1. (a) A person is eligible for a PSE loan, and a person who has received a PSE loan remains eligible, if that person does not have a past due child support obligation established by court order or by the Department of Revenue, child support services agency under AS 25.27.160 - 25.27.220 at the time of application or loan disbursement.

2. (b) A person is eligible for a PSE loan, a person who has received a PSE loan remains eligible, and a person may cosign for a PSE loan under (d) of this section, if that person

   1. (1) is not delinquent and has never been in default on a loan previously awarded by the commission;
   2. (2) has not, within the previous five years, had a loan discharged or written off by the commission for any reason;
   3. (3) does not have a status, at the time of the application for a loan or disbursement of loan funds, that would prevent the person from repaying the loan as it becomes due; a status as described in this paragraph will be presumed for a person described in 20 AAC 15.940(e)(2);
   4. (4) has not within the previous seven years defaulted on another loan made to the person by a lending entity unless the person can show good faith efforts to repay the loan and extraordinary circumstances that led to the default; and
   5. (5) does not have a credit history, at the time of application for a loan, that demonstrates chronic inability or unwillingness to pay an extension of credit or loan as it becomes due; items in a credit history that demonstrate chronic inability or unwillingness, as described in this paragraph, include any of the items set out in 20 AAC 15.940(g).
3. (c) Repealed 4/6/2018.
4. (d) Notwithstanding (b) of this section, the commission may issue a PSE loan to a person if another person who satisfies the requirements of (b) of this section cosigns the loan.

5. (e) For purposes of (b)(4) of this section, a person has defaulted on a loan if any of the following has occurred:

   1. (1) foreclosure upon or repossession of collateral for a loan or installment contract;
   2. (2) execution procedures initiated on an unpaid loan or installment contract;
   3. (3) an entry of judgment accelerating the amount due under a loan or installment contract;
   4. (4) the charging off by a creditor of an amount in excess of $100 due to nonpayment on a loan or installment contract.
6. (f) The commission staff shall withhold payment of a support fee if the PSE loan recipient becomes ineligible under this section.

(Eff. 11/8/2000, Register 156; am 1/30/2003, Register 165; am 12/28/2008, Register 188; am 4/6/2018, Register 226)

Authority: AS 14.44.035, AS 14.44.040