Section 14.08. Deferment of loan repayment for borrowers.

 

(1)  Borrowers who return to school on a full-time basis in any course of study at an accredited institution shall be deferred by the board from repayment for the period of enrollment.

(2)  Borrowers who are on active duty in the military shall be deferred by the board from repayment for the period of their active duty, not to exceed to 3 years.

(3)  Borrowers, who enter the Peace Corps or Volunteers in Service to America, shall be deferred by the board from repayment for the term of their active service, not to exceed 3 years. Employment with similar private agencies is eligible for deferment, as determined by the executive secretary, if the agency is federally tax exempt.

(4)  Borrowers who are unemployed shall be deferred from repayment by the board for up to 6 months at a time, up to a maximum of 24 months, as long as they provide proof, satisfactory to the board, of actively seeking employment.

(5)  Borrowers who become pregnant, give birth or legally adopt a child shall be deferred from repayment by the board for up to 12 months.

(6)  In order to receive a deferment, a borrower shall apply to the board. If the borrower submits written evidence, which verifies eligibility for the deferment, the board shall approve the deferment.

(7)  The board may grant forbearance from repayment for the benefit of the borrower. The board may grant forbearance whenever unemployment, health, other personal problems, or educational study that is ineligible for deferment temporarily affects the borrower's ability to make scheduled payments on the loan. Periods of forbearance may not exceed 6 months for each approved request, up to a maximum total of 24 months.

History: CR 01-079 : Cr. Register January 2002 No. 553 , eff. 2-1-02.