Section 20-8-6 - Repayment of the loan(a) Each loan shall be evidenced by an executed promissory note which shall set forth the terms and conditions of the loan. Repayment of principal and interest shall commence after the grace period. Repayment of principal and interest shall be made in equal quarterly or monthly installments within a ten-year period as determined by the university. A payment plan of not less than $4 5 a quarter or $15 a month shall be required on all loans.(b) Interest. The rate of interest payable on the loan shall be five per cent simple interest.(c) Prior to the termination of the borrower's half-time enrollment, the borrower shall be responsible for reporting any change in name, address, telephone number, or social security number to the financial aid office. After the termination of the borrower's half-time enrollment, the borrower shall be responsible for reporting any change in name, address, telephone number, or social security number to the university office which handles the loan collection.(d) Exit interview. Immediately prior to the termination of the borrower's half-time enrollment at a campus, the borrower shall be responsible for completing an exit interview with the university. The purpose of the exit interview is to schedule repayments and explain the borrower's rights and responsibilities under the loan. If the borrower fails to complete an exit interview, the university shall provide the borrower with the exit interview information either online or by mail.(e) Collection fees. The university may charge late fees which do not exceed twenty per cent of the installment payment due and all other reasonable fees for the collection of the loan. Any payment received shall be applied in the following order: (3) Accrued interest; and(f) The university may demand the immediate repayment of the entire loan, including any accrued interest, late fees, and collection fees, if the borrower fails to make a scheduled repayment or fails to file a deferment on time.(g) The borrower may prepay all or any part of the loan at any time without penalty.(h) Deferment. To qualify for a deferment on the loan, the borrower shall submit a written request for deferment. The written request shall include all documentation required by the university and shall be submitted no later than the date the university establishes. Interest shall not accrue and installments need not be paid during any period: (1) During which the borrower is enrolled at least half-time in a regular semester at an institution of higher education or at a comparable institution outside the United States approved for this purpose by the university;(2) Not in excess of three years during which the borrower is a member of the United States Army, Navy, Air Force, Marines, or Coast Guard;(3) Not in excess of three years in which the borrower serves as a volunteer under the Peace Corps Act;(4) Not in excess of three years during which the borrower is a volunteer under the Domestic Volunteer Service Act of 1973, as amended by the Serve America Act; or(5) During any other period granted by the university for good cause shown.(i) Any deferment period granted by the university shall not be included in determining the ten-year repayment period. (j) Cancellation of loan upon death or permanent disability of a borrower. If the borrower becomes permanently and totally disabled after receiving the loan, the unpaid balance of the loan shall be canceled upon receipt of a written request for cancellation and any documentation required by the university to demonstrate that the borrower meets the conditions for cancellation. If the borrower dies, the unpaid balance shall be canceled upon the submission of a death certificate or other official proof of death.[Eff 3/12/84; am and comp 5/9/98; am and comp DEC 19 2002] (Auth: HRS §§ 304-4, 304-91, 304-95) (Imp: HRS 304-91, 304-93, 304-94, 304-95)[Am and Comp3/18/2018] (Auth: HRS §§304A-104, 304A-604, 304A-2160) (Imp: HRS §§304A-602, 304A-603, 304A-604, 304A-2160)