Reg Z New Rules for Private Education Loans


Presented by: Mary Beth Guard and Jack Holzknecht

Add CD-ROM to Cart:

(Product will be shipped via USPS)


Mom, Dad and their 18 year old daughter want to borrow a few thousand dollars for tuition for the daughter's next semester at State University. Do you make loans like this?

The loan is a Private Education Loan (PEL); so, should you:
  • Refuse to make the loan;
  • Make the loan, but deliver the three new disclosures required by Regulation Z for PELs; or
  • Structure the loan so it does not qualify as a Private Education Loan.
Both your options and your time are limited. You must decide how to handle PELs by February 14, 2010.

On July 30th the Federal Reserve Board approved final amendments to Regulation Z (Truth in Lending) that revise the disclosure requirements for private education loans. The new rules implement Title X of the Higher Education Opportunity Act (HEOA).

The rules were effective September 14, 2009, but compliance is not mandatory until February 14, 2010.

The new rules apply to loans made expressly for postsecondary educational expenses but do not apply where educational expenses are funded by credit card advances, or real-estate-secured loans. In addition, the amendments do not apply to education loans made, insured, or guaranteed by the federal government, which are subject to disclosure rules issued by the Department of Education.

Upon completion of this program, participants understand:
  • Which transactions are covered by the new Regulation Z rules on private education loans;
  • The series of three new disclosures required for such loans; and
  • The restrictions on using the name, emblem, or mascot of an educational institution in a way that implies that the institution endorses the creditor's loans.
Participants receive a detailed manual that serves as a handbook long after the program is completed

This two-hour webinar focuses on:
  • Revised coverage rules to expressly cover private education loans even if the amount financed exceeds $25,000;
  • The new disclosures:
  • At application - Creditors must provide general information about loan rates, fees, and terms, including an example of the total cost of a loan based on the maximum interest rate the creditor can charge.
  • At approval - the creditor must give the consumer a set of transaction-specific disclosures, including information about the rate, fees and other terms of the loan.
  • At consummation - the creditor must provide updated cost disclosures substantially similar to those provided at approval. The consumer's three-day right to cancel the transaction must also be disclosed.
  • Once a consumer applies for a private education loan, the consumer must complete a "self-certification form" with information about the cost of attendance at the school that the student will attend or is attending. The creditor must obtain the signed and completed form before consummating the private education loan.
The program is designed for compliance officers, loans officers, auditors and anyone else with consumer loan compliance responsibilities.

About the Speakers: Jack Holzknecht is a principal with Pegasus Educational Services, LLC, a training firm headquartered in Louisville, Kentucky. He is an experienced consultant who has provided training to thousands of bankers and examiners for twenty-four years. He has the ability to identify the key compliance issues from each regulation. Jack's career began in 1976 as a federal bank examiner. He later headed the form and software and education divisions of a regional consulting company. In that capacity he developed loan and deposit form systems and software. He also developed and presented training programs to bankers in 43 states. Jack has been an instructor at compliance schools presented by the Georgia, Iowa, Kentucky, Pennsylvania, Nebraska, New York and Texas bankers associations. He developed and delivered compliance training for the FDIC and OTS for ten years. He is a Certified Regulatory Compliance Manager and a member of the National Speakers Association. He is also a "BOL Guru" at and frequently answers compliance questions sent to "Bankers' Threads."

Mary Beth Guard currently serves as Executive Editor of and CEO of Glia Group, Inc., Mary Beth has had a long and distinguished career, graduating from law school in 1980. She has focused her work exclusively on the banking industry since 1984. Previously, Mary Beth served as EVP/General Counsel and COO for the Oklahoma Bankers Association, EVP of Specialized Services for Thomson Financial Publishing, and General Counsel for the Oklahoma State Banking Department. Mary Beth is on the advisory board for Bankers' Hotline and Compliance Action, as well as on the editorial board for ABA Bank Compliance magazine. She has presented training programs for virtually every major national financial industry association, as well as more than a dozen state bankers associations and a host of other organizations. In addition, Mary Beth has written more than a thousand banking-related articles and is a BOL Guru.

(requires Windows Media Player and IE).

CD-ROM Includes:
  • Complete presentation (including slides and audio)
  • Written Materials
  • Follow-up Q & A
You have the right under this license agreement for this CD-ROM to use this presentation on a single-workstation. Use on a network is in violation of the copyright agreements. CD may be used by multiple users at a given institution but may not be placed on a network or in any other multi-user environment.

This program was recorded in its entirety in February 2010. The CD-ROM includes program slides, materials (if available) and follow-up Q & A document.

Add to Cart:

  • Model: cd_education0210
  • Manufactured by: Glia Group, Inc.

This product was added to our catalog on Monday 24 August, 2009.

Copyright © 2022