STUDENT LOAN INFORMATION BY ELIGIBLE LENDERS.

SEC. 426. STUDENT LOAN INFORMATION BY ELIGIBLE LENDERS. (a) Required Disclosure Before Disbursement.— Section 433(a) of the Act (20 U.S.C. 1083) is amended— (1) by redesignating paragraphs (1) through (13) as paragraphs (2) through (14), respectively; and (2) by inserting before paragraph (2) (as redesignated in subparagraph (A)) the following new paragraph: “(1) a statement prominently and clearly displayed and in bold print that the borrower is receiving a loan that must be repaid;”. (b) Required Disclosure Before Repayment.— Section 433(b) of the Act is amended— (1) in the matter preceding paragraph (1), by striking the second sentence and inserting the following: “For any loan made, insured, or guaranteed under this part, other than a loan made under section 428B or 428C, such disclosure required by this subsection shall be made not less than 60 days nor more than 240 days before the first payment on the loan is due from the borrower.”; and (2) in paragraph (8), by inserting “except as provided in subsection (e)”, before “the projected”. (c) Special Rules.— Section 433 of the Act is further amended by adding at the end the following new subsections: “(e) Special Disclosure Rules on SLS Loans and PLUS Loans and Unsubsidized Loans.— Loans made under section 428A, 428B, and 428H shall not be subject to the disclosure of projected monthly payment amounts required under subsection (b)(8) if the lender, in lieu of such disclosure, provides the borrower with sample projec-106 STAT. 549tions of monthly repayment amounts assuming different levels of borrowing and interest accruals resulting from capitalization of interest while the borrower is in school. Such sample projections shall disclose the cost to the student of capitalizing— “(1) principal and interest; and “(2) interest only”.