N.M. Admin. Code § 5.7.24.12
Current through Register Vol. 35, No. 21, November 5, 2024
Section 5.7.24.12 - INFORMATION TO BE PROVIDED BY LENDERS TO ELIGIBLE BORROWERSA. At the time a lender makes an eligible loan to an eligible borrower the lender shall provide thorough and accurate loan information to the eligible borrower as required by the Higher Education Act and the guarantee corporation, which shall include: (1) the yearly and cumulative maximum amounts that may be borrowed by an eligible borrower;(2) the terms on which repayment will begin;(3) the maximum number of years in which the eligible loan must be repaid;(4) the interest rate that will be repaid, and the maximum amount of required monthly payments;(5) any special options that an eligible borrower may have for deferral, cancellation, prepayment, consolidation, or other refinancing of the eligible loan;(6) a definition of default and the consequences to the eligible borrower if the eligible borrower should default, including a description of any arrangement made with credit bureau organizations; and(7) to the extent practicable, the effect of accepting the eligible loan on the eligibility of the eligible borrower for other forms of student assistance.B. The foundation may refuse to purchase eligible loans not made in accordance with this requirement.N.M. Admin. Code § 5.7.24.12