As previously announced, Washington State has enacted a new law which (inter alia) requires a disclosure for “consumer loans” which refinances a federal student education loan.
“In addition for all consumer loans made by a licensee that are a refinance of a federal student education loan, the licensee must provide to the borrower a clear and conspicuous disclosure that some repayment and forgiveness options available under federal student education loan programs, including without limitation income-driven repayment plans, economic hardship deferments, or public service loan forgiveness, will no longer be available to the borrower if he or she chooses to refinance federal student education loans with one or more consumer loans.” (Wash. Rev. Code Ann. § 31.04.102)
To fulfill this requirement, we will be providing a new “Washington Student Loan Refinance Disclosure” (Cx22454). This document almost exclusively consists of hard-coded text which discloses the items required by the new statute; it will print under the following conditions:
- Document Package Type = Closing Disclosures
- Federal Student Loan Being Refinanced Indicator = Yes*
- State Code = Washington
- Washington License Type = Not Selected
- Washington License Type = WA CLA & MBPA Licensee
- Washington License Type = WA Consumer Loan Act Licensee
* “Federal Student Loan Being Refinanced Indicator” (FI 122652) is a new field, created for triggering this document.
This document will be available immediately. If you have any questions or concerns this new document, please contact Client Support at 1.800.497.3584.