Section 20 AAC 15.195 - Loan forbearance and deferment(a) Subject to the approval of the executive director, the commission staff may provide a borrower with a loan forbearance to provide temporary or long-term repayment relief.(b) If a borrower's request for a period of forbearance on a loan is approved, interest continues to accrue during the period of forbearance and will be capitalized as part of the loan principal at the end of the forbearance period.(c) If a period of loan forbearance is agreed to, commission staff shall disclose to the borrower, in writing, the financial effect of the forbearance on the costs of financing the loan.(f) Subject to the approval of the executive director, the commission staff may approve a student deferment for no longer than a cumulative total of 24 months over the life of the loan, while the borrower is enrolled as at least a full-time student at an institution that has received approval under 20 AAC 15.922. In the event commission staff approves a borrower's request for a period of deferment on the loan, interest will continue to accrue during the period of deferment and will be capitalized at the end of the deferment period.Eff. 3/19/2003, Register 166; am 7/31/2003, Register 167; am 12/29/2010, Register 196; am 2/22/2015, Register 213, April 2015As of Register 169 (April 2004), the last sentence was added to subsection (f) of 20 AAC 15.195 to correct an inadvertent omission.
Authority:AS 14.42.030
AS 14.43.122