---
kind: "section"
citation: "20 U.S.C. § 1087cc–1"
title: "20"
title_heading: "Education"
number: "1087cc–1"
heading: "Student loan information by eligible institutions"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/20/1087cc-1"
units:
  - "Chapter 28 — Higher Education Resources and Student Assistance"
  - "Subchapter IV — Student Assistance"
  - "Part E — Federal Perkins Loans"
---

# §1087cc–1. Student loan information by eligible institutions

- (a) **Disclosure required prior to disbursement—** Each [institution of higher education](/usc/20/1001.md?p=a) shall, at or prior to the time such institution makes a [loan](/usc/20/1066a.md?p=2) to a student borrower which is made under this part, provide thorough and adequate [loan](/usc/20/1066a.md?p=2) information on such [loan](/usc/20/1066a.md?p=2) to the student borrower. Any disclosure required by this subsection may be made by an [institution of higher education](/usc/20/1001.md?p=a) as part of the written application material provided to the borrower, or as part of the promissory note evidencing the [loan](/usc/20/1066a.md?p=2), or on a separate written form provided to the borrower. The disclosures shall include—
  - (1) the name of the [institution of higher education](/usc/20/1001.md?p=a), and the address to which communications and payments should be sent;
  - (2) the principal amount of the [loan](/usc/20/1066a.md?p=2);
  - (3) the amount of any charges collected by the institution at or prior to the disbursal of the [loan](/usc/20/1066a.md?p=2) and whether such charges are deducted from the proceeds of the [loan](/usc/20/1066a.md?p=2) or paid separately by the borrower;
  - (4) the stated [interest](/usc/20/1066a.md?p=6) rate on the [loan](/usc/20/1066a.md?p=2);
  - (5) the yearly and cumulative maximum amounts that may be borrowed;
  - (6) an explanation of when repayment of the [loan](/usc/20/1066a.md?p=2) will be required and when the borrower will be obligated to pay [interest](/usc/20/1066a.md?p=6) that accrues on the [loan](/usc/20/1066a.md?p=2);
  - (7) a statement as to the minimum and maximum repayment term which the institution may impose, and the minimum monthly payment required by law and a description of any penalty imposed as a consequence of [default](/usc/20/1085.md?p=l), such as liability for expenses reasonably incurred in attempts by the [Secretary](/usc/20/1003.md?p=17) or institutions to collect on a [loan](/usc/20/1066a.md?p=2);
  - (8) a statement of the total cumulative balance, including the [loan](/usc/20/1066a.md?p=2) applied for, owed by the student to that [lender](/usc/20/1019.md?p=6), and an estimate of the projected monthly payment, given such cumulative balance;
  - (9) an explanation of any special options the borrower may have for [loan](/usc/20/1066a.md?p=2) consolidation or other refinancing of the [loan](/usc/20/1066a.md?p=2);
  - (10) a statement that the borrower has the right to prepay all or part of the [loan](/usc/20/1066a.md?p=2), at any time, without penalty, a statement summarizing circumstances in which repayment of the [loan](/usc/20/1066a.md?p=2) or [interest](/usc/20/1066a.md?p=6) that accrues on the [loan](/usc/20/1066a.md?p=2) may be deferred, and a brief notice of the program for repayment of [loans](/usc/20/1066a.md?p=2), on the basis of military service, pursuant to the [Department](/usc/20/1003.md?p=4) of Defense educational [loan](/usc/20/1066a.md?p=2) repayment program ([10 U.S.C. 16302](/usc/10/16302.md));
  - (11) a definition of [default](/usc/20/1085.md?p=l) and the consequences to the borrower if the borrower [defaults](/usc/20/1085.md?p=l), together with a statement that the disbursement of, and the [default](/usc/20/1085.md?p=l) on, a [loan](/usc/20/1066a.md?p=2) under this part, shall be reported to a [consumer reporting agency](/usc/20/1088.md?p=e);
  - (12) to the extent practicable, the effect of accepting the [loan](/usc/20/1066a.md?p=2) on the eligibility of the borrower for other forms of student assistance;
  - (13) an explanation of any cost the borrower may incur in the making or collection of the [loan](/usc/20/1066a.md?p=2);
  - (14) a notice and explanation regarding the end to future availability of [loans](/usc/20/1066a.md?p=2) made under this part;
  - (15) a notice and explanation that repayment and forgiveness benefits available to borrowers of [loans](/usc/20/1066a.md?p=2) made under part D are not available to borrowers participating in the [loan](/usc/20/1066a.md?p=2) program under this part;
  - (16) a notice and explanation regarding a borrower’s option to consolidate a [loan](/usc/20/1066a.md?p=2) made under this part into a Federal Direct [Loan](/usc/20/1066a.md?p=2) under part D, including any benefit of such consolidation;
  - (17) with respect to new undergraduate Federal Perkins [loan](/usc/20/1066a.md?p=2) borrowers, as described in [section 1087aa(b)(1)(A) of this title](/usc/20/1087aa.md?p=b-1-A), a notice and explanation providing a comparison of the [interest](/usc/20/1066a.md?p=6) rates of [loans](/usc/20/1066a.md?p=2) under this part and part D and informing the borrower that the borrower has reached the maximum annual borrowing limit for which the borrower is eligible as referenced under subparagraphs (A) and (D) of [section 1087e(a)(2) of this title](/usc/20/1087e.md?p=a-2); and
  - (18) with respect to current undergraduate Federal Perkins [loan](/usc/20/1066a.md?p=2) borrowers, as described in [section 1087aa(b)(1)(B) of this title](/usc/20/1087aa.md?p=b-1-B), a notice and explanation providing a comparison of the [interest](/usc/20/1066a.md?p=6) rates of [loans](/usc/20/1066a.md?p=2) under this part and part D and informing the borrower that the borrower has reached the maximum annual borrowing limit for which the borrower is eligible on Federal Direct Stafford [Loans](/usc/20/1066a.md?p=2) as referenced under [section 1087e(a)(2)(A) of this title](/usc/20/1087e.md?p=a-2-A).
- (b) **Disclosure required prior to repayment—** Each [institution of higher education](/usc/20/1001.md?p=a) shall enter into an agreement with the [Secretary](/usc/20/1003.md?p=17) under which the institution will, prior to the start of the repayment period of the student borrower on [loans](/usc/20/1066a.md?p=2) made under this part, disclose to the student borrower the information required under this subsection. Any disclosure required by this subsection may be made by an [institution of higher education](/usc/20/1001.md?p=a) either in a promissory note evidencing the [loan](/usc/20/1066a.md?p=2) or [loans](/usc/20/1066a.md?p=2) or in a written statement provided to the borrower. The disclosures shall include—
  - (1) the name of the [institution of higher education](/usc/20/1001.md?p=a), and the address to which communications and payments should be sent;
  - (2) the scheduled date upon which the repayment period is to begin;
  - (3) the estimated balance owed by the borrower on the [loan](/usc/20/1066a.md?p=2) or [loans](/usc/20/1066a.md?p=2) covered by the disclosure as of the scheduled date on which the repayment period is to begin (including, if applicable, the estimated amount of [interest](/usc/20/1066a.md?p=6) to be capitalized);
  - (4) the stated [interest](/usc/20/1066a.md?p=6) rate on the [loan](/usc/20/1066a.md?p=2) or [loans](/usc/20/1066a.md?p=2), or the combined [interest](/usc/20/1066a.md?p=6) rate of [loans](/usc/20/1066a.md?p=2) with different stated [interest](/usc/20/1066a.md?p=6) rates;
  - (5) the nature of any fees which may accrue or be charged to the borrower during the repayment period;
  - (6) the repayment schedule for all [loans](/usc/20/1066a.md?p=2) covered by the disclosure including the date the first installment is due, and the number, amount, and frequency of required payments;
  - (7) an explanation of any special options the borrower may have for [loan](/usc/20/1066a.md?p=2) consolidation or other refinancing of the [loan](/usc/20/1066a.md?p=2);
  - (8) the projected total of [interest](/usc/20/1066a.md?p=6) charges which the borrower will pay on the [loan](/usc/20/1066a.md?p=2) or [loans](/usc/20/1066a.md?p=2), assuming that the borrower makes payments exactly in accordance with the repayment schedule; and
  - (9) a statement that the borrower has the right to prepay all or part of the [loan](/usc/20/1066a.md?p=2) or [loans](/usc/20/1066a.md?p=2) covered by the disclosure at any time without penalty.
- (c) **Costs and effects of disclosures—** Such information shall be available without cost to the borrower. The failure of an [eligible institution](/usc/20/1058.md?p=b) to provide information as required by this section shall not (1) relieve a borrower of the obligation to repay a [loan](/usc/20/1066a.md?p=2) in accordance with its terms, (2) provide a basis for a claim for civil damages, or (3) be deemed to abrogate the obligation of the [Secretary](/usc/20/1003.md?p=17) to make payments with respect to such [loan](/usc/20/1066a.md?p=2).

## Source credit

(Pub. L. 89–329, title IV, § 463A, as added Pub. L. 99–498, title IV, § 405(a), Oct. 17, 1986, 100 Stat. 1446; amended Pub. L. 100–50, § 13(g), (h), June 3, 1987, 101 Stat. 349; Pub. L. 102–325, title IV, § 463(c), July 23, 1992, 106 Stat. 579; Pub. L. 103–208, § 2(f)(8), Dec. 20, 1993, 107 Stat. 2471; Pub. L. 104–106, div. A, title XV, § 1501(e)(4), Feb. 10, 1996, 110 Stat. 501; Pub. L. 110–315, title IV, § 432(b)(6), Aug. 14, 2008, 122 Stat. 3246; Pub. L. 111–39, title IV, § 405(3), July 1, 2009, 123 Stat. 1947; Pub. L. 114–105, § 3, Dec. 18, 2015, 129 Stat. 2220.)

## Notes

### Editorial Notes

### Prior Provisions

A prior section 1087cc–1, Pub. L. 89–329, title IV, § 463A, as added Pub. L. 96–374, title IV, § 447(b), Oct. 3, 1980, 94 Stat. 1443; amended Pub. L. 97–301, § 13, Oct. 13, 1982, 96 Stat. 1405; Pub. L. 98–79, § 3(b), Aug. 15, 1983, 97 Stat. 478; Pub. L. 99–272, title XVI, § 16027, Apr. 7, 1986, 100 Stat. 353, related to student loan information to be provided by institutions, prior to the general revision of this part by Pub. L. 99–498.

### Amendments

2015—Subsec. (a)(14) to (18). Pub. L. 114–105 added pars. (14) to (18).

2009—Subsec. (a). Pub. L. 111–39 struck out “, in order to carry out the provisions of section 1087cc(a)(8) of this title,” after “Each institution of higher education” in introductory provisions.

2008—Subsec. (a)(11). Pub. L. 110–315 substituted “consumer” for “credit bureau or credit”.

1996—Subsec. (a)(10). Pub. L. 104–106 substituted “(10 U.S.C. 16302)” for “(10 U.S.C. 2172)”.

1993—Subsecs. (d), (e). Pub. L. 103–208 struck out subsecs. (d) and (e), which read as follows:

“(d) Limitation on Use of Interest Bearing Accounts.—In carrying out the provisions of subsection (a)(10) of this section, the Secretary may not require that any collection agency, collection attorney, or loan servicer collecting loans made under this part deposit amounts collected on such loans in interest bearing accounts, unless such agency, attorney, or servicer holds such amounts for more than 45 days.

“(e) Special Due Diligence Rule.—In carrying out the provisions of subsection (a)(5) of this section relating to due diligence, the Secretary shall make every effort to ensure that institutions of higher education may use Internal Revenue Service skip-tracing collection procedures on loans made under this part.”

1992—Subsec. (a)(11). Pub. L. 102–325, § 463(c)(1), substituted “together with a statement that the disbursement of, and the default on, a loan under this part, shall be” for “including a statement that the default may be”.

Subsecs. (d), (e). Pub. L. 102–325, § 463(c)(2), added subsecs. (d) and (e).

1987—Subsec. (a)(8). Pub. L. 100–50, § 13(g), added par. (8) and struck out former par. (8) which read as follows: “a statement of the total cumulative balance owed by the student to that institution, the projected level of indebtedness of the student based on a 2- or 4-year college career, and an estimate of the projected monthly repayment given the level of indebtedness over a 2-, 4-, or 5-year college career;”.

Subsec. (a)(10). Pub. L. 100–50, § 13(h), substituted “the Department of Defense educational loan repayment program (10 U.S.C. 2172)” for “section 902 of the Department of Defense Authorization Act, 1981 (10 U.S.C. 2141, note)”.

### 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.

### Effective Date of 1996 Amendment

Amendment by Pub. L. 104–106 effective as if included in the Reserve Officer Personnel Management Act, title XVI of Pub. L. 103–337, as enacted on Oct. 5, 1994, see section 1501(f)(3) of Pub. L. 104–106, set out as a note under section 113 of Title 10, Armed Forces.

### Effective Date of 1993 Amendment

Amendment by Pub. L. 103–208 effective as if included in the Higher Education Amendments of 1992, Pub. L. 102–325, except as otherwise provided, see section 5(a) of Pub. L. 103–208, set out as a note under section 1051 of this title.

### Effective Date of 1987 Amendment

Amendment by Pub. L. 100–50 effective as if enacted as part of the Higher Education Amendments of 1986, Pub. L. 99–498, see section 27 of Pub. L. 100–50, set out as a note under section 1001 of this title.

### Effective Date

Section applicable only to loans made for periods of enrollment beginning on or after July 1, 1987, see section 405(b) of Pub. L. 99–498, as amended, set out as a note under section 1087dd of this title.