‘‘(ii) is not made, insured, or guaran-
teed under title VII or title VIII of the 
Public Health Service Act (42 U.S.C. 292 
et seq. and 296 et seq.); and’’. 
(c) REGULATIONS.—Not later than 365 days after 
the date of enactment of this Act, the Consumer Financial 
Protection Bureau shall issue regulations in final form to 
implement paragraphs (3) and (9) of section 128(e) of the 
Truth in Lending Act (15 U.S.C. 1638(e)), as amended 
by subsection (a). Such regulations shall become effective 
not later than 6 months after their date of issuance. 
SEC. 3. AMENDMENT TO THE HIGHER EDUCATION ACT OF 
1965. 
(a) AMENDMENT TO THE HIGHER EDUCATION ACT 
OF 1965.—Section 487(a) of the Higher Education Act 
of 1965 (20 U.S.C. 1094(a)) is amended by striking para-
graph (28) and inserting the following: 
‘‘(28)(A) The institution shall— 
‘‘(i) upon the request of a private edu-
cational lender, acting in connection with 
an application initiated by a borrower for 
a private education loan in accordance with 
section 128(e)(3) of the Truth in Lending 
Act, provide certification to such private 
educational lender— 
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‘‘(I) that the student who initi-
ated the application for the private 
education loan, or on whose behalf the 
application was initiated, is enrolled 
or is scheduled to enroll at the institu-
tion; 
‘‘(II) of such student’s cost of at-
tendance at the institution as deter-
mined under part F of this title; and 
‘‘(III) 
of 
the 
difference 
be-
tween— 
‘‘(aa) the cost of attendance 
at the institution; and 
‘‘(bb) the student’s esti-
mated financial assistance re-
ceived under this title and other 
assistance known to the institu-
tion, as applicable; and 
‘‘(ii) provide the certification de-
scribed in clause (i), or notify the creditor 
that the institution has received the re-
quest for certification and will need addi-
tional time to comply with the certification 
request— 
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‘‘(I) within 15 business days of 
receipt of such certification request; 
and 
‘‘(II) only after the institution 
has completed the activities described 
in subparagraph (B). 
‘‘(B) The institution shall, upon receipt of 
a certification request described in subpara-
graph (A)(i), and prior to providing such cer-
tification— 
‘‘(i) determine whether the student 
who initiated the application for the pri-
vate education loan, or on whose behalf the 
application was initiated, has applied for 
and exhausted the Federal financial assist-
ance available to such student under this 
title and inform the student accordingly; 
and 
‘‘(ii) provide the borrower whose loan 
application has prompted the certification 
request by a private education lender, as 
described in subparagraph (A)(i), with the 
following information and disclosures: 
‘‘(I) The amount of additional 
Federal student assistance for which 
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the borrower is eligible and the advan-
tages of Federal loans under this title, 
including disclosure of the fixed inter-
est rates, deferments, flexible repay-
ment options, loan forgiveness pro-
grams, and additional protections, and 
the higher student loan limits for de-
pendent students whose parents are 
not eligible for a Federal Direct 
PLUS Loan. 
‘‘(II) The borrower’s ability to 
select a private educational lender of 
the borrower’s choice. 
‘‘(III) The impact of a proposed 
private education loan on the bor-
rower’s potential eligibility for other 
financial assistance, including Federal 
financial assistance under this title. 
‘‘(IV) The borrower’s right to ac-
cept or reject a private education loan 
within the 30-day period following a 
private educational lender’s approval 
of a borrower’s application and about 
a borrower’s 3-day right to cancel pe-
riod. 
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‘‘(C) For purposes of this paragraph, the 
terms ‘private educational lender’ and ‘private 
education loan’ have the meanings given such 
terms in section 140 of the Truth in Lending 
Act (15 U.S.C. 1650).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect on the effective date of the 
regulations described in section 2(c). 
SEC. 4. REPORT. 
Not later than 24 months after the issuance of regu-
lations under section 2(c), the Director of the Consumer 
Financial Protection Bureau and the Secretary of Edu-
cation shall jointly submit to Congress a report on the 
compliance of institutions of higher education and private 
educational lenders with section 128(e)(3) of the Truth 
in Lending Act (15 U.S.C. 1638(e)), as amended by sec-
tion 2, and section 487(a)(28) of the Higher Education 
Act of 1965 (20 U.S.C. 1094(a)), as amended by section 
3. Such report shall include information about the degree 
to which specific institutions utilize certifications in effec-
tively encouraging the exhaustion of Federal student loan 
eligibility and lowering student private education loan 
debt. 
Æ 
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