Model Student Loan Disclosure
Model Student Loan Disclosures
Iowa law requires certain private educational loan disclosures for lending institutions included on a covered institution's preferred lender list. These model forms and guidance materials were prepared by the Office of the Attorney General pursuant to Iowa Code section 261F.5.
What must be disclosed?
According to Iowa Code section 261F.5(3), a lending institution included on a covered institution's preferred lender list must clearly and conspicuously disclose important information regarding private educational loans.
Interest Rates
Disclose interest rates, whether rates are fixed or variable, and any limitations on adjustments.
Loan Fees
Disclose any fees associated with the loan including origination or deferment fees.
Repayment Terms
Explain repayment options, deferment opportunities, forbearance, and repayment schedules.
Default Consequences
Describe the consequences of loan default including bankruptcy limitations and credit impacts.
The Attorney General has developed two model disclosure forms, Model Form A and Model Form B. Use of these forms in a manner consistent with Iowa Code chapter 261F constitutes compliance with Iowa Code section 261F.5(3).
Choose a model disclosure form
Model Disclosure Form A
Standalone comprehensive disclosure form prepared pursuant to HF 2690 (2008), including loan cost examples, federal/private comparisons, deferment information, and repayment examples.
Model Disclosure Form B
Supplemental Iowa disclosure form designed for use alongside Federal Reserve Form H-18.
Required disclosure topics
Disclose the rate of interest or potential range of rates applicable to the loan, whether the rate is fixed or variable, and any limitations on interest rate adjustments.
Disclose co-borrower requirements, any effect on interest rates, and all fees associated with the loan.
Explain repayment terms, deferment opportunities, forbearance, capitalization of interest, and whether payments may be postponed while the borrower remains enrolled in school.
Include information comparing federal student loans and private educational loans.
Include examples showing the total cost of the loan over time and describe consequences of default, including limitations on bankruptcy discharge.
Provide lender and servicer contact information in a readable and understandable manner.
Questions about student loan disclosure requirements?
Office of the Attorney General of Iowa
Consumer Protection Division
1305 E. Walnut Street
Des Moines, IA 50319
