(a) (1) In this section, “education loan” means a direct loan administered by the U.S. Department of Education that is made to assist a student in obtaining a postsecondary education.
(2) “Education loan” does not include a Parent Plus loan or a private student loan.
(b) An institution of postsecondary education that receives education loan information from the U.S. Department of Education shall provide to each undergraduate student enrolled in the institution who applies for federal student aid in the applicable award year:
(1) The information reported on the student’s Student Aid Report issued by the U.S. Department of Education from the most recent award year, including:
(i) The total amount of outstanding loans; and
(ii) The monthly payment amount for a 10–year period for every $1,000 owed by the borrower;
(2) The lifetime loan limit for undergraduate student borrowers;
(3) A statement that the actual repayment amount is dependent on the following factors:
(i) The total amount a student borrows;
(ii) The interest rate at the time the funds are borrowed and the amount of interest that accrues over the course of the loan;
(iii) The length of the repayment term of the loan; and
(iv) The decisions a student makes relating to:
1. Income–based repayment plans;
2. Deferments; and
3. Loan forgiveness;
(4) A link to the National Student Loan Data System for Students website and an income–driven repayment plan website; and
(5) The address of the financial aid office where the student may seek financial aid counseling.
(c) An institution of postsecondary education shall provide the information required under subsection (b) of this section to students annually with the student’s financial aid award notice.
(d) The information provided under this section may include the following statement:
“The information provided by the institution of postsecondary education was obtained from your Student Aid Report issued by the U.S. Department of Education for the most recent award year. It is based on assumptions made by the U.S. Department of Education as reported in your Student Aid Report and is not meant as a guarantee or promise. This information does not include Parent Plus loans or private student loans.”
(e) If an institution of postsecondary education includes the statement under subsection (d) of this section with the information required under subsection (b) of this section, the institution of postsecondary education does not incur liability for any inaccurate representations made under this section if the representations were:
(1) Made based on incorrect information provided by the U.S. Department of Education; and
(2) Reasonably relied on in good faith by the institution of postsecondary education.