Sec. 2. Amendments to the Truth in Lending Act
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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 creditor may issue any funds with respect to an extension of credit described in this subsection, the creditor shall obtain from the relevant institution of higher education where such loan is to be used for a student, such institution's certification of— the enrollment status of the student; 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; 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. Notwithstanding subparagraph (A), a creditor may issue funds with respect to an extension of credit described in this subsection without obtaining from the relevant institution of higher education such institution’s certification if such institution fails to provide within 15 business days of the creditor’s request for such certification— notification of the institution’s refusal to certify the request; or notification that the institution has received the request for certification and will need additional time to comply with the certification request. If a creditor issues funds without obtaining a certification, as described in subparagraph (B), such creditor shall report the issuance of such funds in a manner determined by the Director of the Consumer Financial Protection Bureau. ; by redesignating paragraphs (9), (10), and
(11)as paragraphs (10), (11), and (12), respectively; and by inserting after paragraph
(8)the following: A creditor that issues any funds with respect to an extension of credit described in this subsection shall send loan statements, where such loan is to be used for a student, to borrowers of such funds not less than once every 3 months during the time that such student is enrolled at an institution of higher education. Each statement described in clause
(i)shall— report the borrower's total remaining debt to the creditor, 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. On or before the date a creditor issues any funds with respect to an extension of credit described in this subsection, the creditor shall notify the relevant institution of higher education, in writing, of the amount of the extension of credit and the student on whose behalf credit is extended. The form of such written notification shall be subject to the regulations of the Bureau. A creditor that issues funds with respect to an extension of credit described in this subsection shall prepare and submit an annual report to the Bureau containing the required information about private student loans to be determined by the Director of the Bureau, in consultation with the Secretary of Education. . 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 365 days after the date of enactment of this Act, the Director of the Consumer Financial Protection Bureau shall issue regulations in final form 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 subsection (a). Such regulations shall become effective not later than 6 months after their date of issuance.
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