; . 4. Application of prepayment amounts for private education loans Section 128(e) of the Truth in Lending Act ( 15 U.S.C. 1638(e) ) is amended by adding at the end the following: (12) Application of prepayment amounts (A) In general Notwithstanding any other provision of law, with respect to a borrower with more than one private education loan which are held by the same holder and— (i) which have different applicable rates of interest, the holder of such loans shall, unless otherwise requested by the borrower in writing, apply the borrower’s prepayment amount (within the meaning of section 682.209(b)(2) of title 34, Code of Federal Regulations, or a successor regulation) for one or more of such loans, first toward the outstanding balance of principal due on the loan with the highest applicable rate of interest among such loans; and (ii) which have the same applicable rates of interest, the holder of such loans shall, unless otherwise requested by the borrower in writing, apply the borrower’s prepayment amount (as described in clause (i)) for one or more of such loans, first toward the outstanding balance of principal due on the loan with the highest principal balance among such loans. (B) Exception (i) In general Subparagraph (A) shall not apply to any prepayment amount made by a borrower to a holder if the borrower has an outstanding balance of fees, including collection costs and authorized late charges, due on any private education loan held by such holder. (ii) Prepayment amounts A prepayment amount made by a borrower described in clause (i) of this subparagraph to a holder shall be applied first toward the borrower’s outstanding balance of fees, including collection costs and authorized late charges, due on any private education loan held by such holder. .