20 AAC 15.705 - Applicant eligibility

Current through April 6, 2022

(a) A borrower of an Alaska supplemental education loan (ASEL) must meet the eligibility requirements of AS 14.43.172 and 14.43.173 and
(1) must be enrolled and admitted into an eligible program of study on at least a half-time basis;
(2) must maintain satisfactory academic progress as determined by the school's policy;
(3) may not be in default on any federal or state education loan;
(4) if the individual is eligible to participate in the AlaskAdvantage loan program based solely on the individual's status as a resident of this state, during periods of absence from this state under AS 14.43.162(c), must have, and must demonstrate behavior consistent with, a continuing intent to return to and remain permanently in this state; and
(5) be a United States citizen or permanent resident alien admitted to the United States as a lawful permanent resident according to 8 U.S.C. 1101- 1537 (United States Immigration and Nationality Act).
(b) The commission staff may perform a credit history check on each loan applicant and endorser.
(c) To be considered eligible for the loan the applicant, or endorser if required under AS 14.43.172, must have a credit history that demonstrates good credit. For purposes of this paragraph, an applicant will be considered to have good credit if the applicant has a FICO score that is equal to or higher tl1an the FICO score set by the corporation or meets other FICO score - related credit criteria set by the corporation, and an endorser will be considered to have good credit if the endorser has a FICO score that is equal to or higher than the FICO score set by the corporation or meets other FICO score - related credit criteria set by the corporation.
(d) Repealed 5/7/2009.
(e) Repealed 2/22/2015.
(f) In an appeal of a denial of loan eligibility under AS 14.43.172(c)(5) or (6), the appellant may request that evidence of prior credit performance, in addition to that considered under this section, be considered to mitigate the findings of the review of the applicant's credit history. The appellant must be able to show that extraordinary circumstances beyond the applicant's control led to the adverse credit history and that the applicant made good faith efforts to pay the past debt, or that the credit history does not accurately reflect the appellant's ability or willingness to pay debts as they become due. If the appellant bases the appeal on the showing of extraordinary circumstances that led to the adverse credit history, the appellant has the burden to show that a good credit history existed before the extraordinary circumstances.
(g) For purposes of AS 14.43.172(e), an endorser's bankruptcy may be considered adverse credit.
(h) For the purposes of AS 14.43.172(c)(4), it is presumed that a person cannot repay a loan as it becomes due, and may only obtain a loan in compliance with AS 14.43.172(e), if the person
(1) is incarcerated at the time funds are disbursed or delivered; or
(2) is permanently disabled to an extent that the person will not be able to receive income in an amount that would allow repayment of the loan, and there is no reasonable medical possibility that the condition of permanent disability will improve before the loan enters repayment.
(i) In an appeal of a denial of loan eligibility under AS 14.43.172(b), the appellant may provide evidence that demonstrates that an absence from this state in excess of the period allowable under applicable state law was not inconsistent with an intent to return and indefinitely reside in this state.

Notes

20 AAC 15.705
Eff. 7/1/2002, Register 162; am 12/31/2005, Register 176; am 9/23/2006, Register 179; am 5/7/2009, Register 190; am 2/22/2015, Register 213, April 2015; am 4/6/2018,Register 226, July 2018

As of Register 172 (January 2005), and acting under AS 44.62.125(b)(6) and sec. 34, ch. 63, SLA 2004, the regulations attorney made technical changes to reflect the name change of the Alaska advantage loan program to the Alaska Advantage loan program made by secs. 10, 13, and 28, ch. 63, SLA 2004.

Authority: AS 14.42.030

AS 14.43.172

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