Q: What is required if a refinance of a private student loan is triggered by the LIBOR transition?
A: As stated above in LIBOR Private Student Loan FAQ 1, under Regulation Z, if the creditor does not select a comparable index during the LIBOR transition when replacing the index of a closed-end loan, the creditor will trigger requirements for a refinance of the transaction. Comment 20(a)-3.ii.B.
If a refinancing occurs, the creditor is required to provide a complete new set of disclosures. Comment 20(a)-1. For example, for a private education loan, as defined in Regulation Z, 12 CFR § 1026.46(b)(5), the new disclosures required include new approval disclosures and new final disclosures. 12 CFR § 1026.47(b) and (c). For other private student loan products that are not “private education loans” but are otherwise covered by the closed-end loan requirements under Regulation Z, creditors will need to provide the disclosures in Subpart C of Regulation Z. See, e.g., 12 CFR § 1026.18.