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                                                      PRINTER'S NO. 1117

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 951 Session of 2007


        INTRODUCED BY DALLY, BASTIAN, BELFANTI, BEYER, BISHOP, BOYD,
           CALTAGIRONE, CARROLL, CLYMER, COHEN, CREIGHTON, CURRY, DALEY,
           DeLUCA, FABRIZIO, FAIRCHILD, FRANKEL, FREEMAN, GEIST,
           GINGRICH, GOODMAN, GRELL, HARPER, HARRIS, HENNESSEY, HERSHEY,
           HORNAMAN, JAMES, M. KELLER, KILLION, KULA, LONGIETTI,
           MANDERINO, McILHATTAN, MELIO, MILLARD, MUNDY, MURT, PHILLIPS,
           READSHAW, REICHLEY, ROHRER, RUBLEY, SAYLOR, SIPTROTH,
           STABACK, STERN, SWANGER, J. TAYLOR, WALKO, WANSACZ, WATSON
           AND YOUNGBLOOD, MARCH 29, 2007

        REFERRED TO COMMITTEE ON EDUCATION, MARCH 29, 2007

                                     AN ACT

     1  Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
     2     act relating to the public school system, including certain
     3     provisions applicable as well to private and parochial
     4     schools; amending, revising, consolidating and changing the
     5     laws relating thereto," providing for regulation of student
     6     loan disclosure.

     7     The General Assembly of the Commonwealth of Pennsylvania
     8  hereby enacts as follows:
     9     Section 1.  Article XXIII-A heading of the act of March 10,
    10  1949 (P.L.30, No.14), known as the Public School Code of 1949,
    11  added July 15, 2004 (P.L.722, No.82), is amended to read:
    12                          ARTICLE XXIII-A.
    13         CREDIT CARD MARKETING AND STUDENT LOAN DISCLOSURE.
    14     Section 2.  Section 2301-A of the act is amended by adding a
    15  paragraph to read:
    16     Section 2301-A.  Definitions.--For the purposes of this


     1  article the following terms shall have the following meanings:
     2     * * *
     3     (5.1)  "Private loan" shall include a loan that is not funded
     4  or guaranteed by the Federal Government.
     5     * * *
     6     Section 3.  The act is amended by adding a section to read:
     7     Section 2302.1-A.  Regulation of Student Loan Disclosure.--
     8  (a)  The board shall require an institution of higher education
     9  to establish a policy for a loan originator to disclose to the
    10  borrowing student a sample estimated standard loan repayment
    11  schedule for a private loan incurred by the student at the time
    12  of signing of a promissory note. The schedule shall indicate a
    13  sample chart of the principal amount borrowed starting with five
    14  thousand dollars ($5,000) and making five thousand dollar
    15  ($5,000) increments to one hundred thousand dollars ($100,000),
    16  multiplied by an estimated annual percentage rate, including
    17  fees and standard costs associated with the loan, and projected
    18  capitalized interest incurred during a five (5), ten (10) and
    19  fifteen (15) year period in which the student is required to
    20  make repayment.
    21     (b)  The estimated loan repayment schedule is not required to
    22  include scenarios of extended deferments, variable interest
    23  rates, prepayments made by the students or any other event or
    24  situation that may require the debt schedule to be extended or
    25  shortened that is beyond the scope of the lender.
    26     Section 4.  This act shall take effect in 60 days.



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