---
kind: "section"
citation: "20 U.S.C. § 1019b"
title: "20"
title_heading: "Education"
number: "1019b"
heading: "Loan information to be disclosed and model disclosure form for covered institutions, institution-affiliated organizations, and lenders participating in preferred lender arrangements"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/20/1019b"
units:
  - "Chapter 28 — Higher Education Resources and Student Assistance"
  - "Subchapter I — General Provisions"
  - "Part E — Lender and Institution Requirements Relating to Education Loans"
---

# §1019b. Loan information to be disclosed and model disclosure form for covered institutions, institution-affiliated organizations, and lenders participating in preferred lender arrangements

- (a) **Duties of the Secretary—**
  - (1) **Determination of minimum disclosures—**
    - (A) **In general—** Not later than 18 months after August 14, 2008, the [Secretary](/usc/20/1003.md?p=17), in coordination with the Board of Governors of the Federal Reserve System, shall determine the minimum information that [lenders](/usc/20/1019.md?p=6), [covered institutions](/usc/20/1019.md?p=2), and [institution-affiliated organizations](/usc/20/1019.md?p=5) of such [covered institutions](/usc/20/1019.md?p=2) participating in [preferred lender arrangements](/usc/20/1019.md?p=8) shall make available regarding [education loans](/usc/20/1019.md?p=3) described in [section 1019(3)(A) of this title](/usc/20/1019.md?p=3-A) that are offered to students and the families of such students.
    - (B) **Consultation and content of minimum disclosures—** In carrying out [subparagraph (A)](#a-1-A), the [Secretary](/usc/20/1003.md?p=17) shall—
      - (i) consult with students, the families of such students, representatives of [covered institutions](/usc/20/1019.md?p=2) (including financial aid administrators, admission [officers](/usc/20/1019.md?p=7), and business [officers](/usc/20/1019.md?p=7)), representatives of [institution-affiliated organizations](/usc/20/1019.md?p=5), [secondary school](/usc/20/1003.md?p=16) guidance counselors, [lenders](/usc/20/1019.md?p=6), [loan](/usc/20/1066a.md?p=2) servicers, and [guaranty agencies](/usc/20/1085.md?p=j);
      - (ii) include, in the minimum information under [subparagraph (A)](#a-1-A) that is required to be made available, the information that the Board of Governors of the Federal Reserve System requires to be disclosed under [section 1638(e)(1) of title 15](/usc/15/1638.md?p=e-1), modified as necessary to apply to such [loans](/usc/20/1066a.md?p=2); and
      - (iii) consider the merits of requiring each [covered institution](/usc/20/1019.md?p=2), and each [institution-affiliated organization](/usc/20/1019.md?p=5) of such [covered institution](/usc/20/1019.md?p=2), with a [preferred lender arrangement](/usc/20/1019.md?p=8) to provide to prospective borrowers and the families of such borrowers the following information for each type of [education loan](/usc/20/1019.md?p=3) offered pursuant to such [preferred lender arrangement](/usc/20/1019.md?p=8):
        - (I) The [interest](/usc/20/1066a.md?p=6) rate and terms and conditions of the [loan](/usc/20/1066a.md?p=2) for the next [award year](/usc/20/1088.md?p=a-1), including [loan](/usc/20/1066a.md?p=2) forgiveness and deferment.
        - (II) Information on any charges, such as origination and Federal [default](/usc/20/1085.md?p=l) fees, that are payable on the [loan](/usc/20/1066a.md?p=2), and whether those charges will be—
          - (aa) collected by the [lender](/usc/20/1019.md?p=6) at or prior to the disbursal of the [loan](/usc/20/1066a.md?p=2), including whether the charges will be deducted from the proceeds of the [loan](/usc/20/1066a.md?p=2) or paid separately by the borrower; or
          - (bb) paid in whole or in part by the [lender](/usc/20/1019.md?p=6).
        - (III) The annual and aggregate maximum amounts that may be borrowed.
        - (IV) The average amount borrowed from the [lender](/usc/20/1019.md?p=6) by students who graduated from such institution in the preceding year with certificates, undergraduate degrees, [graduate](/usc/20/1061.md?p=1) degrees, and professional degrees, as applicable, and who obtained [loans](/usc/20/1066a.md?p=2) of such type from the [lender](/usc/20/1019.md?p=6) for the preceding year.
        - (V) The amount the borrower may pay in [interest](/usc/20/1066a.md?p=6), based on a standard repayment plan and the average amount borrowed from the [lender](/usc/20/1019.md?p=6) by students who graduated from such institution in the preceding year and who obtained [loans](/usc/20/1066a.md?p=2) of such type from the [lender](/usc/20/1019.md?p=6) for the preceding year, for—
          - (aa) borrowers of [loans](/usc/20/1066a.md?p=2) made under [section 1078 of this title](/usc/20/1078.md);
          - (bb) borrowers of [loans](/usc/20/1066a.md?p=2) made under section [1078–2](/usc/20/1078–2.md) or [1078–8](/usc/20/1078–8.md) of this title, who pay the [interest](/usc/20/1066a.md?p=6) while in school; and
          - (cc) borrowers of [loans](/usc/20/1066a.md?p=2) made under section [1078–2](/usc/20/1078–2.md) or [1078–8](/usc/20/1078–8.md) of this title, who do not pay the [interest](/usc/20/1066a.md?p=6) while in school.
        - (VI) The consequences for the borrower of defaulting on a [loan](/usc/20/1066a.md?p=2), including limitations on the discharge of an [education loan](/usc/20/1019.md?p=3) in bankruptcy.
        - (VII) Contact information for the [lender](/usc/20/1019.md?p=6).
        - (VIII) Other information suggested by the persons and entities with whom the [Secretary](/usc/20/1003.md?p=17) has consulted under [clause (i)](#a-1-B-i).
  - (2) **Required disclosures—** After making the determinations under [paragraph (1)](#a-1), the [Secretary](/usc/20/1003.md?p=17), in coordination with the Board of Governors of the Federal Reserve System and after consultation with the public, shall—
    - (A)
      - (i) provide that the information determined under [paragraph (1)](#a-1) shall be disclosed by [covered institutions](/usc/20/1019.md?p=2), and [institution-affiliated organizations](/usc/20/1019.md?p=5) of such [covered institutions](/usc/20/1019.md?p=2), with [preferred lender arrangements](/usc/20/1019.md?p=8) to prospective borrowers and the families of such borrowers regarding the [education loans](/usc/20/1019.md?p=3) described in [section 1019(3)(A) of this title](/usc/20/1019.md?p=3-A) that are offered pursuant to such [preferred lender arrangements](/usc/20/1019.md?p=8); and
      - (ii) make clear that such [covered institutions](/usc/20/1019.md?p=2) and [institution-affiliated organizations](/usc/20/1019.md?p=5) may provide the required information on a form designed by the institution or organization instead of the model disclosure form described in [subparagraph (B)](#a-2-B);
    - (B) develop a model disclosure form that may be used by [covered institutions](/usc/20/1019.md?p=2), [institution-affiliated organizations](/usc/20/1019.md?p=5), and preferred [lenders](/usc/20/1019.md?p=6) that includes all of the information required under [subparagraph (A)(i)](#a-2-A-i) in a format that—
      - (i) is easily usable by students, families, institutions, [institution-affiliated organizations](/usc/20/1019.md?p=5), [lenders](/usc/20/1019.md?p=6), [loan](/usc/20/1066a.md?p=2) servicers, and [guaranty agencies](/usc/20/1085.md?p=j); and
      - (ii) is similar in format to the form developed by the Board of Governors of the Federal Reserve System under paragraphs (1) and (5)(A) of section 1638(e)[^1] of title 15, in order to permit students and the families of students to easily compare [private education loans](/usc/20/1019.md?p=3) and [education loans](/usc/20/1019.md?p=3) described in [section 1019(3)(A) of this title](/usc/20/1019.md?p=3-A); and
    - (C) update such model disclosure form periodically, as necessary.
- (b) **Duties of lenders—** Each [lender](/usc/20/1019.md?p=6) that has a [preferred lender arrangement](/usc/20/1019.md?p=8) with a [covered institution](/usc/20/1019.md?p=2), or an [institution-affiliated organization](/usc/20/1019.md?p=5) of such [covered institution](/usc/20/1019.md?p=2), with respect to [education loans](/usc/20/1019.md?p=3) described in [section 1019(3)(A) of this title](/usc/20/1019.md?p=3-A) shall annually, by a date determined by the [Secretary](/usc/20/1003.md?p=17), provide to such [covered institution](/usc/20/1019.md?p=2) or such [institution-affiliated organization](/usc/20/1019.md?p=5), and to the [Secretary](/usc/20/1003.md?p=17), the information the [Secretary](/usc/20/1003.md?p=17) requires pursuant to [subsection (a)(2)(A)(i)](#a-2-A-i) for each type of [education loan](/usc/20/1019.md?p=3) described in [section 1019(3)(A) of this title](/usc/20/1019.md?p=3-A) that the [lender](/usc/20/1019.md?p=6) plans to offer pursuant to such [preferred lender arrangement](/usc/20/1019.md?p=8) to students attending such [covered institution](/usc/20/1019.md?p=2), or to the families of such students, for the next [award year](/usc/20/1088.md?p=a-1).
- (c) **Duties of covered institutions and institution-affiliated organizations—**
  - (1) **Providing information to students and families—**
    - (A) **In general—** Each [covered institution](/usc/20/1019.md?p=2), and each [institution-affiliated organization](/usc/20/1019.md?p=5) of such [covered institution](/usc/20/1019.md?p=2), that has a [preferred lender arrangement](/usc/20/1019.md?p=8) shall provide the following information to students attending such institution, or the families of such students, as applicable:
      - (i) The information the [Secretary](/usc/20/1003.md?p=17) requires pursuant to [subsection (a)(2)(A)(i)](#a-2-A-i), for each type of [education loan](/usc/20/1019.md?p=3) described in [section 1019(3)(A) of this title](/usc/20/1019.md?p=3-A) offered pursuant to a [preferred lender arrangement](/usc/20/1019.md?p=8) to students of such institution or the families of such students.
      - (ii)
        - (I) In the case of a [covered institution](/usc/20/1019.md?p=2), the information that the Board of Governors of the Federal Reserve System requires to be disclosed under [section 1638(e)(11) of title 15](/usc/15/1638.md?p=e-11) to the [covered institution](/usc/20/1019.md?p=2), for each type of [private education loan](/usc/20/1019.md?p=3) offered pursuant to such [preferred lender arrangement](/usc/20/1019.md?p=8) to students of such institution or the families of such students.
        - (II) In the case of an [institution-affiliated organization](/usc/20/1019.md?p=5), the information the Board of Governors of the Federal Reserve System requires to be disclosed under [section 1638(e)(1) of title 15](/usc/15/1638.md?p=e-1), for each type of [private education loan](/usc/20/1019.md?p=3) offered pursuant to such [preferred lender arrangement](/usc/20/1019.md?p=8) to students of the institution with which such organization is affiliated or the families of such students.
    - (B) **Timely provision of information—** The information described in [subparagraph (A)](#c-1-A) shall be provided in a manner that allows for the students or the families to take such information into account before selecting a [lender](/usc/20/1019.md?p=6) or applying for an [education loan](/usc/20/1019.md?p=3).
  - (2) **Annual report—** Each [covered institution](/usc/20/1019.md?p=2), and each [institution-affiliated organization](/usc/20/1019.md?p=5) of such [covered institution](/usc/20/1019.md?p=2), that has a [preferred lender arrangement](/usc/20/1019.md?p=8), shall—
    - (A) prepare and submit to the [Secretary](/usc/20/1003.md?p=17) an annual report, by a date determined by the [Secretary](/usc/20/1003.md?p=17), that includes, for each [lender](/usc/20/1019.md?p=6) that has a [preferred lender arrangement](/usc/20/1019.md?p=8) with such [covered institution](/usc/20/1019.md?p=2) or organization—
      - (i) the information described in clauses [(i)](#c-1-A-i) and [(ii)](#c-1-A-ii) of paragraph (1)(A); and
      - (ii) a detailed explanation of why such [covered institution](/usc/20/1019.md?p=2) or [institution-affiliated organization](/usc/20/1019.md?p=5) entered into a [preferred lender arrangement](/usc/20/1019.md?p=8) with the [lender](/usc/20/1019.md?p=6), including why the terms, conditions, and provisions of each type of [education loan](/usc/20/1019.md?p=3) provided pursuant to the [preferred lender arrangement](/usc/20/1019.md?p=8) are beneficial for students attending such institution, or the families of such students, as applicable; and
    - (B) ensure that the report required under [subparagraph (A)](#c-2-A) is made available to the public and provided to students attending or planning to attend such [covered institution](/usc/20/1019.md?p=2) and the families of such students.
  - (3) **Code of conduct—**
    - (A) **In general—** Each [covered institution](/usc/20/1019.md?p=2), and each [institution-affiliated organization](/usc/20/1019.md?p=5) of such [covered institution](/usc/20/1019.md?p=2), that has a [preferred lender arrangement](/usc/20/1019.md?p=8), shall comply with the code of conduct requirements of subparagraphs (A) through (C) of [section 1094(a)(25) of this title](/usc/20/1094.md?p=a-25).
    - (B) **Applicable code of conduct—** For purposes of [subparagraph (A)](#c-3-A), an [institution-affiliated organization](/usc/20/1019.md?p=5) of a [covered institution](/usc/20/1019.md?p=2) shall—
      - (i) comply with the code of conduct developed and published by such [covered institution](/usc/20/1019.md?p=2) under subparagraphs (A) and (B) of [section 1094(a)(25) of this title](/usc/20/1094.md?p=a-25);
      - (ii) if such [institution-affiliated organization](/usc/20/1019.md?p=5) has a website, publish such code of conduct prominently on the website; and
      - (iii) administer and enforce such code of conduct by, at a minimum, requiring that all of such organization’s [agents](/usc/20/1019.md?p=1) with responsibilities with respect to [education loans](/usc/20/1019.md?p=3) be annually informed of the provisions of such code of conduct.

## Footnotes

[^1]: See References in Text note below.

## Source credit

(Pub. L. 89–329, title I, § 153, as added Pub. L. 110–315, title I, § 120, Aug. 14, 2008, 122 Stat. 3122; amended Pub. L. 111–39, title I, § 101(b)(6), July 1, 2009, 123 Stat. 1935.)

## Notes

### Editorial Notes

### References in Text

Section 1638(e) of title 15, referred to in subsec. (a)(2)(B)(ii), was in the original “section 128(e)”, and was translated as meaning section 128(e) of Pub. L. 90–321, which is classified to section 1638(e) of title 15, to reflect the probable intent of Congress.

### Amendments

2009—Subsec. (a)(1)(B)(iii)(V). Pub. L. 111–39 substituted “borrowers of loans made under” for “borrowers who take out loans under” wherever appearing.

### Statutory Notes and Related Subsidiaries

### Effective Date of 2009 Amendment

Amendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.