20 AAC 18.120 - Repayment of loans
(a) The commission staff shall add accrued
interest to the principal balance of the loan at the time the borrower is
obligated to commence repayment under
20 AAC 18.100(e),
or at the end of an approved period of deferment under
20 AAC 18.130. The commission
staff shall add to the principal balance of the loan the interest that accrued
and was unpaid due to the borrower's failure to provide
(1) the commission staff with the information
required under
20 AAC 18.100(a)
to calculate the correct date for the commencement of repayment under
20 AAC 18.100(e);
or
(2) notice under
20 AAC 18.130(c)
that eligibility for a deferment under
20 AAC 18.130(a)
(1)-(3) has ended.
(b) If a payment is made on a loan in an
amount larger than that required by the repayment schedule, the excess shall be
applied first to any outstanding interest charges and then to the remaining
principal balance of the loan.
(c)
A payment on a delinquent loan shall be applied first to collection costs, then
to any outstanding interest charges, then to the outstanding principal balance
of the loan, until those amounts are paid in full.
(d) To obtain an extension on repayment of a
loan due to economic hardship, a borrower must demonstrate compliance with the
criteria set out in
20 AAC 15.960(d).
An extension due to economic hardship may not last more than five
years.
(e) A cosigner's obligation
to repay a loan
(1) begins when the
borrower's obligation begins; and
(2) continues even if the borrower's
obligation to repay the loan is discharged or canceled before the loan,
including interest, is repaid in full.
(f) During a borrower's deferment under
20 AAC 18.130(a)
(3), a cosigner's obligation will not be
deferred if the cosigner's signature was required under
20 AAC 18.025(b)
(3).
(g) A cosigner, if any, will be notified of
any deferment granted to a borrower, or any agreement reached with the
borrower, that increases the amount due over time on the note.
Notes
Authority:AS 14.44.035
AS 14.44.040
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