Wait Period and Reg Z

Answered by:

Question:

Is there a three day wait period between the time a private education loan is disclosed and the closing date according to Regulation Z, or can the borrower close at any time after receiving the disclosures?

Answer:

Private education loans require the careful following of a prescribed series of steps that involve three separate sets of disclosures. Once a consumer has agreed to the terms of the second set (the approval disclosures), and the lender delivers the final set (closing disclosures), the consumer must have at least three business days to rescind, and no disbursements can be made during the rescission period.

First published on BankersOnline.com 9/27/10