No payment shall be made to any student until he or she has executed a promissory note payable to the future teacher loan fund for the full amount of any authorized loan plus interest, applicable insurance charges, and other fees and has obtained the signature of a cosigner. The loan amount, interest, applicable insurance charges, and other fees shall be in accordance with provisions set forth in the Higher Education Act of 1965, Title IV, Part B, as amended, and the regulations thereof (45 Code of Federal Regulations Part 177) if the loan is made subject to those provisions. The original of such executed promissory note shall be forwarded to the commissioner immediately, and a copy shall be retained by the eligible institution. For the purposes of any contract executed by him or her, the defense that he or she was a minor at the time he or she executed a note shall not be available to him or her in any action arising on said note. No funds shall be distributed to an eligible institution except to make payments to a student under a loan authorized by the Act.