Oklahoma has enacted new requirements for private student loans that become effective on July 1, 2013. The requirements are set forth in the Oklahoma Private Student Loan Transparency Act, a part of House Bill No. 1829. As these requirements vary from those found in the Truth in Lending Act and Regulation Z, private student lenders making loans subject to the new law will need to make sure that their marketing practices and disclosures comply with both federal and Oklahoma law.
The adoption of the federal law requirements in 2009 was widely perceived as eliminating the need for further student loan disclosure requirements on the state level. Oklahoma's enactment of such requirements despite the new federal rules could presage similar action by other states.
Oklahoma requirements that vary from those of federal law include the following:
Lenders are prohibited from using an educational institution’s name, emblem, mascot, logo, or other words, pictures, or symbols identified with the institution in marketing student loans in any way that implies the institution endorses the lender’s loans. Unlike federal law, the Oklahoma law does not include an exception for endorsed lender arrangements if a specified disclosure is made or allow a lender to negate any implied endorsement by making a specified disclosure.
During the 30 days after loan approval and receipt of the required approval disclosures, a lender can only change the interest rate based on adjustments to the index used for the loan. Federal law is less restrictive concerning changes a lender can make to rates and terms during this period.
The estimate of the total amount for repayment must be based on a "good faith estimate" of the maximum rate when the maximum rate cannot be determined. Under federal law, a lender must base the estimated total payments on a 25 percent rate when the maximum rate cannot be determined.