OFFICE RESPONSIBLE: FAO
LOCATION: STUDENT CATALOGUE AND WEBSITE
DOCUMENT LAST UPDATED: DECEMBER 1, 2017
POLICY AND PROCEDURE LAST UPDATED: DECEMBER 1, 2017
Private Educational Loan Disclosures
In accordance with 34 CFR 668.14(b)(29)(ii), an institution must, upon the request of the applicant, discuss the availability of Federal, State, and institutional financial aid. Staff members in VIBE Barber College’s Office of Financial Aid are happy to discuss with students and prospective students, and their parents, the financial aid options available to them. Students and parents may qualify for loans or other assistance under Title IV of the Higher Education Act programs. The terms and conditions of Title IV HEA program loans may be more favorable than the provisions of private educational loans.
The Higher Education Opportunity Act of 2008 (Pub. L. 110-35) (HEOA) added section 128(e)(3) to the TILA to require that before a private educational lender may consummate a private education loan for a student in attendance at an institution of higher education, the private education lender must obtain the completed and signed Self-Certification Form from the applicant. The Federal Reserve Board’s Final Regulations published on August 14, 2009 incorporate this new requirement at 12 CFR 226.48(e). Many lenders of private loans will provide the Self-Certification Form to the student borrower. The form is also available here in pdf format:
Private Education Loan Self-Certification in PDF Format: http://ifap.ed.gov/dpcletters/attachments/GEN1001A-AppSelfCert.pdf
Information Required under Sec. 128(e) of the Truth in Lending Act (15 U.S.C. 1638(e))
e) TERMS AND DISCLOSURE WITH RESPECT TO PRIVATE EDUCATION LOANS.–
(1) DISCLOSURES REQUIRED IN PRIVATE EDUCATION LOAN APPLICATIONS AND SOLICITATIONS.–In any application for a private education loan, or a solicitation for a private education loan without requiring an application, the private educational lender shall disclose to the borrower, clearly and conspicuously–
(A) the potential range of rates of interest applicable to the private education loan;
(B) whether the rate of interest applicable to the private education loan is fixed or variable;
(C) limitations on interest rate adjustments, both in terms of frequency and amount, or the lack thereof, if applicable;
(D) requirements for a co-borrower, including any changes in the applicable interest rates without a co-borrower;
(E) potential finance charges, late fees, penalties, and adjustments to principal, based on defaults or late payments of the borrower;
(F) fees or range of fees applicable to the private education loan;
(G) the term of the private education loan;
(H) whether interest will accrue while the student to whom the private education loan relates is enrolled at a covered educational institution;
(I) payment deferral options;
(J) general eligibility criteria for the private education loan;
(K) an example of the total cost of the private education loan over the life of the loan–
(i) which shall be calculated using the principal amount and the maximum rate of interest actually offered by the private educational lender; and
(ii) calculated both with and without capitalization of interest, if an option exists for postponing interest payments; the private educational lender may provide) following the date on which the application for the private education
A. Cosigner Requirements
A cosigner is required for this student loan if you are not able to meet our credit criteria on your own. If you meet our credit criteria, you will not need to have a cosigner for your loan. If you apply with a cosigner, or meet our credit criteria on your own, your loan may be less expensive.
B. Repayment of Loan Information
Repayment of your loan begins approximately thirty days after the day on which we lend money to you. During and for up to 10 months after your initial period of enrollment at a qualified educational institution on at least a half time basis you will be obligated to make payments of interest only on your loan. This interest-only repayment period may not exceed 60 months. Following this period of interest-only payments you must make payments consisting of both principal and interest.
You can prepay the loan in whole or part at any time without penalty.
C. Additional Terms and Conditions
Your loan is subject to all of the terms and conditions of your credit agreement/promissory note. Please read your credit agreement/promissory note carefully, it may include terms under which the interest rate on the loan may change.
D. Consequences of Loan Default
There are serious consequences if you default on this loan. For example, under normal circumstances, student loans are not dischargeable in bankruptcy. In order to discharge a loan in bankruptcy, the borrower must prove undue hardship in an adversary proceeding before the bankruptcy court.
Additional consequences of default on this loan include:
Lender may report the late payment history to credit reporting agencies, which will adversely affect your credit rating and ability to get more credit.
l Interest will continue to accrue on the outstanding principal balance
l Lender may take legal action
l Borrower may become ineligible for further loans from the lender