,,ii #aah? ,,congress #a/ ,session ,s4 #acf ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,janu>y #cj1 #bjbc ,mr4 ,"y 7= himself1 ,mr4 ,w>n]1 ,mr4 ,rubio1 & ,mr4 ,coons7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,f9ance ,a ,,bill ,to provide a consum] protection framework necess>y to support ! gr[? ( accessible1 af=dable1 & acc\ntable f9anc+ options = po/second>y education1 & = o!r purposes4 #a4 ,%ort title2 table ( cont5ts 7a7 ,%ort title ,?is ,act may be cit$ z ! ,,isa ,/ud5t ,protection ,act ( #bjbc4 7b7 ,table ( cont5ts ,! table ( cont5ts = ?is ,act is z foll[s3 ,sec4 #a4 ,%ort title2 table ( cont5ts4 ,sec4 #b4 ,def9itions4 ,sec4 #c4 ,effective date4 ,,title ,i--,new consum] protections specific to income %>e agreem5ts ,sec4 #aja4 ,prohibition on accel]ation2 treatm5t ( e>ly completion me*anisms4 ,sec4 #ajb4 ,consum] protections = educational income %>e agreem5ts4 ,sec4 #ajc4 ,dis*>ge protections = ,,isa recipi5ts4 ,sec4 #ajd4 ,limitation on am\nts treat$ z income "u educational ,i,s,as4 ,,title ,,ii--,tax treatm5t ( income %>e agreem5ts ,sec4 #bja4 ,tax treatm5t4 ,,title ,,iii--,disclosures applicable to income %>e agreem5ts ,sec4 #cja4 ,disclosures4 ,sec4 #cjb4 ,requir$ disclosures = income %>e agreem5ts4 ,sec4 #cjc4 ,additional requirem5ts = educational ,i,s,as4 ,sec4 #cjd4 ,adv]tis+ ( income %>e agreem5ts4 ,,title ,,iv--,o!r cl>ifications to support ,,isa programs ,sec4 #dja4 ,treatm5t "u securities laws4 ,sec4 #djb4 ,treatm5t "u bankruptcy laws4 ,sec4 #djc4 ,cons5t to cont9u+ release ( taxpay] in=mation "u educational ,i,s,as & income %>e agreem5ts4 ,sec4 #djd4 ,int]play ) ! ,high] ,education ,act ( #aife4 ,,title ,v--,apply+ exi/+ consum] protections to income %>e agreem5ts ,sec4 #eja4 ,equal access to income %>e agreem5ts4 ,sec4 #ejb4 ,prohibition on requir+ preau?oriz$ electronic fund transf]s "u ! ,electronic ,fund ,transf] ,act4 ,sec4 #ejc4 ,treatm5t "u ! ,fair ,cr$it ,report+ ,act4 ,sec4 #ejd4 ,treatm5t "u ! ,fair ,debt ,collection ,practices ,act4 ,sec4 #eje4 ,treatm5t ( educational income %>e agreem5ts = purposes ( ,milit>y ,l5d+ ,act4 ,sec4 #ejf4 ,treatm5t "u ! ,s]vicememb]s ,civil ,relief ,act4 ,sec4 #ejg4 ,pres]vation ( consum]s' claims & def5ses4 ,,title ,,vi--,relation to o!r laws ,sec4 #fja4 ,treatm5t "u o!r laws4 ,sec4 #fjb4 ,relation to ,/ate law4 ,,title ,,vii--,en=cem5t & report+ ,sec4 #gja4 ,en=cem5t4 ,sec4 #gjb4 ,report+ requirem5t = ! ,bureau ( ,consum] ,f9ancial ,protection4 #b4 ,def9itions ,9 ?is ,act3 7#a7 ,adv]se action ,! t]m adv]se action-- 7,a7 means a d5ial or revocation ( rights "u an income %>e agreem5t1 a *ange 9 ! t]ms ( an exi/+ income %>e agreem5t1 or a refusal to grant an income %>e agreem5t 9 sub/antially ! am\nt or on sub/antially ! t]ms reque/$2 & 7,b7 does n include a refusal to ext5d additional disbursem5ts or am\nts f9anc$ "u an income %>e agreem5t "u an exi/+ income %>e agreem5t arrangem5t if-- 7i7 ! applicant is del9qu5t or o!rwise 9 default2 or 7ii7 su* additional am\nts w\ld exce$ a previ\sly e/abli%$ limit on ! am\nt f9anc$4 7#b7 ,am\nt f9anc$ ,! t]m am\nt f9anc$ means1 ) respect to an income %>e agreem5t1 ! am\nts cr$it$ or advanc$ by ! ,,isa provid] to ! ,,isa recipi5t or on behalf ( ! ,,isa recipi5t4 7#c7 ,annual p]c5tage rate ,! t]m annual p]c5tage rate means ! annual p]c5tage rate describ$ 9 section #ajbf4bb7;a7 ( title #ab1 ,code ( ,f$]al ,regulations4 7#d7 ,applicant ,! t]m applicant means1 ) respect to an income %>e agreem5t1 any individual :o applies to an ,,isa provid] directly or indirectly = an ext5sion1 r5ewal1 or cont9uation ( an income %>e agreem5t & includes applications = an additional am\nt exce$+ a previ\sly e/abli%$ limit on ! am\nt f9anc$4 7#e7 ,bureau ,! t]m ,bureau means ! ,bureau ( ,consum] ,f9ancial ,protection4 7#f7 ,comp>able loan ,! t]m comp>able loan means1 ) respect to an income %>e agreem5t1 a loan t-- 7,a7 has an am\nt f9anc$1 z describ$ 9 section #ajbf4ah7;b7 ( title #ab1 ,code ( ,f$]al ,regulations1 t is equal to ! total am\nt f9anc$1 z def9$ 9 p>agraph 7#b71 = ! income %>e agreem5t2 7,b7 has-- 7i7 ! same disbursem5ts or f9anc+ dates1 paym5t />t date1 & frequ5cy ( paym5ts z ! income %>e agreem5t2 & 7ii7 an expect$ numb] ( paym5ts equal to ! ,,isa maximum numb] ( paym5ts2 & 7,c7 is fully amortiz$ ov] ! ,,isa duration1 ) sub/antially equal p]iodic paym5ts ( pr9cipal & int]e/4 7#g7 ,consum] ,! t]m consum] means a natural p]son us+ an income %>e agreem5t = p]sonal1 family1 or h\sehold purposes4 7#h7 ,consum] protection regulation ,! t]m consum] protection regulation means a regulation t ! ,bureau is au?oriz$ to prescribe "u ,f$]al consum] f9ancial law1 z def9$ 9 section #ajjb ( ! ,consum] ,f9ancial ,protection ,act ( #bjaj 7#ab ,u4,s4,c4 #edha74 7#i7 ,cov]$ educational in/itution ,! t]m cov]$ educational in/itution-- 7,a7 means-- 7i7 an educational in/itution t w\ld be an in/itution ( high] education1 if su* det]m9ation 0 made )\t reg>d to ! in/itution's accr$itation /atus2 & 7ii7 an in/itution-affiliat$ organization1 z def9$ 9 section #aea ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajai72 & 7,b7 includes an ag5t1 (fic]1 or employee ( ! in/itution ( high] education or in/itution-affiliat$ organization4 7#aj7 ,date ( ! ,,isa ,! t]m date ( ! ,,isa means ! date t is ! lat] (-- 7,a7 ! date on :i* ! income %>e agreem5t is sign$ by ! ,,isa recipi5t & ! ,,isa provid]2 or 7,b7 ! date on :i* ! income %>e agreem5t is accept$ by ! ,,isa recipi5t & ! ,,isa provid]4 7#aa7 ,director ,! t]m ,director means ! ,director ( ! ,bureau4 7#ab7 ,disbursem5t ,! t]m disbursem5t1 :5 us$ ) respect to an income %>e agreem5t1 means ! advance ( ,,isa f9anc+ to an ,,isa recipi5t or ! advanc+ ( ,,isa f9anc+ to a ?ird p>ty on ! ,,isa recipi5t's behalf4 7#ac7 ,educational ,,isa2 educational income %>e agreem5t ,! t]m educational ,,isa or educational income %>e agreem5t-- 7,a7 means an income %>e agreem5t t-- 7i7 is n made1 insur$1 or gu>ante$ "u title ,,iv ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajgj et seq47 or ano!r f$]ally subsidiz$ educational f9ance program2 7ii7 pays am\nts to1 or on behalf (1 ! ,,isa recipi5t =-- 7,i7 co/s associat$ ) a po/second>y tra9+ program1 or any o!r program design$ to increase ! individual's human capital1 employability1 or e>n+ pot5tial 7& n limit$ to programs eligible to p>ticipate "u title ,,iv ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajgj et seq4772 7,,ii7 any p]sonal exp5ses 7su* z books1 supplies1 transportation1 & liv+ co/s7 incurr$ by ! individual :ile enroll$ 9 a program describ$ 9 subclause 7,i72 7,,iii7 any o!r co/s or exp5ses includ$ 9 ! def9ition ( a qualifi$ high] education exp5se1 z def9$ 9 section #ebi7;e77#c77;,a7 ( ! ,int]nal ,rev5ue ,code ( #aihf2 & 7,,iv7 ! ref9anc+ ( loans or income %>e agreem5ts us$ = ! purposes describ$ 9 subclauses 7,i7 ?r\gh 7,,iii71 & )\t reg>d z to :e!r ! income %>e agreem5t is provid$ by ! educational in/itution t ! ,,isa recipi5t att5ds2 & 7,b7 does n include a loan1 op5-end cr$it1 or any loan or income %>e agreem5t t is secur$ by real prop]ty or a dwell+4 7#ad7 ,education loan ,! t]m education loan means-- 7,a7 a loan made1 insur$1 or gu>ante$ "u title ,,iv ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajgj et seq47 or any o!r loan made1 insur$1 or gu>ante$ by ! ,f$]al ,gov]nm5t2 or 7,b7 a private education loan1 z su* t]m is def9$ 9 section #adj7;a7 ( ! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afej7;a774 7#ae7 ,income ,! t]m income means ! ,,isa ,recipi5t's income1 z e/abli%$ 9 ! income %>e agreem5t "u section #cjb7;d77#h71 subject to section #ajd4 7#af7 ,income %>e agreem5t 7,a7 ,9 g5]al ,! t]m income %>e agreem5t means a f9ancial product :]eby-- 7i7 7,i7 ! ,,isa provid] cr$its or advances f9anc+ to ! ,,isa recipi5t or to a ?ird p>ty on behalf ( ! ,,isa recipi5t2 or 7,,ii7 if ! ,,isa provid] is a m]*ant f9anc+ ! sale ( goods or s]vices to ! ,,isa recipi5t via ! f9ancial product1 ! ,,isa provid] cr$its ! am\nt f9anc$ t[>d ! pur*ase ( su* goods or s]vices2 7ii7 ! ,,isa recipi5t is obligat$ to make p]iodic ,,isa paym5ts 7if any become due7 to ! ,,isa provid] 9 ! future calculat$ bas$ ^u & det]m9$ by ! ,,isa recipi5t's future income2 7iii7 ! ,,isa recipi5t's obligation to make paym5ts 7if any become due7 to ! ,,isa provid] is conditional on ! ,,isa recipi5t's income exce$+ ! income ?re%old set 9 ! income %>e agreem5t2 7iv7 !re is an ,,isa duration aft] :i* ! obligation is complete reg>dless ( h[ mu* has be5 paid 7z long z ! ,,isa recipi5t has paid any prior am\nts due72 7v7 ! ,,isa provid] & ! ,,isa recipi5t ent] into an agreem5t t1 z ( ! date ( ! ,,isa1 includes ea* elem5t describ$ 9 clauses 7i7 ?r\gh 7iv72 & 7vi7 ! agreem5t /ates t x is an income %>e agreem5t & subject to ?is ,act4 7,b7 ,special rule ,if a provid] (f]s a f9ancial product t meets ! requirem5ts ( clauses 7i7 ?r\gh 7v7 b does n include ! /atem5t describ$ 9 clause 7vi71 !n ! f9ancial product is n an income %>e agreem5t & %all be consid]$ cr$it4 7#ag7 ,income ?re%old ,! t]m income ?re%old means a fix$ doll> am\nt t is ! m9imum income p] paym5t p]iod t an ,,isa recipi5t is requir$ to e>n be=e ! ,,isa recipi5t is requir$ to make a paym5t on an income %>e agreem5t = su* paym5t p]iod4 7#ah7 ,in/itution ( high] education ,! t]m in/itution ( high] education has ! mean+ giv5 ! t]m 9 section #ajb ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajjb74 7#ai7 ,,isa duration ,! t]m ,,isa duration means ! maximum l5g? ( "t dur+ :i* ! income ( an ,,isa recipi5t c be subject to an ,,isa paym5t 7abs5t p]iods ( paym5t relief pause at ! reque/ ( ! ,,isa recipi5t74 7#bj7 ,,isa f9anc+ ,! t]m ,,isa f9anc+ means ! disbursem5t ( funds by an ,,isa provid] "u an income %>e agreem5t4 7#ba7 ,,isa maximum numb] ( paym5ts ,! t]m ,,isa maximum numb] ( paym5ts means ! maximum numb] ( ,,isa paym5ts 7dur+ ,,isa paym5t p]iods 9 :i* ! ,,isa recipi5t's income is great] ?an ! income ?re%old7 t an ,,isa recipi5t c\ld be requir$ to make4 7#bb7 ,,isa paym5t ,! t]m ,,isa paym5t-- 7,a7 means ! am\nt ( an ,,isa recipi5t's p]iodic paym5t obligation1 bas$ on ! t]ms ( ! income %>e agreem5t1 dur+ any paym5t p]iod = :i* ! ,,isa recipi5t's income is great] ?an ! income ?re%old2 & 7,b7 is calculat$ us+ ! ,,isa paym5t calculation me?od1 bas$ on ! ,,isa recipi5t's income = ! specifi$ p]iod4 7#bc7 ,,isa paym5t calculation me?od ,! t]m ,,isa paym5t calculation me?od means ! ,,isa p]c5tage1 or ! s*$ule ( fix$ doll> am\nts bas$ on ! ,,isa recipi5t's income = a paym5t p]iod1 t is us$ to calculate an ,,isa recipi5t's ,,isa paym5t "u ! income %>e agreem5t4 7#bd7 ,,isa paym5t w9d[ ,! ,,isa paym5t w9d[ means ! p]iod dur+ :i* ! ,,isa recipi5t is requir$ to make ,,isa paym5ts 9 p]iods :]e ! ,,isa recipi5t's income is great] ?an ! income ?re%old = ! income %>e agreem5t4 7#be7 ,,isa p]c5tage ,! t]m ,,isa p]c5tage means a p]c5tage ( income 7or s*$ule ( p]c5tages ( income bas$ on ! ,,isa recipi5t's income 9 a giv5 ,,isa paym5t p]iod7 us$ to calculate an ,,isa recipi5t's ,,isa paym5t pursuant to an income %>e agreem5t4 7#bf7 ,,isa provid] ,! t]m ,,isa provid] means a p]son t provides f9anc+ to an ,,isa recipi5t pursuant to an income %>e agreem5t or1 9 ! case ( a p]son :o is a m]*ant f9anc+ ! sale ( goods or s]vices to ! ,,isa recipi5t1 ! m]*ant4 7#bg7 ,,isa recipi5t ,! t]m ,,isa recipi5t means a consum] t receives f9anc+ f an ,,isa provid] pursuant to an income %>e agreem5t4 7#bh7 ,loan ,! t]m loan means a f9ancial product t-- 7,a7 is cr$it1 z def9$ 9 section #ajbf4b7;a7 ( title #ab1 ,code ( ,f$]al ,regulations2 7,b7 is n an income %>e agreem5t2 & 7,c7 involves ! advance ( a sum ( money to a borr[] "u an obligation to repay ! pr9cipal ) a correspond+ "r to def] paym5t ( ! pr9cipal balance ) or )\t int]e/4 7#bi7 ,loan comp>ison ,! t]m loan comp>ison means ! comp>ison table requir$ "u section #cjb7;d77#i74 7#cj7 ,paym5t relief pause ,! t]m paym5t relief pause means a p]iod ( "t t-- 7,a7 is reque/$ by ! ,,isa recipi5t dur+ :i* any paym5t obligation ! ,,isa recipi5t w\ld h is susp5d$2 & 7,b7 does n c\nt t[>d an ,,isa recipi5t's ,,isa paym5t w9d[ or ,,isa maximum numb] ( paym5ts4 7#ca7 ,p]son ,! t]m p]son means a natural p]son or an organization1 includ+ a corporation1 p>tn]%ip1 proprietor%ip1 association1 coop]ative1 e/ate1 tru/1 or gov]nm5t unit4 7#cb7 ,pov]ty l9e ,! t]m pov]ty l9e has ! mean+ giv5 ! t]m 9 section #fgc ( ! ,community ,s]vices ,block ,grant ,act 7#db ,u4,s4,c4 #iijb74 7#cc7 ,secret>y ,! t]m ,secret>y means ! ,secret>y ( ,education4 7#cd7 ,/ate ,! t]m ,/ate means ! sev]al ,/ates ( ! ,unit$ ,/ates1 ! ,commonweal? ( ,pu]to ,rico1 ! ,di/rict ( ,columbia1 ,guam1 ,am]ican ,samoa1 ! ,virg9 ,isl&s1 ! ,nor!rn ,m>iana ,isl&s1 ! ,f$]at$ ,/ates ( ,micronesia1 ! ,republic ( ! ,m>%all ,isl&s1 & ! ,republic ( ,palau4 7#ce7 ,/ate law ,! t]m ,/ate law means-- 7,a7 any law1 decision1 rule1 regulation1 or o!r action hav+ ! effect ( a law ( any ,/ate or any political subdivision ( a ,/ate1 or any ag5cy or in/rum5tality ( a ,/ate or political subdivision ( a ,/ate2 & 7,b7 any law ( ! ,unit$ ,/ates applicable only to ! ,di/rict ( ,columbia4 #c4 ,effective date ,?is ,act1 & ! am5dm5ts made by ?is ,act1 %all take effect on ! date t is #ahj days aft] ! date ( enactm5t ( ?is ,act4 ,i ,new consum] protections specific to income %>e agreem5ts #aja4 ,prohibition on accel]ation2 treatm5t ( e>ly completion me*anisms 7a7 ,no accel]ation 7#a7 ,9 g5]al ,an ,,isa provid] %all n include any me*anism 9 an income %>e agreem5t t accel]ates an am\nt aga9/ an ,,isa recipi5t 9 ! ev5t ( a default "u ! income %>e agreem5t4 7#b7 ,effect ( accel]ation clause ,any agreem5t ) an accel]ation me*anism describ$ 9 p>agraph 7#a7 %all1 = purposes ( all ,f$]al law1 be treat$ z cr$it "u ,f$]al law & %all n be treat$ z an income %>e agreem5t4 7b7 ,no impact on e>ly completion me*anisms ,not)/&+ subsection 7a7-- 7#a7 an income %>e agreem5t may conta9 an e>ly completion provision t all[s ! ,,isa recipi5t to t]m9ate ! income %>e agreem5t prior to any trigg] t]m9at+ fur!r obligations "u ! income %>e agreem5t 7su* z a total cap on paym5ts due to ! ,,isa provid] or o!r rights to p>tially or fully t]m9ate fur!r obligations "u ! income %>e agreem5t7 if ! e>ly completion provision is optional to ! ,,isa recipi5t & )9 ! ,,isa recipi5t's control2 & 7#b7 su* e>ly completion me*anism %all n be treat$ z a =m ( accel]ation prohibit$ "u subsection 7a71 an e>ly completion p5alty1 or a prepaym5t p5alty4 #ajb4 ,consum] protections = educational income %>e agreem5ts 7a7 ,mon?ly paym5t af=dability = educational ,i,s,as 7#a7 ,maximum ,,isa income obligation = educational ,i,s,as ,an ,,isa provid] %all n ent] into an educational ,,isa ) an ,,isa recipi5t if ! ,,isa recipi5t w\ld be committ+ m ?an a total ( #bj p]c5t ( ! /ud5t's future income t[>d ! paym5t ( su* educational ,,isa & all o!r educational ,i,s,as ( ! ,,isa recipi5t4 7#b7 ,self-c]tification ,9 calculat+ ! portion ( a /ud5t's future income = purposes ( ?is subsection1 ! ,,isa provid] may rely on a self-c]tification f ! ,,isa recipi5t reg>d+ ! ,,isa recipi5t's out/&+ educational ,i,s,as1 z ( ! date ( ! agreem5t4 7#c7 ,calculation me?odology & requirem5ts 7,a7 ,9 g5]al ,= ! purposes ( calculat+ ! portion ( an ,,isa recipi5t's future income t w\ld be consum$ by ! educational ,,isa = :i* ! ,,isa recipi5t has appli$ & all o!r educational ,i,s,as ( ! ,,isa recipi5t z ( ! date ( ! agreem5t1 ! ,,isa provid] %all calculate ! aggregate future burd5-- 7i7 9 any case :]e ! income ?re%old ( ! educational ,,isa is less ?an ! maximum describ$ 9 subp>agraph 7,b71 at hypo!tical future income levels f su* income ?re%old to su* maximum1 9 increm5ts ( #aj1jjj2 & 7ii7 9 any case :]e ! income ?re%old ( ! educational ,,isa is equal to or great] ?an su* maximum1 at su* income ?re%old4 7,b7 ,maximum ,! maximum describ$ 9 ?is subp>agraph %all be ! great] (-- 7i7 7,i7 = fiscal ye> #bjbc1 #gj1jjj2 or 7ii7 = fiscal ye> #bjbd & ea* subsequ5t fiscal ye>1 ! maximum = ! prec$+ fiscal ye>-- 7,i7 increas$ by ! p]c5tage increase 9 ! consum] price index2 & 7,,ii7 r\nd$ to ! ne>e/ #a1jjj2 & 7iii7 9 ! case ( an ,,isa recipi5t :o has 7z ( ! date ( ! agreem5t71 or has appli$ =1 an educational ,,isa t uses a s*$ule ( income p]c5tages or a s*$ule ( fix$ am\nts z ! ,,isa paym5t calculation me?od1 ! highe/ income level ref]5c$ by a s*$ule = any su* educational ,,isa4 7,c7 ,calculation 7i7 ,9 g5]al ,! t]ms ( an educational ,,isa = :i* ! ,,isa recipi5t has appli$ _c cause ! /ud5t's aggregate future burd5 7def9$ z ! total am\nts expect$ to be due "u all educational ,i,s,as ( ! ,,isa recipi5t z ( ! date ( ! agreem5t1 & all educational ,i,s,as = :i* ! ,,isa recipi5t is apply+7 to exce$ ! limit 9 p>agraph 7#a7 at any ( ! income increm5ts describ$ 9 subp>agraph 7,a74 7ii7 ,calculation me?od ,= ! purpose ( calculat+ ! p]c5tage burd5 ( an educational ,,isa at a giv5 future income level1 ! ,,isa provid] %all1 z applicable1 use-- 7,i7 ! income p]c5tage t w\ld be applicable = ! educational ,,isa at su* income level2 or 7,,ii7 ! fix$ am\nt applicable = ! educational ,,isa at su* income level1 divid$ by su* income level4 7#d7 ,protections dur+ p]iods ( l[ e>n+s 7,a7 ,9 g5]al ,! educational ,,isa %all provide t :5 an ,,isa recipi5t has an income t is equal to or bel[ ! income ?re%old ( ! educational ,,isa1 ! ,,isa paym5t obligation is z]o doll>s4 7,b7 ,?re%old am\nt ,! income ?re%old = an educational ,,isa %all be an am\nt su* t ! diff]5ce betwe5 ! ,,isa recipi5t's income = ! paym5t p]iod1 m9us ! subtraction ( any ,,isa obligation1 is n less ?an #bjj p]c5t ( ! pov]ty l9e = a s+le p]son 7z def9$ 9 section #fgc ( ! ,community ,s]vices ,block ,grant ,act 7#db ,u4,s4,c4 #iijb771 prorat$ = ! paym5t p]iod4 7#e7 ,requir$ paym5t relief pauses ,an educational ,,isa %all (f] n less ?an #c mon?s ( volunt>y paym5t relief pauses 7z long z ! ,,isa recipi5t's curr5t income at ! "t ( reque/+ ! paym5t relief pause is equal to or less ?an #djj p]c5t ( ! pov]ty l9e7 = a s+le individual7 = e #cj income-det]m9$ paym5ts requir$ "u ! educational ,,isa4 7b7 ,ensur+ appropriate risk %>+ = educational ,i,s,as ,! paym5ts requir$ "u an educational ,,isa = an individual ) income dur+ ! paym5t t]m t is less ?an or equal to #cjj p]c5t ( ! pov]ty l9e = a s+le individual1 prorat$ = ! paym5t p]iod1 %all n exce$ ! paym5ts on a comp>able loan t be>s int]e/ at a rate less ?an or equal to "o-half ( ! annual p]c5tage rate ( int]e/ limitation "u section #ihg7;b7 ( title #aj1 ,unit$ ,/ates ,code4 7c7 ,limits on duration ( educational ,,isa obligation 7#a7 ,,isa maximum numb] ( paym5ts ,! ,,isa maximum numb] ( paym5ts %all n exce$ #bdj mon?ly paym5ts4 7#b7 ,,isa duration ,! ,,isa duration ( an educational ,,isa %all n exce$ #cfj mon?s 7except 9 ! case ( an ext5sion reque/$ by ! ,,isa recipi5t74 7d7 ,non-,int]f]5ce ,an educational ,,isa %all n be con/ru$ to give ! contract hold] any rights ov] an individual's actions o!r ?an z provid$ 9 ?is ,act4 #ajc4 ,dis*>ge protections = ,,isa recipi5ts 7a7 ,p]man5t & total disability ,9 any case :]e an ,,isa recipi5t w\ld be deem$ totally & p]man5tly disabl$ = purposes ( b5efits adm9i/]$ by ! ,dep>tm5t ( ,vet]ans ,affairs or ! ,social ,security ,adm9i/ration 7det]m9$ )\t reg>d to :e!r ! recipi5t receives su* b5efits71 all fur!r obligations ( ! ,,isa recipi5t "u ! income %>e agreem5t %all t]m9ate1 except ^? accru+ be=e ! date su* a det]m9ation w\ld apply4 7b7 ,dea? ,^u ! dea? ( an ,,isa recipi5t1 all fur!r obligations ( ! ,,isa recipi5t "u ! income %>e agreem5t %all t]m9ate1 except ^? obligations accru+ be=e ! ,,isa recipi5t's date ( dea?4 #ajd4 ,limitation on am\nts treat$ z income "u educational ,i,s,as 7a7 ,9 g5]al ,= purposes ( calculat+ ! obligation ( an ,,isa recipi5t to make ,,isa paym5ts "u an educational ,,isa1 ! income ( ! ,,isa recipi5t %all n include-- 7#a7 ! income ( any *ild or dep5d5t ( ! ,,isa recipi5t2 7#b7 any item ( income :i* is n includ$ 9 ! gross income ( ! ,,isa recipi5t2 7#c7 any am\nt receiv$ f an individual retirem5t plan 7z def9$ 9 section #ggja ( ! ,int]nal ,rev5ue ,code ( #aihf71 a p5sion1 or an annuity2 or 7#d7 any social security b5efit 7z def9$ 9 section #hf ( su* ,code74 7b7 ,e/imat+ income 7#a7 ,9 g5]al ,9 ! ev5t t an ,,isa recipi5t fails to provide income docum5tation z reasonably requir$ by ! income %>e agreem5t1 an ,,isa provid] may assign an am\nt ( income to ! p>ticipant & compute ! mon?ly paym5t am\nt = ! p>ticipant by any ( ! foll[+ me?ods1 to ! ext5t disclos$ 9 ! income %>e agreem5t3 7,a7 ,assign+ an income am\nt obta9$ f a reasonably reliable ?ird p>ty or a consum] report+ ag5cy1 z def9$ 9 section #fjc7;f7 ( ! ,fair ,cr$it ,report+ ,act 7#ae ,u4,s4,c4 #afha;a7f774 7,b7 ,if ! p>ticipant previ\sly provid$ income docum5tation or has _h an income assign$ 9 ! prec$+ #a-ye> p]iod1 assum+ t su* income has increas$ by up to #aj p]c5t1 b su* increase may n be appli$ m ?an once p] #a-ye> p]iod4 7,c7 ,contact+ ! employ] ( ! p>ticipant1 or any p]son or entity reasonably believ$ to be ! employ] ( ! p>ticipant1 to obta91 v]ify1 or update ! income in=mation ( ! p>ticipant4 7,d7 ,contact+ ! ,/ate rev5ue dep>tm5t or ! ,int]nal ,rev5ue ,s]vice to obta9 ! mo/ rec5t in=mation available ab\t ! income ( ! p>ticipant4 7,e7 ,= educational ,,isa provid]s1 9 any case :]e ! ,,isa provid] has no prior hi/ory ( income in=mation f ! p>ticipant1 assign+ a reasonable qualifi$ income bas$ on-- 7i7 ! m$ian income = individuals work+ 9 ! pr(ession = :i* ! educational program ( ! p>ticipant 0 int5d$ to prep>e ! p>ticipant1 z det]m9$ by in=mation publi%$ by ! ,bureau ( ,labor ,/ati/ics or o!r reasonably reliable publicly available data s\rces2 or 7ii7 ! m$ian income ( p>ticipants :o att5d$ ! same or a reasonably comp>able cov]$ educational program or c\rse ( /udy1 z det]m9$ by in=mation publi%$ by ! ,bureau ( ,labor ,/ati/ics or o!r reasonably reliable publicly available data s\rces4 7#b7 ,notification ,if an ,,isa provid] assigns an income to ! income %>e agreem5t ( a p>ticipant1 ! ,,isa provid]-- 7,a7 %all notify ! p>ticipant 9 ! mon?ly bill+ /atem5t1 & 9 ea* bill+ /atem5t !reaft] :ile ! assign$ income rema9s applicable to ! income %>e agreem5t ( ! p>ticipant1 t income has be5 assign$ & ( ! rights ( ! p>ticipant "u ?is section2 7,b7 9 any tax ye> = :i* ! ,,isa provid] has made an assumption ab\t an individual's income us+ any ( ! me?ods describ$ 9 p>agraph 7#a7 & if ! p>ticipant has au?oriz$ ongo+ access to ! p>ticipant's return in=mation "u section #djc1 %all reque/ su* in=mation 9 ea* ye> ( ! paym5t t]m2 7,c7 if ! p>ticipant does provide income in=mation z reasonably requir$ by ! income %>e agreem5t )9 #a ye> ( ! date on :i* ! ,,isa provid] notifi$ ! p>ticipant t assign$ income %all be appli$ to ! income %>e agreem5t or if ! ,,isa provid] receives updat$ income in=mation ?r\gh return in=mation au?oriz$ "u section #djc1 !n1 )9 #ae days aft] ! date on :i* ! ,,isa provid] receives su* in=mation1 %all-- 7i7 update ea* prior in/ance 9 :i* assign$ income 0 appli$ us+ su* new income in=mation2 & 7ii7 reconcile any diff]5ce 9 am\nts ow$ by ! p>ticipant bas$ on ^? updates to prior income2 & 7,d7 if ! p>ticipant provides income in=mation m ?an #a ye> aft] ! ,,isa provid] fir/ assign$ income to ! income %>e agreem5t ( ! p>ticipant1 may1 b %all n be obligat$ to1 update ea* prior in/ance 9 :i* assign$ income 0 appli$ us+ ! income in=mation provid$ by ! p>ticipant4 7#c7 ,records ret5tion ,an ,,isa provid] t assigns income to an income %>e agreem5t %all reta9 all applicable records relat+ to ! me?od & data s\rces us$ to make su* e/imation = #c ye>s aft] ! end ( t income %>e agreem5t4 ,,ii ,tax treatm5t ( income %>e agreem5ts #bja4 ,tax treatm5t 7a7 ,9 g5]al ,sub*apt] ,b ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+3 ,,xii ,rules relat+ to qualifi$ educational income %>+ agreem5ts ,sec4 #bic4 ,rules relat$ to qualifi$ educational ,i,s,as4 #bic4 ,rules relat$ to qualifi$ educational ,i,s,as 7a7 ,9 g5]al ,= purposes ( ?is title1 an educational ,,isa %all n be treat$ z indebt$ness4 7b7 ,treatm5t ( ,,isa recipi5t 7#a7 ,income exclusion ,9 ! case ( an individual-- 7,a7 ,9 g5]al ,gross income %all n include s mu* ( ! am\nt receiv$ "u an educational ,,isa z does n exce$ am\nts paid or cr$it$ to su* individual "u su* qualifi$ educational ,,isa = co/s & exp5ses describ$ 9 section #b7ac77;,a77ii77,,ii7 ( ! ,,isa ,/ud5t ,protection ,act ( #bjbc4 7,b7 ,diff]5ce 9 paym5ts ,9 any case 9 :i* ! am\nt provid$ to ! individual "u ! educational ,,isa exce$s ! total paym5ts made by ! individual "u ! educational ,,isa1 gross income %all n include ! am\nt ( su* excess4 7#b7 ,c]ta9 am\nts treat$ z int]e/ on qualifi$ education loans 7,a7 ,9 g5]al ,= purposes ( section #bba1 ! am\nt describ$ 9 subp>agraph 7,b7 ) respect to any educational ,,isa %all be treat$ z int]e/ paid by ! taxpay] dur+ ! taxable ye> on a qualifi$ education loan4 7,b7 ,am\nt describ$ ,! am\nt describ$ 9 ?is subp>agraph ) respect to any educational ,,isa is1 = any taxable ye>1 ! excess (-- 7i7 am\nts paid by ! taxpay] to ano!r p]son "u ! t]ms ( a qualifi$ educational ,,isa dur+ su* taxable ye>1 ov] 7ii7 ! excess (-- 7,i7 ! aggregate am\nt receiv$ "u su* qualifi$ educational ,,isa dur+ su* taxable ye> & all prec$+ taxable ye>s1 ov] 7,,ii7 ! aggregate am\nts paid by ! taxpay] to ano!r p]son "u ! t]ms ( su* qualifi$ educational ,,isa dur+ all prec$+ taxable ye>s4 7#c7 ,am\nts treat$ z educational assi/ance ,= purposes ( section #abg7;c77#a77;,b71 am\nts paid by an employ] 9 satisfaction ( obligations ( an employee "u a qualifi$ educational ,,isa %all be treat$ 9 ! same mann] z a paym5t ( pr9cipal or int]e/ on a qualifi$ education loan4 7c7 ,treatm5t ( ,,isa fund] ,gross income %all n include s mu* ( any am\nt receiv$ z a paym5t f a recipi5t "u an educational ,,isa fund$ by ! taxpay] z does n exce$ ! excess (-- 7#a7 ! aggregate am\nt ( f9anc+ provid$ by ! taxpay] "u su* educational ,,isa1 ov] 7#b7 ! aggregate am\nt ( su* paym5ts tak5 into acc\nt "u ?is subsection by ! taxpay] = all prec$+ taxable ye>s4 7d7 ,def9itions ,= purposes ( ?is section-- 7#a7 ,educational ,,isa ,! t]m educational ,,isa has ! mean+ giv5 su* t]m "u section #b ( ! ,,isa ,/ud5t ,protection ,act ( #bjbc4 7#b7 ,qualifi$ educational ,,isa ,! t]m qualifi$ educational ,,isa means an educational ,,isa t is ext5d$ = exp5ses at an in/itution ( high] education t p>ticipates 9 a /ud5t f9ancial assi/ance program "u title ,,iv ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajgj et seq474 4 7b7 ,con=m+ am5dm5t ,! table ( p>ts = sub*apt] ,b ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new item3 ,,"p ,,xii--,rules relat+ to qualifi$ educational income %>+ agreem5ts 4 ,,iii ,disclosures applicable to income %>e agreem5ts #cja4 ,disclosures ,! foll[+ disclosures %all be provid$ to ,,isa recipi5ts3 7#a7 ,9 g5]al ,an ,,isa provid] 7reg>dless ( :e!r ! ,,isa provid$ is an educational ,,isa7 %all provide1 to any individual t applies = or signs an income %>e agreem5t1 a writt5 docum5t t cle>ly & simply discloses ! in=mation requir$ by ?is ,act4 7#b7 ,application ,! provisions ( ?is title %all n apply to-- 7,a7 income %>e agreem5ts prim>ily = bus9ess1 comm]cial1 or agricultural purposes2 7,b7 gov]nm5t or gov]nm5tal ag5cies or in/rum5talities2 7,c7 organizations2 or 7,d7 transactions = :i* ! ,bureau1 by rule1 det]m9es t cov]age "u ! provisions ( ?is title are n necess>y to c>ry out ! purposes ( ?is title4 7#c7 ,regulations ,n lat] ?an #bgj days aft] ! date ( enactm5t ( ?is ,act1 ! ,bureau %all prescribe regulations to c>ry out ! purposes ( ?is title1 :i* may conta9 su* additional requirem5ts1 classifications1 diff]5tiations1 or o!r provisions1 & may provide = su* adju/m5ts & exceptions = all or any class ( transactions1 z 9 ! judgm5t ( ! ,bureau are necess>y or prop] to effectuate ! purposes ( ?is title1 to prev5t circumv5tion or evasion !re(1 or to facilitate compliance !re)4 7#d7 ,model disclosure =ms & clauses 7,a7 ,9 g5]al ,n lat] ?an #bgj days aft] ! date ( enactm5t ( ?is ,act1 ! ,bureau %all publi% a model integrat$ disclosure = educational ,i,s,as & a model integrat$ disclosure = income %>e agreem5ts g5]ally 9 ord] to facilitate compliance ) ! disclosure requirem5ts ( ?is ,act & aid ,,isa recipi5ts 9 und]/&+ ! transaction by utiliz+ readily und]/&able language to simplify ! te*nical nature ( ! disclosures4 7,b7 ,consid]ation ,9 devis+ ! disclosure =ms requir$ "u subp>agraph 7,a71 ! ,bureau %all consid] ! use by ,,isa provid]s ( data process+ or simil> automat$ equipm5t4 7,c7 ,rule ( con/ruction ,no?+ 9 ?is title may be con/ru$ to require an ,,isa provid] to use any model =m or clause publi%$ by ! ,bureau "u ?is section4 7,d7 ,compliance ,an ,,isa provid] %all be deem$ to be 9 compliance ) ! disclosure provisions ( ?is title ) respect to o!r ?an num]ical disclosures if ! ,,isa provid]-- 7i7 uses any appropriate model =m or clause z publi%$ by ! ,bureau "u ?is section2 or 7ii7 uses any su* model =m or clause & *anges ! =m or clause by-- 7,i7 delet+ any in=mation t is n requir$ "u ?is title2 or 7,,ii7 re>rang+ ! =mat1 if 9 mak+ su* deletion or re>rang+ ! =mat1 ! ,,isa provid] does n affect ! sub/ance1 cl>ity1 or mean+ful sequ5ce ( ! disclosure4 7#e7 ,proc$ures applicable = adoption ( model =ms & clauses ,model disclosure =ms & clauses "u ?is section %all be adopt$ by ! ,bureau aft] notice duly giv5 9 ! ,f$]al ,regi/] & an opportunity = public comm5t 9 accordance ) section #eec ( title #e1 ,unit$ ,/ates ,code4 7#f7 ,effective dates ( regulations conta9+ new disclosure requirem5ts 7,a7 ,9 g5]al ,any regulation ( ! ,bureau1 or any am5dm5t or int]pretation !re(1 requir+ any disclosure :i* diff]s f ! disclosures previ\sly requir$ by ?is title or any regulation ( ! ,bureau promulgat$ "u ?is title %all h an effective date ( t ,octob] #a :i* foll[s by n less ?an #f mon?s ! date ( promulgation1 except t ! ,bureau may at its discretion take int]im action by regulation1 am5dm5t1 or int]pretation to l5g!n ! p]iod ( "t p]mitt$ = ,,isa provid]s to adju/ _! =ms to accommodate new requirem5ts or %ort5 ! l5g? ( "t = ,,isa provid]s to make su* adju/m5ts :5 ! ,,isa provid] makes a specific f9d+ t su* action is necess>y to comply ) ! f9d+s ( a c\rt or to prev5t unfair or deceptive disclosure practices4 7,b7 ,compliance ,not)/&+ subp>agraph 7,a71 any ,,isa provid] may comply ) any su* newly promulgat$ disclosure requirem5ts prior to ! effective date ( ! requirem5ts4 7#g7 ,def]5ce ,not)/&+ any p[] grant$ to any ,f$]al ag5cy "u ?is ,act1 ! def]5ce t a c\rt af=ds to ! ,bureau ) respect to a det]m9ation made by ! ,bureau relat+ to ! mean+ or int]pretation ( any provision ( ?is ,act1 %all be appli$ z if ! ,bureau 7 ! only ag5cy au?oriz$ to apply1 en=ce1 int]pret1 or adm9i/] ! provisions ( ?is ,act4 #cjb4 ,requir$ disclosures = income %>e agreem5ts 7a7 ,disclosures requirem5ts = all ,i,s,as 7#a7 ,9 g5]al ,! ,,isa provid] %all make ! disclosures requir$ by ?is section cle>ly & conspicu\sly 9 writ+1 9 a =m t ! ,,isa recipi5t may reta94 7#b7 ,electronic =m ,! disclosures requir$ by ?is section may be provid$ to ! ,,isa recipi5t 9 electronic =m 9 accordance ) ! ,electronic ,signatures 9 ,global & ,national ,comm]ce ,act 7#ae ,u4,s4,c4 #gjja et seq474 7#c7 ,o!r requirem5ts ,! disclosures requir$ by ?is section %all-- 7,a7 be gr\p$ toge!r2 7,b7 be segregat$ f any?+ t is n su* a disclosure2 & 7,c7 only conta9 in=mation directly relat$ to ! disclosures requir$ "u ?is section4 7b7 ,use ( e/imates ,if any in=mation necess>y = an accurate disclosure is unkn[n to ! ,,isa provid]1 ! ,,isa provid] %all make ! disclosure bas$ on ! be/ in=mation reasonably available at ! "t ! disclosure is provid$ to ! ,,isa recipi5t1 & %all /ate cle>ly t ! disclosure is an e/imate4 7c7 ,multiple ,,isa provid]s1 multiple ,,isa recipi5ts 7#a7 ,multiple ,,isa provid]s ,9 any case :]e an income %>e agreem5t transaction involves m ?an "o ,,isa provid]1 only "o set ( disclosures %all be giv5 & ! ,,isa provid]s %all agree among !mselves :i* ,,isa provid] %all comply ) ! requirem5ts t ?is title imposes on any or all ( ! ,,isa provid]s4 7#b7 ,multiple ,,isa recipi5ts ,9 any case :]e an income %>e agreem5t transaction has m ?an "o ,,isa recipi5t1 ! disclosures may be made to any ,,isa recipi5t ^: income w be us$ to calculate ! ,,isa paym5ts due to ! ,,isa provid]4 7d7 ,cont5t ( disclosures ,an ,,isa provid] ( an income %>e agreem5t 7reg>dless ( :e!r ! income %>e agreem5t is an educational ,,isa7 %all provide1 to any p]son t applies = or signs a consum] income %>e agreem5t1 a writt5 docum5t t cle>ly & simply discloses ! foll[+ in=mation3 7#a7 ,a /atem5t t ! income %>e agreem5t is n a fix$ paym5t in/allm5t loan1 & t ! am\nt ! ,,isa recipi5t w be requir$ to pay "u ! income %>e agreem5t may be m or less ?an ! am\nt f9anc$ by ! ,,isa provid] & w v>y 9 proportion to ! ,,isa recipi5t's future income4 ,an ,,isa provid] may satisfy ! requirem5ts ( ?is p>agraph by provid+ a table t comp>es p]iodic paym5ts "u ! income %>e agreem5t at diff]5t income levels %[+ t paym5ts v>y ) income1 or t also comp>es su* p]iodic paym5ts "u ! ,,isa at diff]5t income levels ) a loan product4 7#b7 ,9 ! case ( an educational ,,isa1 ! foll[+ /atem5t3 ,?is income %>e agreem5t is n a grant or s*ol>%ip4 ,if y\r income is above ! ,income ,?re%old1 y w h to make paym5ts "u ?is income %>e agreem5t44 7#c7 ,! foll[+ /atem5t3 ,paym5ts due "u ?is income %>e agreem5t are det]m9$ by y\r income4 ,y\r paym5ts are calculat$ us+ ! ,,isa ,paym5t ,calculation ,me?od describ$ 9 y\r ,,isa4 ,! am\nt y pay may be m ?an1 equal to1 or less ?an ! am\nt f9anc$44 7#d7 ,9 a s]ies ( boxes or o!r device design$ to feature ! foll[+ in=mation m prom95tly ?an else:]e 9 ! income %>e agreem5t disclosures1 ! foll[+ in=mation3 7,a7 ,! t]m ,am\nt ,f9anc$ & ! doll> am\nt ( ! am\nt fund$1 foll[$ by a description t /ates1 ,! am\nt ( funds y w receive or t w be cr$it$ on y\r behalf44 7,b7 ,! t]m ,,isa ,paym5t ,calculation ,me?od & ! foll[+3 7i7 ,9 ! case ( an ,,isa paym5t calculation me?od t is a p]c5tage 7or s*$ule ( p]c5tages71 su* p]c5tage 7or s*$ule ( p]c5tages7 foll[$ by a description t /ates1 ,! p]c5tage ( y\r income us$ to calculate y\r ,,isa ,paym5t4 &1 if ! ,,isa paym5t calculation me?od is a s*$ule ( p]c5tages1 an explanation ( :]e ! ,,isa recipi5t c le>n m ab\t h[ ! ,,isa recipi5t's income p]c5tage is det]m9$4 7ii7 ,9 ! case ( an ,,isa paym5t calculation me?od t is a s*$ule ( fix$ doll> am\nts calculat$ bas$ on ! ,,isa recipi5t's income = a paym5t p]iod1 ! s*$ule ( fix$ am\nts 7or a ref]5ce to ! location ( ! s*$ule 9 ! ,,isa7 foll[$ by a description t /ates1 ,! am\nt ( y\r ,,isa ,paym5t w v>y bas$ on y\r income4 ,see y\r ,,isa = m in=mation44 7,c7 ,! t]m ,maximum ,numb] ( ,income-,det]m9$ ,paym5ts & ! ,,isa maximum numb] ( paym5ts1 foll[$ by a description t /ates1 ,! maximum numb] ( ,,isa paym5ts y w make :5 y\r income is above ! ,income ,?re%old44 7,d7 ,! t]m ,maximum ,duration & ! ,,isa duration1 foll[$ by a description t /ates1 ,! maximum am\nt ( "t t y are requir$ to make income-det]m9$ paym5ts1 exclud+ any ext5sions t y reque/44 7,e7 ,! t]m ,income ,?re%old & ! income ?re%old = ! income %>e agreem5t1 foll[$ by a description t /ates1 ,! m9imum income y mu/ make 9 ord] to trigg] a paym5t obligation "u ?is income %>e agreem5t4 ,if y\r income is less ?an or equal to ?is ,income ,?re%old1 y w n owe any ,,isa paym5ts = t p]iod44 7#e7 ,a /atem5t t dur+ p]iods 9 :i* ! ,,isa recipi5t's income is n above ! income ?re%old-- 7,a7 ! ,,isa recipi5t w n owe an ,,isa paym5t = t p]iod ( "t2 & 7,b7 any su* p]iod ( non-paym5t w n c\nt t[>ds ! ,,isa maximum numb] ( paym5ts b w c\nt t[>d ! ,,isa duration4 7#f7 ,a /atem5t t ! obligations ( ! ,,isa recipi5t "u ! income %>e agreem5t w\ld be dis*>geable 9 a case "u title #aa1 ,unit$ ,/ates ,code1 9 ! same mann] z a loan t is n describ$ 9 section #ebc7;a77#h7 ( title #aa1 ,unit$ ,/ates ,code4 7#g7 ,a description ( ! t]ms "u :i* ! obligations ( ! ,,isa recipi5t "u ! income %>e agreem5t %all be ext+ui%$ 9 advance ( ! full ,,isa duration4 7#h7 ,! def9ition ( income to be us$ = purposes ( calculat+ ! ,,isa recipi5t's obligation "u ! income %>e agreem5t1 subject to section #ajd7;a74 7#i7 ,a comp>ison table t includes ! foll[+3 7,a7 7i7 ,! am\nts & numb] ( ,,isa paym5ts t an ,,isa recipi5t w\ld be requir$ to pay "u ! income %>e agreem5t at a range ( annual income levels /at$ z bo? a mon?ly & annual income am\nt4 7ii7 ,! income levels us$ 9 ! disclosure "u ?is p>agraph %all include1 at a m9imum1 ! obligations = ! ,,isa recipi5t-- 7,i7 ) no income2 7,,ii7 ) income at ! income ?re%old2 & 7,,iii7 = v>i\s income sc5>ios1 includ+1 at a m9imum1 calculations at annual incomes ( #dj1jjj1 #fj1jjj1 #hj1jjj1 #ajj1jjj1 #abe1jjj1 #aej1jjj1 #age1jjj1 & #bjj1jjj4 7iii7 ,! comp>ison table "u ?is p>agraph %all include ! foll[+ /atem5t3 ,?is table assumes y h ! same ,income ov] ! entire t]m ( y\r income %>e agreem5t4 ,x does n take into acc\nt *anges 9 ,income4 ,y\r ,income w likely *ange ov] "t44 7,b7 ,! total ( all ,,isa paym5ts ov] ! life ( ! income %>e agreem5t t ! ,,isa recipi5t w h made 9 ea* ( ! income level sc5>ios describ$ 9 subp>agraph 7,a74 7,c7 ,! am\nts & numb] ( paym5ts1 ! total ( all paym5ts1 & ! annual p]c5tage rate requir$ to be paid "u "o or m comp>able loans1 includ+1 at a m9imum-- 7i7 if elect$ by ! ,bureau1 a loan at a fix$ or v>iable rate & ) a numb] ( paym5ts det]m9$ by ! ,bureau to be an approximation ( ! fix$ or v>iable int]e/ rate available to ,,isa recipi5ts 9 ! private m>ketplace2 7ii7 = an educational ,,isa1 a comp>able loan made "u "p ,d ( title ,,iv ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;a et seq47 7includ+ subsidiz$ & unsubsidiz$ sc5>ios71 if ! individual w\ld be eligible = su* a loan2 & 7iii7 = an income %>e agreem5t t is n an educational ,,isa1 a loan or loans t ! ,,isa provid] believes1 9 good fai?1 repres5ts o!r alt]native loan options available = ! ,,isa recipi5t4 7#aj7 ,a /atem5t ( ! int5t ( ! ,,isa provid] to engage 9 an annual process ( reconciliation to det]m9e if ! ,,isa recipi5t's ,,isa paym5ts = ! prec$+ ye> are m ?an1 equal to1 or less ?an ! ,,isa paym5ts ow$ "u ! income %>e agreem5t1 includ+-- 7,a7 a description ( ! process 9 :i* ! ,,isa recipi5t mu/ p>ticipate 9 ord] = ! ,,isa provid] to v]ify ! ,,isa recipi5t's income2 & 7,b7 a description ( any tax records or =ms t ! ,,isa recipi5t mu/ execute or t ! ,,isa provid] int5ds to submit to ! ,int]nal ,rev5ue ,s]vice4 7#aa7 ,a disclosure ( ! foll[+ items1 to ! ext5t applicable3 7,a7 ,! am\nt t is or w be paid directly to ! ,,isa recipi5t4 7,b7 ,! am\nt t is or w be cr$it$ to ! ,,isa recipi5t's acc\nt to dis*>ge obligations ow$ to ! ,,isa provid]4 7,c7 ,ea* am\nt t is or w be paid to ?ird p]sons by ! ,,isa provid] on ! ,,isa recipi5t's behalf1 toge!r ) an id5tification ( or ref]5ce to ! ?ird p]son4 7,d7 ,! total am\nt ( any *>ges t w be paid by ! ,,isa recipi5t be=e or at ! "t ( ! consummation ( ! transaction1 or h be5 )held f ! proce$s ( ! income %>e agreem5t4 7#ab7 ,! "n & mail+ address ( ! ,,isa provid]4 7#ac7 ,a paym5t s*$ule t-- 7,a7 %[s ! date ^u :i* ! fir/ ,,isa paym5t is expect$ to be due or1 if su* date is n reasonably kn[able-- 7i7 an e/imat$ date us+ ! be/ in=mation available to ! ,,isa provid]2 or 7ii7 a /atem5t ( ! ev5ts t w trigg] ! fir/ paym5t2 & 7,b7 reflects ea* date !reaft] dur+ ! ,,isa duration t an ,,isa paym5t may be due4 7e7 ,additional disclosure elem5ts ,! ,director may1 ?r\gh a rulemak+ process-- 7#a7 add additional items to be disclos$ "u subsection 7d7 if consum] te/+ %[s ^? elem5ts w\ld help consum]s bett] und]/& ! nature ( ! ,,isa obligation or bett] comp>e x ) o!r products2 & 7#b7 require t additional income sc5>ios be includ$ 9 ! comp>ison table "u p>agraph 7#i77;,a77ii77,,iii71 tak+ into acc\nt ! income levels ! ,,isa recipi5t might reasonably be expect$ to make giv5 ! int5d$ use ( ! funds provid$ "u ! income %>e agreem5t1 except 9 no case %all ! numb] ( sc5>ios exce$ #bj4 #cjc4 ,additional requirem5ts = educational ,i,s,as 7a7 ,additional disclosure tim+ rules = educational ,i,s,as ,! foll[+ additional provisions apply to any income %>e agreem5t t is an educational ,,isa3 7#a7 ,application & solicitation 7,a7 ,9 g5]al ,! ,,isa provid] ( an educational ,,isa t is to be us$ solely = po/second>y educational exp5ses %all provide ! disclosures describ$ 9 subsection 7b77#a7 ) any application or solicitation = ! educational ,,isa4 ,= purposes ( ?is section1 ! t]m solicitation means an (f] ( an income %>e agreem5t t does n require ! pot5tial ,,isa recipi5t to complete an application4 7,b7 ,telephone applications or solicitations ,9 ! case ( a telephone application or solicitation = an educational ,,isa1 ! ,,isa provid] %all provide ! disclosure by1 at its option-- 7i7 disclos+ orally ! in=mation describ$ 9 subsection 7b77#a72 or 7ii7 mail+ a copy ( ! disclosure describ$ 9 subsection 7b77#a7 n lat] ?an #c bus9ess days aft] ! pot5tial ,,isa recipi5t has appli$ = ! educational ,,isa4 7,c7 ,special rule ,= an income %>e agreem5t t ! ,,isa recipi5t may use = multiple purposes includ+ po/second>y educational exp5ses1 ! ,,isa provid] ne$ n provide ! disclosures requir$ "u subsection 7b77#a7 9 ! application or solicitation4 7#b7 ,approval disclosures ,! ,,isa provid] %all provide ! disclosures requir$ by subsection 7b77#b7 be=e consummation on1 or ) any notice ( approval provid$ to ! applicant =1 an educational ,,isa4 ,if ! ,,isa provid] mails notice ( approval1 ! disclosures %all be mail$ ) ! notice4 ,if ! ,,isa provid] communicates notice ( approval by telephone1 ! ,,isa provid] %all mail ! disclosures n lat] ?an #c bus9ess days aft] provid+ ! notice ( approval4 ,if ! ,,isa provid] communicates notice ( approval electronically1 ! ,,isa provid] %all provide ! disclosure1 at its option1 ei!r 9 electronic =m 9 accordance ) ! requirem5ts ( ?is title or by mail+ ! disclosure n lat] ?an #c bus9ess days aft] communicat+ ! notice ( approval4 ,if ! ,,isa provid] communicates approval 9 p]son1 ! ,,isa provid] %all provide ! disclosures to ! applicant = an income %>e agreem5t at t "t4 7#c7 ,f9al disclosures ,! disclosures requir$ by subsection 7b77#c7 %all be provid$ aft] ! ,,isa recipi5t accepts ! income %>e agreem5t4 7#d7 ,receipt ( mail$ disclosures ,if a disclosure "u p>agraph 7#a71 7#b71 or 7#c7 is mail$ to ! pot5tial ,,isa recipi5t or ,,isa recipi5t1 z ! case may be1 ! pot5tial ,,isa recipi5t or ,,isa recipi5t %all be deem$ to h receiv$ ! disclosure #e bus9ess days aft] ! disclosure is mail$4 7#e7 ,basis ( disclosures & use ( e/imates 9 educational ,i,s,as 7,a7 ,legal obligation ,disclosures %all reflect ! t]ms ( ! legal obligation betwe5 ! p>ties4 7,b7 ,e/imates ,if any in=mation necess>y = an accurate disclosure is unkn[n to ! ,,isa provid]1 ! ,,isa provid] %all make ! disclosure bas$ on ! be/ in=mation reasonably available at ! "t ! disclosure is provid$1 & %all /ate cle>ly t ! disclosure is an e/imate4 7#f7 ,effect ( subsequ5t ev5ts 7,a7 ,approval disclosures ,if a disclosure made "u p>agraph 7#b7 becomes inaccurate because ( an ev5t t occurs aft] ! ,,isa provid] deliv]s ! requir$ disclosures1 ! inaccuracy is n a violation ( ?is ,act1 al?\gh new disclosures may be requir$ 9 accordance ) ?is title4 7,b7 ,f9al disclosures ,if a disclosure "u p>agraph 7#c7 becomes inaccurate because ( an ev5t t occurs aft] ! cr$itor deliv]s ! requir$ disclosures1 ! inaccuracy is n a violation ( ?is ,act4 7b7 ,additional disclosures = educational ,i,s,as ,9 addition to ! o!r disclosure requirem5ts ( ?is title1 an ,,isa provid] ( an educational ,,isa %all provide ! disclosures requir$ "u ?is subsection z foll[s3 7#a7 ,application & ,solicitation ,disclosure ,on or ) a solicitation or an application = an educational ,,isa1 an ,,isa provid] %all disclose ! foll[+3 7,a7 ,,isa paym5t calculation me?od 7i7 ,! ,,isa paym5t calculation me?od t applies to ! educational ,,isa & actually (f]$ by ! ,,isa provid] at ! "t ( application or solicitation4 ,if ! ,,isa paym5t calculation me?od w dep5d1 9 "p1 on a lat] det]m9ation ( ! ,,isa recipi5t's cr$itwor?9ess or o!r factors1 a /atem5t t ! ,,isa paym5t calculation me?od = :i* ! ,,isa recipi5t may qualify w dep5d on ! ,,isa recipi5t's cr$itwor?9ess & o!r factors1 if applicable4 7ii7 ,9 ! case ( an ,,isa paym5t calculation me?od t is bas$ on a s*$ule ( p]c5tages-- 7,i7 an explanation ( h[ ! s*$ule ( p]c5tages is calculat$ us+ p]c5tages ( income bas$ on ! ,,isa recipi5t's income2 & 7,,ii7 ! tim+ = recalculation ( ! ,,isa recipi5t's paym5ts "u ! s*$ule ( p]c5tages4 7iii7 ,9 ! case ( an ,,isa paym5t calculation me?od t is bas$ on a s*$ule ( fix$ am\nts t an ,,isa recipi5t is requir$ to pay t is calculat$ bas$ on ! ,,isa recipi5t's income = a paym5t p]iod-- 7,i7 an explanation ( h[ ! s*$ule ( fix$ am\nts is calculat$ us+ fix$ am\nts bas$ on ! ,,isa recipi5t's income2 & 7,,ii7 ! tim+ = recalculation ( ! ,,isa recipi5t's paym5ts "u ! s*$ule ( fix$ am\nts4 7,b7 ,fees & ,default or ,late ,paym5t ,co/s 7i7 ,an itemization ( ! fees or range ( fees requir$ to obta9 ! educational ,,isa4 7ii7 ,any fees or o!r p5alties bas$ on ! ,,isa recipi5t's default or late paym5t4 7,c7 ,paym5t ,t]ms 7i7 ,! ,,isa duration1 or range ( ,,isa durations1 (f]$ by ! ,,isa provid]4 7ii7 ,a description ( any paym5t def]ral options4 7,d7 ,co/ ,e/imates ,us+ ! highe/ doll> am\nt or p]c5tage applicable "u ! ,,isa paym5t calculation me?od describ$ 9 subp>agraph 7,a77i7 & us+ an am\nt f9anc$ ( #aj1jjj1 or #e1jjj if ! ,,isa provid] only (f]s income %>e agreem5ts ( ?is type = less ?an #e1jjj1 ! loan comp>ison bas$ on ^! assumptions4 7,e7 ,eligibility ,any age or s*ool enrollm5t eligibility requirem5ts relat+ to ! ,,isa recipi5t4 7,f7 ,alt]native to income %>e agreem5ts 7i7 ,) respect to an educational ,,isa t might be us$ = po/second>y exp5ses at an in/itution ( high] education t p>ticipates 9 a /ud5t f9ancial assi/ance program "u title ,,iv ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajgj et seq47-- 7,i7 a /atem5t ! ,,isa recipi5t may qualify = ,f$]al /ud5t f9ancial assi/ance ?r\gh a program "u su* title2 & 7,,ii7 ! int]e/ rates = ea* program ( f9ancial assi/ance available "u title ,,iv ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajgj et seq47 & in=mation reg>d+ :e!r ! rates = ! loans available "u su* title are fix$ or v>iable4 7ii7 ,if applicable to ! /ud5t's circum/ances1 a /atem5t t ! ,,isa recipi5t may obta9 additional in=mation conc]n+ ,f$]al /ud5t f9ancial assi/ance f ! in/itution ( high] education t ! /ud5t att5ds1 or at ! website ( ! ,dep>tm5t ( ,education1 includ+ an appropriate website address = ! ,dep>tm5t4 7iii7 ,a /atem5t t an in/itution ( high] education may h s*ool-specific education loan b5efits & t]ms n detail$ on ! disclosure =m4 7,g7 ,rights ( ! consum] ,a /atem5t t if ! application = ! educational ,,isa is approv$ by ! ,,isa provid]1 ! t]ms ( ! educational ,,isa w be available & w n *ange = #cj days except z a result ( adju/m5ts to ! ,,isa paym5t calculation me?od1 ,,isa duration1 or ,,isa maximum numb] ( paym5ts & o!r *anges p]mitt$ by law4 7,h7 ,self-c]tification in=mation ,a /atem5t t1 be=e ! educational ,,isa may be consummat$1 ! ,,isa recipi5t mu/ complete ! self-c]tification =m & t ! =m may be obta9$ f ! in/itution ( high] education t ! /ud5t att5ds4 7,i7 ,ov]all educational f9ance obligation notice ,! foll[+ /atem5t3 ,,important ,,notice ,,requir$ ,,by ,,law3 ,/ud5ts are caution$ to consid] c>efully ent]+ into ?is ,income ,%>e ,agreem5t if _! total future paym5t commitm5t1 includ+ any o!r =ms ( education f9ance1 may exce$ #bj p]c5t ( _! expect$ future income4 ,y\r total future obligation may exce$ ?is p]c5tage if y h receiv$ additional education f9anc+1 includ+ o!r income %>e agreem5ts1 ,dep>tm5t ( ,education ,direct or ,,ffel ,loans1 or private education loans44 7#b7 ,disclosures ^u approval ( an ,,isa ,^u approval ( an educational ,,isa by an ,,isa provid]1 ! ,,isa provid] %all disclose ! in=mation requir$ "u section #cjb7;d7 & ! foll[+ in=mation3 7,a7 ,,isa paym5t calculation me?od 7i7 ,! ,,isa paym5t calculation me?od t applies to ! educational ,,isa4 7ii7 ,9 ! case ( an ,,isa paym5t calculation me?od t is bas$ on a s*$ule ( p]c5tages-- 7,i7 an explanation ( h[ ! s*$ule ( p]c5tages is calculat$ us+ p]c5tages ( income bas$ on ! ,,isa recipi5t's income2 & 7,,ii7 ! tim+ = recalculation ( ! ,,isa recipi5t's paym5ts "u ! s*$ule ( p]c5tages4 7iii7 ,9 ! case ( an ,,isa paym5t calculation me?od t is bas$ on a s*$ule ( fix$ am\nts t an ,,isa recipi5t is requir$ to pay bas$ on ! ,,isa recipi5t's income = a paym5t p]iod-- 7,i7 an explanation ( h[ ! s*$ule ( fix$ am\nts is calculat$ us+ fix$ am\nts bas$ on ! ,,isa recipi5t's income2 & 7,,ii7 ! tim+ = recalculation ( ! ,,isa recipi5t's paym5ts "u ! s*$ule ( fix$ am\nts4 7,b7 ,fees & default or late paym5t co/s 7i7 ,an itemization ( ! fees or range ( fees requir$ to obta9 ! educational ,,isa4 7ii7 ,any fees or o!r p5alties bas$ on ! ,,isa recipi5t's defaults or late paym5ts4 7,c7 ,paym5t t]ms 7i7 ,! ,,isa duration1 or range ( ,,isa durations1 (f]$ by ! ,,isa provid]4 7ii7 ,a description ( any paym5t def]ral options4 7,d7 ,co/ ,e/imates ,! foll[+ disclosure %all be made us+ ! ,,isa paym5t calculation me?od1 ,,isa duration1 & ,,isa maximum numb] ( paym5ts = :i* ! ,,isa recipi5t has be5 approv$3 7i7 ,! loan comp>ison bas$ on ^! assumptions4 7ii7 ,a description ( ! paym5t def]ral option *os5 by ! ,,isa recipi5t1 if applicable1 & any o!r paym5t def]ral options t ! ,,isa recipi5t may elect at a lat] "t4 7iii7 ,any paym5ts requir$ :ile ! ,,isa recipi5t is enroll$ at a cov]$ educational in/itution1 bas$ on ! def]ral option *os5 by ! ,,isa recipi5t4 7,e7 ,alt]natives to private education income %>e agreem5ts1 if applicable to ! /ud5t ,9 ! case ( an educational ,,isa t may be us$ = education exp5ses at an in/itution ( high] education t p>ticipates 9 ! /ud5t f9ancial assi/ance programs "u title ,,iv ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajgj et seq471 ! foll[+3 7i7 ,a /atem5t t ! ,,isa recipi5t may qualify = ,f$]al /ud5t f9ancial assi/ance ?r\gh a program "u title ,,iv ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajgj et seq474 7ii7 ,! int]e/ rates = ea* program ( f9ancial assi/ance available "u title ,,iv ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajgj et seq47 & in=mation reg>d+ :e!r ! rates = ! loans available "u su* title are fix$ or v>iable4 7iii7 ,a /atem5t t ! ,,isa recipi5t may obta9 additional in=mation conc]n+ ,f$]al /ud5t f9ancial assi/ance f ! in/itution ( high] education t ! /ud5t att5ds1 or at ! website ( ! ,dep>tm5t ( ,education1 includ+ an appropriate website address = ! ,dep>tm5t4 7,f7 ,rights ( ! ,,isa recipi5t 7i7 ,a /atem5t t ! ,,isa recipi5t may accept ! t]ms ( ! income %>e agreem5t until ! la/ day ( ! acceptance p]iod describ$ 9 subsection 7d77#a74 7ii7 ,! specific date on :i* ! acceptance p]iod expires1 bas$ on ! date ^u :i* ! ,,isa recipi5t receives ! disclosures requir$ "u ?is p>agraph = ! income %>e agreem5t4 7iii7 ,a specification ( ! me?od or me?ods by :i* ! ,,isa recipi5t may communicate acceptance4 7iv7 ,a /atem5t t1 except = *anges to ! ,,isa paym5t calculation me?od & o!r *anges p]mitt$ by law1 ! rates & t]ms ( ! income %>e agreem5t may n be *ang$ by ! ,,isa provid] dur+ ! p]iod describ$ 9 clause 7i74 7,g7 ,ov]all educational f9ance obligation notice ,! foll[+ /atem5t3 ,,important ,,notice ,,requir$ ,,by ,,law3 ,/ud5ts are caution$ to consid] c>efully ent]+ into ?is ,income ,%>e ,agreem5t if _! total future paym5t commitm5t1 includ+ any o!r =ms ( education f9ance1 may exce$ #bj p]c5t ( _! expect$ future income4 ,y\r total future obligation may exce$ ?is p]c5tage if y h receiv$ additional education f9anc+1 includ+ o!r income %>e agreem5ts1 ,dep>tm5t ( ,education ,direct or ,,ffel ,loans1 or private education loans44 7#c7 ,f9al disclosures ,aft] ! ,,isa recipi5t has accept$ ! income %>e agreem5t 9 accordance ) subsection 7d77#a71 ! ,,isa provid] %all disclose to ! ,,isa recipi5t ! in=mation requir$ by ?is section & ! foll[+ in=mation3 7,a7 ,,isa paym5t calculation me?od 7i7 ,! ,,isa paym5t calculation me?od applicable to ! income %>e agreem5t4 7ii7 ,9 ! case ( an ,,isa paym5t calculation me?od t is bas$ on a s*$ule ( p]c5tages-- 7,i7 an explanation ( h[ ! s*$ule ( p]c5tages is calculat$ us+ p]c5tages ( income bas$ on ! ,,isa recipi5t's income2 & 7,,ii7 ! tim+ = recalculation ( ! ,,isa recipi5t's paym5ts "u ! s*$ule ( p]c5tages4 7iii7 ,9 ! case ( an ,,isa paym5t calculation me?od t is bas$ on a s*$ule ( fix$ am\nts t an ,,isa recipi5t is requir$ to pay bas$ on ! ,,isa recipi5t's income = a paym5t p]iod-- 7,i7 an explanation ( h[ ! s*$ule ( fix$ am\nts is calculat$ us+ fix$ am\nts bas$ on ! ,,isa recipi5t's income2 & 7,,ii7 ! tim+ = recalculation ( ! ,,isa recipi5t's paym5ts "u ! s*$ule ( fix$ am\nts4 7,b7 ,fees & default or late paym5t co/s 7i7 ,an itemization ( ! fees or range ( fees requir$ to obta9 ! educational ,,isa4 7ii7 ,any fees or o!r p5alties bas$ on ! ,,isa recipi5t's defaults or late paym5ts4 7,c7 ,paym5t t]ms 7i7 ,! ,,isa duration or range ( ,,isa durations (f]$ by ! ,,isa provid]4 7ii7 ,a description ( any paym5t def]ral options4 7,d7 ,co/ e/imates ,! foll[+ disclosure %all be made us+ ! ,,isa paym5t calculation me?od1 ,,isa duration1 & ,,isa maximum numb] ( paym5ts = :i* ! ,,isa recipi5t has be5 approv$3 7i7 ,! loan comp>ison bas$ on ^! assumptions4 7ii7 ,a description ( ! paym5t def]ral option *os5 by ! ,,isa recipi5t1 if applicable1 & any o!r paym5t def]ral options t ! ,,isa recipi5t may elect at a lat] "t4 7iii7 ,any paym5ts requir$ :ile ! ,,isa recipi5t is enroll$ at a cov]$ educational in/itution1 bas$ on ! def]ral option *os5 by ! ,,isa recipi5t4 7,e7 ,cancellation rights 7i7 ,a /atem5t t-- 7,i7 ! ,,isa recipi5t has ! "r to cancel ! income %>e agreem5t1 )\t p5alty1 at any "t be=e ! cancellation p]iod "u subsection 7e7 expires2 & 7,,ii7 ! income %>e agreem5t proce$s w n be disburs$ until aft] su* cancellation p]iod expires4 7ii7 ,! specific date on :i* ! cancellation p]iod expires & a /atem5t t ! ,,isa recipi5t may cancel by t date4 7iii7 ,a /atem5t specify+-- 7,i7 all me?ods by :i* ! ,,isa recipi5t may cancel2 & 7,,ii7 if ! ,,isa provid] p]mits cancellation by mail1 t ! ,,isa recipi5t's mail$ reque/ w be deem$ timely if plac$ 9 ! mail n lat] ?an ! cancellation date specifi$ 9 clause 7ii74 7iv7 ,! disclosures requir$ by ?is subp>agraph %all be made m conspicu\s ?an any o!r disclosure requir$ "u ?is section1 except = ! ,,isa paym5t calculation me?od1 ,,isa duration1 ,,isa maximum numb] ( paym5ts1 am\nt f9anc$1 income ?re%old1 & ! ,,isa provid]'s id5tity1 :i* %all be disclos$ 9 accordance ) ! requirem5ts ( section #cjb7;d74 7,f7 ,ov]all educational f9ance obligation notice ,! foll[+ /atem5t3 ,,important ,,notice ,,requir$ ,,by ,,law3 ,/ud5ts are caution$ to consid] c>efully ent]+ into ?is ,income ,%>e ,agreem5t if _! total future paym5t commitm5t1 includ+ any o!r =ms ( education f9ance1 may exce$ #bj p]c5t ( _! expect$ future income4 ,y\r total future obligation may exce$ ?is p]c5tage if y h receiv$ additional education f9anc+1 includ+ o!r income %>e agreem5ts1 ,dep>tm5t ( ,education ,direct or ,,ffel ,loans1 or private education loans44 7c7 ,limitation on educational ,i,s,as 7#a7 ,co-br&+ prohibit$ 7,a7 ,9 g5]al ,except z provid$ 9 subp>agraph 7,b7 & p>agraph 7#b71 an ,,isa provid]1 o!r ?an ! cov]$ educational in/itution itself1 %all n use ! "n1 emblem1 mascot1 or logo ( a cov]$ educational in/itution1 or o!r words1 pictures1 or symbols id5tifi$ ) a cov]$ educational in/itution1 9 ! m>ket+ ( educational ,i,s,as 9 a way t implies t ! cov]$ education in/itution endorses ! ,,isa provid]'s income %>e agreem5ts4 7,b7 ,special rule ,an ,,isa provid]'s m>ket+ ( an educational ,,isa does n imply t ! cov]$ education in/itution endorses ! ,,isa provid]'s income %>e agreem5ts if ! m>ket+ includes a cle> & conspicu\s disclosure1 equally prom95t & closely proximate to ! ref]5ce to ! cov]$ educational in/itution1 t ! cov]$ educational in/itution does n endorse ! ,,isa provid]'s income %>e agreem5ts & t ! ,,isa provid] is n affiliat$ ) ! cov]$ educational in/itution4 7#b7 ,endors$ ,,isa provid] arrangem5ts ,if an ,,isa provid] & a cov]$ educational in/itution h ent]$ into an arrangem5t "u :i* ! cov]$ educational in/itution agrees to endorse ! ,,isa provid]'s educational ,i,s,as1 & su* arrangem5t is n prohibit$ by o!r applicable law or regulation1 p>agraph 7#a77;,a7 %all n apply z long z ! educational ,,isa m>ket+ includes a cle> & conspicu\s disclosure1 equally prom95t & closely proximate to ! ref]5ce to ! cov]$ educational in/itution1 t ! ,,isa provid]'s income %>e agreem5ts are n (f]$ or made by ! cov]$ educational in/itution1 b are made by ! ,,isa provid]4 7d7 ,educational ,,isa recipi5t's "r ,to accept 7#a7 ,acceptance p]iod ,! ,,isa recipi5t has ! "r to accept ! t]ms ( an educational ,,isa at any "t n lat] ?an #cj cal5d> days foll[+ ! date on :i* ! ,,isa recipi5t receives ! disclosures requir$ "u subsection 7b77#b74 7#b7 ,limitations on *anges ,except = *anges p]mitt$ "u p>agraph 7#c71 ! t]ms ( ! educational ,,isa t are requir$ to be disclos$ "u p>agraphs 7#b7 & 7#c7 ( subsection 7b7 may n be *ang$ by ! ,,isa provid] prior to ! e>li] (-- 7,a7 ! date ( disbursem5t ( ! income %>e agreem5t2 or 7,b7 ! expiration ( ! #cj-;day p]iod describ$ 9 p>agraph 7#a71 if ! ,,isa recipi5t has n accept$ ! income %>e agreem5t be=e )9 ! p]iod4 7#c7 ,exceptions n requir+ re-disclosure 7,a7 ,9 g5]al ,not)/&+ p>agraph 7#b71 no?+ 9 ?is section %all prev5t an ,,isa provid] ( an educational ,,isa f-- 7i7 )draw+ an (f] be=e consummation ( ! transaction if ! mak+ ( ! income %>e agreem5t w\ld be prohibit$ by law or if ! ,,isa provid] has reason to believe t ! ,,isa recipi5t has committ$ fraud 9 connection ) ! income %>e agreem5t application2 7ii7 *ang+ ! ,,isa paym5t calculation me?od & t]ms if ! *ange w unequivocally b5efit ! ,,isa recipi5t2 or 7iii7 r$uc+ ! am\nt fund$ bas$ ^u a c]tification or o!r in=mation receiv$ f ! cov]$ educational in/itution1 or f ! ,,isa recipi5t1 indicat+ t ! /ud5t's co/ ( att5dance has decreas$ or ! ,,isa recipi5t's o!r f9ancial aid has increas$1 except t1 9 su* case1 ! ,,isa provid] may make correspond+ *anges to ! t]ms ( ! ,,isa paym5t calculation me?od1 ,,isa duration1 & o!r t]ms only to ! ext5t t ! ,,isa recipi5t w\ld h receiv$ ! t]ms if ! ,,isa recipi5t _h appli$ = ! r$uc$ am\nt f9anc$4 7,b7 ,no new disclosures requir$ ,if ! ,,isa provid] *anges ! ,,isa paym5t calculation me?od or t]ms ( ! income %>e agreem5t "u ?is p>agraph1 ! ,,isa provid] %all n be requir$ to-- 7i7 provide ! disclosures requir$ "u subsection 7b77#b7 = ! new income %>e agreem5t t]ms2 or 7ii7 provide an additional #cj-;day p]iod to ! ,,isa recipi5t to accept ! new t]ms ( ! income %>e agreem5t4 7#d7 ,exceptions requir+ re-disclosure 7,a7 ,9 g5]al ,not)/&+ p>agraphs 7#b7 & 7#c71 no?+ 9 ?is section prev5ts an ,,isa provid]1 at its option1 f *ang+ ! ,,isa paym5t calculation me?od or t]ms ( ! income %>e agreem5t to accommodate a specific reque/ by ! ,,isa recipi5t1 su* z a reque/ = a diff]5t repaym5t option4 7,b7 ,additional disclosures requir$ ,if ! ,,isa provid] *anges ! rate or t]ms ( ! income %>e agreem5t "u subp>agraph 7,a71 ! ,,isa provid]-- 7i7 %all provide ! disclosures requir$ "u subsection 7b77#b7 & %all provide ! ,,isa recipi5t ! #cj-;day p]iod to accept ! income %>e agreem5t1 z requir$ "u p>agraph 7#a72 & 7ii7 %all n make fur!r *anges to ! income %>e agreem5t & t]ms ( ! loan1 except z specifi$ 9 p>agraph 7#c77;,b74 7,c7 ,no fur!r )drawals or *anges ,except z p]mitt$ "u p>agraph 7#c77;,b71 unless ! ,,isa recipi5t accepts ! income %>e agreem5t (f]$ by ! ,,isa provid] 9 response to ! ,,isa recipi5t's reque/ 9 accordance ) subp>agraph 7,a71 ! ,,isa provid] may n )draw or *ange ! ,,isa paym5t calculation me?od or any t]ms ( ! income %>e agreem5ts = :i* ! ,,isa recipi5t 0 approv$ prior to ! ,,isa recipi5t's reque/ = a *ange 9 income %>e agreem5t t]ms "u ?is p>agraph4 7e7 ,educational ,,isa recipi5t's "r ,to cancel ,! ,,isa recipi5t may cancel an educational ,,isa1 )\t p5alty1 until midnight ( ! ?ird bus9ess day foll[+ ! date on :i* ! ,,isa recipi5t receives ! disclosures requir$ by subsection 7b77#c74 ,no funds may be disburs$ = an educational ,,isa until ! #c-;bus9ess-day p]iod has expir$1 abs5t exceptional circum/ances necessitat+ disbursem5t bas$ on a reque/ f ! cov]$ educational in/itution4 ,9 su* a case1 ! cov]$ educational in/itution %all promptly1 ^u cancellation by ! /ud5t1 refund ! am\nts to ! ,,isa provid]4 7f7 ,self-,c]tification =m ,= an educational ,,isa int5d$ to be us$ = ! po/second>y educational exp5ses ( a /ud5t :ile ! /ud5t is att5d+ an in/itution ( high] education1 ! ,,isa provid] %all obta91 f ! ,,isa recipi5t or ! in/itution ( high] education1 ! educational ,,isa c]tification =m develop$ by ! ,secret>y "u section #aee ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajai;d71 sign$ by ! ,,isa recipi5t1 9 writt5 or electronic =m1 be=e consummat+ ! educational ,,isa4 7g7 ,provision ( ,in=mation by ,pref]r$ ,,isa provid] 7#a7 ,9 g5]al ,an ,,isa provid] t has a pref]r$ ,,isa f9anc+ arrangem5t ) a cov]$ educational in/itution %all1 ea* ye> 9 accordance ) p>agraph 7#b71 provide to ! cov]$ educational in/itution ! in=mation requir$ "u subsection 7b77#a7 = ea* type ( educational ,,isa t ! ,,isa provid] plans to (f] to ,,isa recipi5ts = /ud5ts att5d+ ! cov]$ educational in/itution1 = ! p]iod beg9n+ ,july #a ( ! ye> 9 :i* ! in=mation is provid$ & end+ ,june #cj ( ! foll[+ ye>4 7#b7 ,tim+ ,= ea* ye> ( a pref]r$ ,,isa provid] f9anc+ arrangem5t1 ! ,,isa provid] %all provide ! in=mation requir$ "u p>agraph 7#a7 by ! lat] (-- 7,a7 ! fir/ day ( ,april2 or 7,b7 ! date t is #cj days aft] ent]+ into1 or le>n+ ! ,,isa provid] is a p>ty to1 a pref]r$ ,,isa provid] arrangem5t4 #cjd4 ,adv]tis+ ( income %>e agreem5ts 7a7 ,9 g5]al ,! re/rictions on adv]tis+ ( income %>e agreem5ts %all be consi/5t ) ! re/rictions plac$ on adv]tisem5ts relat$ to ext5sions ( consum] cr$it z set =? 9 *apt] #c ( ! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #affa et seq474 7b7 ,am5dm5ts to ! ,tru? 9 ,l5d+ ,act ,! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afja et seq47 is am5d$-- 7#a7 9 section #ajc7;f7 7#ae ,u4,s4,c4 #afjb7;f77-- 7,a7 by /rik+ means ! & ins]t+ means-- 7#a7 ! 2 7,b7 9 p>agraph 7#a71 z s designat$1 by /rik+ ! p]iod at ! end & ins]t+ 2 &2 & 7,c7 by add+ at ! end ! foll[+3 7#b7 = purposes ( *apt] #c1 %all include an income %>e agreem5t1 z def9$ 9 section #b ( ! ,,isa ,/ud5t ,protection ,act ( #bjbc4 2 7#b7 9 section #adb 7#ae ,u4,s4,c4 #affb7-- 7,a7 9 ! matt] prec$+ p>agraph 7#a71 by /rik+ /ate & ins]t+ /ate--2 7,b7 9 p>agraph 7#a71 by /rik+ ! p]iod at ! end & ins]t+ a semicolon2 7,c7 9 p>agraph 7#b71 by /rik+ ! p]iod at ! end & ins]t+ 2 &2 & 7,d7 by add+ at ! end ! foll[+3 7#c7 ) respect to an income %>e agreem5t 7z def9$ 9 section #b ( ! ,,isa ,/ud5t ,protection ,act ( #bjbc71 t a specific ,,isa paym5t calculation me?od1 ,,isa duration1 ,,isa maximum numb] ( paym5ts1 or income ?re%old 7z ^? t]ms are def9$ 9 su* section #b7 c be arrang$ unless ! ,,isa provid] 7z def9$ 9 su* section #b7 usually & cu/om>ily arranges income %>e agreem5ts pursuant to ! t]ms s adv]tis$4 2 & 7#c7 9 section #add 7#ae ,u4,s4,c4 #affd71 by add+ at ! end ! foll[+3 7f7 ,income %>e agreem5ts 7#a7 ,def9itions ,9 ?is subsection1 ! t]ms income %>e agreem5t1 income ?re%old1 ,,isa duration1 ,,isa maximum numb] ( paym5ts1 & ,,isa paym5t calculation me?od h ! mean+s giv5 ^? t]ms 9 section #b ( ! ,,isa ,/ud5t ,protection ,act ( #bjbc4 7#b7 ,application ,?is subsection %all apply to any adv]tisem5t to aid1 promote1 or assi/ directly or indirectly any income %>e agreem5t subject to ! provisions ( ?is *apt]4 7#c7 ,disclosure ( key t]ms ,if any adv]tisem5t to :i* ?is section applies /ates ! ,,isa paym5t calculation me?od1 ,,isa duration1 ,,isa maximum numb] ( paym5ts1 income ?re%old1 or am\nts ( paym5ts "u an income %>e agreem5t1 ! adv]tisem5t %all include ! foll[+3 7,a7 ,! ,,isa paym5t calculation me?od4 7,b7 ,! ,,isa duration4 7,c7 ,! ,,isa maximum numb] ( paym5ts4 7,d7 ,! income ?re%old4 4 ,,iv ,o!r cl>ifications to support ,,isa programs #dja4 ,treatm5t "u securities laws 7a7 ,income %>e agreem5ts n treat$ z securities 7#a7 ,9 g5]al ,an income %>e agreem5t %all n be treat$ z a security = purposes ( ! securities laws 7z def9$ 9 section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a7771 any simil> ,/ate law1 or any ,/ate law t directly or indirectly prohibits1 limits1 or imposes conditions1 bas$ on ! m]its ( an (f]+ or issu] ( securities1 ^u ! (f] or sale ( any security4 7#b7 ,rule ( con/ruction ,no?+ 9 p>agraph 7#a7 may be con/ru$ to prev5t an in/rum5t t is collat]aliz$ by1 or s]vic$ by ! ca% fl[s (1 an income %>e agreem5t f be+ treat$ z a security = purposes ( any law describ$ 9 t p>agraph4 7b7 ,,isa provid]s mak+ income %>e agreem5ts exclud$ f inve/m5t company treatm5t ,section #c7;c7 ( ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#c7;c77 is am5d$-- 7#a7 9 p>agraph 7#d71 by ins]t+ income %>e agreem5ts 7z t t]m is def9$ 9 section #b ( ! ,,isa ,/ud5t ,protection ,act ( #bjbc71 aft] indu/rial bank+12 & 7#b7 9 p>agraph 7#e7-- 7,a7 9 subp>agraph 7,a71 by ins]t+ 1 includ+ pur*as+ or o!rwise acquir+ income %>e agreem5ts 7z t t]m is def9$ 9 section #b ( ! ,,isa ,/ud5t ,protection ,act ( #bjbc7 aft] s]vices2 & 7,b7 9 subp>agraph 7,b71 by ins]t+ 1 includ+ mak+ income %>e agreem5ts 7z def9$ 9 subp>agraph 7,a77 aft] s]vices4 #djb4 ,treatm5t "u bankruptcy laws ,section #ebc7;a77#h7 ( title #aa1 ,unit$ ,/ates ,code1 is am5d$1 9 ! matt] prec$+ subp>agraph 7,a71 by /rik+ =-- & ins]t+ =1 o!r ?an funds provid$ z "p ( an educational ,,isa 7z def9$ 9 section #b ( ! ,,isa ,/ud5t ,protection ,act ( #bjbc7--4 #djc4 ,cons5t to cont9u+ release ( taxpay] in=mation "u educational ,i,s,as & income %>e agreem5ts ,by n lat] ?an #ahj days aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury %all modify ,treasury regulations & guidance to provide = cont9u+ cons5t to disclosure ( an individual's return in=mation to an ,,isa provid] 7or ! provid]'s successor 9 int]e/7 "u an educational ,,isa or o!r income %>e agreem5t1 b only = p]iods relevant to1 & only to ! ext5t ! ,secret>y det]m9es is necess>y & appropriate 9 c>ry+ out ! t]ms (1 su* educational ,,isa or income %>e agreem5t4 #djd4 ,int]play ) ! ,high] ,education ,act ( #aife 7a7 ,title ,,iv def9itions 7#a7 ,9 g5]al ,section #dhj ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhgvv71 z am5d$ by section #gjb ( ! ,,fafsa ,simplification ,act 7title ,,vii ( division ,,ff ( ,public ,law #aaf-bfj2 #acd ,/at4 #caia71 is am5d$-- 7,a7 9 subsection 7e7-- 7i7 9 p>agraph 7#b71 by /rik+ & aft] ! semicolon2 7ii7 9 p>agraph 7#c71 by /rik+ ! p]iod & ins]t+ 2 &2 & 7iii7 by add+ at ! end ! foll[+3 7#d7 any am\nt provid$ to ! applicant1 or on ^: behalf funds are disburs$1 "u an income %>e agreem5t1 z def9$ 9 section #b ( ! ,,isa ,/ud5t ,protection ,act ( #bjbc4 2 & 7,b7 9 subsection 7f77#a71 by ins]t+ am\nts provid$ to an individual1 or on ^: behalf ! funds are disburs$1 "u an income %>e agreem5t1 z def9$ 9 section #b ( ! ,,isa ,/ud5t ,protection ,act ( #bjbc1 aft] income produc+ prop]ty14 7#b7 ,effective date ,! am5dm5ts made by p>agraph 7#a7 %all take effect z if includ$ 9 section #gjb ( ! ,,fafsa ,simplification ,act 7title ,,vii ( division ,,ff ( ,public ,law #aaf-bfj2 #acd ,/at4 #caia7 & 9 accordance ) section #gja7;b7 ( su* ,act4 7b7 ,program p>ticipation agreem5ts ,section #dhg7;d77#a77;,d7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajid7;d77#a77;,d77 is am5d$-- 7#a7 9 clause 7ii71 by /rik+ & aft] ! semicolon2 7#b7 9 clause 7iii71 by ins]t+ & aft] ! semicolon2 & 7#c7 by add+ at ! end ! foll[+3 7iv7 9 ! case ( educational income %>e agreem5ts 7z su* t]m is def9$ 9 section #b ( ! ,,isa ,/ud5t ,protection ,act ( #bjbc7 made by a propriet>y in/itution ( high] education1 only ! am\nt ( ,,isa paym5ts 7z def9$ 9 su* section7 receiv$ dur+ ! applicable in/itutional fiscal ye>1 to ! ext5t ! am\nt ( su* paym5ts on ! educational income %>e agreem5t does n exce$ ! income %>e am\nt f9anc$ "u su* educational income %>e agreem5t2 4 7c7 ,pref]r$ l5d] arrangem5t def9itions ,section #aea ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajai7 is am5d$-- 7#a7 by r$esignat+ p>agraphs 7#c71 7#d71 7#e71 & 7#f7 ?r\gh 7#i7 z p>agraphs 7#d71 7#e71 7#f71 & 7#i7 ?r\gh 7#ab71 respectively2 7#b7 by ins]t+ aft] p>agraph 7#b7 ! foll[+3 7#c7 ,educational ,,isa ,! t]m educational ,,isa has ! mean+ giv5 ! t]m 9 section #b ( ! ,,isa ,/ud5t ,protection ,act ( #bjbc4 2 7#c7 9 p>agraph 7#f71 z r$esignat$ by p>agraph 7#a7-- 7,a7 9 subp>agraph 7,a77ii71 by ins]t+ or educational ,i,s,as aft] loans2 7,b7 9 subp>agraph 7,b71 by /rik+ & aft] ! semicolon2 7,c7 9 subp>agraph 7,c71 by /rik+ ! p]iod at ! end & ins]t+ 2 &2 & 7,d7 by add+ at ! end ( ! foll[+3 7,d7 not)/&+ subp>agraphs 7,a7 & 7,b71 does n include any ,,isa provid] ) respect to any educational ,,isa secur$1 made1 or ext5d$ by su* ,,isa provid]4 2 7#d7 by ins]t+ aft] p>agraph 7#f71 z r$esignat$ by subp>agraph 7,a71 ! foll[+3 7#g7 ,,isa provid] ,! t]m ,,isa provid] has ! mean+ giv5 ! t]m 9 section #b ( ! ,,isa ,/ud5t ,protection ,act ( #bjbc4 7#h7 ,,isa recipi5t ,! t]m ,,isa recipi5t has ! mean+ giv5 ! t]m 9 section #b ( ! ,,isa ,/ud5t ,protection ,act ( #bjbc4 2 & 7#e7 9 p>agraph 7#aa77;,a71 z r$esignat$ by p>agraph 7#a7-- 7,a7 9 ! matt] prec$+ clause 7i71 by ins]t+ or ,,isa provid] aft] l5d]2 7,b7 9 clause 7i71 by ins]t+ or an ,,isa provid] provides or o!rwise issues educational ,i,s,as aft] loans2 & 7,c7 9 clause 7ii71 by ins]t+ or ! educational ,i,s,as ( ! ,,isa provid] aft] l5d]4 7d7 ,responsibilities ( cov]$ in/itutions & ,,isa provid]s reg>d+ pref]r$ l5d] arrangem5ts ,section #aeb ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajai;a7 is am5d$-- 7#a7 9 ! section head+1 by /rik+ & l5d]s & ins]t+ l5d]s1 & ,,isa provid]s2 7#b7 9 subsection 7a7-- 7,a7 9 p>agraph 7#a7-- 7i7 9 subp>agraph 7,a7-- 7,i7 9 clause 7i7-- 7aa7 9 ! matt] prec$+ subclause 7,i71 by ins]t+ or educational ,i,s,as aft] loans2 7bb7 9 subclause 7,,ii7-- 7,,aa7 by /rik+ section #aea7c77;,a7 & ins]t+ section #aea7d77;,a72 & 7,,bb7 by /rik+ & at ! end2 7cc7 by r$esignat+ subclause 7,,iii7 z subclause 7,,iv72 & 7dd7 by ins]t+ aft] subclause 7,,ii7 ! foll[+3 7,,iii7 ! in=mation requir$ to be disclos$ pursuant to section #aec7;a77#b77;,a77i71 = an educational ,,isa t is (f]$ pursuant to a pref]r$ l5d] arrangem5t ( ! in/itution or organization to /ud5ts ( ! in/itution or families ( su* /ud5ts2 & 2 & 7,,ii7 9 clause 7ii7-- 7aa7 9 ! matt] prec$+ subclause 7,i7-- 7,,aa7 by /rik+ subp>agraph 7,c7 & ins]t+ subp>agraph 7,d72 & 7,,bb7 by ins]t+ or educational ,i,s,as aft] loans2 7bb7 9 subclause 7,i71 by /rik+ & aft] ! semicolon2 & 7cc7 by add+ at ! end ! foll[+3 7,,iii7 9 ! case ( a cov]$ in/itution1 ! in=mation describ$ 9 section #aec7;c7 = ea* type ( educational ,,isa (f]$ pursuant to a pref]r$ l5d] arrangem5t ( ! in/itution to /ud5ts ( ! in/itution or ! families ( su* /ud5ts2 & 7,,iv7 9 ! case ( an in/itution-affiliat$ organization ( a cov]$ in/itution1 ! in=mation 9 section #cjc7;b77#a7 ( ! ,,isa ,/ud5t ,protection ,act ( #bjbc1 = ea* type ( educational ,,isa (f]$ pursuant to a pref]r$ l5d] arrangem5t ( ! organization to /ud5ts ( su* in/itution or ! families ( su* /ud5ts4 2 7ii7 by r$esignat+ subp>agraph 7,c7 z subp>agraph 7,d72 & 7iii7 by ins]t+ aft] subp>agraph 7,b7 ! foll[+3 7,c7 ,educational ,,isa disclosures ,a cov]$ in/itution1 or an in/itution-affiliat$ organization ( su* cov]$ in/itution1 t provides in=mation reg>d+ an educational ,,isa f an ,,isa provid] to a prospective ,,isa recipi5t %all-- 7i7 provide ! prospective ,,isa recipi5t ) ! in=mation describ$ 9 section #cjc7;b77#a7 ( ! ,,isa ,/ud5t ,protection ,act ( #bjbc = su* educational ,,isa2 7ii7 in=m ! p]spective ,,isa recipi5t t-- 7,i7 ! prospective ,,isa recipi5t may qualify = loans or o!r assi/ance "u title ,,iv2 & 7,,ii7 ! t]ms & conditions ( ! loans made1 insur$1 or gu>ante$ "u title ,,iv may be m favorable ?an ! provisions ( educational ,i,s,as2 & 7iii7 ensure t in=mation reg>d+ educational ,i,s,as is pres5t$ 9 su* a mann] z to be di/9ct f in=mation reg>d+ loans t are made1 insur$1 or gu>ante$ "u title ,,iv4 2 7,b7 by /rik+ p>agraph 7#b7 & ins]t+ ! foll[+3 7#b7 ,use ( in/itution "n ,a cov]$ in/itution1 or an in/itution-affiliat$ organization ( su* cov]$ in/itution1 t ent]s into a pref]r$ l5d] arrangem5t ) a l5d] reg>d+ private education loans or an ,,isa provid] reg>d+ educational ,i,s,as %all n agree to ! l5d]'s or ,,isa provid]'s use ( ! "n1 emblem1 mascot1 or logo ( su* in/itution or organization1 or o!r words1 pictures1 or symbols readily id5tifi$ ) su* in/itution or organization1 9 ! m>ket+ ( private education loans or educational ,i,s,as to /ud5ts att5d+ su* in/itution 9 any way t implies t ! loan or educational ,,isa is (f]$ or made by su* in/itution or organization in/ead ( ! l5d] or ,,isa provid]4 2 & 7,c7 by add+ at ! end ! foll[+3 7#d7 ,use ( ,,isa provid] "n ,a cov]$ in/itution1 or an in/itution-affiliat$ organization ( su* cov]$ in/itution1 t ent]s into a pref]r$ l5d] arrangem5t ) an ,,isa provid] reg>d+ educational ,i,s,as %all ensure t ! "n ( ! ,,isa provid] is display$ 9 all in=mation & docum5tation relat$ to su* educational ,i,s,as4 2 & 7#c7 by add+ at ! end ! foll[+3 7c7 ,,isa provid] responsibilities ,= ea* ( an ,,isa provid]'s educational ,i,s,as1 ! ,,isa provid] %all comply ) ! disclosure requirem5ts ( sections #cjb & #cjc ( ! ,,isa ,/ud5t ,protection ,act ( #bjbc4 4 7e7 ,disclosures = ,,isa provid]s p>ticipat+ 9 pref]r$ l5d] arrangem5ts ,section #aec ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajai;b7 is am5d$-- 7#a7 9 subsection 7a7-- 7,a7 9 p>agraph 7#a7-- 7i7 9 subp>agraph 7,a71 by /rik+ section #aea7c77;,a7 & ins]t+ section #aea7d77;,a72 & 7ii7 by add+ at ! end ! foll[+3 7,c7 ,additional in=mation = educational ,i,s,as 7i7 ,9 g5]al ,by n lat] ?an #ahj days aft] ! date ( enactm5t ( ! ,,isa ,/ud5t ,protection ,act ( #bjbc1 ! ,secret>y1 9 coord9ation ) ! ,bureau ( ,consum] ,f9ancial ,protection1 %all det]m9e ! m9imum in=mation t ,,isa provid]s1 cov]$ in/itutions1 & in/itution-affiliat$ organizations ( su* cov]$ in/itutions p>ticipat+ 9 pref]r$ l5d] arrangem5ts %all make available reg>d+ educational ,i,s,as4 7ii7 ,consultation & cont5t ( m9imum disclosures ,9 c>ry+ out clause 7i71 ! ,secret>y %all-- 7,i7 consult ) /ud5ts1 ! families ( su* /ud5ts1 repres5tatives ( cov]$ in/itutions 7includ+ f9ancial aid adm9i/rators1 admission (fic]s1 & bus9ess (fic]s71 repres5tatives ( in/itution-affiliat$ organizations1 second>y s*ool guidance c\nselors1 & ,,isa provid]s2 7,,ii7 include1 9 ! m9imum in=mation "u clause 7i7 t is requir$ to be made available1 ! in=mation requir$ to be disclos$ "u section #cjc ( ! ,,isa ,/ud5t ,protection ,act ( #bjbc2 & 7,,iii7 consid] ! m]its ( requir+ ea* cov]$ in/itution1 & ea* in/itution-affiliat$ organization ( su* cov]$ in/itution1 ) a pref]r$ l5d] arrangem5t to provide prospective ,,isa recipi5ts & ! families ( su* ,,isa recipi5ts ! foll[+ in=mation = ea* type ( educational ,,isa (f]$ pursuant to su* pref]r$ l5d] arrangem5t3 7aa7 7,,aa7 ,! ,,isa paym5t calculation me?od1 ! income ?re%old1 ! ,,isa maximum numb] ( paym5ts 7or a range ( ! ,,isa maximum numb] ( paym5ts71 ! ,,isa paym5t w9d[ 7or a range ( ! ,,isa paym5t w9d[s71 & ! t]ms & conditions ( ! educational ,,isa = ! next aw>d ye>4 7,,bb7 ,9 ?is subclause1 ! t]ms income ?re%old1 ,,isa maximum numb] ( paym5ts1 ,,isa paym5t calculation me?od1 & ,,isa paym5t w9d[ h ! mean+s giv5 ! t]ms 9 section #b ( ! ,,isa ,/ud5t ,protection ,act ( #bjbc4 7bb7 ,an itemization ( ! fees or range ( fees requir$ to obta9 ! educational ,,isa4 7cc7 ,any fees or o!r p5alties bas$ on ! ,,isa recipi5t's defaults or late paym5ts4 7dd7 ,! annual or aggregate maximum f9anc$ am\nts4 7ee7 ,! av]age f9anc$ am\nts provid$ by ! ,,isa provid] to /ud5ts :o-- 7,,aa7 graduat$ f su* in/itution 9 ! prec$+ ye> ) c]tificates1 und]graduate degrees1 graduate degrees1 & pr(essional degrees1 z applicable2 & 7,,bb7 obta9$ educational ,i,s,as ( su* type f ! ,,isa provid] = ! prec$+ ye>4 7ff7 ,! consequ5ces = ! ,,isa recipi5t = default+ on an educational ,,isa4 7gg7 ,contact in=mation = ! ,,isa provid]4 7hh7 ,o!r in=mation sugge/$ by ! p]sons & entities ) :om ! ,secret>y has consult$ "u subclause 7,i74 2 7,b7 9 p>agraph 7#b7-- 7i7 9 subp>agraph 7,a7-- 7,i7 9 clause 7i71 by /rik+ section #aea7c77;,a7 & ins]t+ section #aea7d77;,a71 or to prospective ,,isa recipi5ts & ! families ( su* ,,isa recipi5ts reg>d+ educational ,i,s,as12 & 7,,ii7 9 clause 7ii71 by /rik+ ! model disclosure =m & ins]t+ a model disclosure =m2 7ii7 9 subp>agraph 7,b7-- 7,i7 9 ! matt] prec$+ clause 7i7-- 7aa7 by /rik+ a model disclosure =m & ins]t+ model disclosure =ms2 & 7bb7 by /rik+ & pref]r$ l5d]s & ins]t+ pref]r$ l5d]s1 & ,,isa provid]s2 7,,ii7 9 clause 7i71 by ins]t+ ,,isa provid]s1 aft] s]vic]s12 & 7,,iii7 9 clause 7ii7-- 7aa7 by /rik+ =mat to ! =m & ins]t+ ! foll[+3 =mat to-- 7aa7 ) respect to education loans1 ! =m 2 7bb7 by /rik+ section #aea7c77;,a7 & ins]t+ section #aea7d77;,a72 & 7cc7 by add+ at ! end ! foll[+3 7bb7 ) respect to educational ,i,s,as1 ! =m develop$ by ! ,bureau ( ,consum] ,f9ancial ,protection "u section #cja7d7 ( ! ,,isa ,/ud5t ,protection ,act ( #bjbc 9 ord] to p]mit /ud5ts & ! families ( /ud5ts to easily comp>e educational ,i,s,as2 & 2 & 7iii7 9 subp>agraph 7,c71 by /rik+ su* model disclosure =m & ins]t+ ! model disclosure =ms describ$ 9 subp>agraph 7,b72 7#b7 9 subsection 7b71 by /rik+ section #aea7c77;,a7 ea* place ! t]m appe>s & ins]t+ section #aea7d77;,a72 7#c7 by r$esignat+ subsection 7c7 z subsection 7d72 7#d7 by ins]t+ aft] subsection 7b7 ! foll[+3 7c7 ,duties ( ,,isa provid]s ,ea* ,,isa provid] t has a pref]r$ l5d] arrangem5t ) respect to educational ,i,s,as ) a cov]$ in/itution1 or an in/itution-affiliat$ organization ( su* cov]$ in/itution1 %all annually1 by a date det]m9$ by ! ,secret>y1 provide to su* cov]$ in/itution or su* in/itution-affiliat$ organization1 & to ! ,secret>y1 ! in=mation ! ,secret>y requires pursuant to subsection 7a77#b77;,a77i7 = ! educational ,i,s,as t ! ,,isa provid] plans to (f] pursuant to su* pref]r$ l5d] arrangem5t to /ud5ts att5d+ su* cov]$ in/itution1 or to ! families ( su* /ud5ts1 = ! next aw>d ye>4 2 & 7#e7 9 subsection 7d71 z r$esignat$ by p>agraph 7#c7-- 7,a7 9 p>agraph 7#a7-- 7i7 9 subp>agraph 7,a7-- 7,i7 9 clause 7i71 by /rik+ section #aea7c77;,a7 & ins]t+ section #aea7d77;,a7 or educational ,,isa2 & 7,,ii7 by add+ at ! end ! foll[+3 7iii7 7,i7 9 ! case ( a cov]$ in/itution1 ! in=mation describ$ 9 subsection 7c71 = ea* type ( educational ,,isa (f]$ pursuant to a pref]r$ l5d] arrangem5t ( ! in/itution to /ud5ts ( ! in/itution or ! families ( su* /ud5ts2 & 7,,ii7 9 ! case ( an in/itution-affiliat$ organization ( a cov]$ in/itution1 ! in=mation describ$ 9 section #cjc7;b77#a7 ( ! ,,isa ,/ud5t ,protection ,act ( #bjbc1 = ea* type ( educational ,,isa (f]$ pursuant to a pref]r$ l5d] arrangem5t ( ! organization to /ud5ts ( su* in/itution or ! families ( su* /ud5ts4 2 & 7ii7 9 subp>agraph 7,b7-- 7,i7 by ins]t+ or ,,isa provid] aft] l5d]2 & 7,,ii7 by ins]t+ or an educational ,,isa aft] loan2 & 7,b7 9 p>agraph 7#b77;,a7-- 7i7 9 ! matt] prec$+ clause 7i71 by ins]t+ or ,,isa provid] aft] ea* l5d]2 7ii7 9 clause 7i71 by /rik+ clauses 7i7 & 7ii7 & ins]t+ clauses 7i7 ?r\gh 7iii71 z applicable2 & 7iii7 9 clause 7ii7-- 7,i7 by ins]t+ or ,,isa provid] aft] ! l5d]2 & 7,,ii7 by ins]t+ or educational ,,isa aft] loan4 7f7 ,self-,c]tification =m = educational ,i,s,as ,section #aee ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajai;d7 is am5d$-- 7#a7 by /rik+ ! section head+ & ins]t+ ! foll[+3 ,self-c]tification =ms = private education loans or educational ,i,s,as42 7#b7 9 subsection 7a7-- 7,a7 9 ! matt] prec$+ p>agraph 7#a7-- 7i7 by /rik+ ! self-c]tification =m & ins]t+ a self-c]tification =m2 7ii7 by ins]t+ &1 9 consultation ) ! ,director ( ! ,bureau ( ,consum] ,f9ancial ,protection1 a self-c]tification =m = educational ,i,s,as t %all be us$ to satisfy ! requirem5ts ( section #cjc7;f7 ( ! ,,isa ,/ud5t ,protection ,act ( #bjbc aft] ,act2 & 7iii7 by /rik+ ,su* =m & ins]t+ ,ea* =m2 & 7,b7 9 p>agraph 7#c7-- 7i7 9 subp>agraph 7,a71 by ins]t+ or educational ,,isa1 z applicable aft] loan2 & 7ii7 9 subp>agraph 7,c71 by ins]t+ or educational ,,isa1 z applicable aft] loan2 & 7#c7 9 subsection 7b71 by /rik+ ! =m & ins]t+ a =m4 7g7 ,con=m+ am5dm5ts ,section #aed ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajai;c7 is am5d$-- 7#a7 9 subsection 7a7-- 7,a7 by ins]t+ = education loans aft] ! model disclosure =m2 & 7,b7 by /rik+ section #aea7c77;,a7 & ins]t+ section #aea7d77;,a72 & 7#b7 9 subsection 7b77#b71 by ins]t+ = education loans aft] model disclosure =m4 ,v ,apply+ exi/+ consum] protections to income %>e agreem5ts #eja4 ,equal access to income %>e agreem5ts 7a7 ,activities con/itut+ discrim9ation ,x %all be unlawful = any ,,isa provid] to discrim9ate aga9/ any applicant1 ) respect to any aspect ( an income %>e agreem5t-- 7#a7 on ! basis ( race1 color1 religion1 national orig91 sex or m>ital /atus1 or age 7provid$ ! applicant has ! capacity to contract72 7#b7 because all or "p ( ! applicant's income d]ives f any public assi/ance program 7except = ^? exclud$ f ! def9ition ( income e/abli%$ by ! income %>e agreem5t72 or 7#c7 because ! applicant has 9 good fai? ex]cis$ any "r "u ?is ,act4 7b7 ,activities n con/itut+ discrim9ation ,x %all n con/itute discrim9ation = purpose ( subsection 7a7 = an ,,isa provid]-- 7#a7 to make an inquiry ( ! applicant's age or ( :e!r ! applicant's income d]ives f any public assi/ance program1 if su* inquiry is = ! purpose ( det]m9+ ! am\nt & probable cont9uance ( income levels1 cr$it hi/ory1 or o!r p]t95t elem5t ( cr$itwor?9ess z provid$ 9 regulations ( ! ,bureau2 7#b7 to use any empirically d]iv$ cr$it sy/em t consid]s age if t sy/em is demon/rably & /ati/ically s\nd 9 accordance ) regulations ( ! ,bureau1 except t 9 ! op]ation ( su* a sy/em1 ! age ( an eld]ly applicant may n be assign$ a negative factor or value2 7#c7 to make an inquiry (1 or to consid] ! age (1 an eld]ly applicant :5 ! age ( t applicant is to be us$ by ! cr$itor 9 ! ext5sion ( cr$it 9 favor ( ! applicant2 or 7#d7 to use any empirically d]iv$ sy/em t consid]s ! expect$ future income ( an applicant to det]m9e :e!r to approve an application or to e/abli% ! f9ancial & o!r t]ms ( an income %>e agreem5t1 if t empirically d]iv$ sy/em is demon/rably & /ati/ically s\nd & reasonably design$ su* t approv$ applicants are all reasonably expect$ to pay sub/antially simil> effective annual p]c5tage rates z o!r simil>ly situat$ applicants1 except t 9 accordance ) any regulations ( ! ,bureau 9 ! op]ation ( su* a sy/em to project an applicant's expect$ future income1 an ,,isa provid]-- 7,a7 may n consid] an applicant's /atus z a memb] or pot5tial memb] ( any ( ! classes describ$ 9 subsection 7a72 7,b7 may consid] an applicant's curr5t employm5t /atus1 curr5t debt & o!r f9ancial obligations1 or curr5t & pa/ income 7z ( ! date ( application72 or 7,c7 9 ! case ( educational ,i,s,as1 may consid] ! hi/orical income ( consum]s :o h made comp>able progress t[>d ! completion ( ! educational program 9 :i* ! applicant is or is expect$ to be enroll$ or t[>d a reasonably comp>able educational program4 7c7 ,additional activities n con/itut+ discrim9ation ,x %all n be a violation ( subsection 7a7 = an ,,isa provid] to refuse to ext5d an income %>e agreem5t-- 7#a7 t is (f]$ pursuant to-- 7,a7 any f9ancial assi/ance program expressly au?oriz$ by law = an economically disadvantag$ class ( p]sons2 7,b7 any f9ancial assi/ance program adm9i/]$ by a nonpr(it organization = its memb]s or an economically disadvantag$ class ( p]sons2 or 7,c7 any special purpose f9ancial assi/ance program t-- 7i7 is c>ri$ out by a =-pr(it organization to meet special social ne$s2 & 7ii7 meets /&>ds prescrib$ 9 regulations by ! ,bureau2 or 7#b7 if ! refusal is requir$ by1 or made pursuant to1 a program describ$ 9 p>agraph 7#a74 7d7 ,reason = adv]se action2 proc$ure applicable 7#a7 ,9 g5]al ,n lat] ?an #cj days 7or su* long] reasonable "t z specifi$ 9 regulations ( ! ,bureau = any class ( income %>e agreem5t transaction7 aft] ! date on :i* an ,,isa provid] receives a complet$ application = an income %>e agreem5t1 ! ,,isa provid] %all notify ! applicant (-- 7,a7 ! action tak5 by ! ,,isa provid] ) respect to ! application2 7,b7 9 ! case ( an adv]se action1 a cle> & accurate disclosure ( ! applicant's "r to a writt5 /atem5t ( reasons 9 accordance ) p>agraph 7#b7 )9 #fj days aft] receiv+ ! notice "u ?is p>agraph2 & 7,c7 ! id5tity ( ! p]son or (fice f :i* ! /atem5t ( reasons describ$ 9 p>agraph 7#b7 may be obta9$4 7#b7 ,/atem5t ( reasons 7,a7 ,9 g5]al ,ea* applicant aga9/ :i* an adv]se action is tak5 %all be entitl$ to a writt5 /atem5t f ! applicable ,,isa provid] reg>d+ ! specific reasons = t adv]se action1 if ! reque/ is made by ! applicant n lat] ?an #fj days aft] receiv+ ! notice ( an adv]se action "u p>agraph 7#a74 7,b7 ,tim+ ,an ,,isa provid] %all provide an applicant ) ! /atem5t ( reasons "u subp>agraph 7,a7 by ! date t is n m ?an #cj days aft] ! date ( ! consum]'s reque/4 7,c7 ,oral /atem5t ,not)/&+ subp>agraph 7,a71 ! /atem5t describ$ 9 ?is p>agraph may be provid$ orally if ! oral notification advises ! applicable applicant ( ! "r ( ! applicant to h ! /atem5t ( reasons confirm$ 9 writ+1 ^u writt5 reque/ by ! applicant4 7,d7 ,?ird-p>ty reque/ ,if a ?ird p>ty reque/s t an ,,isa provid] make a specific ext5sion ( an income %>e agreem5t directly or indirectly to an applicant1 ! /atem5t "u ?is p>agraph may be made directly by ! ,,isa provid]1 or indirectly ?r\gh ! ?ird p>ty1 if ! id5tity ( ! ,,isa provid] is disclos$4 7,e7 ,v]bal /atem5ts ,! requirem5ts ( ?is p>agraph may be satisfi$ by a v]bal /atem5t or notification 9 ! case ( an ,,isa provid] t act$ on n m ?an #aej applications dur+ ! cal5d> ye> prec$+ ! cal5d> ye> 9 :i* ! applicable adv]se action is tak51 z det]m9$ "u regulations ( ! ,bureau4 7e7 ,regulations 7#a7 ,9 g5]al 7,a7 ,issuance ( regulations ,! ,bureau %all prescribe regulations to c>ry out ! purposes ( ?is section4 7,b7 ,cont5ts ,! regulations prescrib$ "u subp>agraph 7,a7 may conta9 su* classifications1 diff]5tiation1 or o!r provisions1 & may provide = su* adju/m5ts = any class ( transactions1 z 9 ! judgm5t ( ! ,bureau are necess>y or prop] to effectuate ! purposes ( ?is section1 to prev5t circumv5tion or evasion ( ?is section1 or to facilitate or sub/antiate compliance ) ?is section4 7#b7 ,consi/5t ) ,equal ,cr$it ,opportunity ,act ,9 prescrib+ regulations "u p>agraph 7#a71 ! ,bureau %all be guid$ by ! ,equal ,cr$it ,opportunity ,act 7#ae ,u4,s4,c4 #afia et seq47 & "p #ajjb ( title #ab1 ,code ( ,f$]al ,regulations1 or any successor regulations4 7#c7 ,exempt transactions 7,a7 ,9 g5]al ,subject to subp>agraph 7,b71 ! regulations prescrib$ "u p>agraph 7#a7 may exempt f ! provisions ( ?is section any class ( transactions t is n prim>ily = p]sonal1 family1 or h\sehold purposes1 or any bus9ess or comm]cial income %>e agreem5t or inve/m5t contract made available by a f9ancial in/itution1 except t a p>ticul> type ( income %>e agreem5t )9 su* a class may be exempt$ only if ! ,bureau makes an express f9d+ t apply+ ?is section1 or ( any provision ( ?is section1 to ! income %>e agreem5t w\ld n contribute sub/antially to effectuat+ ! purposes ( ?is section4 7,b7 ,limitation ,an exemption grant$ "u subp>agraph 7,a7 %all be-- 7i7 = n long] ?an #e ye>s2 & 7ii7 ext5d$ only if ! ,bureau makes a subsequ5t det]m9ation1 9 ! mann] describ$ by t subp>agraph1 t ! exemption rema9s appropriate4 7#d7 ,ma9t5ance ( records ,pursuant to ! regulations prescrib$ "u p>agraph 7#a71 an entity mak+ bus9ess or comm]cial income %>e agreem5ts %all ma9ta9 su* records or o!r data relat+ to ^? agreem5ts z may be necess>y to evid5ce compliance ) ?is section or en=ce any action pursuant to ! au?ority ( ?is section1 except t 9 no ev5t %all ^? records or data be ma9ta9$ = a p]iod ( less ?an #a ye>4 7#e7 ,def]5ce ,not)/&+ any p[] grant$ to any ,f$]al ag5cy "u ?is section1 ! def]5ce t a c\rt af=ds to a ,f$]al ag5cy ) respect to a det]m9ation made by t ag5cy relat+ to ! mean+ or int]pretation ( any provision ( ?is section t is subject to ! jurisdiction ( ! ag5cy %all be appli$ z if t ag5cy 7 ! only ag5cy au?oriz$ to apply1 en=ce1 int]pret1 or adm9i/] ! provisions ( ?is section4 7f7 ,en=cem5t ,! adm9i/rative en=cem5t ( ?is section %all be consi/5t ) section #gjd ( ! ,equal ,cr$it ,opportunity ,act 7#ae ,u4,s4,c4 #afia;c7 & ! regulations implem5t+ su* section #gjd4 7g7 ,self-,te/+ & self-,correction ,! inc5tives = self-te/+ & self-correction "u section #gjd;,a ( ! ,equal ,cr$it ,opportunity ,act 7#ae ,u4,s4,c4 #afia;c-#a71 & ! regulations implem5t+ su* section #gjd;,a1 %all apply to ,,isa provid]s (f]+ income %>e agreem5ts4 7h7 ,applicability ( o!r laws ,section #gje ( ! ,equal ,cr$it ,opportunity ,act 7#ae ,u4,s4,c4 #afia;d71 & ! regulations implem5t+ su* section #gje1 %all apply to ,,isa provid]s (f]+ income %>e agreem5ts 9 ! same mann] 9 :i* ^? provisions apply to cr$itors (f]+ loan products4 7i7 ,civil liability ,section #gjf ( ! ,equal ,cr$it ,opportunity ,act 7#ae ,u4,s4,c4 #afia;e71 & ! regulations implem5t+ su* section #gjf1 %all apply to ,,isa provid]s (f]+ income %>e agreem5ts4 7j7 ,reports by ,bureau & ,attorney ,g5]al 7#a7 ,9 g5]al ,ea* ye>1 ! ,bureau & ! ,attorney ,g5]al %all1 respectively1 submit to ,congress reports conc]n+ ! adm9i/ration ( ! functions ( ! ,bureau & ! ,attorney ,g5]al1 respectively1 "u ?is section1 includ+ su* recomm5dations z ! ,bureau & ! ,attorney ,g5]al1 respectively1 det]m9e necess>y or appropriate4 7#b7 ,additional in=mation ,ea* report ( ! ,bureau submitt$ "u p>agraph 7#a7 %all include ! assessm5t ( ! ,bureau ( ! ext5t to :i* compliance ) ! requirem5ts ( ?is title is be+ a*iev$ & a summ>y ( ! en=cem5t actions tak5 by ea* ( ! ag5cies assign$ adm9i/rative responsibilities "u subsection 7f74 #ejb4 ,prohibition on requir+ preau?oriz$ electronic fund transf]s "u ! ,electronic ,fund ,transf] ,act ,section #iac7a7 ( ! ,electronic ,fund ,transf] ,act 7#ae ,u4,s4,c4 #afick7#a77 is am5d$ by ins]t+ 1 or ! ent]+ into an educational ,,isa or an income %>e agreem5t 7z ^? t]ms are def9$ 9 section #b ( ! ,,isa ,/ud5t ,protection ,act ( #bjbc7 ) a consum] aft] a consum]4 #ejc4 ,treatm5t "u ! ,fair ,cr$it ,report+ ,act 7a7 ,9 g5]al ,section #fje ( ! ,fair ,cr$it ,report+ ,act 7#ae ,u4,s4,c4 #afha;c7 is am5d$ by add+ at ! end ! foll[+3 7i7 ,income %>e agreem5t in=mation ,) respect to an income %>e agreem5t 7z t t]m is def9$ 9 section #b ( ! ,,isa ,/ud5t ,protection ,act ( #bjbc71 a consum] report made by a consum] report+ ag5cy-- 7#a7 may include a description ( ! contract t]ms ( ! income %>e agreem5t &1 subject to subsection 7a71 in=mation ) respect to am\nts t are ow$ "u ! income %>e agreem5t2 & 7#b7 may n include any speculation ab\t future am\nts t may be ow$ "u ! income %>e agreem5t1 includ+ ! report+ ( any paym5t caps or e>ly t]m9ation am\nts4 4 7b7 ,regulations ,! ,bureau %all promulgate regulations ) respect to ! mann] 9 :i* ,,isa provid]s may furni%1 & consum] report+ ag5cies may report1 in=mation reg>d+ income %>e agreem5ts4 #ejd4 ,treatm5t "u ! ,fair ,debt ,collection ,practices ,act 7a7 ,9 g5]al ,section #hjc ( ! ,fair ,debt ,collection ,practices ,act 7#ae ,u4,s4,c4 #afib;a7 is am5d$-- 7#a7 9 p>agraph 7#e71 by ins]t+ 1 includ+ su* an obligation or alleg$ obligation aris+ out ( an income %>e agreem5t1 z t t]m is def9$ 9 section #b ( ! ,,isa ,/ud5t ,protection ,act ( #bjbc be=e ! p]iod at ! end2 & 7#b7 9 p>agraph 7#f71 9 ! fir/ s5t5ce1 by ins]t+ 1 includ+ an ,,isa provid] 7z def9$ 9 section #b ( ! ,,isa ,/ud5t ,protection ,act ( #bjbc71 aft] means any p]son4 7b7 ,rules ( con/ruction ,no?+ 9 ?is section1 or ! am5dm5ts made by ?is section1 may be con/ru$ = purposes ( any o!r ,f$]al law z consid]+-- 7#a7 income %>e agreem5ts z debts1 once ! ,,isa recipi5t owes any am\nts to ! ,,isa provid] "u ! income %>e agreem5t2 or 7#b7 ,,isa provid]s z l5d]s1 once ! ,,isa recipi5t owes any am\nts to ! ,,isa provid] "u ! applicable income %>e agreem5t4 #eje4 ,treatm5t ( educational income %>e agreem5ts = purposes ( ,milit>y ,l5d+ ,act ,section #ihg ( title #aj1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 by r$esignat+ subsection 7i7 z subsection 7j72 & 7#b7 by ins]t+ aft] subsection 7h7 ! foll[+ new subsection3 7i7 ,treatm5t ( educational income %>e agreem5ts ,! ,secret>y ( ,def5se %all prescribe regulations to apply ?is section to educational ,i,s,as 7z t t]m is def9$ 9 section #b ( ! ,,isa ,/ud5t ,protection ,act ( #bjbc71 & an educational ,,isa %all be deem$ to meet ! annual p]c5tage rate ( int]e/ limitation "u subsection 7b7 ( ?is section if ! educational ,,isa1 z applicable1 w\ld meet ! requirem5ts ( section #ajb7;b7 ( su* ,act 7relat$ to appropriate risk %>+7 b ) ref]5ce to ! rate specifi$ 9 subsection 7b7 ( ?is section4 4 #ejf4 ,treatm5t "u ! ,s]vicememb]s ,civil ,relief ,act ,section #bjg ( ! ,s]vicememb]s ,civil ,relief ,act 7#ej ,u4,s4,c4 #cicg7 is am5d$-- 7#a7 9 subsection 7d7-- 7,a7 by r$esignat+ p>agraphs 7#a7 & 7#b7 z p>agraphs 7#b7 & 7#c71 respectively2 & 7,b7 by ins]t+ be=e p>agraph 7#b71 z r$esignat$ by subp>agraph 7,a71 ! foll[+ new p>agraph3 7#a7 ,educational income %>e agreem5t ,! t]m educational income %>e agreem5t has ! mean+ giv5 ! t]m educational ,,isa 9 section #b ( ! ,,isa ,/ud5t ,protection ,act ( #bjbc4 2 7#b7 by r$esignat+ subsections 7d7 & 7e7 z subsections 7e7 & 7f71 respectively2 & 7#c7 by ins]t+ be=e subsection 7e71 z r$esignat$ by p>agraph 7#b71 ! foll[+ new subsection 7d73 7d7 ,educational income %>e agreem5ts 7#a7 ,9 g5]al ,an educational income %>e agreem5t %all be consid]$ to be 9 compliance ) ! requirem5ts ( subsection 7a7 if su* agreem5t is compliant ) ! requirem5ts ( section #ajb7;b7 ( ! ,,isa ,/ud5t ,protection ,act ( #bjbc4 7#b7 ,int]e/ rate ,9 c>ry+ out p>agraph 7#a7 ( ?is subsection1 ! int]e/ rate ref]r$ to 9 section #ajb7;b7 ( su* ,act %all be deem$ to be ! rate ( int]e/ specifi$ 9 subsection 7a7 ( ?is section4 4 #ejg4 ,pres]vation ( consum]s' claims & def5ses 7a7 ,application ( ,hold] 9 ,due ,c\rse ,rule to income %>e agreem5ts ,beg9n+ on ,janu>y #a1 #bjbd1 = purposes ( apply+ "p #dcc ( title #af1 ,code ( ,f$]al ,regulations 7commonly kn[n z ! ,hold] 9 ,due ,c\rse ,rule or ! ,hold] ,rule71 ! t]m consum] cr$it contract1 z def9$ 9 section #dcc4a ( su* title1 %all include income %>e agreem5ts t-- 7#a7 involve ! advanc+ ( funds to1 or on behalf (1 a consum] 9 return = ! consum]'s agreem5t to an income %>e agreem5t2 & 7#b7 are relat$1 9 :ole or sub/antial "p1 to a pur*ase ( goods or s]vices f a sell] :o-- 7,a7 ref]s ! consum] to ! provid] ( ! income %>e agreem5t2 or 7,b7 is affiliat$ ) ! provid] ( ! income %>e agreem5t by common control1 contract1 or bus9ess arrangem5t4 7b7 ,disclosures ,9 apply+ section #dcc4b ( title #af1 ,code ( ,f$]al ,regulations1 to a consum] cr$it contract t is an income %>e agreem5t describ$ 9 subsection 7a7-- 7#a7 9 lieu ( ! disclosure requir$ "u section #dcc4b7;a7 ( title #af1 ,code ( ,f$]al ,regulations1 ! contract %all conta9 ! foll[+ disclosure 9 at lea/ #aj po9t1 bold face type3 ,,notice ,,any ,,hold] ,,( ,,?is ,,income ,,%>e ,,agreem5t ,,is ,,subject ,,to ,,all ,,claims ,,& ,,def5ses ,,:i* ,,! ,,isa ,,recipi5t ,,c\ld ,,ass]t ,,aga9/ ,,! ,,sell] ,,( ,,! ,,goods ,,or ,,s]vices ,,obta9$ ,,"u ,,! ,,income ,,%>e ,,agreem5t ,,or ,,) ,,! ,,proce$s ,,( ,,! ,,income ,,%>e ,,agreem5t4 ,,any ,,recov]y ,,by ,,! ,,isa ,,recipi5t ,,"u ,,su* ,a ,,claim ,,or ,,def5se ,,%all ,,n ,,exce$ ,,am\nts ,,paid ,,by ,,! ,,isa ,,recipi5t ,,"u ,,! ,,income ,,%>e ,,agreem5t4 2 & 7#b7 9 lieu ( ! disclosure requir$ "u section #dcc4b7;b7 ( title #af1 ,code ( ,f$]al ,regulations1 ! contract %all conta9 ! foll[+ disclosure 9 at lea/ #aj po9t1 bold face type3 ,,notice ,,any ,,hold] ,,( ,,?is ,,income ,,%>e ,,agreem5t ,,is ,,subject ,,to ,,all ,,claims ,,& ,,def5ses ,,:i* ,,! ,,isa ,,recipi5t ,,c\ld ,,ass]t ,,aga9/ ,,! ,,sell] ,,( ,,goods ,,or ,,s]vices ,,obta9$ ,,"u ,,! ,,income ,,%>e ,,agreem5t ,,or ,,) ,,! ,,proce$s ,,( ,,! ,,income ,,%>e ,,agreem5t4 ,,any ,,recov]y ,,"u ,,su* ,a ,,claim ,,or ,,def5se ,,by ,,! ,,isa ,,recipi5t ,,%all ,,n ,,exce$ ,,am\nts ,,paid ,,by ,,! ,,isa ,,recipi5t ,,"u ,,! ,,income ,,%>e ,,agreem5t4 4 ,,vi ,relation to o!r laws #fja4 ,treatm5t "u o!r laws 7a7 ,insurance & wag]+ ,an income %>e agreem5t %all n be treat$ z a contract = insurance1 or z a bett+ or wag]+ contract1 "u any ,f$]al or ,/ate law1 except 9 ! case ( a ,/ate law t expressly /ates ! law is int5d$ to apply to income %>e agreem5ts z def9$ 9 ?is ,act4 7b7 ,paym5ts n consid]$ prepaym5ts 7#a7 ,9 g5]al ,any "r t an ,,isa recipi5t may h to pay an am\nt great] ?an ! am\nt f9anc$ "u an income %>e agreem5t 9 ord] to ext+ui% ! income %>e agreem5t e>li] ?an ! ,,isa duration or ,,isa maximum numb] ( paym5ts %all n be subject to any ,f$]al or ,/ate law ) respect to prepaym5t p5alties1 z long z-- 7,a7 ! prepaym5t complies ) ! limitations on income %>e agreem5ts requir$ "u ?is ,act & ! am5dm5ts made by ?is ,act2 & 7,b7 9 ! case ( a ,/ate law1 ! ,/ate law does n expressly /ate t ! law is int5d$ to apply to income %>e agreem5ts z def9$ 9 ?is ,act4 7#b7 ,nonapplicability ,an income %>e agreem5t "u ?is ,act is n subject to ! application ( section #adj7;e7 ( ! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afej7;e771 to ! ext5t x w\ld be applicable to an income %>e agreem5t4 7c7 ,treatm5t ( educational ,i,s,as 7#a7 ,assignm5t ( future wages = educational ,i,s,as ,an educational ,,isa %all be a valid1 b9d+1 & en=ceable contract1 not)/&+ any ,/ate law limit+ or o!rwise regulat+ assignm5ts ( future wages or o!r income1 except 9 ! case ( a ,/ate law t expressly /ates ! law is int5d$ to apply to income %>e agreem5ts z def9$ 9 ?is ,act4 7#b7 ,preemption ( ,/ate law ) respect to usury & int]e/ rates = educational ,i,s,as ,an educational ,,isa %all n be subject to a ,/ate law ) respect to usury1 int]e/ rates1 fees1 & *>ges = cr$it1 loans1 cr$it or in/allm5t sales1 or a ,/ate law requir+ t in/allm5t paym5ts be sub/antially equal 9 am\nt1 except 9 ! case ( a ,/ate law t expressly /ates ! law is int5d$ to apply to income %>e agreem5ts z def9$ 9 ?is ,act4 7#c7 ,preemption ( ,/ate laws ) respect to ability-to-repay & lic5s+ laws = educational ,i,s,as ,an educational ,,isa %all n be subject to a ,/ate law ) respect to ability-to-repay requirem5ts1 & nei!r an ,,isa provid] issu+ an educational ,,isa or its successor 9 int]e/1 nor any entity s]vic+ any educational ,,isa on behalf ( an ,,isa provid] or its successor 9 int]e/1 %all be subject to any ,/ate law ) respect to lic5s+ or regi/ration1 except 9 ! case ( a ,/ate law t expressly /ates ! law is int5d$ to apply to income %>e agreem5ts1 z def9$ 9 ?is ,act4 #fjb4 ,relation to ,/ate law 7a7 ,9 ,g5]al 7#a7 ,rule ( ,con/ruction ,?is ,act1 o!r ?an ! provisions ( titles ,i & ,,iii & section #eja1 may n be con/ru$ z annull+1 alt]+1 or affect+1 or exempt+ any p]son subject to ! provisions ( ?is ,act f comply+ ) ! /atutes1 regulations1 ord]s1 or int]pretations 9 effect 9 any ,/ate1 except to ! ext5t t any su* provision ( law is inconsi/5t ) ! provisions ( ?is ,act1 & !n only to ! ext5t ( ! inconsi/5cy4 7#b7 ,great] protection "u ,/ate law ,= purposes ( ?is subsection1 a /atute1 regulation1 ord]1 or int]pretation 9 effect 9 any ,/ate is n inconsi/5t ) ! provisions ( ?is ,act if ! protection t su* /atute1 regulation1 ord]1 or int]pretation af=ds to ,,isa recipi5ts or applicants is great] ?an ! protection provid$ "u ?is ,act4 ,a det]m9ation reg>d+ :e!r a /atute1 regulation1 ord]1 or int]pretation 9 effect 9 any ,/ate is inconsi/5t ) ! provisions ( ?is ,act may be made by ! ,bureau on its own motion or 9 response to a nonfrivol\s petition initiat$ by any int]e/$ p]son4 7b7 ,relation to o!r provisions ( enum]at$ consum] laws t relate to ,/ate law ,no provision ( ?is ,act1 except z provid$ 9 titles ,i & ,,iii & section #eja1 %all be con/ru$ z modify+1 limit+1 or sup]s$+ ! op]ation ( any provision ( an enum]at$ consum] law t relates to ! application ( a law 9 effect 9 any ,/ate ) respect to su* enum]at$ consum] law4 7c7 ,additional consum] protection regulations 9 response to ,/ate action 7#a7 ,notice ( propos$ rule requir$ ,! ,bureau %all issue a notice ( propos$ rulemak+ :5ev] a majority ( ! ,/ates has enact$ a resolution 9 support ( ! e/abli%m5t or modification ( a consum] protection regulation by ! ,bureau4 7#b7 ,bureau consid]ations requir$ = issuance ( f9al regulation ,be=e prescrib+ a f9al regulation bas$ ^u a notice issu$ "u p>agraph 7#a71 ! ,bureau %all take into acc\nt :e!r-- 7,a7 ! propos$ regulation w\ld af=d great] protection to consum]s ?an any exi/+ regulation2 7,b7 ! int5d$ b5efits ( ! propos$ regulation = consum]s w\ld outweigh any increas$ co/s or inconv5i5ces = consum]s1 & w\ld n discrim9ate unfairly aga9/ any category or class ( consum]s2 & 7,c7 a ,f$]al bank+ ag5cy has advis$ t ! propos$ regulation is likely to pres5t an unacceptable safety & s\ndness risk to insur$ depository in/itutions4 7#c7 ,explanation ( consid]ations ,! ,bureau-- 7,a7 %all include a discussion ( ! consid]ations requir$ 9 p>agraph 7#b7 9 ! ,f$]al ,regi/] notice ( a f9al regulation prescrib$ pursuant to ?is subsection2 & 7,b7 :5ev] ! ,bureau det]m9es n to prescribe a f9al regulation1 %all publi% an explanation ( su* det]m9ation 9 ! ,f$]al ,regi/]1 & provide a copy ( su* explanation to ea* ,/ate t enact$ a resolution 9 support ( ! propos$ regulation1 ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate1 & ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives4 7#d7 ,res]vation ( au?ority ,no provision ( ?is subsection %all be con/ru$ z limit+ or re/rict+ ! au?ority ( ! ,bureau to enhance consum] protection /&>ds e/abli%$ pursuant to ?is ,act 9 response to a motion ( ! ,bureau or 9 response to a reque/ by any o!r int]e/$ p]son4 7#e7 ,rule ( con/ruction ,no provision ( ?is subsection %all be con/ru$ z exempt+ ! ,bureau f comply+ ) sub*apt] ,,ii ( *apt] #e ( title #e1 ,unit$ ,/ates ,code4 ,,vii ,en=cem5t & report+ #gja4 ,en=cem5t 7a7 ,en=c+ ag5cies ,subject to subtitle ,b ( ! ,consum] ,f9ancial ,protection ,act ( #bjaj 7#ab ,u4,s4,c4 #eeaa et seq471 compliance ) ! requirem5ts impos$ "u ?is ,act %all be en=c$ "u-- 7#a7 section #h ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7 by ! appropriate ,f$]al bank+ ag5cy1 z def9$ 9 section #c7q7 ( t ,act 7#ab ,u4,s4,c4 #ahac7q771 ) respect to-- 7,a7 national banks1 ,f$]al sav+s associations1 & ,f$]al bran*es & ,f$]al ag5cies ( =eign banks2 7,b7 memb] banks ( ! ,f$]al ,res]ve ,sy/em 7o!r ?an national banks71 bran*es & ag5cies ( =eign banks 7o!r ?an ,f$]al bran*es1 ,f$]al ag5cies1 & insur$ ,/ate bran*es ( =eign banks71 comm]cial l5d+ companies own$ or controll$ by =eign banks1 & organizations op]at+ "u section #be or #be;,a ( ! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #fja et seq472 & 7,c7 banks & ,/ate sav+s associations insur$ by ! ,f$]al ,deposit ,insurance ,corporation 7o!r ?an memb]s ( ! ,f$]al ,res]ve ,sy/em71 & insur$ ,/ate bran*es ( =eign banks2 7#b7 ! ,f$]al ,cr$it ,union ,act 7#ab ,u4,s4,c4 #agea et seq471 by ! ,director ( ! ,national ,cr$it ,union ,adm9i/ration1 ) respect to any ,f$]al cr$it union2 7#c7 "p ,a ( subtitle ,,vii ( title #di1 ,unit$ ,/ates ,code1 by ! ,secret>y ( ,transportation1 ) respect to any air c>ri] or =eign air c>ri] subject to t "p2 7#d7 ! ,pack]s & ,/ocky>ds ,act1 #aiba 7#g ,u4,s4,c4 #aia et seq47 7except z provid$ 9 section #djf ( t ,act 7#g ,u4,s4,c4 #bbf771 by ! ,secret>y ( ,agriculture1 ) respect to any activities subject to t ,act2 7#e7 ! ,f>m ,cr$it ,act ( #aiga 7#ab ,u4,s4,c4 #bjja et seq471 by ! ,f>m ,cr$it ,adm9i/ration ) respect to any ,f$]al l& bank1 ,f$]al l& bank association1 ,f$]al int]m$iate cr$it bank1 or production cr$it association2 7#f7 subtitle ,e ( ! ,consum] ,f9ancial ,protection ,act ( #bjaj 7#ab ,u4,s4,c4 #eefa et seq471 by ! ,bureau1 ) respect to any p]son subject to ?is ,act2 & 7#g7 sections #ba;,b & #ba;,c ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #ghu-#b1 #ghu-#c71 9 ! case ( a brok] or deal]1 o!r ?an a depository in/itution1 by ! ,securities & ,ex*ange ,commission4 7b7 ,violations ( ?is ,act deem$ violations ( pre-,exi/+ /atutory requirem5ts2 additional ag5cy p[]s ,= ! purpose ( ! ex]cise by any ag5cy ref]r$ to 9 subsection 7a7 ( its p[]s "u any ,act ref]r$ to 9 t subsection1 a violation ( any requirem5t impos$ "u ?is ,act %all be deem$ to be a violation ( a requirem5t impos$ "u t ,act4 ,9 addition to its p[]s "u any provision ( law specifically ref]r$ to 9 subsection 7a71 ea* ( ! ag5cies ref]r$ to 9 t subsection may ex]cise1 = ! purpose ( en=c+ compliance ) any requirem5t impos$ "u ?is ,act1 any o!r au?ority conf]r$ on x by law4 7c7 ,ov]all en=cem5t au?ority ( ! ,bureau ( ,consum] ,f9ancial ,protection ,except to ! ext5t t en=cem5t ( ! requirem5ts impos$ "u ?is ,act is specifically committ$ to "s o!r ,gov]nm5t ag5cy "u any ( p>agraphs 7#a7 ?r\gh 7#e7 ( subsection 7a71 & subject to subtitle ,b ( ! ,consum] ,f9ancial ,protection ,act ( #bjaj 7#ab ,u4,s4,c4 #eeaa et seq471 ! ,bureau %all be au?oriz$ to en=ce su* requirem5ts4 ,all ( ! functions & p[]s ( ! ,bureau "u ! ,consum] ,f9ancial ,protection ,act ( #bjaj 7#ab ,u4,s4,c4 #ecja et seq47 are available to ! ,bureau to en=ce compliance by any p]son ) ! requirem5ts "u ?is ,act1 irrespective ( :e!r t p]son is engag$ 9 comm]ce or meets any o!r jurisdictional te/s "u ! ,consum] ,f9ancial ,protection ,act ( #bjaj 7#ab ,u4,s4,c4 #ecja et seq474 7d7 ,rules & regulations ,! au?ority ( ! ,bureau to issue regulations "u ?is ,act does n impair ! au?ority ( any o!r ag5cy designat$ 9 ?is section to make rules respect+ its own proc$ures 9 en=c+ compliance ) requirem5ts impos$ "u ?is ,act4 #gjb4 ,report+ requirem5t = ! ,bureau ( ,consum] ,f9ancial ,protection ,n less ?an frequ5tly ?an once e #e ye>s1 ! ,director %all submit to ,congress a report t includes-- 7#a7 in=mation on ! preval5ce & utilization ( educational ,i,s,as & income %>e agreem5ts2 & 7#b7 any o!r in=mation p]ta9+ to educational ,i,s,as & income %>e agreem5ts t ! ,director det]m9es is appropriate4