The federal Truth in Lending Act and its sci-fi-sounding Regulation Z (which implements the statute) require that borrowers of consumer credit receive written information about the terms of a loan prior to being legally bound to repay it. Most people probably associate the concept of "truth in lending" with securing a mortgage or obtaining car financing. Independent schools often do no realize that TILA may apply to tuition payments, too. Under certain circumstances, tuition can meet the definition of "consumer credit," as it covers the cost of education, which the law considers a "personal, family or household" expense.
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Published in National Business Officers Association's Net Assets (November 2017)
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