R 390.1621 Definitions; A to D.

Rule 1. As used in these rules: (a) "Academic year" means a period of not less than 7 months that represents the traditional academic year. (b) "Application fee" means a nonrefundable fee which is established by the authority and which is paid by the borrower to the authority at the time an application is submitted. (c) "Application period" means the period of time designated by the authority during which applications may be submitted for processing. (d) "Authority" means the Michigan higher education student loan authority as authorized by 1975 PA 222, MCL 390.1151 et seq. (e) "Bankruptcy" means a judicial action in which a person is declared insolvent and in which the individual's assets, if any, are taken under court administration. (f) "Borrower" means a student or parent. (g) "Cosigner" means a parent, legal guardian, or other responsible individual who is jointly and separately responsible for payment of the loan. Two persons may be cosigners if they reside in the same household and jointly meet the credit standards. A cosigner shall meet all of the following conditions: (i) Be not less than 18 years of age. (ii) Meet the credit standards. (iii) Not be currently in default on federal or state educational loans. (iv) Be a United States citizen or a permanent resident. (h) "Cost of attendance" means the cost of tuition and fees and other expenses related to attendance as determined by an eligible school for the loan period. An eligible school shall include only those costs that are permissible under the guaranteed student loan programs pursuant to title IV, part B, of the higher education act of 1965, as amended, 20 U.S.C. §1070 et seq. (i) "Credit standards" means a credit evaluation process established by the authority, which shall include an evaluation of all of the following: (i) Income. (ii) Debt. (iii) Employment history. (iv) Credit history. (j) "Default" means the condition that exists when the borrower and cosigner or cosigners fail to perform any of the conditions of the promissory note or the authority has determined that the borrower or cosigner or cosigners made false representation to secure a loan. (k) "Disbursed" means the date that funds are issued for the loan.