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‘‘(III) a tribally controlled college 
or university, as defined in section 
316(b)(3) of the Higher Education 
Act of 1965 (20 U.S.C. 1059c(b)(3)); 
‘‘(IV) an Alaska Native-serving 
institution under section 317(b) of the 
Higher Education Act of 1965 (20 
U.S.C. 1059d(b)); 
‘‘(V) a Native Hawaiian-serving 
institution under section 317(b) of the 
Higher Education Act of 1965 (20 
U.S.C. 1059d(b)); or 
‘‘(VI) an institution of higher 
education (as defined in section 365 
of the Higher Education Act of 1965 
(20 U.S.C. 1067k)) with an enroll-
ment of needy students (as defined in 
section 312(d) of the Higher Edu-
cation Act of 1965 (20 U.S.C. 
1058(d))). 
‘‘(iii) INSTITUTION OF HIGHER EDU-
CATION.—The term ‘institution of higher 
education’ has the meaning given the term 
in section 101 of the Higher Education 
Act of 1965 (20 U.S.C. 1001).
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‘‘(iv) LOCAL
EDUCATIONAL
AGEN-
CY.—The term ‘local educational agency’ 
has the meaning given the term in section 
9101 of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7801). 
‘‘(v) MINORITY BUSINESS.—The term 
‘minority business’ includes HUBZone 
small business concerns (as defined in sec-
tion 3(p) of the Small Business Act (15 
U.S.C. 632(p))). 
‘‘(vi) 
MINORITY
INDIVIDUAL.—The 
term ‘minority individual’ means an Amer-
ican Indian, Alaskan Native, Black (not of 
Hispanic origin), Hispanic (including per-
sons of Mexican, Puerto Rican, Cuban and 
Central or South American origin), or Pa-
cific Islander individual. 
‘‘(vii) STATE.—The term ‘State’ has 
the meaning given the term in section 
9101 of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7801). 
‘‘(viii) STATE
EDUCATIONAL
AGEN-
CY.—The term ‘State educational agency’ 
has the meaning given the term in section 
9101 of the Elementary and Secondary
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Education 
Act 
of 
1965 
(20 
U.S.C. 
7801).’’. 
SEC. 962. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to the Sec-
retary of Commerce to carry out section 5(c) of the Ste-
venson-Wydler Technology Innovation Act of 1980— 
(1) $250,000,000 for fiscal year 2008; and 
(2) such sums as may be necessary for each of 
the fiscal years 2009 through 2012. 
TITLE 
X—PRIVATE 
STUDENT 
LOAN 
TRANSPARENCY 
AND 
IMPROVEMENT 
SEC. 1001. SHORT TITLE. 
This title may be cited as the ‘‘Private Student Loan 
Transparency and Improvement Act of 2008’’. 
SEC. 1002. DEFINITIONS. 
As used in this title— 
(1) the term ‘‘Board’’ means the Board of Gov-
ernors of the Federal Reserve System; 
(2) the term ‘‘covered educational institu-
tion’’— 
(A) means any educational institution that 
offers a postsecondary educational degree, cer-
tificate, or program of study (including any in-
stitution of higher education); and
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•HR 4137 EH2S 
(B) includes an agent or employee of the 
educational institution; 
(3) the terms ‘‘Federal banking agencies’’ and 
‘‘appropriate Federal banking agency’’ have the 
same meanings as in section 3 of the Federal De-
posit Insurance Act (12 U.S.C. 1813); 
(4) the term ‘‘institution of higher education’’ 
has the same meaning as in section 102 of the High-
er Education Act of 1965 (20 U.S.C. 1002); 
(5) the term ‘‘postsecondary educational ex-
penses’’ means any of the expenses that are included 
as part of the cost of attendance of a student, as de-
fined under section 472 of the Higher Education Act 
of 1965 (20 U.S.C. 1087ll); 
(6) the term ‘‘private educational lender’’ 
means any creditor (as defined in section 103 of the 
Truth in Lending Act) which solicits, makes, or ex-
tends private educational loans; and 
(7) the term ‘‘private educational loan’’— 
(A) means a loan provided by a private 
educational lender that— 
(i) is not made, insured, or guaran-
teed under title IV of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1070 et 
seq.); and
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(ii) is issued by a private educational 
lender expressly for postsecondary edu-
cational expenses to a student, or the par-
ent of the student, regardless of whether 
the loan involves enrollment certification 
by the educational institution that the stu-
dent attends, or whether the loan is pro-
vided through the educational institution 
that the subject student attends or directly 
to the borrower from the lender; and 
(B) does not include an extension of credit 
under an open end consumer credit plan, a re-
verse mortgage transaction, a residential mort-
gage transaction (as those terms are defined in 
section 103 of the Truth in Lending Act), or 
any other loan that is secured by real property 
or a dwelling. 
SEC. 1003. REGULATIONS. 
The Board shall issue final regulations to implement 
this title and the amendments made by this title not later 
than 180 days after the date of enactment of this title. 
SEC. 1004. EFFECTIVE DATES. 
This title and the amendments made by this title 
shall become effective 180 days after the date on which
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regulations to carry out this title and the amendments 
made by this title are issued in final form. 
Subtitle A—Preventing Unfair and 
Deceptive Private Educational 
Lending Practices and Elimi-
nating Conflicts of Interest 
SEC. 1011. AMENDMENT TO THE TRUTH IN LENDING ACT. 
(a) IN GENERAL.—Chapter 2 of the Truth in Lend-
ing Act (15 U.S.C. 1631 et seq.) is amended by adding 
at the end the following new section: 
‘‘§ 140. Preventing unfair and deceptive private edu-
cational lending practices and elimi-
nating conflicts of interest 
‘‘(a) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
‘‘(1) COVERED EDUCATIONAL INSTITUTION.— 
The term ‘covered educational institution’— 
‘‘(A) means any educational institution 
that offers a postsecondary educational degree, 
certificate, or program of study (including any 
institution of higher education); and 
‘‘(B) includes an agent or employee of the 
educational institution. 
‘‘(2) GIFT.—The term ‘gift’—
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‘‘(A) means any gratuity, favor, discount, 
entertainment, hospitality, loan, or other item 
having a monetary value of more than a de 
minimis amount, including a gift of services, 
transportation, lodging, or meals, whether pro-
vided in kind, by purchase of a ticket, payment 
in advance, or reimbursement after the expense 
has been incurred; 
‘‘(B) does not include— 
‘‘(i) standard material, activities, or 
programs on issues related to a loan, de-
fault aversion, default prevention, or finan-
cial literacy, such as a brochure, a work-
shop, or training; 
‘‘(ii) food, refreshments, training, or 
informational material furnished to an em-
ployee or agent of a covered educational in-
stitution, as an integral part of a training 
session that is designed to improve the 
service of the private educational lender to 
the covered educational institution, if such 
training contributes to the professional de-
velopment of the employee or agent of the 
covered educational institution;
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•HR 4137 EH2S 
‘‘(iii) favorable terms, conditions, and 
borrower benefits on an educational loan 
provided to a student employed by the cov-
ered educational institution if such terms, 
conditions, or benefits are comparable to 
those provided to all students of the insti-
tution; 
‘‘(iv) the provision of financial literacy 
counseling or services to students or par-
ents, including counseling or services pro-
vided in coordination with a covered edu-
cational institution, to the extent that such 
counseling or services— 
‘‘(I) are not undertaken to secure 
applications for private educational 
loans or to secure private educational 
loan volume; 
‘‘(II) are not undertaken to se-
cure applications or loan volume for 
any loan made, insured, or guaranteed 
under part B of title IV of the Higher 
Education Act of 1965; and 
‘‘(III) do not promote the prod-
ucts or services of any private edu-
cational lender;
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•HR 4137 EH2S 
‘‘(v) philanthropic contributions to a 
covered institution from a private edu-
cational lender that are unrelated to edu-
cational loans, to the extent that such con-
tributions are disclosed pursuant to para-
graphs (1) and (2) of section 153(a) of the 
Higher Education Act of 1965, if applica-
ble; or 
‘‘(vi) State education grants, scholar-
ships, or financial aid funds administered 
by or on behalf of a State; and 
‘‘(C) includes a gift to a family member of 
an officer, employee, or agent of a covered insti-
tution, or a gift to any other individual based 
on that individual’s relationship with the offi-
cer, employee, or agent, if— 
‘‘(i) the gift is given with the knowl-
edge and acquiescence of the officer, em-
ployee, or agent; and 
‘‘(ii) the officer, employee, or agent 
has reason to believe the gift was given be-
cause of the official position of the officer, 
employee, or agent. 
‘‘(3) INSTITUTION OF HIGHER EDUCATION.— 
the term ‘institution of higher education’ has the
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•HR 4137 EH2S 
same meaning as in section 102 of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1002). 
‘‘(4) 
POSTSECONDARY
EDUCATIONAL
EX-
PENSE.—The term ‘postsecondary educational ex-
penses’ means any of the expenses that are included 
as part of the cost of attendance of a student, as de-
fined under section 472 of the Higher Education Act 
of 1965 (20 U.S.C. 1087ll). 
‘‘(5) PRIVATE
EDUCATIONAL
LENDER.—The 
term ‘private educational lender’ means a creditor 
which solicits, makes, or extends private educational 
loans. 
‘‘(6) PRIVATE EDUCATIONAL LOAN.—The term 
‘private educational loan’— 
‘‘(A) means a loan provided by a private 
educational lender that— 
‘‘(i) is not made, insured, or guaran-
teed under title IV of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1070 et 
seq.); and 
‘‘(ii) is issued by a private educational 
lender expressly for postsecondary edu-
cational expenses to a student, or the par-
ent of the student, regardless of whether 
the loan involves enrollment certification
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•HR 4137 EH2S 
by the educational institution that the stu-
dent attends, or whether the loan is pro-
vided through the educational institution 
that the subject student attends or directly 
to the borrower from the lender; and 
‘‘(B) does not include an extension of cred-
it under an open end consumer credit plan, a 
reverse mortgage transaction, a residential 
mortgage transaction (as those terms are de-
fined in section 103 of the Truth in Lending 
Act), or any other loan that is secured by real 
property or a dwelling. 
‘‘(7) REVENUE
SHARING.—the term ‘revenue 
sharing’ means an arrangement between a covered 
educational institution and a private educational 
lender under which— 
‘‘(A) a private educational lender provides 
or issues private educational loans to students 
attending the covered educational institution or 
to the parents of such students; 
‘‘(B) the covered educational institution 
recommends to students or others the private 
educational lender or the private educational 
loans of the private educational lender; and
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‘‘(C) the private educational lender pays a 
fee or provides other material benefits, includ-
ing profit or revenue sharing, to the covered 
educational institution or to the officers, em-
ployees, or agents of the covered educational in-
stitution in connection with the private edu-
cational loans provided to students attending 
the covered educational institution or a bor-
rower acting on behalf of a student. 
‘‘(b) PROHIBITION
ON CERTAIN GIFTS
AND AR-
RANGEMENTS.—A private educational lender, including 
any officer or employee thereof, may not, directly or indi-
rectly— 
‘‘(1) offer or provide any gift to a covered edu-
cational institution or a covered educational institu-
tion employee, nor may such covered educational in-
stitution, officer, or employee receive any such gift, 
in exchange for any advantage or consideration pro-
vided to such private educational lender related to 
its private educational loan activities; or 
‘‘(2) engage in revenue sharing with a covered 
educational institution. 
‘‘(c) PROHIBITION
ON CO-BRANDING.—A private 
educational lender may not use the name, emblem, mascot, 
or logo of the covered educational institution, or other
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•HR 4137 EH2S 
words, pictures, or symbols readily identified with the cov-
ered educational institution, in the marketing of private 
educational loans in any way that implies that the covered 
educational institution endorses the private educational 
loans offered by the lender. 
‘‘(d) BAN ON PARTICIPATION ON ADVISORY COUN-
CILS.— 
‘‘(1) IN
GENERAL.—An officer, employee, or 
agent who is employed in the financial aid office of 
a covered institution, or who otherwise has respon-
sibilities with respect to private educational loans, 
shall not serve on or otherwise participate with advi-
sory councils of private educational lenders or affili-
ates of such lenders. 
‘‘(2) RULES OF CONSTRUCTION.—No provision 
of this subsection shall be construed as— 
‘‘(A) prohibiting private educational lend-
ers from seeking advice from covered institu-
tions or groups of covered institutions (includ-
ing through telephonic or electronic means, or 
a meeting) in order to improve products and 
services for borrowers, to the extent that no 
gifts or compensation (including for transpor-
tation, lodging, or related expenses) are pro-
vided by private educational lenders in connec-
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•HR 4137 EH2S 
tion with seeking this advice from such institu-
tions; or 
‘‘(B) prohibiting an employee, officer, or 
agent of a covered institution from serving on 
the board of directors of a private educational 
lender, if required by State law. 
‘‘(e) PROHIBITION ON PREPAYMENT OR REPAYMENT 
FEES OR PENALTY.—It shall be unlawful for any private 
educational lender to impose a fee or penalty on a bor-
rower, directly or indirectly, for early repayment or pre-
payment, of any private educational loan.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 2 of the Truth in Lending Act is amended 
by inserting after the item relating to section 139 the fol-
lowing new item: 
‘‘140. Preventing unfair and deceptive private educational lending practices and 
eliminating conflicts of interest.’’. 
SEC. 1012. CIVIL LIABILITY. 
Section 130 of the Truth in Lending Act (15 U.S.C. 
1640) is amended— 
(1) in subsection (a)— 
(A) in paragraph (3), by inserting ‘‘or sec-
tion 128(e)(8)’’ after ‘‘section 125’’; and 
(B) in the fourth sentence of the undesig-
nated matter at the end—
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•HR 4137 EH2S 
(i) by striking ‘‘125 or’’ and inserting 
‘‘125,’’; and 
(ii) by inserting ‘‘128(e)(8), or’’ after 
‘‘125,’’; and 
(2) in subsection (e), by inserting before the 
first period, the following: ‘‘or, in the case of a viola-
tion involving a private educational loan, 1 year 
from the date on which the first regular payment of 
principal is due under the loan’’. 
Subtitle B—Improved Disclosures 
for Private Educational Loans 
SEC. 1021. PRIVATE EDUCATIONAL LOAN DISCLOSURES 
AND LIMITATIONS. 
Section 128 of the Truth in Lending Act (15 U.S.C. 
1638) is amended by adding at the end the following new 
subsection: 
‘‘(e) TERMS AND DISCLOSURE WITH RESPECT TO 
PRIVATE EDUCATIONAL LOANS.— 
‘‘(1) DISCLOSURES REQUIRED IN PRIVATE EDU-
CATIONAL
LOAN
APPLICATIONS
AND
SOLICITA-
TIONS.—In any application for a private educational 
loan, or a solicitation for a private educational loan 
without requiring an application, the creditor shall 
disclose to the borrower, clearly and conspicuously—
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•HR 4137 EH2S 
‘‘(A) the potential range of rates of inter-
est applicable to the private educational loan; 
‘‘(B) whether the rate of interest applica-
ble to the private educational loan is fixed or 
variable; 
‘‘(C) limitations on interest rate adjust-
ments, both in terms of frequency and amount, 
or the lack thereof; 
‘‘(D) requirements for a co-borrower, in-
cluding any changes in the applicable interest 
rates without a co-borrower; 
‘‘(E) potential finance charges, late fees, 
penalties, and adjustments to principal, based 
on defaults or late payments of the borrower; 
‘‘(F) fees or range of fees applicable to the 
private educational loan; 
‘‘(G) the term of the private educational 
loan; 
‘‘(H) whether interest will accrue while the 
student to whom the private educational loan 
relates is enrolled at an institution of higher 
education; 
‘‘(I) payment deferral options, including 
whether the deferment would apply to interest 
or principal, or both;
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•HR 4137 EH2S 
‘‘(J) general eligibility criteria for the pri-
vate educational loan; 
‘‘(K) an example of the total cost of the 
private educational loan over the life of the 
loan— 
‘‘(i) which shall be calculated using 
the principal amount and the maximum 
rate of interest actually offered by the 
creditor; and 
‘‘(ii) calculated both with and without 
capitalization of interest, if that is an op-
tion for postponing interest payments; 
‘‘(L) a statement that an institution of 
higher education may have school-specific edu-
cational loan benefits and terms not detailed on 
the disclosure form; 
‘‘(M) that the borrower may qualify for 
Federal financial assistance through a program 
under title IV of the Higher Education Act of 
1965, in lieu of, or in addition to, a loan from 
a non-Federal source; 
‘‘(N) the interest rates available with re-
spect to such Federal financial assistance 
through a program under title IV of the Higher 
Education Act of 1965;
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•HR 4137 EH2S 
‘‘(O) that the consumer may obtain addi-
tional information concerning such Federal fi-
nancial assistance from their institution of 
higher education or at the website of the De-
partment of Education; 
‘‘(P) that, as provided in paragraph (6)— 
‘‘(i) the borrower shall have up to 30 
calendar days following the date on which 
the application for the private educational 
loan is approved and the borrower receives 
the disclosure documents required under 
this subsection for the loan to accept the 
terms of the private educational loan and 
consummate the transaction; and 
‘‘(ii) except for changes based on ad-
justments to the index used for a loan, the 
rates and terms of the loan may not be 
changed by the creditor during that 30-day 
period; and 
‘‘(Q) such other information as the Board 
shall prescribe, by rule, as necessary or appro-
priate for consumers to make informed bor-
rowing decisions. 
‘‘(2) WRITTEN
ACKNOWLEDGMENT
OF
RE-
CEIPT.—In each case in which a disclosure is pro-
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•HR 4137 EH2S 
vided pursuant to paragraph (1) and an application 
initiated, a creditor shall obtain a written acknowl-
edgment from the consumer that the consumer has 
read and understood the disclosure. The form of 
such written acknowledgment shall be subject to the 
regulations of the Board. 
‘‘(3) DISCLOSURES AT THE TIME OF PRIVATE 
EDUCATIONAL
LOAN
APPROVAL.—Subject to the 
rules of the Board, contemporaneously with the ap-
proval of a private educational loan application, and 
before the loan transaction is consummated, the 
creditor shall disclose to the borrower, clearly and 
conspicuously— 
‘‘(A) the applicable rate of interest in ef-
fect on the date of approval; 
‘‘(B) whether the rate of interest applica-
ble to the private educational loan is fixed or 
variable; 
‘‘(C) limitations on interest rate adjust-
ments, both in terms of frequency and amount, 
or the lack thereof; 
‘‘(D) the initial approved principal amount; 
‘‘(E) applicable finance charges, late fees, 
penalties, and adjustments to principal, based 
upon borrower defaults or late payments;
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•HR 4137 EH2S 
‘‘(F) the maximum term under the private 
educational loan program; 
‘‘(G) an estimate of the total amount for 
repayment, at both the interest rate in effect on 
the date of approval and at the maximum pos-
sible rate of interest actually offered by the 
creditor, to the extent that such maximum rate 
may be determined, or if not, a good faith esti-
mate thereof; 
‘‘(H) any principal and interest payments 
required while the student to whom the private 
educational loan relates is enrolled at an insti-
tution of higher education and interest which 
will accrue during such enrollment; 
‘‘(I) payment deferral options, including 
whether the deferment would apply to interest 
or principal, or both; 
‘‘(J) whether monthly payments are grad-
uated; 
‘‘(K) that, as provided in paragraph (7)— 
‘‘(i) the borrower shall have up to 30 
calendar days following the date on which 
the application for the private educational 
loan is approved and the borrower receives 
the disclosure documents required under
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•HR 4137 EH2S 
this subsection for the loan to accept the 
terms of the private educational loan and 
consummate the transaction; and 
‘‘(ii) except for changes based on ad-
justments to the index used for a loan, the 
rates and terms of the loan may not be 
changed by the creditor during that 30-day 
period; 
‘‘(L) that the borrower may qualify for 
Federal financial assistance through a program 
under title IV of the Higher Education Act of 
1965, in lieu of, or in addition to, a loan from 
a non-Federal source; 
‘‘(M) the interest rates available with re-
spect to such Federal financial assistance 
through a program under title IV of the Higher 
Education Act of 1965; 
‘‘(N) the maximum monthly payment, cal-
culated using the maximum rate of interest ac-
tually offered by the creditor, to the extent that 
such maximum rate may be determined, or if 
not, a good faith estimate thereof; and 
‘‘(O) such other information as the Board 
shall prescribe, by rule, as necessary or appro-
905 
•HR 4137 EH2S 
priate for consumers to make informed bor-
rowing decisions. 
‘‘(4) 
INSTITUTIONAL
CERTIFICATION
RE-
QUIRED.—Before a creditor may issue any funds 
with respect to an extension of credit described in 
paragraph (1), the creditor shall obtain from the rel-
evant institution of higher education such institu-
tion’s certification of— 
‘‘(A) the enrollment status of the borrower; 
‘‘(B) the borrower’s cost of attendance at 
the institution as determined by the institution 
under part F of title IV of the Higher Edu-
cation Act of 1965; and 
‘‘(C) the difference between the borrower’s 
cost of attendance and the borrower’s estimated 
financial assistance received under title IV of 
the Higher Education Act of 1965 and other 
assistance known to the institution. 
‘‘(5) DISCLOSURES AT THE TIME OF PRIVATE 
EDUCATIONAL
LOAN
CONSUMMATION.—Subject to 
the regulations prescribed by the Board, contem-
poraneously with the consummation of a private edu-
cational loan, the creditor shall make each of the 
disclosures described in subparagraphs (A) through
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•HR 4137 EH2S 
(J) and (L) through (O) of paragraph (3) to the 
borrower. 
‘‘(6) FORMAT
OF
DISCLOSURES.—Disclosures 
required under paragraphs (1), (3), and (5) shall ap-
pear in a clearly legible, uniform format, subject to 
section 122(c). 
‘‘(7) EFFECTIVE PERIOD OF APPROVED RATE 
OF INTEREST AND LOAN TERMS.— 
‘‘(A) IN GENERAL.—With respect to a pri-
vate educational loan, the borrower shall have 
the right to accept the terms of the loan and 
consummate the transaction at any time within 
30 calendar days following the date on which 
the application for the private educational loan 
is approved and the borrower receives the dis-
closure documents required under this sub-
section for the loan, and the rates and terms of 
the loan may not be changed by the creditor 
during that period, subject to the rules of the 
Board. 
‘‘(B) PROHIBITION ON CHANGES.—Except 
for changes based on adjustments to the index 
used for a loan, the rates and terms of the loan 
may not be changed by the creditor prior to the 
earlier of—
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•HR 4137 EH2S 
‘‘(i) the date of acceptance of the 
terms of the loan and consummation of the 
transaction by the borrower, as described 
in subparagraph (A); or 
‘‘(ii) the expiration of the 30-day pe-
riod referred to in subparagraph (A). 
‘‘(C) PROHIBITION ON DISBURSEMENT.— 
No funds may be disbursed with respect to a 
private educational loan until acceptance of the 
loan by the borrower under subparagraph (A) 
and the expiration of the 3-day period under 
paragraph (7). 
‘‘(8) RIGHT
TO
CANCEL.—With respect to a 
private educational loan, the borrower may cancel 
the loan, without penalty to the borrower, at any 
time within 3 business days of the date on which the 
loan is consummated, subject to the rules of the 
Board. No funds may be transferred to the borrower 
during that 3-day period. 
‘‘(9) PROVISION OF INFORMATION.—On or be-
fore the date a creditor issues any funds with re-
spect to an extension of credit described in para-
graph (1), the creditor shall notify the relevant insti-
tution of higher education, in writing, of the amount 
of the extension of credit and the student on whose
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•HR 4137 EH2S 
behalf credit is extended. The form of such written 
notification shall be subject to the regulations of the 
Board. 
‘‘(10) DEFINITIONS.—For purposes of this sub-
section, the following definitions shall apply: 
‘‘(A) 
INSTITUTION
OF
HIGHER
EDU-
CATION.—The term ‘institution of higher edu-
cation’ has the same meaning as in section 102 
of the Higher Education Act of 1965 (20 
U.S.C. 1002). 
‘‘(B) PRIVATE
EDUCATIONAL
LENDER.— 
The term ‘private educational lender’ means 
any creditor engaged in the business of solic-
iting, making, or extending private educational 
loans. 
‘‘(C) PRIVATE EDUCATIONAL LOAN.—The 
term ‘private educational loan’— 
‘‘(i) means a loan provided by a pri-
vate educational lender that— 
‘‘(I) is not made, insured, or 
guaranteed under title IV of the 
Higher Education Act of 1965 (20 
U.S.C. 1070 et seq.); and 
‘‘(II) is issued by a private edu-
cational lender expressly for postsec-
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•HR 4137 EH2S 
ondary educational expenses to a stu-
dent, or the parent of the student, re-
gardless of whether the loan involves 
enrollment certification by the edu-
cational institution that the student 
attends, or whether the loan is pro-
vided through the educational institu-
tion that the subject student attends 
or directly to the borrower from the 
lender; and 
‘‘(ii) does not include an extension of 
credit under an open end consumer credit 
plan, a reverse mortgage transaction, a 
residential mortgage transaction (as those 
terms are defined in section 103 this Act), 
or any other loan that is secured by real 
property or a dwelling.’’. 
SEC. 1022. APPLICATION OF TRUTH IN LENDING ACT TO 
ALL PRIVATE EDUCATIONAL LOANS. 
Section 104(3) of the Truth in Lending Act (15 
U.S.C. 1603(3)) is amended by inserting ‘‘and other than 
private educational loans (as that term is defined in sec-
tion 140(a))’’ after ‘‘consumer’’.
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Subtitle C—Financial Literacy 
SEC. 1031. COORDINATED EDUCATION EFFORTS. 
(a) IN GENERAL.—The Secretary of the Treasury (in 
this section referred to as the ‘‘Secretary’’), in coordina-
tion with the Secretary of Education, the Secretary of Ag-
riculture (with respect to land grant covered educational 
institutions), and any other appropriate agency that is a 
member of the Financial Literacy and Education Commis-
sion established under the Financial Literacy and Edu-
cation Improvement Act (20 U.S.C. 9701 et seq.), shall 
seek to enhance financial literacy among students at insti-
tutions of higher education through— 
(1) the development of initiatives, programs, 
and curricula that improve student awareness of the 
short- and long-term costs associated with edu-
cational loans and other debt assumed while in col-
lege, their repayment obligations, and their rights as 
borrowers; and 
(2) assisting such students in navigating the fi-
nancial aid process. 
(b) DUTIES.—For purposes of this section, the Sec-
retary, working in conjunction with the Secretary of Edu-
cation, the Secretary of Agriculture, and the Financial 
Literacy and Education Commission, shall—
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(1) identify programs that promote or enhance 
financial literacy for college students, with specific 
emphasis on programs that impart the knowledge 
and ability for students to best navigate the finan-
cial aid process, including those that involve partner-
ships between nonprofit organizations, colleges and 
universities, State and local governments, and stu-
dent organizations; 
(2) evaluate the effectiveness of such programs 
in terms of measured results, including positive be-
havioral change among college students; 
(3) promote the programs identified as being 
the most effective; and 
(4) encourage institutions of higher education 
to implement financial education programs for their 
students, including those that have the highest eval-
uations. 
(c) REPORT.— 
(1) IN GENERAL.—Not later than 2 years after 
the date of enactment of this title, the Financial Lit-
eracy and Education Commission shall submit a re-
port to Congress on the state of financial education 
among students at institutions of higher education. 
(2) CONTENT.—The report required by this 
subsection shall include a description of progress
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made in enhancing financial education with respect 
to student understanding of financial aid, including 
the programs and evaluations required by this sec-
tion. 
(3) APPEARANCE
BEFORE
CONGRESS.—The 
Secretary shall, upon request, provide testimony be-
fore the Committee on Banking, Housing, and 
Urban Affairs of the Senate concerning the report 
required by this subsection. 
Subtitle D—Study and Report on 
Nonindividual Information 
SEC. 1041. STUDY AND REPORT ON NONINDIVIDUAL INFOR-
MATION. 
(a) STUDY.—The Comptroller General of the United 
States (in this section referred to as the ‘‘Comptroller’’) 
conduct a study— 
(1) on the impact on and benefits to borrowers 
of the inclusion of nonindividual factors, including 
cohort default rate, accreditation, and graduation 
rate at institutions of higher education, used in the 
underwriting criteria to determine the pricing of pri-
vate educational loans; 
(2) to examine whether and to what extent the 
inclusion of such nonindividual factors—
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(A) increases access to private educational 
loans for borrowers who lack credit history or 
results in less favorable rates for such bor-
rowers; and 
(B) impacts the types of private edu-
cational loan products and rates available at 
certain institutions of higher education, includ-
ing a comparison of such impact— 
(i) on private and public institutions; 
and 
(ii) on historically Black colleges and 
universities (defined for purposes of this 
section as a ‘‘part B institution’’, within 
the meaning of section 322 of the Higher 
Education Act of 1965 (20 U.S.C. 1061)) 
and other colleges and universities; and 
(3) to assess the extent to which the use of 
such nonindividual factors in underwriting may have 
a disparate impact on the pricing of private edu-
cational loans, based on gender, race, income level, 
and institution of higher education. 
(b) REPORT.—Not later than 1 year after the date 
of enactment of this title, the Comptroller shall submit 
a report to Congress on the results of the study required 
by this section.
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Subtitle E—Incentives For Low- 
Cost Educational Loans 
SEC. 1051. CRA CREDIT FOR LOW-COST EDUCATIONAL 
LOANS. 
Section 804 of the Community Reinvestment Act of 
1977 (12 U.S.C. 2903) is amended by adding at the end 
the following new subsection: 
‘‘(d) LOW-COST EDUCATIONAL LOANS.—In assessing 
and taking into account, under subsection (a), the record 
of a financial institution, the appropriate Federal financial 
supervisory agency shall consider, as a factor, low-cost 
educational loans provided by the financial institution to 
low-income borrowers.’’. 
Passed the House of Representatives February 7, 
2008. 
Attest: 
Clerk.
110TH CONGRESS 
2D SESSION 
H. R. 4137 
AN ACT 
To amend and extend the Higher Education Act of 
1965, and for other purposes.