20 AAC 15.945. Conditions and limitations of loans

(a) Within 30 days after the change, a borrower or cosigner, if any, shall report in writing to the commission any change that affects the conditions of a loan or its repayment schedule, including any change of the borrower's or cosigner's name or address, the borrower's state residency status, or the student's change of institution, change in dates of attendance, change in attendance from full-time or half-time status, change in enrollment status, or withdrawal or dismissal from the course of study for which the loan was awarded. If the student changes institutions after the loan was disbursed, the borrower shall submit a revised application form.

(b) To be a student in good standing for the purposes of AS 14.43.120 (c), the student must be admitted into a degree or certificate program and attending as a full-time or half-time student as those terms are defined in 20 AAC 15.990(a) and meet the satisfactory academic progress requirements of the degree or certificate-granting institution that the student is attending. During the period that a student fails to meet the requirements of this subsection, the student is not eligible to receive a loan disbursement.

(c) If an institution has not established minimum requirements for satisfactory academic progress under (b) of this section, the minimum academic requirements to remain eligible for disbursements of an Alaska education loan are

(1) an undergraduate student must have successfully completed 24 semester credits or 36 quarter credits per academic year if full-time, and 12 semester credits or 18 quarter credits per academic year if half-time; and

(2) a graduate student must have successfully completed 18 graduate semester credits or 27 graduate quarter credits per academic year if full-time, and 12 graduate semester credits or 18 graduate quarter credits per academic year if half-time.

(d) For purposes of any requirement in AS 14.43 or this chapter regarding full-time student status, the number of logged hours required by 20 AAC 15.990(a) (5)(D) for status as a full-time student in a flight school program will be reduced if the student provides documentation of adverse weather conditions that prevented logging the number of hours required.

(e) A student may be enrolled in more than one institution, but must be enrolled in a degree program toward which the minimum necessary credits are applicable. The total of the multiple enrollments by the student must be equivalent to at least full-time student enrollment under the full-time loan program or half-time student enrollment under the half-time loan program. The degree-granting institution must be able to certify full-time or half-time attendance of the student.

(f) A borrower who has previously received a loan under an Alaska education loan program, and whose loan is in repayment, must be current in monthly payments at the time of an award of a new loan and of each disbursement of that new loan.

(g) Before March 1 of each school year, the commission will determine the interest rate that will apply to an education loan or a teacher education loan made for the following school year based on

(1) the weighted average of the stated interest rate on the outstanding balance, as of June 30 of the preceding fiscal year, of all bonds issued by the corporation; and

(2) the commission's and corporation's average costs, during the preceding five fiscal years, of administering loans of the Alaska education loan programs that are pledged as security for the corporation's bonds, including, in the commission's discretion, salaries; service agreements; supplies; utilities; mailing; labor; materials; office rent; maintenance; furnishings; equipment; machinery and apparatus; insurance; legal, accounting, management, consulting, and banking services and expenses; fees and expenses of the trustee for corporation bonds and of the trustee's agents, counsel, depositories; and paying agents; loan default costs; loan forgiveness costs; cost of issuance of corporation bonds; payments for pension, retirement, health and hospitalization, and life and disability insurance benefits; and other costs considered appropriate by the commission, but not including costs recovered by the loan origination fee.

(h) The loan origination fee is three percent for loans for the 2001-2002 and subsequent school years.

(i) In setting the rate for interest under (g) of this section, for the 2000-2001 and subsequent school years, the commission will, in its discretion, set a lower rate for those loans that have a lower cost of administration because all of the borrower's loan payments have been made on or before the date the payment is due. The loans that qualify for the lower interest rate must have been in repayment for at least four years of the repayment period.

History: Eff. 3/22/97, Register 141; am 3/15/98, Register 145; am 4/20/2000, Register 154; am 12/18/2000, Register 157

Authority: AS 14.43.105

Editor's note: As of Register 160 (January 2002), the regulations attorney made a technical revision under AS 44.62.125 (b)(6), and in accordance with ch. 85, sec. 45, SLA 2001, to change "scholarship loan" and "student loan" to "education loan" in 20 AAC 15.945.

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