Title X Student Loan Regulations
Learn how new student loan regulations tighten rules on private lenders
The federal government has recently tightened its regulation of the activities of lenders in the private student loan industry. These changes were made to Federal truth-in-lending regulations (also known as Regulation Z) which also affect Title X of the Higher Educational Opportunity Act, the main federal legislation governing student financial aid.
These Title X student loan regulations will further protect your students from unfair lending practices, and will help them find the best student loan package. The recent changes include:
- Barring lenders from offering co-branded credit products that suggest they've been endorsed by colleges or universities.
- Instituting new disclosure requirements that obligate lenders to inform borrowers who apply for a private student loan of the availability of low-cost federal loans (and other pertinent facts) at the time the loan is originated, approved and consummated.
- Providing borrowers a 30-day acceptance period, during which the private loan terms may not be changed, but for a few exceptions.
- Giving borrowers the right to cancel their private loan during a three-day period before loan proceeds can be disbursed.
By sharing details about these new student loan regulations per Title X with your students, you may be able to help them better understand the process. The detailed information we provide is designed to help them be fully informed with their private student loan (also called alternative loan) borrowing decisions. After all, many students and families will have to take out private loans to close the gap between what they can raise through grants, scholarships, federal loans and family savings on the one hand, and what college actually costs on the other.
Learn more about student borrowing resources from Citizens Bank
Read our helpful resources for financial aid administrators so you can help students understand the college financing process, including private student loans like our Citizens Bank Student Loan™. Or, call our School Services Team at 1-888-333-0169, and we'll provide you with the answers you are looking for.