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ATTACHMENT F: BORROWER’S RIGHTS AND RESPONSIBILITIES FORM In addition to disclosure information provided on the MPN, borrowers will receive additional disclosure information from the lender or guarantor. The Department will provide two standard disclosures: a revised Borrower’s Rights and Responsibilities form and minimum standard text of a new Plain English Disclosure Statement. A draft of the Borrower’s Rights and Responsibilities form was posted to our Information for Financial Aid Professionals (IFAP) website (http://www.ifap.gov) on October 2, 1998. The Plain English Disclosure Statement is still under development. Borrower’s Rights and Responsibilities Form: The Borrower’s Rights and Responsibilities form is given to the student with the MPN. The MPN and the Rights and Responsibilities form together contain most of the disclosure of items required by Section 433 of the HEA. At or before the first disbursement, the borrower will receive a disclosure statement (the Initial Disclosure) from the lender which contains, in addition to other important information, the remaining Section 433 disclosure items (i.e., the principal loan amount, the origination fee, the insurance premium, the cumulative principal debt for loans made by that lender, the actual interest rate, and the name and address of the lender). Plain English Disclosure: The Plain English Disclosure text will be provided by the lender to the borrower in conjunction with any subsequent loans taken under a previously signed MPN. This disclosure focuses attention on key disclosure items from the Borrower’s Rights and Responsibilities form and the original MPN, and emphasizes that the borrower is receiving another loan that must be repaid. The requirements of Section 433 of the HEA are satisfied if the student receives the Plain English Disclosure text and an Initial Disclosure containing the remaining Section 433 disclosure items. The Plain English Disclosure text can be sent to the student with the initial disclosure or sent separately. |