(a) In general With respect to loans made by a
school under this subpart after June 30, 1986, each
school, in order to carry out the provisions of sections
292q and
292r of this title, shall, at any time such
school makes such a loan to a
student under this subpart, provide thorough and adequate loan information on loans made under this subpart to the
student. The loan information required to be provided to the
student by this subsection shall include
(1) the yearly and cumulative maximum amounts that may be borrowed by the
student;
(2) the terms under which repayment of the loan will begin;
(3) the maximum number of years in which the loan must be repaid;
(4) the interest rate that will be paid by the borrower and the minimum amount of the required monthly payment;
(5) the amount of any other fees charged to the borrower by the lender;
(6) any options the borrower may have for deferral, cancellation, prepayment, consolidation, or other refinancing of the loan;
(7) a definition of default on the loan and a specification of the consequences which will result to the borrower if the borrower defaults, including a description of any arrangements which may be made with credit bureau organizations;
(8) to the extent practicable, the effect of accepting the loan on the eligibility of the borrower for other forms of
student assistance; and
(9) a description of the actions that may be taken by the Federal Government to collect the loan, including a description of the type of information concerning the borrower that the Federal Government may disclose to
(A) officers, employees, or agents of the Department of Health and Human Services,
(B) officers, employees, or agents of schools with which the Secretary has an agreement under this subpart, or
(C) any other person involved in the collection of a loan under this subpart.
(b) Statement regarding loan Each
school shall, immediately prior to the graduation from such
school of a
student who receives a loan under this subpart after June 30, 1986, provide such
student with a statement specifying
(1) each amount borrowed by the
student under this subpart;
(2) the total amount borrowed by the
student under this subpart; and
(3) a schedule for the repayment of the amounts borrowed under this subpart, including the number, amount, and frequency of payments to be made.
