Current through Register Vol. 35, No. 18, September 24, 2024
A.
Mininium/maximum loan amounts. The annual loan limits apply to a twelve month
period. Loans made under the NMALF program will have the following annual
limits:
(1) the minimum annual amount is
$1,500.00;
(2) the maximum annual
amount is the lesser of:
(a) the student's
estimated cost of attendance for the loan period less the estimated financial
assistance to be received for the loan period;
(b) the amount of allowable debt after a
credit analysis is performed by the lender.
(3) The lender reserves the right to limit
the maximum amount borrowed.
B. Loan origination: NMALF loan applications
are processed as follows:
(1) The student,
borrower, and/or cosigner obtains a NMALF application. The student completes
the student portion; the borrower completes the financial section; and if the
borrower is not a credit-worthy individual, he/she is required to obtain a
cosigner to complete the financial section.
(2) The application must be sent to the
lender with the non-refundable application fee. Applications will be analyzed
based on the credit criteria set forth in Section 7 [now 5.7.27.13 NMAC]. The
granting of a loan will be at the sole discretion of the lender.
C. Disbursements: The lender will
disburse NMALF loan proceeds net of the fee payable upon origination by a check
payable to and sent directly to the borrower.
D. Repayment: Repayment shall be in
accordance with Paragraph 2-3 [now Subsection C of 5.7.27.8 NMAC].
E. Due diligence: The lender shall exercise
due diligence in the making, servicing, and collection of the loans, and shall
utilize practices which are at least as stringent as those set forth herein.
(1) Days past due: Action:
(a) 10 days past due: reminder notice to
borrower and cosigner
(b) 25 days
past due: past due letter 1 to borrower and cosigner
(c) 31-60 days past due: phone call 2
attempts or 1 contact to borrower and cosigner
(d) 40 days past due: past due letter 2 to
borrower and cosigner
(e) 55 days
past due: past due letter 3 to borrower and cosigner
(f) 61-90 days past due: phone call 2
attempts or 1 contact to borrower and cosigner
(g) 70 days past due: past due letter 4 to
borrower and cosigner
(h) 85 days
past due: final demand letter to borrower and cosigner
(i) 100 or more days past due: initiation of
legal action and/or claim on loan insurance.
(2) Failure to exercise due diligence does
not affect the lender's right to collect the loan.
F. Insurance requirement: All loans must be
insured by a private loan insurance policy issued by an insurance company
acceptable to the lender or covered by NMEAF's self-insurance
program.
