20 AAC 18.025 - PSE loan eligibility

(a) A person is eligible for a PSE loan, and a person who has received a PSE loan remains eligible, if that person does not have a past due child support obligation established by court order or by the Department of Revenue, child support services agency under AS 25.27.160- 25.27.220 at the time of application or loan disbursement.
(b) A person is eligible for a PSE loan, a person who has received a PSE loan remains eligible, and a person may cosign for a PSE loan under (d) of this section, if that person
(1) is not delinquent and has never been in default on a loan previously awarded by the commission;
(2) has not, within the previous five years, had a loan discharged or written off by the commission for any reason;
(3) does not have a status, at the time of the application for a loan or disbursement of loan funds, that would prevent the person from repaying the loan as it becomes due; a status as described in this paragraph will be presumed for a person described in 20 AAC 15.940(e) (2);
(4) has not within the previous seven years defaulted on another loan made to the person by a lending entity unless the person can show good faith efforts to repay the loan and extraordinary circumstances that led to the default; and
(5) does not have a credit history, at the time of application for a loan, that demonstrates chronic inability or unwillingness to pay an extension of credit or loan as it becomes due; items in a credit history that demonstrate chronic inability or unwillingness, as described in this paragraph, include any of the items set out in 20 AAC 15.940(g).
(c) Repealed 4/6/2018.
(d) Notwithstanding (b) of this section, the commission may issue a PSE loan to a person if another person who satisfies the requirements of (b) of this section cosigns the loan.
(e) For purposes of (b)(4) of this section, a person has defaulted on a loan if any of the following has occurred:
(1) foreclosure upon or repossession of collateral for a loan or installment contract;
(2) execution procedures initiated on an unpaid loan or installment contract;
(3) an entry of judgment accelerating the amount due under a loan or installment contract;
(4) the charging off by a creditor of an amount in excess of $100 due to nonpayment on a loan or installment contract.
(f) The commission staff shall withhold payment of a support fee if the PSE loan recipient becomes ineligible under this section.

Notes

20 AAC 18.025
Eff. 11/8/2000, Register 156; am 1/30/2003, Register 165; am 12/28/2008, Register 188; am 4/6/2018,Register 226, July 2018

As of Register 171 (October 2004), and acting under AS 44.62.125(b)(6) and sec. 12, ch. 107, SLA 2004, the regulations attorney made technical changes to reflect the name change of the child support enforcement agency to the child support services agency made by sec. 1, ch. 107, SLA 2004.

Authority:AS 14.44.035

AS 14.44.040

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