Section 20.15.730. 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	(b)  Repealed 12/31/2005.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.  

Authorities

14.42.030;14.43.174;14.43.175

Notes

Authority

AS 14.42.030 AS 14.43.174 AS 14.43.175

History

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