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Illinois provides guides and templates before you know the reporting requirements of the Private Education Loan Act. Ballard Spahr LLP

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Private education lenders doing business in Illinois will now have access to official information guides and templates to meet November 1, 2022, the state’s new Know Before You Borrow Private Education Loan Law (“KBYO”).

KBYO is being promoted as a way for borrowers to recognize federal student loan options before taking out private loans, and through the annual reporting obligations imposed on lenders, it also collects and publishes data on private education loans. I am aiming. This requirement applies to “private education lenders” as defined in Section 140 (a) (7), 15USC §1650 (a) (7) of the Truth in Lending Act (“TILA”). Lenders with more than 10 “private education loans” per year (as defined in TILA Sections 140 (a) (8)) submit a detailed annual report to the Illinois Student Loan Ombudsman in the Attorney General’s Office. is needed. Lenders issuing 10 or less such loans should submit a simplified annual report instead of a full report. Both the annual report and the annual report take the form of an Excel spreadsheet template.

For lenders who make more than 10 private education loans annually, Annual report template Comes with 5 pages Annual Report Information Guide.. KBYO specifies five categories of information to include in the report, but the Attorney General’s office categorizes the categories into individual parts of the template as follows:

  • Information about the lender (which may have been pre-filled using the drop-down list on the form) and comprehensive data such as:
    • Total number of private education loans started in the calendar year.When
    • Past lifetime default rates for lenders’ private education loans, calculated from August 26, 2021, when KBYO signed the law.
  • Information about loan amounts categorized by higher education institution paid, including the following data points:
    • The number of private education loans paid to educational institutions.
    • The number of unique borrowers paid by the institution.
    • The total amount of private education loans paid to educational institutions.
    • The number of loans paid to an institution without certification as required in Section 10 (a) of KBYO.
    • 10 (a) The total amount of loans paid to the institution without certification.
    • 10 (a) Number of loans made without certification if the institution refuses to certify.When
    • 10 (a) Number of loans taken without authorization if the institution notifies the lender that it will take at least 15 statutory days to reply.
  • Information that corresponds to the promissory note, contract, contract, or other means of each model or template used in the previous year. These copies must be emailed individually as PDF attachments. It contains the following identifiers:
    • The date the model document was used.
    • The number of borrowers provided with virtually similar documents.When
    • The category of the borrower in which the document was used.

The Annual report template Comes with 2 pages Annual Report Information Guide.. In contrast to the report, the annual report only requires identification information about the lender and proof of the number of private education loans paid that year.

The Attorney General’s Office states that applicable submissions must be emailed by November 1, 2022. Future deadlines have not yet been announced.

Links to guides and templates and additional information are available in the Attorney General’s July 21 press release and its. Student loan page.

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