|(a) Although a loan may be prepaid at any time without penalty, repayment of the loan shall begin as provided in §21.236 of this title (relating to Period of Loans) and shall extend over such period as authorized therein. The board will provide a repayment schedule calling for the minimum payment amount sufficient to repay all loans over the maximum authorized period. In no case will the minimum annual repayment be less than $600. (b) The commissioner may delay the repayment requirement for recipients enrolled on at least a half-time basis at an eligible institution. These deferment periods are not included when calculating the maximum repayment period. The commissioner may also waive or delay repayment for recipients who give evidence of extreme financial hardship, in which case the period of postponement will be included in determining the maximum repayment period. The commissioner may require payments on the interest being accrued during the
time of a postponement. (c) For loans made under provisions of the federal Guaranteed Student Loan Program, the commissioner shall postpone required periodic installments of principal during any period authorized by applicable federal law. For loans guaranteed through the federal Guaranteed Student Loan Program, postponement periods are those described in the Higher Education Act of 1965, Title IV, Part B, and the regulations thereof (45 Code of Federal Regulations Part 177). Any such period shall not be included in determining the 10-year repayment period provided in §21.236 of this title (relating to Period of Loans). Interest on loans guaranteed through the Guaranteed Student Loan Program shall accrue during periods of postponement and be paid by the Federal Interest Subsidy Program. (d) A charge of 5.0% of the monthly payment or $5.00, whichever is less, shall be assessed on any payment received later than 10 days from the due date of
such payment. Such charges shall be collected out of the first payments made in excess on interest charges then due. (e) The cosigner may not be held responsible for the repayment of the loan, accrued interest, and other charges if the borrower dies or becomes totally and permanently disabled.