Okla. Stat. tit. 14A, § 14A-3-705

Cancellation period.

(1) In any application for a private education loan, or a

solicitation for a private education loan without requiring an

application, the private educational lender shall disclose to the

borrower, clearly and conspicuously:

(a) the potential range of rates of interest applicable to

the private education loan;

(b) whether the rate of interest applicable to the private

education loan is fixed or variable;

(c) limitations on interest rate adjustments, both in

terms of frequency and amount, or the lack thereof, if

applicable;

(d) requirements for a co-borrower, including any changes

in the applicable interest rates without a co-

borrower;

(e) potential finance charges, late fees, penalties, and

adjustments to principal, based on defaults or late

payments of the borrower;

(f) fees or range of fees applicable to the private

education loan;

(g) the term of the private education loan;

(h) whether interest will accrue while the student to whom

the private education loan relates is enrolled at a

covered educational institution;

(i) payment deferral options;

(j) general eligibility criteria for the private education

loan;

(k) an example of the total cost of the private education

loan over the life of the loan:

(i) which shall be calculated using the principal

amount and the maximum rate of interest actually

offered by the private educational lender; and

(ii) calculated both with and without capitalization

of interest, if an option exists for postponing

interest payments;

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(l) that a covered educational institution may have

school-specific education loan benefits and terms not

detailed on the disclosure form;

(m) that the borrower may qualify for federal student

financial assistance through a program under Title IV

of the Higher Education Act of 1965 (20 U.S.C. 1070 et

seq.), in lieu of, or in addition to, a loan from a

nonfederal source;

(n) the interest rates available with respect to such

federal student financial assistance through a program

under Title IV of the Higher Education Act of 1965 (20

U.S.C. 1070 et seq.);

(o) that, as provided in subsection (6) of this section:

(i) the borrower shall have the right to accept the

terms of the loan and consummate the transaction

at any time within thirty (30) calendar days (or

such longer period as the private educational

lender may provide) following the date on which

the application for the private education loan is

approved and the borrower receives the disclosure

documents required under this subsection for the

loan; and

(ii) except for changes based on adjustments to the

index used for a loan, the rates and terms of the

loan may not be changed by the private

educational lender during the period described in

subparagraph (i) of this paragraph;

(p) that before a private education loan may be

consummated, the borrower must obtain from the

relevant institution of higher education the form

required under subsection (3) of this section, and

complete, sign, and return such form to the private

educational lender;

(q) that the consumer may obtain additional information

concerning such federal student financial assistance

from their institution of higher education, or at the

website of the United States Department of Education;

and

(r) such other information as the Administrator shall

prescribe, by rule, as necessary or appropriate for

consumers to make informed borrowing decisions.

(2) Contemporaneously with the approval of a private education

loan application, and before the loan transaction is consummated,

the private educational lender shall disclose to the borrower,

clearly and conspicuously:

(a) the applicable rate of interest in effect on the date

of approval;

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(b) whether the rate of interest applicable to the private

education loan is fixed or variable;
ducation

loan application, and before the loan transaction is consummated,

the private educational lender shall disclose to the borrower,

clearly and conspicuously:

(a) the applicable rate of interest in effect on the date

of approval;

Oklahoma Statutes - Title 14A. Consumer Credit Code Page 167

(b) whether the rate of interest applicable to the private

education loan is fixed or variable;

(c) limitations on interest rate adjustments, both in

terms of frequency and amount, or the lack thereof, if

applicable;

(d) the initial approved principal amount;

(e) applicable finance charges, late fees, penalties, and

adjustments to principal, based on borrower defaults

or late payments, including limitations on the

discharge of a private education loan in bankruptcy;

(f) fees or range of fees applicable to the private

education loan;

(g) the maximum term under the private education loan

program;

(h) an estimate of the total amount for repayment, at both

the interest rate in effect on the date of approval

and at the maximum possible rate of interest offered

by the private educational lender and applicable to

the borrower, to the extent that such maximum rate may

be determined, or if not, a good-faith estimate

thereof;

(i) any principal and interest payments required while the

student for whom the private education loan is

intended is enrolled at a covered educational

institution and unpaid interest that will accrue

during such enrollment;

(j) payment deferral options applicable to the borrower;

(k) whether monthly payments are graduated;

(l) that, as provided in subsection (6) of this section:

(i) the borrower shall have the right to accept the

terms of the loan and consummate the transaction

at any time within thirty (30) calendar days (or

such longer period as the private educational

lender may provide) following the date on which

the application for the private education loan is

approved and the borrower receives the disclosure

documents required under this subsection for the

loan; and

(ii) except for changes based on adjustments to the

index used for a loan, the rates and terms of the

loan may not be changed by the private

educational lender during the period described in

subparagraph (i) of this paragraph;

(m) that the borrower:

(i) may qualify for federal financial assistance

through a program under Title IV of the Higher

Education Act of 1965 (20 U.S.C. 1070 et seq.),

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in lieu of, or in addition to, a loan from a

nonfederal source; and

(ii) may obtain additional information concerning such

assistance from their institution of higher

education or the website of the United States

Department of Education;

(n) the interest rates available with respect to such

federal financial assistance through a program under

Title IV of the Higher Education Act of 1965 (20

U.S.C. 1070 et seq.);

(o) the maximum monthly payment, calculated using the

maximum rate of interest actually offered by the

private educational lender and applicable to the

borrower, to the extent that such maximum rate may be

determined, or if not, a good-faith estimate thereof;

and
uch

federal financial assistance through a program under

Title IV of the Higher Education Act of 1965 (20

U.S.C. 1070 et seq.);

(o) the maximum monthly payment, calculated using the

maximum rate of interest actually offered by the

private educational lender and applicable to the

borrower, to the extent that such maximum rate may be

determined, or if not, a good-faith estimate thereof;

and

(p) such other information as the Administrator shall

prescribe, by rule, as necessary or appropriate for

consumers to make informed borrowing decisions.

(3) Before a private educational lender may consummate a

private education loan with respect to a student attending an

institution of higher education, the lender shall obtain from the

applicant for the private education loan the form developed by the

Secretary of the United States Department of Education under Section

155 of the Higher Education Act of 1965, signed by the applicant, in

written or electronic form. No other provision of this section

shall be construed to require a private educational lender to

perform any additional duty under this subsection, other than

collecting the form required under this subsection.

(4) Contemporaneously with the consummation of a private

education loan, a private educational lender shall make to the

borrower each of the disclosures described in:

(a) paragraph (a) of subsection (2) of this section

(adjusted, as necessary, for the rate of interest in

effect on the date of consummation, based on the index

used for the loan);

(b) paragraphs (b) through (k) and (m) through (p) of

subsection (2) of this section; and

(c) subsection (7) of this section.

(5) The Administrator shall publish model forms that may be

used, at the option of the private educational lender, for the

provision of disclosures required under this section.

(a) Model forms developed under this subsection shall:

(i) be comprehensible to borrowers, with a clear

format and design;

(ii) provide for clear and conspicuous disclosures;

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(iii) enable borrowers easily to identify material

terms of the loan and to compare such terms among

private education loans; and

(iv) be succinct, and use an easily readable type

font.

(b) Any private educational lender that elects to provide

a model form developed under this subsection that

accurately reflects the practices of the private

educational lender shall be deemed to be in compliance

with the disclosures required under this section.

(6) With respect to a private education loan, the borrower

shall have the right to accept the terms of the loan and consummate

the transaction at any time within thirty (30) calendar days (or

such longer period as the private educational lender may provide)

following the date on which the application for the private

education loan is approved and the borrower receives the disclosure

documents required for the loan, and the rates and terms of the loan

may not be changed by the private educational lender during that

period. Except for changes based on adjustments to the index used

for a loan, the rates and terms of the loan may not be changed by

the private educational lender prior to the earlier of:

(a) the date of acceptance of the terms of the loan and

consummation of the transaction by the borrower, as

described in this subsection; or
may not be changed by the private educational lender during that

period. Except for changes based on adjustments to the index used

for a loan, the rates and terms of the loan may not be changed by

the private educational lender prior to the earlier of:

(a) the date of acceptance of the terms of the loan and

consummation of the transaction by the borrower, as

described in this subsection; or

(b) the expiration of the period described in this

subsection.

(7) With respect to a private education loan, the borrower may

cancel the loan, without penalty to the borrower, at any time within

three (3) business days of the date on which the loan is

consummated, and the private educational lender shall disclose such

right to the borrower in accordance with subsection (4) of this

section.

(8) No funds may be disbursed with respect to a private

education loan until the expiration of the three-day period

described in subsection (7) of this section.

(9) In issuing regulations under this section, the

Administrator shall prevent, to the extent possible, duplicative

disclosure requirements for private educational lenders that are

otherwise required to make disclosures under this title, except that

in any case in which the disclosure requirements of this section

differ or conflict with the disclosure requirements of any other

provision of this title, the requirements of this section shall be

controlling.

(10) Each private educational lender that has a preferred

lender arrangement with a covered educational institution shall

annually provide to the covered educational institution such

information as the Administrator determines to include in the model

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form developed under subsection (5) of this section for each type of

private education loan that the lender plans to offer to students

attending the covered educational institution, or to the families of

such students, for the next award year (as that term is defined in

Section 481 of the Higher Education Act of 1965).