Oh come on Princess. I'm sure they are real busy writing more amendments that will be equally as confusing. LOL!!

So, does this mean that private education loans that exceed $25,000 are exempt from the requirements of TILA?

Or, does it mean that private education loans are not exempt?

It means that private education loans are not exempt - regardless of the amount of the loan.

The great nes just continues - We use Wolters Kluwer forms in our loan software & got the word that they, said "Sorry but we won't be supporting this revision to REg Z".

It's a typo - go to the actual TILA:

15 USC 1650 (a)(7) the term “private education loan”—

(B) does not include an extension of credit under an open end consumer credit plan, a reverse mortgage transaction, a residential mortgage transaction, or any other loan that is secured by real property or a dwelling;

Thank you Randy. I guess I'm making a fussy deal about this for two reasons:

1. An industry group has sent out an e-mail stating that the Fed revised Reg. Z so that closed-end home loans are covered by the Private Education Act, and

2. I spent 20 minutes on the phone with examiners who quibbled over the wording in a BSA policy regarding foreign transactions. The policy stated any foreign transactions would require board approval, and the examiner argued it was a finding because the policy SHOULD have said that the Bank does not conduct foreign transactions but if it did, the transaction would have to be approved by the board.

TWENTY MINUTES WE TALKED ABOUT THE SERIOUSNESS OF A GRAMMATICAL AMBIGUITY.

Goose - meet Gander.

I got the same message from Wolters Kluwer today too. Do you happen to have Rembrandt?

If we already have a loan for college expenses on the books that comes up for renewal on or after February 14, will the new disclosures be required for the renewal?

I have digested the fact that Wolters Kluwer will not support the new disclosures. Are there any sample or blank forms out there for fixed rate loans, so we can see if we can attempt to complete the necessary disclosures if we occasionally have one or two?

That's been asked in this thread, and noone seems to want to answer or knows what will happen.

Technically, because any refinance or consolidation of an education loan would count for the disclosures ---- my guess is that the reg will apply to these old loans too. No grandfather clauses.



I have been unable to find disclosures for a fixed rate. What I think I will do for these is using the July 1st Treasury Charts plus the Depart of Ed's index's (it's a certain %+ for each type PLUS, STAFFORD, and the other one) for the term of my loan (more than likely it will be between 30 & 90 days for my customers), build my dislosure from the blank form in the Reg (and pray that I'm right).

Perhaps you can do a modification to extend the maturity date rather than renewing with a new note. Or turn the thing into a line of credit. If you are a credit union, you may want to consider making these things through LoanLiner advances.

Relative to Private Education Loans, Wolters Kluwer now says they are "tracking the requests for possible changes in the future". ALL WK customers should email:

ArtalendingSup@wolterskluwer.com

and request that WK get with it and fully support these types of loans pronto. Look at what you're paying them in annual fees. Only when users unite in outrage will they respond appropriately with a solution. Take 2 minutes to email your request today!

Where would we find the Applicant Self-Certification form?

I found a copy of the self-certification form here:
http://www.nasfaa.org/PDFs/2009/SelfCertificationDraft.pdf

...but from what I understand it is up to the borrower to provide.

Does anyone else think that it's just a little nuts if "Mom" wants to take out $5000 unsecured loan and use $500 of it for "Little Susie" to pay for books that we have to give all these stinking disclosures? I mean, "Mom" is still going to use $4500 for her own needs. I just can't get my brain around the reason for disclosures and ROR on multi-purpose loans where the borrower is not the student. It makes no sense whatsoever. Am I missing something? Does it say someplace "Oh, by the way - this only applies if the borrower is a student"?!?

Is anyone else hoping that the Fed will issue a last minute "FAQ" memo like they did for HPML Balloon loans?

As this all catches on...I expect that the Financial Aid Offices will keep a stack of the self-cert forms available for students...they don't have time to manually sign off on all these loans...it's why they moved to electronic certification YEARS ago.

Where did you find this form? I called several people in our local university's admission and financial aid offices yesterday and couldn't find anyone who had ever heard of it.

I did a google-search for the official title of the form: "Private Education Loan Applicant Self Certification".

...The wording on the form, however, in the definitions section is a bit dated I suspect:

"A Private Education Loan is a loan provided by a private education lender that is not a Title IV loan and that is ISSUED EXPRESSLY FOR POSTSECONDARY EDUCATION EXPENSES..." (emphasis added)

So much for multiple purpose loans - at least according to this form. Too bad it's not reality.

What requirements are there for the "applicant self-certification form"? where did that come from?

that form appears to be the DRAFT model....

It's been awhile since i read the revisions...i just don't recall anything about an "applicant self-certification form"....is that for the multi-purpose loans that most of us can't stay away from or just the actual, official private education loans?

I believe that the form is required for ALL private loans under the new definition. Title IV (federal loans) already have a certification system in place, this is an attempt to get the school and the student on-board with borrowing only what is really needed and not taking out too much extra $$$ for living expenses (a reason that private loans are sometimes more popular)

I noticed this typo myself today. To me this suggests that open ended credit is exempt.

will someone cite for me where the "applicant self-certification form" is mentioned? I read the addition to Reg Z awhile back and don't recall reading that.

nevermind...found it