This law is intended to prevent unfair and deceptive private education lending practices.
On July 31, 2008, the House and Senate passed the Higher Education Opportunity Act, or HEOA, which reauthorized the Higher Education Act, or HEA. Under HEOA, the Board of Governors of the Federal Reserve System is required to issue final regulations to implement amendments to the Truth in Lending Act. The goal of the amendments is to prevent unfair and deceptive private educational lending practices and eliminate conflicts of interest among higher education institutions and loan originators and companies. Amendments to HEOA also include disclosure requirements for loan terms and features.