of a private education loan, may be based on average private education loan interest rates; and does not include private education loans of which the institution is not aware. The estimate under paragraph
(1)shall be— provided to the student in hard copy format on the letterhead of the institution, by electronic mail or by another method the Secretary may prescribe; and delivered to the student separately from any other disclosures required under this Act. An institution that provides the estimate under paragraph
(1)in good faith shall not be liable to any person for inaccuracies contained in such estimate. Not later than July 1, 2018, and as necessary thereafter, the Secretary shall provide the following to eligible institutions: Examples of the information required under subparagraphs (A), (B), and
(C)of paragraph (2). Technical assistance on how to comply with the requirements of this subsection. Preliminary approvals in a timely manner of estimate formats proposed for use by an institution, at the request of the institution. The formula (which shall take into consideration a student’s past borrowing rates and other criteria the Secretary may determine) to be used in making the projections under clauses
(i)and
(ii)of paragraph (2)(A) with respect to loans described in paragraph (6)(A)(i). Encryption technology software to enable institutions to provide the estimate under paragraph
(2)to students in a secure format for institutions that choose to provide the estimate to students in an electronic format. In this subsection: The term education loan means— a loan made under part D (other than a Federal Direct Consolidation Loan or a Federal Direct PLUS loan made on behalf of a student); a loan made under a State-sponsored loan program for the purpose of paying a student’s cost of attendance at an institution of higher education; and a private education loan with respect to which the institution should reasonably be aware. The term private education loan has the meaning given the term in section 140 of the Truth in Lending Act. The term student , when used with respect to an eligible institution, does not include any student who has transferred to the institution less than 60 days before the first day of the academic year for which an estimate would be provided. .
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Sec. 3
Annual estimate of student loan borrowing costs
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