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