Interest Computation on Financial Assistance

Awarded On or After Award Year 2013-2014 for Non-Cash (Non-Service Credit) Repayments. Interest on all awards of assistance made on or after Award Year 2013-2014, pursuant to this Chapter, shall be computed on the outstanding balance on a simple interest basis beginning on the date of disbursement at an annual percentage rate of ten percent (10%). Repayment shall be made in either a lump sum COL6/24/2021 CH. 28 STUDENT FINANCIAL ASSISTANCE PROGRAMS FOR HIGHER EDUCATION by which the principal and accrued interest up to the date of repayment is satisfied, or through a periodic payment plan under the following conditions:

(a)the awardee can amortize the combined balance of principal and accrued interest balances over a specified term at an annual percentage rate of 10 percent (10%);

(b)the period for repayment shall not exceed ten

(10)years; and

(c)all awardees choosing to repay assistance in cash in lieu of service credit must pay all accrued interest before any payments are applied to the principal of the debt. Repayment of awards made prior to Award Year 2013-2014 shall be made pursuant to the provisions of Chapter 15 of this Title.