Oklahoma Enacts Private Student Loan Requirements

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.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Ballard Spahr LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.