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Can you summarize 15 USC 1650?
Credit Transactions > Preventing unfair and deceptive private educational lending practices and eliminating conflicts of interest
Short Summary
This section of the United States Code aims to prevent unfair and deceptive private educational lending practices and eliminate conflicts of interest. It provides definitions for terms such as ‘cosigner,’ ‘covered educational institution,’ ‘gift,’ ‘institution of higher education,’ ‘postsecondary educational expenses,’ ‘preferred lender arrangement,’ ‘private educational lender,’ ‘private education loan,’ and ‘revenue sharing.’ The section prohibits private educational lenders from offering gifts or engaging in revenue sharing with covered educational institutions. It also prohibits private educational lenders from using the name or symbols of covered educational institutions in the marketing of private education loans. Additionally, the section prohibits employees of covered educational institutions who serve on advisory boards established by private educational lenders from receiving anything of value from the lenders. It further prohibits private educational lenders from imposing fees or penalties on borrowers for early repayment or prepayment of private education loans. The section also includes provisions related to credit card protections for college students and additional protections for borrowers and cosigners of private education loans.
Whom does it apply to?
Private educational lenders, covered educational institutions, cosigners, borrowers, and students
What does it govern?
Preventing unfair and deceptive private educational lending practices and eliminating conflicts of interest
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
Not specified.
Jurisdiction
U.S. Federal Government