20 AAC 18.130. Deferment of payments

(a) A borrower may defer the borrower's obligation to make periodic payments under 20 AAC 18.100(e) during any of the following periods:

(1) for up to four years for return to full-time student status in good standing in a college or university that meets the requirements of AS 14.43.120 (b)(2)(B);

(2) for a one-time period up to 12 months, if during that period the borrower is seeking and unable to find employment in the United States;

(3) during the period of disability if, after the loan is disbursed, the borrower becomes totally disabled; in order for a borrower to obtain a deferment, not to exceed three years, under this paragraph, a physician who practices within the medical field covering the disability, who has examined the borrower within the prior 12 months, and who is licensed to practice medicine in the state where the examination took place must certify that, after the date the commission last paid a support fee on behalf of the borrower, the borrower

(A) became permanently disabled; and

(B) as a result of the disability became unable for an indefinite period of time to be gainfully employed or to attend school full-time;

(4) an initial period of up to three years, if the borrower is serving on active duty during that period as a member of the armed forces of the United States;

(5) a period during which the borrower is recalled to active duty as a member of the armed forces of the United States in a time of war or other armed conflict.

(b) A deferment of payments does not suspend the accrual of interest due on the PSE loan during the period of the deferment.

(c) In order to obtain a deferment of payments, a borrower must apply on a form provided by the commission, showing the borrower's eligibility for the requested deferment and acceptance of the terms of the deferment agreement. Until the deferment application is approved by the commission staff, the borrower's original repayment schedule continues in effect. If the borrower meets the requirements of this section, the commission staff shall approve the deferment. If the deferment is approved, the commission staff shall send the borrower the deferment agreement.

(d) A borrower who has received a deferment shall immediately notify the commission if the conditions under which the deferment was granted no longer exist.

(e) A borrower who has defaulted on a PSE loan is not eligible for a deferment of that loan.

(f) For purposes of (a)(1) of this section, a student who is in an internship or residency that is required as part of the program of study is a full-time student.

(g) For purposes of (a)(3) of this section, a deferment may not be granted for a condition that existed at the time the PSE loan was disbursed unless the condition has substantially deteriorated since the time of the disbursement.

History: Eff. 11/8/2000, Register 156; am 12/31/2005, Register 176

Authority: AS 14.44.035

AS 14.44.040

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