22 Pa. Code § 121.137

Current through Register Vol. 54, No. 25, June 22, 2024

Section 121.137 - Repayment

(a) A Federal PLUS Loan is due for repayment within 60 days of the date of the final disbursement of the loan.

(b) A 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. The lender and the borrower may agree to monthly payments of less than $50 over not more than a 10-year repayment schedule.

(c) 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 (Pub. L. No. 89-329, 79 Stat. 1219) and Federal regulations based on this act. The borrower is responsible for the interest that accrues during any period principal repayment is deferred.

22 Pa. Code § 121.137

The provisions of this § 121.137 adopted August 7, 1981, effective 8/8/1981, 11 Pa.B. 2760; corrected August 22, 1981, 11 Pa.B. 2911; amended March 26, 1982, effective 3/27/1982, 12 Pa.B. 1043; amended January 16, 1987, effective 1/17/1987, 17 Pa.B. 249; amended July 22, 1988, effective 7/23/1988, 18 Pa.B. 3208; amended June 9, 1989, effective 6/10/1989, 19 Pa.B. 2428; amended October 4, 1991, effective 10/5/1991, 21 Pa.B. 4637; amended July 12, 1996, effective 7/13/1996, 26 Pa.B. 3321.

The provisions of this § 121.137 amended under section 4 of the act of August 7, 1963 (P. L. 549, No. 290) (24 P. S. § 5104); section 1 of the act of January 25, 1966 (P. L. 1546, No. 541) (24 P. S. § 5151); the act of July 18, 1974 (P. L. 483, No. 174) (24 P. S. §§ 5181-5189); the act of July 1, 1988 (P. L. 1259, No. 155) (24 P. S. §§ 5191-5197); and the act of June 26, 1992 (P. L. 322, No. 64) (24 P. S. §§ 5198.1-5198.7).

This section cited in 22 Pa. Code § 121.140 (relating to default); and 22 Pa. Code § 121.142 (relating to co-maker/co-signer).