1. (a) Applicability. The provisions of this section apply to the programs described in §§24.83 - 24.85 of this subchapter (relating to Federal Stafford Loan (FSL) Program, Federal Supplemental Loan for Students (FSLS) Program, and Health Education Assistance Loan (HEAL) Program, respectively). This section does not apply to loans described by §24.86 of this subchapter (relating to Hinson-Hazlewood College Student Loans Made Before Fall Semester, 1971, and Not Subject to the Federally Insured Student Loan Program).
2. (b) Prepayment. Loans made under this subchapter may be prepaid without penalty.
3. (c) Late Charges. The Coordinating Board may assess a late charge, not to exceed the lesser of five percent (5%) of the scheduled monthly payment or five dollars ($5.00), if the past due amount is not received within 20 days of the scheduled due date.
4. (d) The provisions of §24.13 of this chapter (relating to Interest Rate Adjustment for Repayment via Auto-Debit or Automated Clearing House (ACH)) apply to loans authorized under this subchapter.
5. (e) Deferments. The Coordinating Board shall grant deferments of loan repayment for FSL loans as required by law, to any borrower whose account is not in default and who makes an adequate showing of entitlement. Authorized deferments shall extend the repayment period. Interest does not accrue during periods of deferment.

6. (f) Forbearance. The Coordinating Board may grant periods of forbearance in accordance with the applicable statutes and rules of the applicable program.

   1. (1) Authorized forbearances shall extend the repayment period.
   2. (2) Interest will continue to accrue on a borrower's loans during periods of forbearance. The Coordinating Board will recalculate the borrower's minimum monthly payment after a period of forbearance to reflect the accrued interest.
7. (g) Application of Payments. In accordance with the terms of the promissory note, the Coordinating Board shall determine the priority order in which payments shall be applied to interest, late charges, principal, collections costs and any other charges.
8. (h) Deceased or Disabled Borrowers or Cosigners. Verification of death and determination of permanent and total disability of a borrower or cosigner through each program shall be made by the U.S. Secretary of Education in accordance with the governing provisions of the applicable program. Disposition of borrower and/or cosigner liability upon final verification of death and determination of permanent and total disability of a borrower or cosigner shall be made consistent with §24.15 of this chapter (relating to Deceased or Disabled Borrowers or Cosigners).

Source Note:The provisions of this §24.82 adopted to be effective November 13, 2025, 50 TexReg 7280.