Truth in Lending Act with Veracross

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Here is the new version of this article in the Veracross Community.

Overview

The Veracross TILA product is available with VC Pay Tuition Management and is designed to make your school’s TILA disclosure obligations seamless. However, both the content included in the form and the decision as to whether and when TILA reporting disclosures are required for any particular payment plan is ultimately the responsibility of the school.

For more information about TILA and its requirements see here

Truth in Lending Document Configuration

 Truth in Lending is configured per Payment Plan via the Online Enrollment Homepage.  Axiom users with Admissions_1 and Business_1 roles will have access to Truth in Lending configurations.

Enable TILA Document 

  1. To enable the TILA Document to display on the Online Enrollment contract navigate to the Payment Plans query on the Online Enrollment Homepage or the AR Payment Plan query on the System Homepage in Veracross Accounting. 
  2. On the TILA Configuration tab, toggle show or hide to enable or disable a TILA disclosure on the selected Payment Plan.

TILA Payment Schedule

Disclosures must contain a payment schedule that includes the date and amount for the Payment Schedule.  Your charge item split configuration will be how Veracross calculates the Payment Schedule on the TILA document.  This will be based on the Total Loan Amount. 

  1.  To set up Payment Schedules, navigate to the Payment Plans query on the Online Enrollment Homepage or the AR Payment Plan query on the System Homepage in Veracross Accounting
  2. On the General tab, enter the School Year, Schedule Date, and Percentage.

TILA Disclosure Terms and Conditions

Terms and conditions are required for a valid Truth in Lending Disclosure. Veracross provides a rich text box for school defined text.  See “What must be included in a Truth in Lending Disclosure Document?” for information to help you determine required terms and conditions.

  1. To update the Terms and Conditions navigate to the Payment Plans query on the Online Enrollment Homepage or the AR Payment Plan query on the System Homepage in Veracross Accounting. 
  2. On the TILA Configuration tab, populate the TILA Terms and Conditions with your school defined text. 

School Access to Truth and Lending Disclosures 

Truth in Lending Disclosures can be accessed via the Online Enrollment homepage under the Reports section. 

Truth in Lending DisclosuresView Truth in Lending Disclosures for Parents that have completed Online Enrollment. The Payment Plan selected must be enabled with a Truth in Lending Disclosure to view disclosures.
Truth in Lending Disclosures (Batch Print) Batch print Truth in Lending Disclosures for Parents that have completed Online Enrollment. The Payment Plan selected must be enabled with a Truth in Lending Disclosure to print.
Truth in Lending Disclosures (Preview) View Truth in Lending Disclosures for Parents prior to completing Online Enrollment. Configure schedules and Terms and Conditions on the Payment Plan.

Access to Truth in Lending Disclosures

When TILA Status is enabled, the Truth in Lending Disclosures can be viewed by Parents during Online Enrollment.  Disclosures will be visible on the Enrollment Contract for all Payment Plans enabled. 

TILA Document

The TILA document uses data set up for Online Enrollment and Student Billing to populate the document with correct calculations.  The tables are calculated based on a number of criteria and will depend on your configuration. 

Total Loan AmountThe total amount that is loaned to the Parent.  This bucket will not include Finance Charges or Deposits but will include Enrollment Fees if you have that fee.  If Financial Aid is populated prior to the contract being signed, this calculation will include Financial Aid.  Optional Extras are also included in the Total Loan Amount calculation. 
Finance ChargesAny amount of money that the Parent must pay due to their choice of a particular Payment Plan that would otherwise not have to been paid if a different Payment Plan was chosen.  Examples:
  1. Plan Specific Fees 
  2. Tuition Refund Insurance (TRI) 
  3. VC Pay Payment Plan Fees (Parent Pay Fee) 
APR (Annual Percentage Rate)Calculated by Finance Charge divided by Total Loan Amount
Total of PaymentsTotal Loan Amount Plus Finance Charge
Total Sale PriceTotal of Payments Plus Deposit

Payment ScheduleThis will display the number, amount, and timing of the Payments.  This is populated based on the Total Loan Amount and will use the Charge Split Configuration on the Payment Plan to display 
Itemization of Amount FinancedThis grid displays the specifics of what is included in the Total Loan Amount



Please note, this may not match how you will be splitting your payment schedule on your Invoice as the TILA is specific to splitting the Total Loan Amount. 

Disclaimer: This information is provided for general educational purposes only. It should not be relied upon as, or in place of, legal advice. Schools should consult with their own legal counsel.