Alaska Administrative Code
Title 20 - Miscellaneous Boards and Commissions
Chapter 15 - Student Financial Aid
Article 11 - General Provisions
20 AAC 15.970 - Delinquency and default
Current through February 27, 2024
(a) A loan is delinquent if a loan payment is one or more days past due. When a loan payment is
(b) A loan is in default if
(c) To prevent default under (b)(1) of this section, the borrower or cosigner, if any, must pay the delinquent amount before it is 180 days past due.
(d) Repealed 3/1/2002.
(e) A borrower and cosigner, if any, who has defaulted under (b)(1) of this section is no longer considered to be in default status for the purposes of
(f) If a person has cosigned a loan that is in default, the commission will claim the permanent fund dividends of both the borrower and the cosigner. The commission will give priority to taking the permanent fund dividend of the borrower to satisfy the defaulted loan before taking the permanent fund dividend of the cosigner.
(g) For the purposes of determining, as a basis for eligibility for a loan, whether the borrower or cosigner has defaulted on a loan previously awarded by the commission, a borrower or cosigner will be considered not to have defaulted on the loan if the borrower or cosigner has made full payment on the loan, including all interest and collection costs, and if the borrower or cosigner satisfies the requirements of AS 14.43.172(c). The borrower or cosigner's payment of the loan under this subsection must have been predominantly voluntarily paid.
(h) For purposes of this section, an amount is not voluntarily paid if it is the proceeds from an order to withhold and deliver, involuntary wage assignment, or involuntary taking of the borrower's permanent fund dividend.
(i) Information regarding the status of a loan may be reported to credit bureau organizations.
(j) Repealed 5/26/2011.
(k) Notwithstanding a determination of default, the commission may make alternative repayment schedules available to borrowers subsequent to default. Once a loan has become 180 or more days past due, the commission may require the borrower to enter into and comply with a loan rehabilitation payment agreement, in order to qualify for an alternative repayment schedule. A loan that has become 271 or more days past due is not eligible for an alternative repayment schedule.
Authority:AS 14.42.030
AS 14.43.105
AS 14.43.120
AS 14.43.125
AS 14.43.145
AS 14.43.168
AS 14.43.171
AS 14.43.175
AS 14.43.320
AS 14.43.630
AS 14.43.640
AS 14.43.740