- (a) Interest on any loan funds disbursed to the recipient shall begin to accrue on the date of each disbursement of such funds by the state.
(b) The recipient shall pay interest charges incurred on disbursed funds by choosing to pay:
- (1) Prior to the commencement of the loan repayment;
- (2) At the time of the first repayment;
- (3) By adding the accrued interest to the outstanding principal balance, provided the resulting balance does not exceed the amount of the approved loan; or
- (4) A combination of (1) through (3), above.
- (c) The interest rate during loan repayment shall be fixed over the loan repayment period.
- (d) As required by RSA 486:14, I(b), the department shall set aside as an administrative fee a sum equal to 2% of all loan principal balances outstanding each year. For any loan for which the interest rate is less than 2%, the administrative fee shall equal the interest rate.
Source. (See Revision Note #1 and Revision Note #2 at chapter heading for Env-Dw 1100) #13160, eff 1-20-21