Current through Reg. 49, No. 38; September 20, 2024
(a) Period of loan
repayment.
(1) FSL. All loans shall be repaid
in accordance with the statutes and regulations governing the Federal Family
Education Loan Program.
(2) FSLS.
All loans shall be repaid in accordance with the statutes and regulations
governing the Federal Family Education Loan Program.
(3) CAL.
(A)
The repayment period shall be calculated based upon the amount
borrowed.
(B) The repayment period
shall begin no earlier than six months after the date on which the student
ceases to carry, at an eligible institution, at least one half the normal
full-time course load as determined by the institution.
(4) HEAL. All loans shall be repaid in
accordance with the statutes and regulations governing the Health Education
Assistance Loan Program, authorized by the Public Health Service Act, as
amended,
42 U.S.C. §§
292-
292y.
(5) HELP. All loans extended under this
program by the Board shall be repaid in the manner and under the statutes,
rules and guidelines governing HEAL.
(b) Minimum repayment amount.
(1) FSL. The Board shall provide a repayment
schedule in which all of the FSL notes extended by the Board to a borrower are
treated as an account, and the repayment amount shall be calculated to repay
the account over the maximum authorized period. In no case will the minimum
annual repayment on the account be less than $600.
(2) FSLS. The Board shall provide a repayment
schedule in which all of the FSLS notes extended by the Board to a borrower are
treated as an account, and the repayment amount shall be calculated to repay
the account over the maximum authorized period. In no case will the minimum
annual repayment on the account be less than $600.
(3) CAL. The Board shall provide a repayment
schedule in which all of the CAL notes extended by the Board to a borrower are
treated as an account, and the repayment amount shall be calculated to repay
the account over the maximum authorized period.
(4) HEAL. The Board shall provide a repayment
schedule in which all of the HEAL notes extended by the Board to a borrower are
treated as an account, and the repayment amount shall be calculated to repay
the account over the maximum authorized period. The minimum annual repayment
shall not be less than the amount provided by 42 USCS 292(d).
(5) HELP. The Board shall provide a repayment
schedule in which all of the HEAL notes extended by the Board to a borrower are
treated as an account, and the repayment amount shall be calculated to repay
the account over the maximum authorized period. The minimum annual repayment
shall not be less than the amount that would have been provided by 42 U.S.C.S.
§292(d), if the loan had been extended by the HEAL program.
(c) Prepayment. Any loans made
through the program may be prepaid without penalty.
(d) Deferments.
(1) The Commissioner shall grant deferments
of loan repayment for FSL and FSLS loans as required by The Higher Education
Act of 1965, as amended,
20
U.S.C. §§1071 -
1087-4.
(2) The Commissioner shall grant deferments
of loan repayment for HEAL and HELP loans in the manner and under the
circumstances provided for the HEAL loans in the Public Health Service Act, as
amended,
42 U.S.C.
§§292 -
292y.
(3) Interest on non-subsidized loans (FSLS,
HEAL, and HELP) which accrues during authorized deferment periods shall be
charged to the borrower. Interest on FSLs which accrues during authorized
deferment periods shall be charged to the United States Department of
Education, unless the borrower has lost eligibility for federal interest
subsidy benefits as described in federal law.
(4) Authorized deferments for FSL and FSLS
loans shall extend the maximum repayment period.
(5) Authorized deferments for HEAL and HELP
loans shall not extend the maximum repayment period.
(6) Deferments are available to any borrower
whose account is not in default and who makes an adequate showing of
entitlement. A borrower whose account is in default is not eligible for a
deferment.
(e)
Forbearance. The Commissioner may grant periods of forbearance for unusual
financial hardship on any account that is held by the Board if the borrower
presents the Commissioner or his designee with the reasons therefore, and the
Commissioner or his designee determines that the borrower's account history
justifies such action. Borrowers of federally insured loans may have rights to
certain additional types of forbearances under the applicable program's
statutes and rules.
(f) Late
charges. A charge of five percent (5%) of the scheduled monthly payment or five
dollars ($5.00), whichever is less, shall be assessed if the past due amount is
not received within 20 days of the scheduled due date. These charges shall be
collected for late payment of all sums due and payable under the
Hinson-Hazlewood Loan Program.
(g)
Collection charges. In the case of delinquent accounts, the Commissioner may
authorize the assessment of charges necessary to collect the loan which may
include court costs fees, attorney fees, skip-trace fees, and long-distance
telephone charges.
(h) Application
of payments. In accordance with the terms of the promissory note, the
Commissioner shall determine the priority order in which payments shall be
applied to interest, late charges, principal, collections costs and any other
charges.
