Limitations on private education loans.

CFR · 2024-01-01 · US · Title 12

(a) (2) A creditor's marketing of private education loans does not imply that the covered education institution endorses the creditor's loans if the marketing includes a clear and conspicuous disclosure that is equally prominent and closely proximate to the reference to the covered educational institution that the covered educational institution does not endorse the creditor's loans and that the creditor is not affiliated with the covered educational institution. (b) (c) (2) Except for changes permitted under paragraphs (c)(3) and (c)(4), the rate and terms of the private education loan that are required to be disclosed under §§ 226.47(b) and (c) may not be changed by the creditor prior to the earlier of: (i) The date of disbursement of the loan; or (ii) The expiration of the 30 calendar day period described in paragraph (c)(1) of this section if the consumer has not accepted the loan within that time. (3) (A) Withdrawing an offer before consummation of the transaction if the extension of credit would be prohibited by law or if the creditor has reason to believe that the consumer has committed fraud in connection with the loan application; (B) Changing the interest rate based on adjustments to the index used for a loan; (C) Changing the interest rate and terms if the change will unequivocally benefit the consumer; or (D) Reducing the loan amount based upon a certification or other information received from the covered educational institution, or from the consumer, indicating

official document · source cfr-2024 · id 12:§ 226.48