Current through Register Vol. 54, No. 45, November 9, 2024
Section 121.67 - Repayment(a) The repayment is due as follows: (1) A loan is due for repayment when the student borrower has ceased to be enrolled on at least a half-time basis at an approved school for 9 consecutive months in the case of: (i) A loan issued to a borrower for a period of enrollment that began prior to January 1, 1981.(ii) A loan issued to a borrower for a period of enrollment beginning on or after January 1, 1981 if the borrower on the date the loan is disbursed has a loan guaranteed and outstanding under Title IV, Part B of the Higher Education Act of 1965 (Pub. L. No. 89-329, 79 Stat. 1219) for an enrollment period that began prior to January 1, 1981.(2) In all other cases, the loan is due for repayment when the student borrower has ceased to be enrolled on at least a half-time basis at an approved school for 6 consecutive months.(3) Within the applicable 9-month or 6-month period, the lender will provide the borrower with a repayment schedule.(b) For loans disbursed by lenders prior to October 1, 1981, a student borrower shall repay in substantially equal monthly installment payments at least $360 per year, including principal and interest. If the total of the insured loans would not be repaid in less time with minimum payments of $360 per year, the repayment schedule shall provide for repayment in not less than 5 years nor more than 10 years beginning upon the expiration of the applicable grace period after the student ceases to be enrolled on at least a half-time basis at a participating institution of higher learning, except where the borrower requests an earlier repayment starting date or where the lender agrees to monthly payments of less than $30 over not more than a 10-year repayment schedule.(c) For loans disbursed by the lender on or after October 1, 1981, a student borrower shall repay in substantially equal monthly installment payments at least $600 per year, including principal and interest. If the total of the insured loans would not be repaid in less time with minimum payments of $600 per year, the repayment schedule shall provide for repayment in not less than 5 years nor more than 10 years beginning upon the expiration of the applicable grace period after the student ceases to be enrolled on at least a half-time basis at a participating institution of higher learning, except where the borrower requests an earlier repayment starting date or where the lender agrees to monthly payments of less than $50 over not more than a 10-year repayment schedule period.(d) Upon proper notice to the lender, repayment of principal may be deferred in accordance with, and during periods specified in, the Higher Education Act of 1965 and Federal regulations based on this act. The borrower is responsible for interest not paid by the Federal government that accrues during any period principal repayment is deferred.The provisions of this §121.67 adopted February 27, 1969; adopted May 21, 1976, effective 5/22/1976, 6 Pa.B. 1134; amended November 19, 1976, effective 11/20/1976, 6 Pa.B. 2907; corrected December 9, 1978, 8 Pa.B. 3493; amended November 10, 1978, effective 11/11/1978, 8 Pa.B. 3084; amended July 3, 1980, effective 7/5/1980, 10 Pa.B. 2874; amended September 4, 1981, effective 9/5/1981, 11 Pa.B. 3045; amended March 26, 1982, effective 3/27/1982, 12 Pa.B. 1043; amended July 22, 1988, effective 7/23/1988, 18 Pa.B. 3208; amended October 4, 1991, effective 10/5/1991, 21 Pa.B. 4637.The provisions of this §121.67 issued under the act of July 12, 1981 (P. L. 264, No. 89) (24 P. S. §§ 5102.1 and 5104(1.2)); amended under section 4 of the act of August 7, 1963 (P. L. 549, No. 290) (24 P. S. § 5104).
This section cited in 22 Pa. Code § 121.70 (relating to default).