Code of Maine Rules
02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION
030 - BUREAU OF CONSUMER CREDIT PROTECTION
Chapter 600 - STUDENT LOANS
Section 030-600-3 - Purpose

Universal Citation: 02 ME Code Rules ยง 030-600-3

Current through 2024-38, September 18, 2024

1. The purpose of this Chapter is to provide a limited exemption from Title 9-A M.R.S.A. §§3 - 308(1) and 3 - 308(3) to enable lenders to provide student loans to student borrowers that are not insured, guaranteed, subsidized or made directly by the federal government, a state, a nonprofit private loan guaranty or organization, by an institution of higher education itself or through an endowment or trust fund affiliated with such institution of higher education.

2. This exemption supersedes the following provisions of the Consumer Credit Code.

A. Title 9-A M.R.S.A. §3-308(1) provides that "... no creditor may 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, excluding any down payment receivable by the creditor or under which the intervals between any consecutive payments differ substantially."

B. Title 9-A M.R.S.A. §3-308(3) provides that, "A schedule of payments may provide for the deferral of the first periodic payment subsequent to any down payment for a period of not more than 12 months, except that interest or costs may not accrue in connection with the deferral of the first periodic payment if the deferral is for a period of time in excess of 90 days."

3. Title 9-A M.R.S.A. §§3 - 308(1) and 3 - 308(3) do not allow for payment schedules common to student lending. This Chapter allows lenders to receive payments pursuant to which payments are not substantially equal and to delay repayment of principal and/or interest on loans to student borrowers while they are still in school on at least a half-time schedule. The student loans remain subject to all other protections related to consumer lending found in the Consumer Credit Code.

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