Reg Z (R-1353) HEOA NPRM PR

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Press Release

Release Date: March 11, 2009
For immediate release
The Federal Reserve Board on Wednesday proposed amendments to Regulation Z (Truth in
Lending) that would revise the disclosure requirements for private education loans.
The amendments implement provisions of the Higher Education Opportunity Act (HEOA), which
was signed into law on August 14, 2008. Under the amendments, creditors that extend private
education loans would provide disclosures about loan terms and features on or with the loan
application and would also have to disclose information about federal student loan programs that
may offer less costly alternatives. Additional disclosures would have to be provided when the loan is
approved and when the loan is consummated. The Board is also proposing model disclosure forms
that creditors could use to comply with the new disclosure requirements.
The new disclosure requirements would apply to loans made expressly for postsecondary educational
expenses but would not apply where educational expenses are funded by credit card advances, or
real-estate-secured loans. In addition, the proposal does not apply to education loans made, insured,
or guaranteed by the federal government, which are subject to disclosure rules issued by the
Department of Education.
The Board's proposal also implements the HEOA's restrictions on using the name, emblem, or
mascot of an educational institution in a way that implies that the institution endorses the creditor's
loans.
The public comment period ends 60 days after publication of the proposed amendments in the
Federal Register, which is expected shortly.
The Board's notice is attached.
Draft Federal Register notice (398 KB PDF)
Model forms and samples:
z
z
z
z
z
z

H-18 (286 KB PDF) Private education loan application and solicitation model form
H-19 (289 KB PDF) Private education loan approval model form
H-20 (279 KB PDF) Private education loan final model form
H-21 (288 KB PDF) Private education loan application and solicitation sample
H-22 (286 KB PDF) Private education loan approval sample
H-23 (286 KB PDF) Private education loan final sample

Consumer Research and Testing for Private Education Loans (2 MB PDF)

http://www.federalreserve.gov/newsevents/press/bcreg/20090311a.htm

3/17/2009

Printer Version - Board of Governors of the Federal Reserve System

http://www.federalreserve.gov/newsevents/press/bcreg/20090311a.htm

Page 2 of 2

3/17/2009