1. (a) If a loan or repayment obligation becomes delinquent or in default, the borrower or endorser, if any, shall pay the fees and costs described in 20 AAC 15.975.
2. (b) Repealed 12/31/2005.

3. (c) Interest on a loan accrues from the time the loan is disbursed. Unpaid accrued interest will be added to the principal balance of a loan

   1. (1) when a loan enters repayment under AS 14.43.175;
   2. (2) at the start of a period of deferment, if unpaid interest has accrued at the time the deferment is processed;
   3. (3) at the expiration of a period of deferment;
   4. (4) at the start of a period of forbearance, if unpaid interest has accrued on the loan at the time the forbearance is processed;
   5. (5) at the expiration of a period of forbearance;
   6. (6) when a loan is transferred to a collection agency due to the borrower's default; and
   7. (7) any time that the borrower and the commission enter into an alternative repayment agreement.
4. (d) A borrower may elect to make interest payments during the in-school period, in accordance with the terms of the promissory note.

(Eff. 7/1/2002, Register 162; am 12/31/2005, Register 176)

Authority: AS 14.42.030, AS 14.43.174, AS 14.43.175