69800.
A public or private postsecondary educational institution shall do all of the following:(a) State all of the following in all printed and online financial aid materials issued or distributed by the institution to applicants for admission or matriculated students and with private loan applications provided or made available by the institution:
(1) Private loans are not guaranteed by the federal government.
(2) Private loans may cost more than federal loans.
(3) Federal Stafford loans are available to students regardless of income.
(b) Clearly distinguish private loans from federal loans in individual financial aid awards by stating, for any private loans offered by the institution as part of the institution’s award package, all of the following:
(1) The range of interest rates that may be charged on the private loan.
(2) Whether the rate is fixed or variable.
(3) If the interest rate on the loan is variable, the frequency of interest rate changes, the explanation for that rate change, and, if applicable, the maximum interest rate increase.
(4) Any and all fees associated with the assumption of the loan.
(5) An explanation that the interest rate on a private loan may depend on the borrower’s credit rating.
(c) For any private loan lender list, provide general information on the terms of the loan available through the lender and disclose the reason for each lender’s inclusion on the list. The institution shall also inform the student of his or her right to choose other lenders.
(d) (1) For purposes of this article, a private loan does not include a loan made directly by a public postsecondary educational institution or by an independent institution of higher education that has terms at least as favorable to the borrower as a federal Perkins loan.
(2) For purposes of this article, both of the following terms shall apply:
(A) “Independent institution of higher education” means those nonpublic higher education institutions that grant undergraduate degrees, graduate degrees, or both, and that are formed as nonprofit corporations in this state and are accredited by an agency recognized by the United States Department of Education.
(B) “Public postsecondary educational institution” includes the University of California, the California State University, and the California Community Colleges.