N.M. Admin. Code § 5.7.27.7 - DEFINITIONS

A. Borrower. The individual who signs the promissory note, receives the proceeds of the loan, and is liable for repayment. A student who is either a credit-worthy individual or who obtains a credit-worthy individual as cosigner may be a borrower. A borrower maybe someone who is not a student but is a credit-worthy individual.

B. Citizen or permanent alien resident. A citizen of the United States or person who has been granted permanent alien resident status by the U.S. department of justice immigration and naturalization service.

C. Cosigner. A credit-worthy individual who signs the promissory note along with the borrower, but does not receive the proceeds of the loan. The cosigner is equally liable with the borrower for repayment of the loan. The cosigner is usually a parent of the student borrower, but can also be any credit-worthy individual willing to be liable for the loan.

D. Credit-worthy individual. An individual who meets the credit criteria established in Section Seven [now 5.7.27.13 NMAC].

E. Default. The failure to make payments on the loan when due, or to meet any of the other terms of the promissory note under circumstances where the lender finds it reasonable to conclude that the borrower, and/or cosigner no longer intend to honor the obligation to repay. Upon default, the outstanding loan balance will be accelerated with the total amount of principal and interest being immediately due and payable.

F. Disbursement. The transfer of funds to the borrower by means of a check payable to the order of the borrower.

G. Due Diligence. The utilization by the lender of the practices set forth in Section Three [now Section 5.7.27.9 NMAC] in the making, servicing, and collection of the loan.

H. Eligible school. A two-year (if located in New Mexico) or four-year public or non-profit collegiate or graduate degree granting educational institution which has been approved by the lender for participation in the NMALF program.

I. Enrolled. The status of a student who has completed the registration requirements at an eligible school, and has commenced attendance.

J. Estimated cost of attendance. As defined in the most current regulations promulgated under the Federal Higher Education Act of 1965, as amended.

K. Estimated financial assistance. The estimated amount of assistance a student has been or will be awarded in federal, state, or privately supported scholarship, grant, work study, or loan programs for the period of time for which the loan is sought.

L. Full-time student. An individual enrolled at an eligible school who is carrying a full-time academic workload as determined by the school, under standards applicable to all students enrolled in that individual's particular program. The individual's workload may include any combination of courses, work experience, research or special studies that the school considers sufficient to classify the student as a full-time student.

M. Half-time student. An individual enrolled in an eligible school who is carrying a workload as determined by an eligible school that is at least one half the workload of a full-time student.

N. Lender. The New Mexico educational assistance foundation is the lender in the NMALF program.

O. Loan. The amount of money lent to the borrower by the lender for the purpose of financing educational costs of a student at an eligible school.

P. New Mexico educational assistance foundation (NMEAF). A private, non-profit organization established to assist students and their families in financing post-secondary education. NMEAF is the lender, manager, and operator of the new mexico alternative loan fund program (NMALF). NMEAF is an equal opportunity lender and does not discriminate on the basis of gender, race, color, national origin, religion, age, disability, sexual orientation, marital status or ancestry.

Q. Promissory note. The instrument used to evidence the loan.

R. Repayment period. The repayment period begins on the day the loan is disbursed and ends when the loan is paid in full. The repayment period is 60 to 120 months depending on the original amount of the loan and as otherwise set forth in the promissory note.

S. Student. A full-time student or a half-time student.

Notes

N.M. Admin. Code § 5.7.27.7

Recompiled 10/31/01