Sec. 405. Private education loan certification and information

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Section 487(a) ( 20 U.S.C. 1094(a) ) is amended by striking paragraph

(28)and inserting the following: The institution shall— upon the request of a private educational lender, acting in connection with an application initiated by a borrower for a private education loan in accordance with section 128(e)(3) of the Truth in Lending Act, provide certification to such private educational lender— that the student who initiated the application for the private education loan, or on whose behalf the application was initiated, is enrolled or is scheduled to enroll at the institution; of such student's cost of attendance at the institution as determined under part F; and of the difference between— the cost of attendance at the institution; and the student's estimated financial assistance received under this title and other assistance known to the institution, as applicable; and provide the certification described in clause (i), or notify the private educational lender that the institution has received the request for certification and will need additional time to comply with the certification request— within 15 business days of receipt of such certification request; and only after the institution has completed the activities described in subparagraph (B). The institution shall, upon receipt of a certification request described in subparagraph (A)(i), and prior to providing such certification— determine whether the student who initiated the application for the private education loan, or on whose behalf the application was initiated, has applied for and exhausted the Federal financial assistance available to such student under this title and inform the student accordingly; and provide the borrower whose loan application has prompted the certification request by a private education lender, as described in subparagraph (A)(i), with the following information and disclosures: If the borrower has not yet exhausted the financial assistance available to the borrower under this title, the amount of additional Federal student assistance for which the borrower is eligible and the potential advantages of Federal loans under this title, including disclosure of— the fixed interest rates and pause payment processes; the option for and terms of income-based repayment, loan forgiveness programs, and additional protections; and the higher student loan limits for dependent students whose parents are not eligible for a Federal Direct PLUS Loan. The borrower's ability to select a private educational lender of the borrower's choice. The impact of a proposed private education loan on the borrower's potential eligibility for other financial assistance, including Federal financial assistance under this title. The borrower's right to accept or reject a private education loan within the 30-day period following a private educational lender's approval of a borrower's application and about a borrower's 3-day right to cancel period under section 128(e)(7) of the Truth in Lending Act ( 15 U.S.C. 1650(e)(7) ). For purposes of this paragraph, the terms private educational lender and private education loan have the meanings given such terms in section 140 of the Truth in Lending Act ( 15 U.S.C. 1650 ). . Section 485B ( 20 U.S.C. 1092b ) is amended— in subsection (a), by striking and loans made under parts D and E and inserting , loans made under parts D and E, and private education loans (in accordance with subsection (i)) ; in subsection (f), by inserting after for Federal loans ; and Data reporting by adding at the end the following: The Secretary shall include in the National Student Loan Data System the information regarding private education loans that the Director of the Consumer Financial Protection Bureau, in coordination with the Secretary, determines necessary to be included pursuant to section 128(e)(9)(B)(ii) of the Truth in Lending Act ( 15 U.S.C. 1638(e)(9)(B)(ii) ). . The amendments made by paragraphs

(1)and

(2)shall take effect on the effective date of the regulations described in subsection (b)(3). Section 128(e) of the Truth in Lending Act ( 15 U.S.C. 1638(e) ) is amended— by striking paragraph

(3)and inserting the following: Except as provided in subparagraph (B), before a private educational lender may issue any funds with respect to a private education loan, the private educational lender shall obtain, from the relevant institution of higher education where such loan is to be used for a student, a certification in accordance with section 485(a)(28)(A) of the Higher Education Act of 1965 ( 20 U.S.C. 1094(a)(28)(A) )— confirming that the student is enrolled or is scheduled to enroll at the institution; and stating— the student's cost of attendance at the institution, as determined by the institution under part F of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1087kk et seq.); and the difference between— such cost of attendance; and the student's estimated financial assistance, including such assistance received under title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1070 et seq.) and other financial assistance known to the institution, as applicable. Pursuant to section 485(a)(28)(A) of the Higher Education Act of 1965 ( 20 U.S.C. 1094(a)(28)(A) ), a private education lender shall receive the certification described in subparagraph

(A)within 15 days of a request by the private education lender, unless the institution of higher education notifies the private educational lender pursuant to section 485(a)(28)(A)(ii) of such Act that additional time is needed. Upon receiving the certification described in subparagraph

(A)for a private education loan, the private educational lender— may proceed to issue funds with respect to the private education loan; and after issuing the private education loan, shall— notify the institution of higher education involved that the private education loan has been issued to the borrower, and the amount of such loan; and provide the Director of the Consumer Financial Protection Bureau and the Secretary of Education with the information described in paragraph (9)(B). ; by redesignating paragraphs (9), (10), and

(11)as paragraphs (10), (11), and (12), respectively; and by inserting after paragraph

(8)the following: A private educational lender that issues any funds with respect to a private education loan shall— send loan statements, if the loan is to be used for a student, to borrowers of the funds not less than once every 3 months during the time that the student is enrolled at an institution of higher education; and in the case of a private education loan that includes a cosigner, annually send a loan statement to the borrower’s cosigner, notifying the cosigner of the terms, conditions, and status of such private education loan. Each statement described in clause

(i)shall— report the borrower's total remaining debt to the private educational lender, including accrued but unpaid interest and capitalized interest; report any debt increases since the last statement; and list the current interest rate for each loan. Each private educational lender shall— submit to the Director of the Consumer Financial Protection Bureau and the Secretary of Education such information regarding a private education loan as may be determined necessary by the Director and the Secretary under clause

(ii)for inclusion in the National Student Loan Data System under section 485B(i) of the Higher Education Act of 1965 ( 20 U.S.C. 1092b(i) ); and prepare and submit an annual report to the Consumer Financial Protection Bureau regarding the private education loans issued by the private educational lender. Not later than 1 year after the date of enactment of the Affordable Loans for Any Student Act , the Director of the Consumer Financial Protection Bureau, in coordination with the Secretary of Education, shall promulgate regulations regarding the private education loan information required to be submitted under clause (i), including the content, method, and format for submission. The information required for inclusion in the National Student Loan Data System shall include, at a minimum— information identifying the borrower, including the borrower's name and social security number; the name of the institution of higher education that has certified the private education loan; the name of the lender; the amount of the private education loan; the term, or other enrollment period, for which the private education loan is issued; and whether a cosigner was required as a condition of the private education loan. . Section 140(a)(8)(A) of the Truth in Lending Act ( 15 U.S.C. 1650(a)(8)(A) ) is amended— by redesignating clause

(ii)as clause (iii); in clause (i), by striking and after the semicolon; and by adding after clause

(i)the following: is not made, insured, or guaranteed under title VII or title VIII of the Public Health Service Act ( 42 U.S.C. 292 et seq. and 296 et seq.); and . Not later than 1 year after the date of enactment of this Act, the Director of the Consumer Financial Protection Bureau, in coordination with the Secretary of Education, shall promulgate regulations to implement paragraphs

(3)and

(9)of section 128(e) of the Truth in Lending Act ( 15 U.S.C. 1638(e) ), as amended by paragraph

(1)of this subsection. The regulations promulgated under subparagraph

(A)shall take effect on the date that is 180 days after the date on which the regulations are promulgated.

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