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(a) A borrower who receives a subsidized Stafford loan is not required to make loan principal payments during the time the borrower is enrolled in school on at least a half-time basis.
(b) If the borrower receives a subsidized or unsubsidized Stafford loan, and ceases to be enrolled in school on at least a half-time basis, a six-month grace period begins, during which no principal payments are due.
(c) A borrower who receives an unsubsidized Stafford loan shall pay interest accruing during the in-school and grace periods.
(d) In the case of a PLUS loan, interest accrues from the date of the first disbursement and principal payments are due after the last loan disbursement.
(e) A borrower may be charged an origination fee on an AlaskAdvantage loan not to exceed three percent of the principal amount of the loan, if provided for in the promissory note.
(f) A borrower may be charged the amount of the insurance premium paid by the commission to the guarantor, which may be up to one percent of the principal amount of the loan, if that charge is provided for in the promissory note.
(g) Accrued interest and unpaid insurance premiums payable by the borrower may be added to the principal balance in accordance with 34 C.F.R. 682.202(b).
(h) A borrower or endorser may be charged a late fee relative to a payment not made when due if authorized by the borrower's promissory note, and subject to the conditions set out in 34 C.F.R. 682.202(f).
(i) The borrower or any endorser may be required to pay costs incurred by the commission or through its agents in collecting installments not paid when due, including
(1) attorney's fees;
(2) court costs; and
(3) collection agency fees.
(j) A borrower or student who receives the benefit of an interest subsidy due to false or erroneous information or who takes actions described in 34 C.F.R. 682.412(a) will be sent a final demand letter in accordance with the requirements of 34 C.F.R. 682.412.
History: Eff. 7/1/2002, Register 162
Authority: AS 14.42.030
Editor's note: As of Register 172 (January 2005), and acting under AS 44.62.125 (b)(6) and sec. 34, ch. 63, SLA 2004, the regulations attorney made technical changes to reflect the name change of the Alaska advantage loan program to the AlaskAdvantage loan program made by secs. 10, 13, and 28, ch. 63, SLA 2004.
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Last modified 7/05/2006