Haw. Code R. § 20-8-6 - Repayment of the loan
(a) Each loan shall
be evidenced by an executed promissory note which shall set forth the terms and
conditions of the loan. Repayment of principal and interest shall commence
after the grace period. Repayment of principal and interest shall be made in
equal quarterly or monthly installments within a ten-year period as determined
by the university. A payment plan of not less than $4 5 a quarter or $15 a
month shall be required on all loans.
(b) Interest. The rate of interest payable on
the loan shall be five per cent simple interest.
(c) Prior to the termination of the
borrower's half-time enrollment, the borrower shall be responsible for
reporting any change in name, address, telephone number, or social security
number to the financial aid office. After the termination of the borrower's
half-time enrollment, the borrower shall be responsible for reporting any
change in name, address, telephone number, or social security number to the
university office which handles the loan collection.
(d) Exit interview. Immediately prior to the
termination of the borrower's half-time enrollment at a campus, the borrower
shall be responsible for completing an exit interview with the university. The
purpose of the exit interview is to schedule repayments and explain the
borrower's rights and responsibilities under the loan. If the borrower fails to
complete an exit interview, the university shall provide the borrower with the
exit interview information either online or by mail.
(e) Collection fees. The university may
charge late fees which do not exceed twenty per cent of the installment payment
due and all other reasonable fees for the collection of the loan. Any payment
received shall be applied in the following order:
(1) Collection fees;
(2) Late fees;
(3) Accrued interest; and
(4) Principal.
(f) The university may demand the immediate
repayment of the entire loan, including any accrued interest, late fees, and
collection fees, if the borrower fails to make a scheduled repayment or fails
to file a deferment on time.
(g)
The borrower may prepay all or any part of the loan at any time without
penalty.
(h) Deferment. To qualify
for a deferment on the loan, the borrower shall submit a written request for
deferment. The written request shall include all documentation required by the
university and shall be submitted no later than the date the university
establishes. Interest shall not accrue and installments need not be paid during
any period:
(1) During which the borrower is
enrolled at least half-time in a regular semester at an institution of higher
education or at a comparable institution outside the United States approved for
this purpose by the university;
(2)
Not in excess of three years during which the borrower is a member of the
United States Army, Navy, Air Force, Marines, or Coast Guard;
(3) Not in excess of three years in which the
borrower serves as a volunteer under the Peace Corps Act;
(4) Not in excess of three years during which
the borrower is a volunteer under the Domestic Volunteer Service Act of 1973,
as amended by the Serve America Act; or
(5) During any other period granted by the
university for good cause shown.
(i) Any deferment period granted by the
university shall not be included in determining the ten-year repayment period.
(j) Cancellation of loan upon
death or permanent disability of a borrower. If the borrower becomes
permanently and totally disabled after receiving the loan, the unpaid balance
of the loan shall be canceled upon receipt of a written request for
cancellation and any documentation required by the university to demonstrate
that the borrower meets the conditions for cancellation. If the borrower dies,
the unpaid balance shall be canceled upon the submission of a death certificate
or other official proof of death.
Notes
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