Answer:
Any open end credit or real estate secured loan would be exempt from the PEL requirements of Regulation Z - see the exemption below.
(5)Private education loan means an extension of credit that:
(i) Is not made, insured, or guaranteed under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq. );
(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;
(iii) Does not include open-end credit any loan that is secured by real property or a dwelling [thus in Federal Register publication of rule. Probably should include "or" after "credit"] ; and
(iv) Does not include an extension of credit in which the covered educational institution is the creditor if:
(A) The term of the extension of credit is 90 days or less; or
(B) an interest rate will not be applied to the credit balance and the term of the extension of credit is one year or less, even if the credit is payable in more than four installments.
First published on BankersOnline.com 10/10/11
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