Truth in Lending

What Does Truth In Lending Act - TILA Mean?

A federal law enacted in 1968 with the intention of protecting consumers in their dealings with lenders and creditors. The Truth in Lending Act was implemented by the Federal Reserve through a series of
regulations.

The most important aspects of the act concern the pieces of information that must be disclosed to a
borrower prior to extending credit: annual percentage rate (APR), term of the loan and total costs to the borrower. This information must be conspicuous on documents presented to the consumer before
signing, and also possibly on periodic billing statements.

TILA applies to most types of credit, whether it be closed-end credit (such as an auto loan or mortgage), or open-ended credit (such as a credit card). The act regulates what companies can advertise and say about the benefits of their loans or services. For example, borrowers considering an adjustable-rate mortgage must be offered specific reading materials from the Federal Reserve Board to ensure they understand the parameters of an ARM.

Different states and industries have their own variations of TILA, but the chief feature remains the proper disclosure of key information to protect both the consumer and the lender in credit transactions.

Emergency Tuition and Fee loan

Emergency Tuition and Fee loan funds were established to provide assistance to students who
experience financial difficulty in connection with educational or educationally related expenses.

Eligibility

• You must be enrolled at least half-time.
    o Undergraduate Students – 6 hours for fall, spring; 3 hours for summer
    o Graduate Students – 4 hours for fall and spring; 3 hours for summer

• Undergraduate students must have a cumulative grade point average (GPA) of at least of 1.5
  Graduate students must have at a least a 3.0.

Interest Rate & Processing

• 1%* simple interest per annum.
• A $22.50 processing charge is assessed on each loan. This charge will be added to the amount
of the loan you request.

* If the loan is not paid by the due date, additional late charges of $30 will accrue on the unpaid principal balance.

Right to cancel

As a result of the Truth in Lending Act (TILA) of 2009, Scholarships & Financial Aid must allow a full three business days right to cancel period after the signed promissory note is submitted before funds can be released to your student account. This will create a delay in your ability to receive short-term loan funds. This requirement became effective February 14, 2010.

Please plan accordingly, knowing that ETFL funds cannot be released for three business days after you
have submitted a signed promissory note.

Repayment

These loans must be repaid with interest within a prescribed repayment period range.
If the loan is not paid in full by the due date, both transcripts and registration will be blocked until the
account is paid in full. Past due loans are subject to all necessary collection fees, attorney fees, higher
interest rates, as well as, a negative credit report to a national credit bureau.