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Title IV — Improving loan information and counseling

S. 1002 · 116th Congress · Apr 3, 2019 · Lineage

IV Improving loan information and counseling

Sec. 401 Student loan contract; simplifying loan disclosures

(a)
Student loan contract— Section 455 (20 U.S.C. 1087e), as amended by section 202, is further amended by inserting after subsection (b) the following:

“(c) Student loan contract; simplifying loan disclosures

“(1) Student loan contract

“(A) In general—Any master promissory note form described in section 432(m)(1)(D) that is developed or used for covered loans shall be referred to as a “student loan contract”.

“(B) Clarification on use—Notwithstanding section 432(m)(1)(D)(i), each student loan contract for a covered loan shall—

“(i) not be entered into by a student unless the student has completed all required counseling related to such loan, including counseling required under section 485(l);

“(ii) be signed by the student entering such student loan contract after completion of such counseling;

“(iii) be used only for the academic year for which the initial loans are made under the contract and shall be valid for additional loans within an academic year; and

“(iv) include options for the student to enter both the student's current contact information and permanent contact information that is likely to remain valid upon the student's exit from the institution.

“(C) Covered loan

“(i) In general—In this subsection, the term covered loan means a loan made under this part on or after the effective date of the Affordable Loans for Any Student Act, except with respect to a borrower described in clause (ii).

“(ii) Exception—A borrower is described in this clause if the loan made under this part on or after the effective date of the Affordable Loans for Any Student Act with respect to such borrower is for the 2020–2021 academic year and the borrower has already taken out a loan under this part (other than a Federal Direct Consolidation Loan) for such academic year (including any such loan for attendance at another institution from which the student transferred or in which the student had previously enrolled).

“(2) Loan disclosures—For loans made under this part for periods of enrollment beginning on or after the effective date of the Affordable Loans for Any Student Act, the Secretary shall take such steps as are necessary to streamline the student loan disclosure requirements under this Act. The Secretary shall ensure that information required to be disclosed to a student who is applying for, receiving, or preparing to repay a loan under this part shall be consumer-tested and delivered in a manner that—

“(A) reduces and simplifies the paperwork students are required to complete;

“(B) limits the number of times a student is presented with disclosures by incorporating the streamlined disclosures into required student loan counseling under section 485(l), the student loan contract under this subsection, or both; and

“(C) is effective in helping the student understand the student's rights and obligations as a Federal student loan borrower.

“(3) Annual loan acceptance—Prior to making the first disbursement of a covered loan (other than a Federal Direct Consolidation Loan) to a borrower for an academic year, the eligible institution shall ensure that the borrower—

“(A) has completed the applicable counseling under paragraph (2) or (3) of section 485(l); and

“(B) after completing such counseling, accepts the loan for such academic year by—

“(i) signing and returning to the institution the student loan contract described in section 455(c)(1) that affirmatively states that the borrower accepts the loan; or

“(ii) electronically signing an electronic version of such student loan contract, which may be done through the online counseling tool in accordance with section 485(n)(1)(B).”

(b)
Conforming amendment— Section 487(a)(7) (20 U.S.C. 1094(a)(7)) is amended by striking “section 485” and inserting “sections 455(c)(3) and 485”.

Sec. 402 Annual and pre-loan information and counseling requirements

Section 485(l) (20 U.S.C. 1092(l)) is amended to read as follows:

“(l) Annual student loan counseling for borrowers

“(1) Annual counseling requirement for institutions

“(A) In general—Each eligible institution shall ensure that each individual for whom the institution has knowledge that the student has accepted, or will accept, 1 or more student loans under part D (including any such loans for attendance at another institution from which the student transferred or in which the student had previously enrolled, other than a Federal Direct Consolidation Loan) for an academic year, receives comprehensive information on the terms and conditions of such loans and the responsibilities the individual has with respect to such loans. Such information shall be provided, for each academic year for which the individual receives such loans, in a simple, understandable, and consumer-friendly manner—

“(i) during a counseling session conducted in person;

“(ii) online, with the individual acknowledging receipt of the information; or

“(iii) through the use of the online counseling tool described in subsection (n)(1)(B).

“(B) Use of interactive programs—In the case of institutions not using the online counseling tool described in subsection (n)(1)(B), the Secretary shall require such institutions to carry out the requirements of subparagraph (A) through the use of interactive programs, during an annual counseling session that is in-person or online, that test the individual’s understanding of the terms and conditions of the loan awarded to the individual, using simple and understandable language and clear formatting.

“(2) Annual loan counseling for borrowers receiving loans made under part d (other than parent plus loans)—The information to be provided under paragraph (1)(A) to a borrower of a loan made under part D (other than a Federal Direct PLUS Loan made on behalf of a dependent student) shall include the following:

“(A) A notification that some students may qualify for other financial aid that does not need to be repaid, and an explanation that the borrower should consider accepting any such grant, scholarship, military tuition assistance, veterans benefits, Federal or State work-study jobs, or other programs for which the borrower is eligible, prior to accepting student loans.

“(B) Information on the total outstanding student loan debt that the institution is aware that the student has borrowed, disaggregated by type of loan, including loans issued under this title, private education loans (as defined in section 140 of the Truth in Lending Act (15 U.S.C. 1650)) that the institution has certified in accordance with section 487(a)(28), and education loans from the institution, as applicable.

“(C) The student’s estimated monthly payment amounts for loans made, insured, or guaranteed under this title based on—

“(i) the fixed repayment plan described under section 493E for loans issued under part B or D; and

“(ii) the income-based repayment plan under section 493C(c), utilizing individualized data applicable to the borrower as described in paragraph (4).

“(D) A statement that the monthly amount described in subparagraph (C) does not include any amounts that the student may be required to repay for non-Federal education loans, including private education loans or institutional education loans.

“(E) An explanation of the use of the student loan contract referred to in section 455(c).

“(F) A recommendation to the borrower to exhaust the borrower’s Federal student loan options prior to taking out private education loans, an explanation that Federal student loans typically offer better terms and conditions than private education loans, an explanation that Federal student loans offer consumer protections typically not available in the private education loan market, an explanation of treatment of loans made under part D and private education loans in bankruptcy, and an explanation that if a borrower decides to take out a private education loan—

“(i) the borrower has the ability to select a private educational lender of the borrower’s choice;

“(ii) the proposed private education loan may impact the borrower’s potential eligibility for other financial assistance, including Federal financial assistance under this title; and

“(iii) the borrower has a right—

“(I) to accept the terms of the private education loan within 30 calendar days following the date on which the application for such loan is approved and the borrower receives the required disclosure documents, pursuant to section 128(e) of the Truth in Lending Act (15 U.S.C. 1638(e)); and

“(II) to cancel such loan within 3 business days of the date on which the loan is consummated, pursuant to section 128(e)(7) of such Act (15 U.S.C. 1638(e)(7)).

“(G) An explanation of the importance of contacting the appropriate offices at the institution of higher education if the borrower withdraws prior to completing the borrower’s program of study so that the institution can provide exit counseling, including information regarding the borrower’s repayment options and loan consolidation.

“(H) An explanation of the obligation of the borrower to repay the full amount of the loan, regardless of whether the borrower completes or does not complete the program in which the borrower is enrolled within the regular time for program completion.

“(I) A general description of the terms and conditions under which the student may obtain forgiveness or cancellation of any principal and interest of a loan issued under this title.

“(J) Information as to how the student can access the loan records of the student and the contact information for inquiries regarding repaying the loan.

“(K) The contact information for the financial aid office, or other appropriate office, at the institution that the borrower may contact if the borrower has any questions about the borrower’s rights and responsibilities or the terms and conditions of the loan.

“(L) An explanation that the student has the right to annually request a copy of the credit report of the student from a consumer reporting agency pursuant to section 612(a) of the Fair Credit Reporting Act (15 U.S.C. 1681j(a)).

“(M) For a first-time borrower, in addition to all the information described in subparagraphs (A) through (L)—

“(i) the anticipated balance on the loan for which the borrower is receiving counseling under this subsection; and

“(ii) information on the annual and aggregate loan limits for Federal Direct Stafford Loans and Federal Direct Unsubsidized Stafford Loans as it pertains to the loan for which the borrower is receiving counseling, and a statement that such aggregate borrowing limit may change based on the borrower’s student status (whether undergraduate or graduate) or if there is a change in the borrower’s dependency status.

“(N) For a borrower with an outstanding balance of principal or interest due on a loan made under this title, including loans made under part B, in addition to all the information described in subparagraphs (A) through (L), the percentage of the total aggregate borrowing limit that the student has reached, as of the date of the counseling, and a statement that such aggregate borrowing limit may change based on the borrower’s student status (whether undergraduate or graduate) or if there is a change in the borrower’s dependency status.

“(3) Borrowers receiving parent plus loans for dependent students—The information to be provided under paragraph (1)(A) to a borrower of a Federal Direct PLUS Loan made on behalf of a dependent student shall include the following:

“(A) A notification that some students may qualify for other financial aid and an explanation that the student for whom the borrower is taking out the loan should consider accepting any such grant, scholarship, military tuition assistance, veterans benefits, Federal or State work-study jobs, or other programs for which the student for whom the borrower is taking out the loan is eligible, prior to borrowing any Federal Direct PLUS Loan on behalf of a dependent student.

“(B) The information described in subparagraphs (B) through (L) of paragraph (2), as applicable.

“(C) The option of the borrower to pay the interest on the loan while the loan is under pause payment.

“(D) An explanation that the borrower has the options to prepay each loan, pay each loan on a shorter schedule, and change repayment plans.

“(E) For each Federal Direct PLUS Loan made on behalf of a dependent student for which the borrower is receiving counseling under this subsection, the contact information for the loan servicer of the loan and a link to such servicer’s website.

“(F) For a first-time borrower of such loan—

“(i) the anticipated balance on the loan for which the borrower is receiving counseling under this paragraph; and

“(ii) the estimated monthly payment amounts for such loan based on—

“(I) the fixed repayment plan described in section 493E for the loan; and

“(II) the income-based repayment plan under section 493C(c), utilizing individualized data applicable to the borrower as described in paragraph (4).

“(G) For a borrower undergoing counseling that already has an outstanding balance of principal or interest due on a Federal Direct PLUS Loan made on behalf of a dependent student—

“(i) the anticipated balance of all Federal Direct PLUS Loans held by the borrower (including the one for which counseling is provided); and

“(ii) the estimated monthly payment amounts for all such loans based on—

“(I) the fixed repayment plan described in section 493E for loans issued under part B or D; and

“(II) the income-based repayment plan under section 493C(c), utilizing individualized data applicable to the borrower as described in paragraph (4).

“(4) Estimated repayment information—In providing estimated payments for income-based repayment plans under section 493C(c) for purposes of this section, the Secretary shall develop and implement a database to generate repayment estimate for borrowers by—

“(A) enabling each institution to enter relevant loan, program cost, and average indebtedness at graduation information electronically;

“(B) integrating applicable data on Federal loans made, insured, or guaranteed under this title from the National Student Loan Data System or a successor system;

“(C) integrating available data on occupational earnings reasonably related to the student’s program of study;

“(D) using a hypothetical family size of 1; and

“(E) providing a borrower the option to adjust these data elements and observe the corresponding change in estimated monthly payment amounts.”

Sec. 403 Exit counseling

Section 485(b) (20 U.S.C. 1092(b)) is amended—
(1)
in paragraph (1)—
(A)
in subparagraph (A)—
(i)
in the matter preceding clause (i), striking “through financial aid offices or otherwise” and inserting “through the use of an interactive program, during an exit counseling session that is in-person or online, or through the use of the online counseling tool described in subsection (n)(1)(A)”;
(ii)
by redesignating clauses (i) through (ix) as clauses (v) through (xiii), respectively;
(iii)
by inserting before clause (v), as redesignated by clause (ii), the following:

“(i) a summary of the outstanding balance of principal and interest due on the loans made to the borrower under part B, D, or E;

“(ii) an explanation of the grace period preceding repayment and the expected date that the borrower will enter repayment;

“(iii) an explanation that the borrower has the option to pay any interest that has accrued while the borrower was in school or that may accrue during the grace period preceding repayment or during an authorized period of pause payment;

“(iv) an explanation that the borrower may be approached during the repayment process by third-party student debt relief companies, that the borrower should use caution in any such dealings, and that the typical services provided by these companies are already offered to borrowers free of charge through the Department or its contractors;”

(iv)
in clause (v), as redesignated by clause (ii)—
(I)
by striking “sample information showing the average” and inserting “information, based on the borrower’s outstanding balance described in clause (i), showing the borrower’s”; and
(II)
by striking “of each plan” and inserting “of the fixed repayment plan described in section 493E and the income-based repayment plan under section 493C(c), and any other repayment plan for which each loan may be eligible”;
(v)
in clause (x), as redesignated by clause (ii)—
(I)
by inserting “decreased credit score,” after “credit reports,”; and
(II)
by inserting “reduced ability to rent or purchase a home or car, potential difficulty in securing employment,” after “Federal law,”;
(vi)
in the matter preceding subclause (I) of clause (xi), as redesignated by clause (ii), by striking “consolidation loan under section 428C or a”;
(vii)
in each of clauses (xii) and (xiii), as redesignated by clause (ii), by striking “and” at the end; and
(viii)
by adding at the end the following:

“(xiv) for each of the borrower’s loans made under part B, D, or E for which the borrower is receiving counseling under this subsection, the contact information for the loan servicer of the loan and a link to such servicer’s website; and

“(xv) an explanation that an individual has a right to annually request a disclosure of information collected by a consumer reporting agency pursuant to section 612(a) of the Fair Credit Reporting Act (15 U.S.C. 1681j(a)).”

(B)
in subparagraph (B), by striking “in writing” and inserting “online or in writing, except that in the case of an institution using the online counseling tool described in subsection (n)(1)(A), the Secretary shall attempt to provide such information to the student in the manner described in subsection (n)(3)(C)”; and
(2)
in paragraph (2)(C), by inserting “, such as the online counseling tool described in subsection (n)(1)(A),” after “electronic means”.

Sec. 404 Online counseling tools

Section 485 (20 U.S.C. 1092) is amended by adding at the end the following:

“(n) Online counseling tools

“(1) In general—Beginning not later than 1 year after the date of enactment of the Affordable Loans for Any Student Act, the Secretary shall maintain—

“(A) an online counseling tool that provides the exit counseling required under subsection (b) and meets the applicable requirements of this subsection; and

“(B) an online counseling tool that provides the annual counseling required under subsection (l), enables a borrower to electronically sign and accept the borrower's student loan contract for the upcoming academic year under section 455(c)(3)(B)(ii), and meets the applicable requirements of this subsection.

“(2) Requirements of tools—In maintaining the online counseling tools described in paragraph (1), the Secretary shall ensure that each such tool, and its underlying content—

“(A) are consumer tested, in consultation with other relevant Federal agencies, students, borrowers, institutions of higher education, secondary school and postsecondary counselors, and consumer advocacy organizations, to ensure that the tool is effective in helping individuals understand their rights and obligations with respect to borrowing a loan made under part D;

“(B) are understandable to borrowers of loans made under part D;

“(C) freely available to all eligible institutions; and

“(D) integrate applicable loan data from the National Student Loan Data System or a successor system, including data regarding loans made, insured, or guaranteed under this title and data regarding private education loans, pursuant to section 485B(i).

“(3) Record of counseling completion—The Secretary shall—

“(A) use each online counseling tool described in paragraph (1) to keep a record of which individuals have received counseling using the tool and notify the applicable institutions of the individual’s completion of such counseling;

“(B) in the case of a borrower who receives annual counseling for a loan made under part D using the tool described in paragraph (1)(B)—

“(i) enable the borrower to accept and electronically sign the student loan contract as required under section 455(c)(3)(B)(ii) and notify the applicable institutions that the individual completed the counseling and electronically signed the contract; and

“(ii) if the borrower chooses not to sign the student loan contract through the online counseling—

“(I) inform the borrower, through the online counseling tool, of the date by when the borrower should accept and sign the student loan contract for which the borrower has received such counseling; and

“(II) notify the applicable institution that the borrower completed the counseling but did not sign the student loan contract; and

“(C) in the case of a borrower described in subsection (b)(1)(B) at an institution that uses the online counseling tool described in paragraph (1)(A) of this subsection, attempt to provide the information described in subsection (b)(1)(A) to the borrower through such tool.

“(o) Longitudinal study on the effectiveness of student loan counseling

“(1) In general—Not later than 1 year after the date of enactment of the Affordable Loans for Any Student Act, the Secretary, acting through the Director of the Institute of Education Sciences, shall begin conducting a rigorous, longitudinal study of the impact and effectiveness of the student loan counseling provided under section 485(n).

“(2) Contents

“(A) Borrower information—The longitudinal study carried out under paragraph (1) shall include borrower information, in the aggregate and disaggregated by race and ethnicity, gender, income quartile, and status as an individual with a disability, on—

“(i) student persistence;

“(ii) degree attainment;

“(iii) program completion;

“(iv) successfully maintaining current student loan repayment status following the student's exit from the institution;

“(v) cumulative borrowing levels; and

“(vi) such other factors as the Secretary may determine.

“(B) Exception—The disaggregation under subparagraph (A) shall not be required in a case in which the number of borrowers in a category is insufficient to yield statistically reliable information or the results would reveal personally identifiable information about an individual borrower.

“(3) Interim reports—Not later than 18 months after the commencement of the study under paragraph (1), and annually thereafter, the Secretary shall evaluate the progress of the study and report any short-term findings to the authorizing committees.”

Sec. 405 Private education loan certification and information

(a)
Amendment to the Higher Education Act of 1965—
(1)
In general— Section 487(a) (20 U.S.C. 1094(a)) is amended by striking paragraph (28) and inserting the following:

“(28)

“(A) The institution shall—

“(i) upon the request of a private educational lender, acting in connection with an application initiated by a borrower for a private education loan in accordance with section 128(e)(3) of the Truth in Lending Act, provide certification to such private educational lender—

“(I) that the student who initiated the application for the private education loan, or on whose behalf the application was initiated, is enrolled or is scheduled to enroll at the institution;

“(II) of such student's cost of attendance at the institution as determined under part F; and

“(III) of the difference between—

“(aa) the cost of attendance at the institution; and

“(bb) the student's estimated financial assistance received under this title and other assistance known to the institution, as applicable; and

“(ii) provide the certification described in clause (i), or notify the private educational lender that the institution has received the request for certification and will need additional time to comply with the certification request—

“(I) within 15 business days of receipt of such certification request; and

“(II) only after the institution has completed the activities described in subparagraph (B).

“(B) The institution shall, upon receipt of a certification request described in subparagraph (A)(i), and prior to providing such certification—

“(i) determine whether the student who initiated the application for the private education loan, or on whose behalf the application was initiated, has applied for and exhausted the Federal financial assistance available to such student under this title and inform the student accordingly; and

“(ii) provide the borrower whose loan application has prompted the certification request by a private education lender, as described in subparagraph (A)(i), with the following information and disclosures:

“(I) If the borrower has not yet exhausted the financial assistance available to the borrower under this title, the amount of additional Federal student assistance for which the borrower is eligible and the potential advantages of Federal loans under this title, including disclosure of—

“(aa) the fixed interest rates and pause payment processes;

“(bb) the option for and terms of income-based repayment, loan forgiveness programs, and additional protections; and

“(cc) the higher student loan limits for dependent students whose parents are not eligible for a Federal Direct PLUS Loan.

“(II) The borrower's ability to select a private educational lender of the borrower's choice.

“(III) The impact of a proposed private education loan on the borrower's potential eligibility for other financial assistance, including Federal financial assistance under this title.

“(IV) The borrower's right to accept or reject a private education loan within the 30-day period following a private educational lender's approval of a borrower's application and about a borrower's 3-day right to cancel period under section 128(e)(7) of the Truth in Lending Act (15 U.S.C. 1650(e)(7)).

“(C) For purposes of this paragraph, the terms “private educational lender” and “private education loan” have the meanings given such terms in section 140 of the Truth in Lending Act (15 U.S.C. 1650).”

(2)
National student loan data system— Section 485B (20 U.S.C. 1092b) is amended—
(A)
in subsection (a), by striking “and loans made under parts D and E” and inserting “, loans made under parts D and E, and private education loans (in accordance with subsection (i))”;
(B)
in subsection (f), by inserting “for Federal loans” after “Data reporting”; and
(C)
by adding at the end the following:

“(i) Private education loan reporting—The Secretary shall include in the National Student Loan Data System the information regarding private education loans that the Director of the Consumer Financial Protection Bureau, in coordination with the Secretary, determines necessary to be included pursuant to section 128(e)(9)(B)(ii) of the Truth in Lending Act (15 U.S.C. 1638(e)(9)(B)(ii)).”

(3)
Effective date— The amendments made by paragraphs (1) and (2) shall take effect on the effective date of the regulations described in subsection (b)(3).
(b)
Amendments to the Truth in Lending Act—
(1)
In general— Section 128(e) of the Truth in Lending Act (15 U.S.C. 1638(e)) is amended—
(A)
by striking paragraph (3) and inserting the following:

“(3) Institutional certification required

“(A) In General—Except as provided in subparagraph (B), before a private educational lender may issue any funds with respect to a private education loan, the private educational lender shall obtain, from the relevant institution of higher education where such loan is to be used for a student, a certification in accordance with section 485(a)(28)(A) of the Higher Education Act of 1965 (20 U.S.C. 1094(a)(28)(A))—

“(i) confirming that the student is enrolled or is scheduled to enroll at the institution; and

“(ii) stating—

“(I) the student's cost of attendance at the institution, as determined by the institution under part F of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087kk et seq.); and

“(II) the difference between—

“(aa) such cost of attendance; and

“(bb) the student's estimated financial assistance, including such assistance received under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.) and other financial assistance known to the institution, as applicable.

“(B) Timing—Pursuant to section 485(a)(28)(A) of the Higher Education Act of 1965 (20 U.S.C. 1094(a)(28)(A)), a private education lender shall receive the certification described in subparagraph (A) within 15 days of a request by the private education lender, unless the institution of higher education notifies the private educational lender pursuant to section 485(a)(28)(A)(ii) of such Act that additional time is needed.

“(C) Additional requirements—Upon receiving the certification described in subparagraph (A) for a private education loan, the private educational lender—

“(i) may proceed to issue funds with respect to the private education loan; and

“(ii) after issuing the private education loan, shall—

“(I) notify the institution of higher education involved that the private education loan has been issued to the borrower, and the amount of such loan; and

“(II) provide the Director of the Consumer Financial Protection Bureau and the Secretary of Education with the information described in paragraph (9)(B).”

(B)
by redesignating paragraphs (9), (10), and (11) as paragraphs (10), (11), and (12), respectively; and
(C)
by inserting after paragraph (8) the following:

“(9) Provision of information

“(A) Provision of information to borrowers

“(i) Loan statements—A private educational lender that issues any funds with respect to a private education loan shall—

“(I) send loan statements, if the loan is to be used for a student, to borrowers of the funds not less than once every 3 months during the time that the student is enrolled at an institution of higher education; and

“(II) in the case of a private education loan that includes a cosigner, annually send a loan statement to the borrower’s cosigner, notifying the cosigner of the terms, conditions, and status of such private education loan.

“(ii) Contents of loan statement—Each statement described in clause (i) shall—

“(I) report the borrower's total remaining debt to the private educational lender, including accrued but unpaid interest and capitalized interest;

“(II) report any debt increases since the last statement; and

“(III) list the current interest rate for each loan.

“(B) Provision of information to Federal agencies

“(i) Information from lender—Each private educational lender shall—

“(I) submit to the Director of the Consumer Financial Protection Bureau and the Secretary of Education such information regarding a private education loan as may be determined necessary by the Director and the Secretary under clause (ii) for inclusion in the National Student Loan Data System under section 485B(i) of the Higher Education Act of 1965 (20 U.S.C. 1092b(i)); and

“(II) prepare and submit an annual report to the Consumer Financial Protection Bureau regarding the private education loans issued by the private educational lender.

“(ii) Promulgation of regulations—Not later than 1 year after the date of enactment of the Affordable Loans for Any Student Act, the Director of the Consumer Financial Protection Bureau, in coordination with the Secretary of Education, shall promulgate regulations regarding the private education loan information required to be submitted under clause (i), including the content, method, and format for submission. The information required for inclusion in the National Student Loan Data System shall include, at a minimum—

“(I) information identifying the borrower, including the borrower's name and social security number;

“(II) the name of the institution of higher education that has certified the private education loan;

“(III) the name of the lender;

“(IV) the amount of the private education loan;

“(V) the term, or other enrollment period, for which the private education loan is issued; and

“(VI) whether a cosigner was required as a condition of the private education loan.”

(2)
Definition of Private Education Loan— Section 140(a)(8)(A) of the Truth in Lending Act (15 U.S.C. 1650(a)(8)(A)) is amended—
(A)
by redesignating clause (ii) as clause (iii);
(B)
in clause (i), by striking “and” after the semicolon; and
(C)
by adding after clause (i) the following:

“(ii) is not made, insured, or guaranteed under title VII or title VIII of the Public Health Service Act (42 U.S.C. 292 et seq. and 296 et seq.); and”

(3)
Regulations—
(A)
In general— Not later than 1 year after the date of enactment of this Act, the Director of the Consumer Financial Protection Bureau, in coordination with the Secretary of Education, shall promulgate regulations to implement paragraphs (3) and (9) of section 128(e) of the Truth in Lending Act (15 U.S.C. 1638(e)), as amended by paragraph (1) of this subsection.
(B)
Effective date— The regulations promulgated under subparagraph (A) shall take effect on the date that is 180 days after the date on which the regulations are promulgated.