Circular
Board Approves Final Amendments to Regulation Z that Revise Disclosure Requirements for Private Education Loans
July 30, 2009
Circular No. 12125

The Federal Reserve Board has approved final amendments to Regulation Z (Truth in Lending) that revise the disclosure requirements for private education loans.

The amendments implement provisions of the Higher Education Opportunity Act (HEOA) enacted in August 2008. Under the amendments, creditors that extend private education loans must provide disclosures about loan terms and features on or with the loan application and must also disclose information about federal student loan programs that may offer less costly alternatives. Additional disclosures must be provided when the loan is approved and when the loan is consummated. The Board is also providing model disclosure forms that creditors could use to comply with the new disclosure requirements.

The Board's amendments also implement 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.

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