Section 12.06. Educational loans.

 

(1)   Deferment of payments. Subject to sub. (2) , where an applicant who is enrolled in a full-time study course of instruction, as verified by the educational institution in which the applicant is enrolled, or in a part-time study course of instruction only in cases described in this subsection applies for deferment of the obligation to commence or continue to make payments on a loan, the department may grant a deferment if the installments on such loan are less than 90 days delinquent at the time of approval of the deferment and, in the case of a guaranteed loan, if the guarantors consent in writing to the deferment. A deferment may not exceed 1 year and may not extend more than 3 months beyond the anticipated completion date of the applicant's educational objective but an applicant may qualify for additional deferments if eligible for such deferments under the provisions of this subsection at the time of application therefor. The department may grant deferments to an applicant enrolled in a part-time course of instruction because such applicant is disabled or unable due to physical or mental disability to enroll in a full-time course of instruction, is a graduate student who has completed the course of work required for a degree but must complete a thesis requirement, or is in the final semester or term of an educational program and needs less than full-time study to meet graduation requirements. Participation in a medical internship program is deemed to be enrollment in a full-time course of instruction for the purposes of this subsection.

(2)   Limitations on deferment. Payments may be deferred on only one department loan under s. 45.351 (2) , 1995 Stats., and s. 45.42 , Stats. at the same time. Indebtedness on a deferred loan may not exceed $5,000. Additional deferments under sub. (1) may not exceed a total of 5 years.

(3)   Underwriting criteria. The criteria contained in s. VA 12.02 (10) or (11) do not apply to the underwriting of an educational loan if the applicant is a full-time student and qualifies for a deferment under sub. (1) .

History: Cr. Register, April, 1998, No. 508 , eff. 5-1-98; CR 05-008 : am. (2) and (3) Register May 2005 No. 593 , eff. 6-1-05.