054-1 Wyo. Code R. §§ 1-14 - Default of a Loan
(a) A loan shall be
in default when an installment is due and not paid in full within 90 days after
the time period provided by these rules.
(b) The process for collection of a loan in
default shall be determined by the Board through its designated financial
institution.
(c) The student in
default shall pay any charges related to offsetting the note or any charges
incurred should the note(s) be referred to an outside collection agency and any
other collection charges, including attorney's fees allowed by state
law.
(d) Loan repayment options
under this section may be deferred for:
(i) A
period not to exceed four (4) years while the student is serving on full-time
active duty with any branch of the military services of the United
States.
(ii) The length of a
graduate program that qualifies under the WYIN program and begins while the
student is still paying by cash or employment.
(e) Students may be relieved from having to
repay loans and interest thereon, in whole or in part, when the requirement to
repay would cause undue hardship. The financial institution responsible for
servicing the loans will use its best judgment in applying the economic
hardship deferment criteria used for the Federal Family Education Loan Program.
The Board reserves the right to consider any request due to undue
hardship.
(f) Complete cancellation
of a student's debt will be granted only in limited circumstances. These
circumstances may include:
(i) A student's
total and permanent disability, as determined by a medical or osteopathic
physician, or death.
(A) A student who is
determined to be totally and permanently disabled will have his/her loan placed
in a conditional discharge period for three (3) years from the date the student
became totally and permanently disabled.
(B) During this conditional period, the
student need not pay principal or interest. If the student continues to meet
the total and permanent disability conditions during, and at the end of, the
three-year conditional period, the student's obligation to repay the loan is
canceled, upon approval by the Board.
(ii) If the student does not continue to meet
the cancellation requirements, the student must resume payment.
Notes
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