Code of Maine Rules
02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION
029 - BUREAU OF FINANCIAL INSTITUTIONS
Chapter 145 - STUDENT LOANS
Section 029-145-5 - General Provisions

Universal Citation: 02 ME Code Rules ยง 029-145-5

Current through 2024-38, September 18, 2024

1. When providing student loans to student borrowers, a lender is exempt from the provisions of 9-A M.R.S.A. §3 - 308 to the extent that a lender may do any of the following:

A. Contract for or receive payments of principal and/or interest pursuant to a schedule of payments under which any one payment is not substantially equal to all other payments or under which the intervals between any consecutive payments differ substantially; and

B. Contract for the deferral of periodic payments and for the accrual of interest and costs during the deferral period.

A lender is exempt from the provisions of 9-A M.R.S.A. §3 - 308 to the extent set forth in paragraphs (A) and (B) above, whether or not the student loan is co-signed or guaranteed by any third party. However, the lender is not exempt from the provisions of 9-A M.R.S.A. §3 - 308 to the extent set forth in paragraphs (A) and (B) above, if a co-borrower is named on the student loan.

2. When a student borrower is no longer enrolled at least half-time in an institution of higher education, the terms of the student loan must provide for payments to begin within nine months after enrollment ends.

3. If a student borrower completes or terminates enrollment at least half-time in an institution of higher education, but then resumes enrollment at least half time in an institution of higher education, the lender may contract for or receive payments in accordance with paragraphs 5(1)(A) and 5(1)(B) of this Chapter.

4. When making student loans, the lender shall require written verification that the student borrower is 18 years or older at the time of making the loan and is enrolled at least half time in an institution of higher education.

5. When making student loans, the lender shall require student borrowers to notify the lender when they are no longer enrolled at least half time at an institution of higher education.

6. Student loans, and lenders that offer such loans, are otherwise subject to the applicable provisions and prohibitions set forth in Titles 9-A and 9-B M.R.S.A., and regulations promulgated by the Bureau of Financial Institutions and the Bureau of Consumer Credit Protection.

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