Lending Club Blog

New Restrictions Apply When Using Peer-to-Peer Personal Loans ForEducation Expenses

While applying for a loan, some of you may have noticed the following new language:

“Loans cannot be used for post-secondary education expenses including: tuition, fees, books, supplies, room and board.  Any description to the contrary will result in the removal of your loan.”

What counts as “post-secondary expenses”?  A thorough list, as well as more information, can be  found in Section 472 of the Higher Education Act of 1965 here.  Unfortunately, with these new disclosure rules surrounding education loans (See Subpart F here) that have recently come into effect, Lending Club can no longer issue loans to be used for post-secondary expenses.  This does not affect loans already issued and in repayment process.

Image courtesy of jennifercw

Thursday, August 5th, 2010 at 7:56 am

Comments (1)

  1. stream live:

    Wow, I didn’t know borrowing money could ever get that
    complicated..;

    September 20th, 2010 at 2:42 pm

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