If a loan is made to parents to enable the parents to pay for college tuition, is this loan subject to Subpart F of Regulation Z? I was thinking that Subpart F only applies to a loan to a consumer to fund THAT consumer's education expenses.....not someone else's expenses....such as a child's expenses. But I really don't see anything definitive....only implied.

(5) Private education loan means an extension of credit that:

(ii) Is extended to a consumer expressly, in whole or in part, for postsecondary educational expenses, regardless of whether the loan is provided by the educational institution that the student attends;

Commentary:

46(b)(5) Private Education Loan

1. Extended expressly for postsecondary educational expenses. A private education loan is one that is extended expressly for postsecondary educational expenses. The term includes loans extended for postsecondary educational expenses incurred while a student is enrolled in a covered educational institution as well as loans extended to consolidate a consumer's pre-existing private education loans.


This implies, to me, that the student must be the borrower in order for subpart F to apply?

It includes loans to those assisting the student:

(3) Postsecondary educational expenses means any of the expenses that are listed as part of the cost of attendance, as defined under section 472 of the Higher Education Act of 1965 (20 U.S.C. 1087ll), of a student at a covered educational institution. These expenses include tuition and fees, books, supplies, miscellaneous personal expenses, room and board, and an allowance for any loan fee, origination fee, or insurance premium charged to a student or parent for a loan incurred to cover the cost of the student's attendance.

Thank you so much! It didn't occur to me to find the definition of "postsecondary educational expenses".....was focusing on the definition of a "private education loan."

What about a grandparent who borrows money for their grandchild to attend college?

It has to do with the purpose of the funds - not the borrower's relationship. Could be the student themselves, parents, grandparents, etc. If the funds will be to finance post-secondary education, it's a covered transaction.