R 390.1629 Loan terms.

Rule 9. (1) Loans made to eligible borrowers are subject to all of the following conditions: (a) The minimum loan amount shall not be less than the amount established by the authority. (b) The maximum loan amount per academic year is the student's cost of attendance minus estimated financial aid and shall not be more than the annual amount established by the authority. (c) A cumulative outstanding maximum amount to any 1 borrower shall not be more than the amount established by the authority. (2) The interest rates for loans shall be determined by the authority and shall not exceed the rate permitted by state law. The interest rates may be set at fixed or variable rates and there may be multiple fixed or variable interest rates. Interest shall begin to accrue on the date the loan is disbursed. (3) An applicant shall pay a nonrefundable application fee payable to the authority when submitting an application, if applicable. (4) An applicant shall pay a reserve fee that shall be deducted from the loan disbursement, if applicable.