Sec. 3. Required periodic disclosures during periods when loan payments are not required
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/bill/116/s/887/is/section-3A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 433 of the Higher Education Act of 1965 ( 20 U.S.C. 1083 ) is amended— by redesignating subsection
(f)as subsection (g); and by inserting after subsection
(e)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 quarterly statement 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, toll-free phone number, and webpage for payment and billing error purposes, including information about how a borrower can make voluntary payments when a loan is not in repayment status; 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 an explanation that making even small payments of any unspecified amount while the borrower is a student at an institution of higher education, or during a period of deferment or forbearance, if applicable, can help to offset interest accrual over the life of the loan. .
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Sec. 3
Required periodic disclosures during periods when loan payments are not required
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