R 390.1457 Deferment of payments; effect.

Rule 57. (1) If a borrower is eligible for federal interest benefits, periodic installments of principal need not be paid and interest shall be paid by the federal government. (2) For loans granted before November 8, 1965, interest shall continue to accrue and become part of the principal when payments are to be resumed. Interest which accrues during an authorized deferment on a loan granted on or after November 8, 1965, that is not eligible for federal interest benefits shall be payable by the borrower in a manner authorized by the secretary and agreed upon by the lender and borrower.