Truth in Lending Act (TILA) and Private Loans

The Higher Education Opportunity Act of 2008 (HEAO) added section 128(e) (3) to TILA which requires private loan lenders to obtain a completed and signed U.S. Department of Education Self-Certification Form from the applicant. In addition, the private loan lender must provide disclosures to borrowers at different stages of the application process.

Eckerd College has limited private loan funds available to students who have need. Eligibility for the private loan is determined when the student completes the FAFSA (Free Application for Federal Student Aid). The private loan funds are the Beck Donor loan and the Frueauff loan, these loans fall under the TILA.

If you have been awarded a Beck Donor or, Frueauff loan you must complete and sign the Self Certification¬†form which will be emailed to you or, you may download from the Bursar’s webpage. In addition, a sample Institutional Long Term Loan Application Disclosure ¬†(1 of 3) form will be provided. The sample disclosure provides you with information regarding the repayment of the loan and other information on how to finance your education.

Please sign and date the Self Certification form and return it to the Bursar’s office by mail or, scanned document by email to At this time, you will be sent an Institutional Long-Term Approval form and Disclosure (2 of 3). The Long Term Loan Approval form and Disclosure will provide you with specific loan amount and repayment obligations. You must sign and date the Long Term Loan Approval and Disclosure and return the form to the Bursar’s office within 30 days of receipt of the Approval Disclosure.

You will need to make an appointment with the Bursar’s office to sign the promissory note for your loan. Once the promissory note is signed, you will receive an Institutional Long Term Final Disclosure (3 of 3); the disclosure provides you with the rights and responsibilities of the loan and the right to cancel. If you decide to cancel the loan please sign the #3 disclosure and return to the Bursar’s office.

There is a three business day recession period before the loan funds are disbursed to your student account. The purpose of the recession period is to allow borrowers to complete a final evaluation of their financial needs for a private loan and/or cancel the loan without penalty.

If you have any questions regarding the TILA and private loan, please do not hesitate to contact the Bursar’s office for assistance.