Our philosophy is to not make student loans, but every now and then our commercial lenders forget that.

Here is the situation. We have offered the following loan commitment: Total loan is $700,000 of which $550,000 is to buy an interest in a dental practice, $25,000 is for miscellaneous start up costs, and $125,000 is to refinance the new dentist's student loans.

Since the majority of the proceeds are business purpose, does this even fall under the Reg Z student loan disclosure requirements? It talks about multi-purpose loans, but I'm wondering if this would even apply since most of the funds are not consumer related.

Thoughts?

Even before looking at purpose, if this credit is extended to a business entity, it's exempt from Reg. Z.

It is being extended to the individual.