2012 US Code
Title 20 - Education
Chapter 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE (§§ 1001 - 1161aa-1)
Subchapter IV - STUDENT ASSISTANCE (§§ 1070 - 1099e)
Part D - Federal Perkins Loans (§§ 1087aa - 1087ii)
Section 1087cc-1 - Student loan information by eligible institutions
Publication Title | United States Code, 2012 Edition, Title 20 - EDUCATION |
Category | Bills and Statutes |
Collection | United States Code |
SuDoc Class Number | Y 1.2/5: |
Contained Within | Title 20 - EDUCATION CHAPTER 28 - HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE SUBCHAPTER IV - STUDENT ASSISTANCE Part D - Federal Perkins Loans Sec. 1087cc-1 - Student loan information by eligible institutions |
Contains | section 1087cc-1 |
Date | 2012 |
Laws in Effect as of Date | January 15, 2013 |
Positive Law | No |
Disposition | standard |
Source Credit | Pub. L. 89-329, title IV, §463A, as added Pub. L. 99-498, title IV, §405(a), Oct. 17, 1986, 100 Stat. 1446; amended Pub. L. 100-50, §13(g), (h), June 3, 1987, 101 Stat. 349; Pub. L. 102-325, title IV, §463(c), July 23, 1992, 106 Stat. 579; Pub. L. 103-208, §2(f)(8), Dec. 20, 1993, 107 Stat. 2471; Pub. L. 104-106, div. A, title XV, §1501(e)(4), Feb. 10, 1996, 110 Stat. 501; Pub. L. 110-315, title IV, §432(b)(6), Aug. 14, 2008, 122 Stat. 3246; Pub. L. 111-39, title IV, §405(3), July 1, 2009, 123 Stat. 1947. |
Statutes at Large References | 94 Stat. 1443 96 Stat. 1405 97 Stat. 478 100 Stat. 1446, 353 101 Stat. 349 106 Stat. 579 107 Stat. 2471 110 Stat. 501 122 Stat. 3246 123 Stat. 1947 |
Public Law References | Public Law 89-329, Public Law 96-374, Public Law 97-301, Public Law 98-79, Public Law 99-272, Public Law 99-498, Public Law 100-50, Public Law 102-325, Public Law 103-208, Public Law 103-337, Public Law 104-106, Public Law 110-315, Public Law 111-39 |
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Each institution of higher education shall, at or prior to the time such institution makes a loan to a student borrower which is made under this part, provide thorough and adequate loan information on such loan to the student borrower. Any disclosure required by this subsection may be made by an institution of higher education as part of the written application material provided to the borrower, or as part of the promissory note evidencing the loan, or on a separate written form provided to the borrower. The disclosures shall include—
(1) the name of the institution of higher education, and the address to which communications and payments should be sent;
(2) the principal amount of the loan;
(3) the amount of any charges collected by the institution at or prior to the disbursal of the loan and whether such charges are deducted from the proceeds of the loan or paid separately by the borrower;
(4) the stated interest rate on the loan;
(5) the yearly and cumulative maximum amounts that may be borrowed;
(6) 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;
(7) a statement as to the minimum and maximum repayment term which the institution may impose, and the minimum monthly payment required by law and a description of any penalty imposed as a consequence of default, such as liability for expenses reasonably incurred in attempts by the Secretary or institutions to collect on a loan;
(8) a statement of the total cumulative balance, including the loan applied for, owed by the student to that lender, and an estimate of the projected monthly payment, given such cumulative balance;
(9) an explanation of any special options the borrower may have for loan consolidation or other refinancing of the loan;
(10) a statement that the borrower has the right to prepay all or part of the loan, at any time, without penalty, a statement summarizing circumstances in which repayment of the loan or interest that accrues on the loan may be deferred, and a brief notice of the program for repayment of loans, on the basis of military service, pursuant to the Department of Defense educational loan repayment program (10 U.S.C. 16302);
(11) a definition of default and the consequences to the borrower if the borrower defaults, together with a statement that the disbursement of, and the default on, a loan under this part, shall be reported to a consumer reporting agency;
(12) to the extent practicable, the effect of accepting the loan on the eligibility of the borrower for other forms of student assistance; and
(13) an explanation of any cost the borrower may incur in the making or collection of the loan.
(b) Disclosure required prior to repaymentEach institution of higher education shall enter into an agreement with the Secretary under which the institution will, prior to the start of the repayment period of the student borrower on loans made under this part, disclose to the student borrower the information required under this subsection. Any disclosure required by this subsection may be made by an institution of higher education either in a promissory note evidencing the loan or loans or in a written statement provided to the borrower. The disclosures shall include—
(1) the name of the institution of higher education, and the address to which communications and payments should be sent;
(2) the scheduled date upon which the repayment period is to begin;
(3) the estimated balance owed by the borrower on the loan or loans covered by the disclosure as of the scheduled date on which the repayment period is to begin (including, if applicable, the estimated amount of interest to be capitalized);
(4) the stated interest rate on the loan or loans, or the combined interest rate of loans with different stated interest rates;
(5) the nature of any fees which may accrue or be charged to the borrower during the repayment period;
(6) the repayment schedule for all loans covered by the disclosure including the date the first installment is due, and the number, amount, and frequency of required payments;
(7) an explanation of any special options the borrower may have for loan consolidation or other refinancing of the loan;
(8) 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 repayment schedule; and
(9) 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.
(c) Costs and effects of disclosuresSuch information shall be available without cost to the borrower. The failure of an eligible institution to provide information as required by this section shall not (1) relieve a borrower of the obligation to repay a loan in accordance with its terms, (2) provide a basis for a claim for civil damages, or (3) be deemed to abrogate the obligation of the Secretary to make payments with respect to such loan.
(Pub. L. 89–329, title IV, §463A, as added Pub. L. 99–498, title IV, §405(a), Oct. 17, 1986, 100 Stat. 1446; amended Pub. L. 100–50, §13(g), (h), June 3, 1987, 101 Stat. 349; Pub. L. 102–325, title IV, §463(c), July 23, 1992, 106 Stat. 579; Pub. L. 103–208, §2(f)(8), Dec. 20, 1993, 107 Stat. 2471; Pub. L. 104–106, div. A, title XV, §1501(e)(4), Feb. 10, 1996, 110 Stat. 501; Pub. L. 110–315, title IV, §432(b)(6), Aug. 14, 2008, 122 Stat. 3246; Pub. L. 111–39, title IV, §405(3), July 1, 2009, 123 Stat. 1947.)
Prior ProvisionsA prior section 1087cc–1, Pub. L. 89–329, title IV, §463A, as added Pub. L. 96–374, title IV, §447(b), Oct. 3, 1980, 94 Stat. 1443; amended Pub. L. 97–301, §13, Oct. 13, 1982, 96 Stat. 1405; Pub. L. 98–79, §3(b), Aug. 15, 1983, 97 Stat. 478; Pub. L. 99–272, title XVI, §16027, Apr. 7, 1986, 100 Stat. 353, related to student loan information to be provided by institutions, prior to the general revision of this part by Pub. L. 99–498.
Amendments2009—Subsec. (a). Pub. L. 111–39 struck out “, in order to carry out the provisions of section 1087cc(a)(8) of this title,” after “Each institution of higher education” in introductory provisions.
2008—Subsec. (a)(11). Pub. L. 110–315 substituted “consumer” for “credit bureau or credit”.
1996—Subsec. (a)(10). Pub. L. 104–106 substituted “(10 U.S.C. 16302)” for “(10 U.S.C. 2172)”.
1993—Subsecs. (d), (e). Pub. L. 103–208 struck out subsecs. (d) and (e), which read as follows:
“(d)
“(e)
1992—Subsec. (a)(11). Pub. L. 102–325, §463(c)(1), substituted “together with a statement that the disbursement of, and the default on, a loan under this part, shall be” for “including a statement that the default may be”.
Subsecs. (d), (e). Pub. L. 102–325, §463(c)(2), added subsecs. (d) and (e).
1987—Subsec. (a)(8). Pub. L. 100–50, §13(g), added par. (8) and struck out former par. (8) which read as follows: “a statement of the total cumulative balance owed by the student to that institution, the projected level of indebtedness of the student based on a 2- or 4-year college career, and an estimate of the projected monthly repayment given the level of indebtedness over a 2-, 4-, or 5-year college career;”.
Subsec. (a)(10). Pub. L. 100–50, §13(h), substituted “the Department of Defense educational loan repayment program (10 U.S.C. 2172)” for “section 902 of the Department of Defense Authorization Act, 1981 (10 U.S.C. 2141, note)”.
Effective Date of 2009 AmendmentAmendment 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 1996 AmendmentAmendment by Pub. L. 104–106 effective as if included in the Reserve Officer Personnel Management Act, title XVI of Pub. L. 103–337, as enacted on Oct. 5, 1994, see section 1501(f)(3) of Pub. L. 104–106, set out as a note under section 113 of Title 10, Armed Forces.
Effective Date of 1993 AmendmentAmendment 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 AmendmentAmendment 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 DateSection applicable only to loans made for periods of enrollment beginning on or after July 1, 1987, see section 405(b) of Pub. L. 99–498, as amended, set out as a note under section 1087dd of this title.
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