{"data":{"id":"us-ok/okla.-stat.-tit.-14a-14a-3-705","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 14A, § 14A-3-705","heading":"Private educational loan application disclosures –","body":"Cancellation period.\n\n(1) In any application for a private education loan, or a\n\nsolicitation for a private education loan without requiring an\n\napplication, the private educational lender shall disclose to the\n\nborrower, clearly and conspicuously:\n\n(a) the potential range of rates of interest applicable to\n\nthe private education loan;\n\n(b) whether the rate of interest applicable to the private\n\neducation loan is fixed or variable;\n\n(c) limitations on interest rate adjustments, both in\n\nterms of frequency and amount, or the lack thereof, if\n\napplicable;\n\n(d) requirements for a co-borrower, including any changes\n\nin the applicable interest rates without a co-\n\nborrower;\n\n(e) potential finance charges, late fees, penalties, and\n\nadjustments to principal, based on defaults or late\n\npayments of the borrower;\n\n(f) fees or range of fees applicable to the private\n\neducation loan;\n\n(g) the term of the private education loan;\n\n(h) whether interest will accrue while the student to whom\n\nthe private education loan relates is enrolled at a\n\ncovered educational institution;\n\n(i) payment deferral options;\n\n(j) general eligibility criteria for the private education\n\nloan;\n\n(k) an example of the total cost of the private education\n\nloan over the life of the loan:\n\n(i) which shall be calculated using the principal\n\namount and the maximum rate of interest actually\n\noffered by the private educational lender; and\n\n(ii) calculated both with and without capitalization\n\nof interest, if an option exists for postponing\n\ninterest payments;\n\n(l) that a covered educational institution may have\n\nschool-specific education loan benefits and terms not\n\ndetailed on the disclosure form;\n\n(m) that the borrower may qualify for federal student\n\nfinancial assistance through a program under Title IV\n\nof the Higher Education Act of 1965 (20 U.S.C. 1070 et\n\nseq.), in lieu of, or in addition to, a loan from a\n\nnonfederal source;\n\n(n) the interest rates available with respect to such\n\nfederal student financial assistance through a program\n\nunder Title IV of the Higher Education Act of 1965 (20\n\nU.S.C. 1070 et seq.);\n\n(o) that, as provided in subsection (6) of this section:\n\n(i) the borrower shall have the right to accept the\n\nterms of the loan and consummate the transaction\n\nat any time within thirty (30) calendar days (or\n\nsuch longer period as the private educational\n\nlender may provide) following the date on which\n\nthe application for the private education loan is\n\napproved and the borrower receives the disclosure\n\ndocuments required under this subsection for the\n\nloan; and\n\n(ii) except for changes based on adjustments to the\n\nindex used for a loan, the rates and terms of the\n\nloan may not be changed by the private\n\neducational lender during the period described in\n\nsubparagraph (i) of this paragraph;\n\n(p) that before a private education loan may be\n\nconsummated, the borrower must obtain from the\n\nrelevant institution of higher education the form\n\nrequired under subsection (3) of this section, and\n\ncomplete, sign, and return such form to the private\n\neducational lender;\n\n(q) that the consumer may obtain additional information\n\nconcerning such federal student financial assistance\n\nfrom their institution of higher education, or at the\n\nwebsite of the United States Department of Education;\n\nand\n\n(r) such other information as the Administrator shall\n\nprescribe, by rule, as necessary or appropriate for\n\nconsumers to make informed borrowing decisions.\n\n(2) Contemporaneously with the approval of a private education\n\nloan application, and before the loan transaction is consummated,\n\nthe private educational lender shall disclose to the borrower,\n\nclearly and conspicuously:\n\n(a) the applicable rate of interest in effect on the date\n\nof approval;\n\n(b) whether the rate of interest applicable to the private\n\neducation loan is fixed or variable;\nducation\n\nloan application, and before the loan transaction is consummated,\n\nthe private educational lender shall disclose to the borrower,\n\nclearly and conspicuously:\n\n(a) the applicable rate of interest in effect on the date\n\nof approval;\n\n(b) whether the rate of interest applicable to the private\n\neducation loan is fixed or variable;\n\n(c) limitations on interest rate adjustments, both in\n\nterms of frequency and amount, or the lack thereof, if\n\napplicable;\n\n(d) the initial approved principal amount;\n\n(e) applicable finance charges, late fees, penalties, and\n\nadjustments to principal, based on borrower defaults\n\nor late payments, including limitations on the\n\ndischarge of a private education loan in bankruptcy;\n\n(f) fees or range of fees applicable to the private\n\neducation loan;\n\n(g) the maximum term under the private education loan\n\nprogram;\n\n(h) an estimate of the total amount for repayment, at both\n\nthe interest rate in effect on the date of approval\n\nand at the maximum possible rate of interest offered\n\nby the private educational lender and applicable to\n\nthe borrower, to the extent that such maximum rate may\n\nbe determined, or if not, a good-faith estimate\n\nthereof;\n\n(i) any principal and interest payments required while the\n\nstudent for whom the private education loan is\n\nintended is enrolled at a covered educational\n\ninstitution and unpaid interest that will accrue\n\nduring such enrollment;\n\n(j) payment deferral options applicable to the borrower;\n\n(k) whether monthly payments are graduated;\n\n(l) that, as provided in subsection (6) of this section:\n\n(i) the borrower shall have the right to accept the\n\nterms of the loan and consummate the transaction\n\nat any time within thirty (30) calendar days (or\n\nsuch longer period as the private educational\n\nlender may provide) following the date on which\n\nthe application for the private education loan is\n\napproved and the borrower receives the disclosure\n\ndocuments required under this subsection for the\n\nloan; and\n\n(ii) except for changes based on adjustments to the\n\nindex used for a loan, the rates and terms of the\n\nloan may not be changed by the private\n\neducational lender during the period described in\n\nsubparagraph (i) of this paragraph;\n\n(m) that the borrower:\n\n(i) may qualify for federal financial assistance\n\nthrough a program under Title IV of the Higher\n\nEducation Act of 1965 (20 U.S.C. 1070 et seq.),\n\nin lieu of, or in addition to, a loan from a\n\nnonfederal source; and\n\n(ii) may obtain additional information concerning such\n\nassistance from their institution of higher\n\neducation or the website of the United States\n\nDepartment of Education;\n\n(n) the interest rates available with respect to such\n\nfederal financial assistance through a program under\n\nTitle IV of the Higher Education Act of 1965 (20\n\nU.S.C. 1070 et seq.);\n\n(o) the maximum monthly payment, calculated using the\n\nmaximum rate of interest actually offered by the\n\nprivate educational lender and applicable to the\n\nborrower, to the extent that such maximum rate may be\n\ndetermined, or if not, a good-faith estimate thereof;\n\nand\nuch\n\nfederal financial assistance through a program under\n\nTitle IV of the Higher Education Act of 1965 (20\n\nU.S.C. 1070 et seq.);\n\n(o) the maximum monthly payment, calculated using the\n\nmaximum rate of interest actually offered by the\n\nprivate educational lender and applicable to the\n\nborrower, to the extent that such maximum rate may be\n\ndetermined, or if not, a good-faith estimate thereof;\n\nand\n\n(p) such other information as the Administrator shall\n\nprescribe, by rule, as necessary or appropriate for\n\nconsumers to make informed borrowing decisions.\n\n(3) Before a private educational lender may consummate a\n\nprivate education loan with respect to a student attending an\n\ninstitution of higher education, the lender shall obtain from the\n\napplicant for the private education loan the form developed by the\n\nSecretary of the United States Department of Education under Section\n\n155 of the Higher Education Act of 1965, signed by the applicant, in\n\nwritten or electronic form. No other provision of this section\n\nshall be construed to require a private educational lender to\n\nperform any additional duty under this subsection, other than\n\ncollecting the form required under this subsection.\n\n(4) Contemporaneously with the consummation of a private\n\neducation loan, a private educational lender shall make to the\n\nborrower each of the disclosures described in:\n\n(a) paragraph (a) of subsection (2) of this section\n\n(adjusted, as necessary, for the rate of interest in\n\neffect on the date of consummation, based on the index\n\nused for the loan);\n\n(b) paragraphs (b) through (k) and (m) through (p) of\n\nsubsection (2) of this section; and\n\n(c) subsection (7) of this section.\n\n(5) The Administrator shall publish model forms that may be\n\nused, at the option of the private educational lender, for the\n\nprovision of disclosures required under this section.\n\n(a) Model forms developed under this subsection shall:\n\n(i) be comprehensible to borrowers, with a clear\n\nformat and design;\n\n(ii) provide for clear and conspicuous disclosures;\n\n(iii) enable borrowers easily to identify material\n\nterms of the loan and to compare such terms among\n\nprivate education loans; and\n\n(iv) be succinct, and use an easily readable type\n\nfont.\n\n(b) Any private educational lender that elects to provide\n\na model form developed under this subsection that\n\naccurately reflects the practices of the private\n\neducational lender shall be deemed to be in compliance\n\nwith the disclosures required under this section.\n\n(6) With respect to a private education loan, the borrower\n\nshall have the right to accept the terms of the loan and consummate\n\nthe transaction at any time within thirty (30) calendar days (or\n\nsuch longer period as the private educational lender may provide)\n\nfollowing the date on which the application for the private\n\neducation loan is approved and the borrower receives the disclosure\n\ndocuments required for the loan, and the rates and terms of the loan\n\nmay not be changed by the private educational lender during that\n\nperiod. Except for changes based on adjustments to the index used\n\nfor a loan, the rates and terms of the loan may not be changed by\n\nthe private educational lender prior to the earlier of:\n\n(a) the date of acceptance of the terms of the loan and\n\nconsummation of the transaction by the borrower, as\n\ndescribed in this subsection; or\nmay not be changed by the private educational lender during that\n\nperiod. Except for changes based on adjustments to the index used\n\nfor a loan, the rates and terms of the loan may not be changed by\n\nthe private educational lender prior to the earlier of:\n\n(a) the date of acceptance of the terms of the loan and\n\nconsummation of the transaction by the borrower, as\n\ndescribed in this subsection; or\n\n(b) the expiration of the period described in this\n\nsubsection.\n\n(7) With respect to a private education loan, the borrower may\n\ncancel the loan, without penalty to the borrower, at any time within\n\nthree (3) business days of the date on which the loan is\n\nconsummated, and the private educational lender shall disclose such\n\nright to the borrower in accordance with subsection (4) of this\n\nsection.\n\n(8) No funds may be disbursed with respect to a private\n\neducation loan until the expiration of the three-day period\n\ndescribed in subsection (7) of this section.\n\n(9) In issuing regulations under this section, the\n\nAdministrator shall prevent, to the extent possible, duplicative\n\ndisclosure requirements for private educational lenders that are\n\notherwise required to make disclosures under this title, except that\n\nin any case in which the disclosure requirements of this section\n\ndiffer or conflict with the disclosure requirements of any other\n\nprovision of this title, the requirements of this section shall be\n\ncontrolling.\n\n(10) Each private educational lender that has a preferred\n\nlender arrangement with a covered educational institution shall\n\nannually provide to the covered educational institution such\n\ninformation as the Administrator determines to include in the model\n\nform developed under subsection (5) of this section for each type of\n\nprivate education loan that the lender plans to offer to students\n\nattending the covered educational institution, or to the families of\n\nsuch students, for the next award year (as that term is defined in\n\nSection 481 of the Higher Education Act of 1965).","path":["OK Code","Title 14A"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os14A.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"9a77bc220f07735665fc7017aa69e8bf4a789412af8356af72332ba01be34436","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-14a-14a-3-704","next":"us-ok/okla.-stat.-tit.-14a-14a-3-801"},"notice":"GroundRules: Original legal text. Not legal advice."}