[§304A-602]  Repayment of state highereducation loans; collection.  (a)  All loans made under the state highereducation loan fund shall bear interest at five per cent simple interest. Repayment of principal and interest charges shall commence nine months aftergraduation or after a borrower ceases to be enrolled at least half-time in adegree program and shall be paid in periodic installments within a ten-yearperiod.  The university may charge late fees and all other reasonable costs forthe collection of delinquent loans.  The board of regents, upon application bythe student and upon a showing of good cause, may defer repayment of the loanand commencement of interest.  Liability for repayment of a loan shall becanceled upon the death or permanent total disability of the borrower.

(b)  The university may spend out of the statehigher education loan fund up to two per cent of the total amount of loansoutstanding for collection and administrative expenses.  In accordance withchapter 103D, the university may enter into written contracts with collectionagencies for the purpose of collecting delinquent student loans.  All paymentscollected, exclusive of a collection agency's commissions, shall revert, and becredited, to the state higher education loan fund.

(c)  A collection agency that enters into awritten contract with the university for the collection of delinquent studentloans, pursuant to this section, may collect a commission from the debtor inaccordance with the terms of, and up to the amounts authorized in, the writtencontract. [L 2006, c 75, pt of §2]

 

Cross References

 

  Professional or vocational licensing sanctions for default onstudent loans, see §436B-19.6 and chapter 436C.