20 U.S.C. § 1083 — Student loan information by eligible lend-

Page 491 TITLE 20—EDUCATION § 1083 (C), and substituted ‘‘sanction’’ for ‘‘disqualification’’ in two places. Subsec. (h)(3)(A). Pub. L. 102–325, § 425(d)(4), as amend- ed by Pub. L. 103–208, § 2(k)(3), in second sentence sub- stituted ‘‘The Secretary shall uphold the imposition of such limitation, suspension, or termination in the stu- dent loan insurance program of each of the guaranty agencies under this part, and shall notify such guar- anty agencies of such sanctions’’ for ‘‘The Secretary shall disqualify such institution from participation in the student loan insurance program of each of the guar- anty agencies under this part, and notify such guaranty agencies of such disqualification’’. Pub. L. 102–325, § 425(b)(4), in first sentence struck out ‘‘, in accordance with sections 556 and 557 of title 5,’’ after ‘‘The Secretary shall’’. Subsec. (h)(3)(B), (C). Pub. L. 102–325, § 425(d)(5), (6), added subpar. (B), redesignated former subpar. (B) as (C), and substituted ‘‘sanction’’ for ‘‘disqualification’’ in two places. Subsecs. (k) to (p). Pub. L. 102–325, § 425(e), added sub- secs. (k) to (p). 1989—Subsec. (j). Pub. L. 101–239 added subsec. (j). 1987—Subsec. (f)(4). Pub. L. 100–50, § 10(x), added par. (4). Subsec. (g)(2)(A)(i), (B). Pub. L. 100–50, § 10(y), sub- stituted ‘‘misrepresentation’’ for ‘‘representation’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2009 AMENDMENT Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title. EFFECTIVE DATE OF 2006 AMENDMENT Amendment by Pub. L. 109–171 effective July 1, 2006, except as otherwise provided, see section 8001(c) of Pub. L. 109–171, set out as a note under section 1002 of this title. EFFECTIVE DATE OF 1998 AMENDMENT Amendment by Pub. L. 105–244 effective Oct. 1, 1998, except as otherwise provided in Pub. L. 105–244, see sec- tion 3 of Pub. L. 105–244, set out as a note under section 1001 of this title. EFFECTIVE DATE OF 1993 AMENDMENT Amendment by Pub. L. 103–208 effective as if included in the Higher Education Amendments of 1992, Pub. L. 102–325, except as otherwise provided, see section 5(a) of Pub. L. 103–208, set out as a note under section 1051 of this title. EFFECTIVE DATE OF 1987 AMENDMENT Amendment by Pub. L. 100–50 effective as if enacted as part of the Higher Education Amendments of 1986, Pub. L. 99–498, see section 27 of Pub. L. 100–50, set out as a note under section 1001 of this title. § 1083. Student loan information by eligible lend- ers (a) Required disclosure before disbursement Each eligible lender, at or prior to the time such lender disburses a loan that is insured or guaranteed under this part (other than a loan made under section 1078–3 of this title), shall provide thorough and accurate loan information on such loan to the borrower in simple and un- derstandable terms. Any disclosure required by this subsection may be made by an eligible lend- er by written or electronic means, including as part of the application material provided to the borrower, as part of the promissory note evi- dencing the loan, or on a separate written form provided to the borrower. Each lender shall pro- vide to each borrower a telephone number, and may provide an electronic address, through which additional loan information can be ob- tained. The disclosure shall include— (1) a statement prominently and clearly dis- played and in bold print that the borrower is receiving a loan that must be repaid; (2) the name of the eligible lender, and the address to which communications and pay- ments should be sent; (3) the principal amount of the loan; (4) the amount of any charges, such as the origination fee and Federal default fee, and whether those fees will be— (A) collected by the lender at or prior to the disbursal of the loan; (B) deducted from the proceeds of the loan; (C) paid separately by the borrower; or (D) paid by the lender; (5) the stated interest rate on the loan; (6) for loans made under section 1078–8 of this title or to a student borrower under sec- tion 1078–2 of this title, an explanation— (A) that the borrower has the option to pay the interest that accrues on the loan while the borrower is a student at an insti- tution of higher education; and (B) if the borrower does not pay such inter- est while attending an institution, when and how often interest on the loan will be cap- italized; (7) for loans made to a parent borrower on behalf of a student under section 1078–2 of this title, an explanation— (A) that the parent has the option to defer payment on the loan while the student is en- rolled on at least a half-time basis in an in- stitution of higher education; (B) if the parent does not pay the interest on the loan while the student is enrolled in an institution, when and how often interest on the loan will be capitalized; and (C) that the parent may be eligible for a deferment on the loan if the parent is en- rolled on at least a half-time basis in an in- stitution of higher education; (8) the yearly and cumulative maximum amounts that may be borrowed; (9) a statement of the total cumulative bal- ance, including the loan being disbursed, owed by the borrower to that lender, and an esti- mate of the projected monthly payment, given such cumulative balance; (10) an explanation of when repayment of the loan will be required and when the borrower will be obligated to pay interest that accrues on the loan; (11) a description of the types of repayment plans that are available for the loan; (12) a statement as to the minimum and maximum repayment terms which the lender may impose, and the minimum annual pay- ment required by law; (13) an explanation of any special options the borrower may have for loan consolidation or other refinancing of the loan; (14) a statement that the borrower has the right to prepay all or part of the loan, at any time, without penalty; Page 492 TITLE 20—EDUCATION § 1083 (15) a statement summarizing circumstances in which repayment of the loan or interest that accrues on the loan may be deferred; (16) a statement summarizing the cir- cumstances in which a borrower may obtain forbearance on the loan; (17) a description of the options available for forgiveness of the loan, and the requirements to obtain loan forgiveness; (18) a definition of default and the con- sequences to the borrower if the borrower de- faults, including a statement that the default will be reported to a consumer reporting agen- cy; and (19) an explanation of any cost the borrower may incur during repayment or in the collec- tion of the loan, including fees that the bor- rower may be charged, such as late payment fees and collection costs. (b) Required disclosure before repayment Each eligible lender shall, at or prior to the start of the repayment period on a loan made, insured, or guaranteed under section 1078, 1078–2, or 1078–8 of this title, disclose to the borrower by written or electronic means the information re- quired under this subsection in simple and un- derstandable terms. Each eligible lender shall provide to each borrower a telephone number, and may provide an electronic address, through which additional loan information can be ob- tained. The disclosure required by this sub- section shall be made not less than 30 days nor more than 150 days before the first payment on the loan is due from the borrower. The disclo- sure shall include— (1) the name of the eligible lender or loan servicer, and the address to which communica- tions and payments should be sent; (2) the scheduled date upon which the repay- ment period is to begin or the deferment pe- riod under section 1078–2(d)(1) of this title is to end, as applicable; (3) the estimated balance owed by the bor- rower on the loan or loans covered by the dis- closure (including, if applicable, the estimated amount of interest to be capitalized) as of the scheduled date on which the repayment period is to begin or the deferment period under 1078–2(d)(1) of this title is to end, as applicable; (4) the stated interest rate on the loan or loans, or the combined interest rate of loans with different stated interest rates; (5) information on loan repayment benefits offered for the loan or loans, including— (A) whether the lender offers any benefits that are contingent on the repayment behav- ior of the borrower, such as— (i) a reduction in interest rate if the bor- rower repays the loan by automatic pay- roll or checking account deduction; (ii) a reduction in interest rate if the borrower makes a specified number of on- time payments; and (iii) other loan repayment benefits for which the borrower could be eligible that would reduce the amount of repayment or the length of the repayment period; (B) if the lender provides a loan repayment benefit— (i) any limitations on such benefit; (ii) explicit information on the reasons a borrower may lose eligibility for such ben- efit; (iii) for a loan repayment benefit that re- duces the borrower’s interest rate— (I) examples of the impact the interest rate reduction would have on the length of the borrower’s repayment period and the amount of repayment; and (II) upon the request of the borrower, the effect the reduction in interest rate would have with respect to the bor- rower’s payoff amount and time for re- payment; and (iv) whether and how the borrower can regain eligibility for a benefit if a bor- rower loses a benefit; (6) a description of all the repayment plans that are available to the borrower and a state- ment that the borrower may change from one plan to another during the period of repay- ment; (7) the repayment schedule for all loans cov- ered by the disclosure, including— (A) the date the first installment is due; and (B) the number, amount, and frequency of required payments, which shall be based on a standard repayment plan or, in the case of a borrower who has selected another repay- ment plan, on the repayment plan selected by the borrower; (8) an explanation of any special options the borrower may have for loan consolidation or other refinancing of the loan and of the avail- ability and terms of such other options; (9) except as provided in subsection (d)— (A) the projected total of interest charges which the borrower will pay on the loan or loans, assuming that the borrower makes payments exactly in accordance with the re- payment schedule; and (B) if the borrower has already paid inter- est on the loan or loans, the amount of in- terest paid; (10) the nature of any fees which may accrue or be charged to the borrower during the re- payment period; (11) a statement that the borrower has the right to prepay all or part of the loan or loans covered by the disclosure at any time without penalty; (12) a description of the options by which the borrower may avoid or be removed from de- fault, including any relevant fees associated with such options; and (13) additional resources, including nonprofit organizations, advocates, and counselors (in- cluding the Student Loan Ombudsman of the Department) of which the lender is aware, where borrowers may receive advice and as- sistance on loan repayment. (c) Separate notification Each eligible lender shall, at the time such lender notifies a borrower of approval of a loan which is insured or guaranteed under this part, provide the borrower with a separate notifica- tion which summarizes, in simple and under- standable terms, the rights and responsibilities Page 493 TITLE 20—EDUCATION § 1083 of the borrower with respect to the loan, includ- ing a statement of the consequences of default- ing on the loan and a statement that each bor- rower who defaults will be reported to a con- sumer reporting agency. The requirement of this subsection shall be in addition to the informa- tion required by subsection (a) of this section. (d) Special disclosure rules on PLUS loans, and unsubsidized loans Loans made under sections 1078–2 and 1078–8 of this title shall not be subject to the disclosure of projected monthly payment amounts required under subsection (b)(7) if the lender, in lieu of such disclosure, provides the borrower with sam- ple projections of monthly repayment amounts, assuming different levels of borrowing and inter- est accruals resulting from capitalization of in- terest while the borrower, or the student on whose behalf the loan is made, is in school, in simple and understandable terms. Such sample projections shall disclose the cost to the bor- rower of— (1) capitalizing the interest; and (2) paying the interest as the interest ac- crues. (e) Required disclosures during repayment (1) Pertinent information about a loan pro- vided on a periodic basis Each eligible lender shall provide the bor- rower of a loan made, insured, or guaranteed under this part with a bill or statement (as ap- plicable) that corresponds to each payment in- stallment time period in which a payment is due and that includes, in simple and under- standable terms— (A) the original principal amount of the borrower’s loan; (B) the borrower’s current balance, as of the time of the bill or statement, as applica- ble; (C) the interest rate on such loan; (D) the total amount the borrower has paid in interest on the loan; (E) the aggregate amount the borrower has paid for the 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; (F) a description of each fee the borrower has been charged for the most recently pre- ceding installment time period; (G) the date by which the borrower needs to make a payment in order to avoid addi- tional fees and the amount of such payment and the amount of such fees; (H) the lender’s or loan servicer’s address and toll-free phone number for payment and billing error purposes; and (I) a reminder that the borrower has the option to change repayment plans, a list of the names of the repayment plans available to the borrower, a link to the appropriate page of the Department’s website to obtain a more detailed description of the repayment plans, and directions for the borrower to re- quest a change in repayment plan. (2) Information provided to a borrower having difficulty making payments Each eligible lender shall provide to a bor- rower who has notified the lender that the bor- rower is having difficulty making payments on a loan made, insured, or guaranteed under this part with the following information in simple and understandable terms: (A) A description of the repayment plans available to the borrower, including how the borrower should request a change in repay- ment plan. (B) A description of the requirements for obtaining forbearance on a loan, including expected costs associated with forbearance. (C) A description of the options available to the borrower to avoid defaulting on the loan, and any relevant fees or costs associ- ated with such options. (3) Required disclosures during delinquency Each eligible lender shall provide to a bor- rower who is 60 days delinquent in making payments on a loan made, insured, or guaran- teed under this part with a notice, in simple and understandable terms, of the following: (A) The date on which the loan will default if no payment is made. (B) The minimum payment the borrower must make to avoid default. (C) A description of the options available to the borrower to avoid default, and any relevant fees or costs associated with such options, including a description of deferment and forbearance and the requirements to ob- tain each. (D) Discharge options to which the bor- rower may be entitled. (E) Additional resources, including non- profit organizations, advocates, and coun- selors (including the Student Loan Ombuds- man of the Department), of which the lender is aware, where the borrower can receive ad- vice and assistance on loan repayment. (f) Cost of disclosure and consequences of non- disclosure (1) No cost to borrowers The information required under this section shall be available without cost to the bor- rower. (2) Consequences of nondisclosure The failure of an eligible lender to provide information as required by this section shall not— (A) relieve a borrower of the obligation to repay a loan in accordance with the loan’s terms; or (B) provide a basis for a claim for civil damages. (3) Rule of construction Nothing in this section shall be construed as subjecting the lender to the Truth in Lending Act [15 U.S.C. 1601 et seq.] with regard to loans made under this part. (4) Actions by the Secretary The Secretary may limit, suspend, or termi- nate the continued participation of an eligible lender in making loans under this part for fail- ure by that lender to comply with this section. (Pub. L. 89–329, title IV, § 433, as added Pub. L. 99–498, title IV, § 402(a), Oct. 17, 1986, 100 Stat. 1406; amended Pub. L. 100–50, § 10(z), June 3, 1987, Page 494 TITLE 20—EDUCATION § 1083a 101 Stat. 346; Pub. L. 102–325, title IV, § 426, July 23, 1992, 106 Stat. 548; Pub. L. 103–208, § 2(c)(53), (54), (k)(4), Dec. 20, 1993, 107 Stat. 2468, 2485; Pub. L. 105–244, title IV, § 428, Oct. 7, 1998, 112 Stat. 1704; Pub. L. 110–315, title IV, § 434(a), Aug. 14, 2008, 122 Stat. 3247.) Editorial Notes REFERENCES IN TEXT The Truth in Lending Act, referred to in subsec. (f)(3), is title I of Pub. L. 90–321, May 29, 1968, 82 Stat. 146, which is classified generally to subchapter I (§ 1601 et seq.) of chapter 41 of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see Short Title note set out under section 1601 of Title 15 and Tables. PRIOR PROVISIONS A prior section 1083, Pub. L. 89–329, title IV, § 433, Nov. 8, 1965, 79 Stat. 1247; Pub. L. 90–575, title I, § 116(d), Oct. 16, 1968, 82 Stat. 1024; Pub. L. 92–318, title I, § 132(c), June 23, 1972, 86 Stat. 261; Pub. L. 94–482, title I, § 127(a), Oct. 12, 1976, 90 Stat. 2129; Pub. L. 95–43, § 1(a)(34), June 15, 1977, 91 Stat. 216; Pub. L. 96–374, title XIII, § 1391(a)(1), Oct. 3, 1980, 94 Stat. 1503, related to require- ments for institutional lenders, prior to the general re- vision of this part by Pub. L. 99–498. AMENDMENTS 2008—Pub. L. 110–315 amended section generally. Prior to amendment, section consisted of subsecs. (a) to (e) relating to student loan information by eligible lend- ers. 1998—Subsec. (a). Pub. L. 105–244, § 428(a), amended heading and introductory provisions generally. Prior to amendment, introductory provisions read as follows: ‘‘Each eligible lender shall, at or prior to the time such lender disburses a loan which is insured or guaranteed under this part (other than a loan made under section 1078–3 of this title), provide thorough and accurate loan information on such loan to the borrower. Any disclo- sure required by this subsection may be made by an eligible lender as part of the written application mate- rial provided to the borrower, or as part of the promis- sory note evidencing the loan, or on a separate written form provided to the borrower. The disclosure shall in- clude—’’. Subsec. (b). Pub. L. 105–244, § 428(b), amended heading and introductory provisions generally. Prior to amend- ment, introductory provisions read as follows: ‘‘Each eligible lender shall, at or prior to the start of the re- payment period of the student borrower on loans made, insured, or guaranteed under this part, disclose to the borrower the information required under this sub- section. For any loan made, insured, or guaranteed under this part, other than a loan made under section 1078–2 or 1078–3 of this title, such disclosure required by this subsection shall be made not less than 30 days nor more than 240 days before the first payment on the loan is due from the borrower. The disclosure shall include—’’. 1993—Subsec. (b). Pub. L. 103–208, § 2(c)(53), sub- stituted ‘‘30 days’’ for ‘‘60 days’’ in introductory provi- sions. Subsec. (e). Pub. L. 103–208, § 2(k)(4), amended direc- tory language of Pub. L. 102–325, § 426(c). See 1992 Amendment note below. Pub. L. 103–208, § 2(c)(54), substituted ‘‘sections’’ for ‘‘section’’ before ‘‘1078–1’’. 1992—Subsec. (a). Pub. L. 102–325, § 426(a), added par. (1) and redesignated former pars. (1) to (13) as (2) to (14), respectively. Subsec. (b). Pub. L. 102–325, § 426(b)(1), in introductory provisions, inserted second sentence and struck out former second sentence which read as follows: ‘‘Any disclosure required by this subsection may be made by an eligible lender either in a promissory note evidenc- ing the loan or loans or in a written statement pro- vided to the borrower.’’ Subsec. (b)(8). Pub. L. 102–325, § 426(b)(2), inserted ‘‘ex- cept as provided in subsection (e) of this section,’’ be- fore ‘‘the projected’’. Subsec. (e). Pub. L. 102–325, § 426(c), as amended by Pub. L. 103–208, § 2(k)(4), added subsec. (e). 1987—Subsec. (a). Pub. L. 100–50, § 10(z)(1), inserted ‘‘(other than a loan made under section 1078–3 of this title)’’ after ‘‘this part’’ in first sentence. Subsec. (a)(8). Pub. L. 100–50, § 10(z)(2), added par. (8) and struck out former par. (8) which read as follows: ‘‘a statement of the total cumulative balance, including the loan applied for, owed by the student to that lend- er, the projected level of indebtedness of the student based on a 4-year college career, and an estimate of the projected monthly repayment given the level of indebt- edness over a 4- or 5-year college career;’’. Subsec. (b)(7). Pub. L. 100–50, § 10(z)(3), inserted ‘‘, except that such explanation is not required when the loan being made is a consolidation loan under sec- tion 1078–3 of this title’’ before semicolon at end. Subsec. (d). Pub. L. 100–50, § 10(z)(4), substituted ‘‘no- tifies a borrower of approval of a loan’’ for ‘‘makes the first disbursement of a loan with respect to a bor- rower’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2008 AMENDMENT Pub. L. 110–315, title IV, § 434(b), Aug. 14, 2008, 122 Stat. 3252, provided that: ‘‘(1) REGULAR DISCLOSURE REQUIREMENTS AND DISCLO- SURE REQUIREMENTS TO BORROWERS HAVING DIFFICULTY MAKING PAYMENTS.—Paragraphs (1) and (2) of section 433(e) of the Higher Education Act of 1965 [20 U.S.C. 1083(e)(1), (2)], as amended by subsection (a), shall apply with respect to loans for which the first payment is due on or after July 1, 2009. ‘‘(2) DISCLOSURE REQUIREMENTS FOR BORROWERS WITH DELINQUENT LOANS.—Section 433(e)(3) of the Higher Edu- cation Act of 1965 [20 U.S.C. 1083(e)(3)], as amended by subsection (a), shall apply with respect to loans that become delinquent on or after July 1, 2009.’’ EFFECTIVE DATE OF 1998 AMENDMENT Amendment by Pub. L. 105–244 effective Oct. 1, 1998, except as otherwise provided in Pub. L. 105–244, see sec- tion 3 of Pub. L. 105–244, set out as a note under section 1001 of this title. EFFECTIVE DATE OF 1993 AMENDMENT Amendment by section 2(c)(53) of Pub. L. 103–208 ef- fective on and after 60 days after Dec. 20, 1993 and amendments by section 2(c)(54), (k)(4) of Pub. L. 103–208 effective, except as otherwise provided, as if included in the Higher Education Amendments of 1992, Pub. L. 102–325, see section 5(a), (b)(4) of Pub. L. 103–208, set out as a note under section 1051 of this title. EFFECTIVE DATE OF 1987 AMENDMENT Amendment by Pub. L. 100–50 effective as if enacted as part of the Higher Education Amendments of 1986, Pub. L. 99–498, see section 27 of Pub. L. 100–50, set out as a note under section 1001 of this title. EFFECTIVE DATE Section effective Oct. 17, 1986, with subsecs. (a), (b), and (d) of this section applicable only with respect to loans disbursed on or after Jan. 1, 1987, or made to cover the costs of instruction for periods of enrollment beginning on or after Jan. 1, 1987, see section 402(b) of Pub. L. 99–498, set out as a note under section 1071 of this title. § 1083a. Consumer education information (a) In general Each guaranty agency participating in a pro- gram under this part, working with the institu-