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The final rule on education loans indicates the agencies will consider low-cost education loans to low-income borrowers as a positive factor when assessing a financial institution's record of meeting community credit needs under the CRA. The rule:

• Provides a definition of "low-income borrower" consistent with current CRA definitions (50 percent of area median income), including borrowers' and co-borrowers' income;
• Defines "low-cost" based on the rates and fees charged under U. S. Department of Education lending programs;
• Includes loans for higher education by accredited institutions listed by the U. S. Department of Education and loans covered by Truth in Lending protections;
• Enables consideration of loans outside assessment areas if the needs are adequately addressed inside assessment areas; and
• Does not require any institution to make low-cost loans to low-income students or change how consumer loans are otherwise considered during CRA evaluations.

The provisions on minority- and women-owned financial institutions and low-income credit unions were previously communicated in Interagency Questions and Answers Regarding Community Reinvestment , published on March 11, 2010 (see FIL-9-2010 ).

Distribution:
�౦��Ϸ����-Supervised Banks (Commercial and Savings)

Suggested Routing:
Chief Executive Officers
CRA Officers
Compliance Officers

Note:
�౦��Ϸ���� financial institution letters (FILs) may be accessed from the �౦��Ϸ����'s Web site at www.fdic.gov/news/financial-institution-letters/2010/index.html .

To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html .

Paper copies of �౦��Ϸ���� financial institution letters may be obtained through the �౦��Ϸ����'s Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-275-3342 or 703-562-2200).