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1.2.7 The Higher Education Opportunity Act of 2008 (HEOA)

The Higher Education Opportunity Act of 2008 (HEOA)82 eliminated the $25,000 TILA limit for private education loans83 and exempted some transactions.84 The HEOA also added numerous new disclosure requirements to TILA that apply to private student loans.85 The Federal Reserve Board issued regulations in August 2009.86 Effective February 14, 2010, lenders making private student loans are required to provide special disclosures.87 There are three sets of required disclosures: (1) application and solicitation; (2) loan approval; and (3) final disclosures. Each is subject to special timing rules and detailed form and content requirements. The FRB created model forms. Sample notices are included in the Federal Register as well as online.88

In addition to disclosures, HEOA included several new substantive protections.89 These include a self-certification form, which provides an overview of the cost of the education and the student’s financial resources.90 Perhaps most significantly, private student loan borrowers now have a right of cancellation.91 Co-branding—the use by creditors who are not specifically endorsed by the educational institution of the name of the educational institution or symbols associated with the school, such as a school mascot—is restricted.92 Borrowers must also be given at least thirty days from loan approval to accept a loan.93

Practitioners handling a student loan case should be sure to familiarize themselves with National Consumer Law Center, Student Loan Law (5th ed. 2015), updated at www.nclc.org/library.

Footnotes

  • 82 {82} Pub. L. No. 110-315, § 1022 (2008).

  • 83 {83} 15 U.S.C. § 1603(3).

  • 84 {84} 15 U.S.C. § 1650(a)(7); Reg. Z § 226.46(b)(5) [§ 1026.46(b)(5)] (excluding open-end credit or loan secured by real property). Cf. Reg. Z § 226.36(b)(5)(iv) [§ 1026.36(b)(5)(iv)]. These changes are discussed in greater detail at § 2.4.5, infra.

  • 85 {85} 15 U.S.C. § 1638(e).

  • 86 {86} 74 Fed. Reg. 41,194 (Aug. 14, 2009).

  • 87 {87} 15 U.S.C. § 1638(e); Reg. Z § 226.46 [§ 1026.46]. See § 2.4.5.1.3, infra (discussing the definition of private student loans).

  • 88 {88} 74 Fed. Reg. 41,194 (Aug. 14, 2009). See www.federalreserve.gov/newsevents/press/bcreg/20090730a.htm.

  • 89 {89} Pub. L. No. 110-315, § 1022 (2008).

  • 90 {90} 15 U.S.C. § 1638(e)(3).

  • 91 {91} 15 U.S.C. § 1638(e)(7).

  • 92 {92} 15 U.S.C. § 1650(c).

  • 93 {93} 15 U.S.C. § 1638(e)(6).