Federal Reserve Issues Final Rules Regarding Private Education Loans
August 17, 2009
On Friday, August 14, the Board of Governors of the Federal Reserve System published final regulations governing private education loans in the Federal Register. The final rules make it clear that most types of credit extended by post-secondary institutions to students for tuition and fees will be considered private education loans subject to extensive new Truth in Lending Act disclosure requirements. The final rules are effective on September 14, 2009, with compliance optional until February 14, 2010. Compliance with the new rules may involve extensive system changes, so schools must plan in advance to meet the compliance date.
For more information on how these rules may apply to your institution, please contact PPSV principal Robert Lavet at 202.872.6747.
Mr, Lavet was formerly General Counsel of Sallie Mae and has extensive experience with respect to private education loans.
