(a)

1. (1) An eligible borrower’s loan shall be considered to be delinquent at any time when any loan payment due under the terms and conditions of the note and this part becomes more than thirty (30) days past due.
2. (2) Upon a determination by the division that an eligible borrower’s loan has become delinquent, the division shall engage in reasonable due diligence in the collection of past due amounts, including past due interest.

(b)

1. (1) An eligible borrower’s loan shall be considered by the division to be in default at any time when any loan payment due under the terms and conditions of the note and this part become more than one hundred twenty (120) days past due.
2. (2) Upon a determination by the division that an eligible borrower’s loan has entered default status, the entire outstanding principal amount of such loan, together with interest accrued thereon, shall immediately become due and payable, and the division shall engage in reasonable collection techniques for the payment of the amount then outstanding, including all interest due thereon, on the eligible borrower’s loan.

3. (3) Such collection methods may include, but shall not necessarily be limited to:

   1. (A) Correspondence with the eligible borrower;
   2. (B) Credit bureau reporting of the default;
   3. (C) Collection agency assistance;
   4. (D) Arkansas income tax refund offset;
   5. (E) Use of skip tracing; and
   6. (F) Suit for judgment against the eligible borrower for the loan amount then outstanding, including all interest due thereon plus that accruing from the date of judgment against the eligible borrower.
4. (4) The division may also charge to the eligible borrower’s account all costs of collection, including reasonable attorney's fees.