Alaska Administrative Code
Title 20 - Miscellaneous Boards and Commissions
Chapter 15 - Student Financial Aid
Article 2 - AlaskAdvantage Federal Consolidation Loan Program
20 AAC 15.092 - Loan fees, interest, and interest capitalization

Universal Citation: 20 AK Admin Code 20 AAC 15.092

Current through November 28, 2024

(a) A borrower will not be charged an origination fee on a federal consolidation loan.

(b) Interest on a federal consolidation loan will be set in accordance with 20 U.S.C. 1077 - 1078, 34 C.F.R. 682.202, and AS 14.43.165, not to exceed 8.25 percent.

(c) An eligible subsidized loan included in the federal consolidation loan may remain subsidized, subject to the conditions set out in 34 C.F.R. 682.301.

(d) Accrued interest and unpaid fees

(1) will be added to the principal balance at the time of consolidation;

(2) will be added to the principal balance at the end of a period of deferment or forbearance; and

(3) may be added to the principal balance at any time interest and fees are not paid when due.

(e) A late fee may be charged for loan payments not made when due if authorized in the borrower's promissory note, and subject to conditions set out in 34 C.F.R. 682.202(f).

(f) A borrower may be required to pay collection costs incurred by the commission or its agents for payments not paid when due, including

(1) late charges;

(2) attorney's fees;

(3) court costs; and

(4) collection agency fees.

(g) A borrower who receives a federal consolidation loan by providing false or erroneous information or who takes actions described in 34 C.F.R. 682.412(a) will be sent a final demand letter in accordance with the requirements of 34 C.F.R. 682.412.

Authority:AS 14.42.200

AS 14.42.210

AS 14.43.030

AS 14.43.165

AS 14.43.166

AS 14.43.167

Disclaimer: These regulations may not be the most recent version. Alaska may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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