20 AAC 15.730. Loan fees and accrual of interest

(a) If a loan or repayment obligation becomes delinquent or in default, the borrower or endorser, if any, shall pay the fees and costs described in 20 AAC 15.975.

(b) Repealed 12/31/2005.

(c) Interest on a loan accrues from the time the loan is disbursed. Unpaid accrued interest will be added to the principal balance of a loan

(1) when a loan enters repayment under AS 14.43.175 ;

(2) at the start of a period of deferment, if unpaid interest has accrued at the time the deferment is processed;

(3) at the expiration of a period of deferment;

(4) at the start of a period of forbearance, if unpaid interest has accrued on the loan at the time the forbearance is processed;

(5) at the expiration of a period of forbearance;

(6) when a loan is transferred to a collection agency due to the borrower's default; and

(7) any time that the borrower and the commission enter into an alternative repayment agreement.

(d) A borrower may elect to make interest payments during the in-school period, in accordance with the terms of the promissory note.

History: Eff. 7/1/2002, Register 162; am 12/31/2005, Register 176

Authority: AS 14.42.030

AS 14.43.174

AS 14.43.175

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