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In an effort to enhance consumer comprehension and facilitate comparison shopping of private education loans, the Higher Education Opportunity Act (HEOA) mandated that the Federal Reserve Board provide new disclosures for private education loans. Rockbridge Associates was selected to conduct the consumer research and testing used to guide the development of the new disclosure forms.
The specific objectives of the research effort were to develop model disclosure forms that:
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Enabled borrowers to easily identify material terms of the loan and to compare such terms among private education loans
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Were comprehensible to borrowers, with a clear format and design
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Were succinct, and used an easily readable type font
The disclosures were evaluated through a cognitive interview process. Past borrowers or potential borrowers went through a simulated shopping experience in which they reacted to the disclosures populated with actual information and provided their feedback while reviewing the documents. Interviews were conducted with both, college students who either obtained private education loans or anticipated getting such loans in the future, and parents involved in planning the education finances for their children.
To view the Private Education Loan Model Forms and the Final Report of Findings, please visit http://www.federalreserve.gov/newsevents/press/bcreg/20090730a.htm
For more information, contact Gina Woodall, SVP at 703-757-5213 ext. 11 or gwoodall@rockresearch.com, or Charles Colby, President, at 703.757.5213 ext. 12 or ccolby@rockresearch.com.
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