S.2184: Know Before You Owe Private Education Loan Act of 2019
S. 2184 would revise requirements in the Truth in Lending Act to ensure disclosures in private education loan applications. Under this bill, lenders must obtain certification from a private college or university of the student’s enrollment status, the student’s cost of attendance, and the difference between that cost and the student’s estimated financial assistance, before issuing a private education loan for a student.
Specifically, the bill would mandate:
1) Lenders must send loan statements to borrowers at least once every three months that student remains enrolled at an Institution of Higher Education (IHE).
2) Leanders must notify the relevant IHE of the loan amount and the student to whom it applies no later than the date funds are issued.
3) Lenders must submit an annual report to the Consumer Financial Protection Bureau containing CFPB requires concerning private student loans.
The bill would also amend the Higher Education Act to require IHEs to determine whether students have exhausted their options for federal financial aid assistance, and if not, notify borrowers of the availability of federal aid, and their ability to choose their own private educational lender.View Full Overview