12 2 STA T .3 2 48PUBLIC LA W 11 0– 31 5— AU G .14 , 2008 ‘ ‘ (7)forl o ansm a det oa p arent b orro w eronbe h alf of ast u dent under se c t i on 428B, ane x planation — ‘‘( A ) that the parent has the option to defer pa y ment on the loan while the student is enrolled on at least a half - time basis in an institution of hi g her education
‘‘(B) if the parent does not pay the interest on the loan while the student is enrolled in an institution, when and how often interest on the loan will be capitali z ed; and ‘‘( C ) that the parent may be eligible for a deferment on the loan if the parent is enrolled on at least a half- time basis in an institution of higher education; ‘‘(8) the yearly and cumulati v e maximum amounts that may be borrowed; ‘‘( 9 ) a statement of the total cumulative balance, including the loan being disbursed, owed by the borrower to that lender, and an estimate of the pro j ected monthly payment, given such cumulative balance; ‘‘( 10 ) an explanation of when repayment of the loan will be re q uired and when the borrower will be obligated to pay interest that accrues on the loan; ‘‘(11) a description of the types of repayment plans that are available for the loan; ‘‘(12) a statement as to the minimum and maximum repay- ment terms which the lender may impose, and the minimum annual payment required by law; ‘‘(1 3 ) an explanation of any special options the borrower may have for loan consolidation or other refinancing of the loan; ‘‘(14) a statement that the borrower has the right to prepay all or part of the loan, at any time, without penalty; ‘‘(1 5 ) a statement summarizing circumstances in which repayment of the loan or interest that accrues on the loan may be deferred; ‘‘(1 6 ) a statement summarizing the circumstances in which a borrower may obtain forbearance on the loan; ‘‘(17) a description of the options available for forgiveness of the loan, and the requirements to obtain loan forgiveness; ‘‘(18) a definition of default and the consequences to the borrower if the borrower defaults, including a statement that the default will be reported to a consumer reporting agency; and ‘‘(19) an explanation of any cost the borrower may incur during repayment or in the collection of the loan, including fees that the borrower may be charged, such as late payment fees and collection costs . ‘‘(b) REQUIR E DD I SCLO SURE BE F ORE RE PAYM E NT .— E ach eligible lender shall, at or prior to the start of the repayment period on a loan made, insured, or guaranteed under section 428, 428B, or 428 H , disclose to the borrower by written or electronic means the information required under this subsection in simple and under- standable terms. Each eligible lender shall provide to each borrower a telephone number, and may provide an electronic address, through which additional loan information can be obtained. T he disclosure required by this subsection shall be made not less than 30 days nor more than 150 days before the first payment on the loan is due from the borrower. The disclosure shall include— Deadlin e s.
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