Section 1640-01-32-.04 - COLLECTIONS(1) TSAC's collection activity will begin when the candidate is no longer honoring the repayment schedule. TSAC will exercise due diligence to contact the candidate to resolve the delinquency at the last known address/contact information provided by the candidate to TSAC as provided herein at .02(7).(2) TSAC's due diligence requirements include:(a) Providing the candidate with a signed copy of the promissory note.(b) Notifying the candidate of the repayment requirements during the grace period.(c) Notifying the candidate of repayment requirements during an approved period of deferment.(d) Attempting to contact the candidate no less than once per month during the two hundred and seventy (270) day period in which no payments are received, beginning with the thirtieth (30th) day of delinquency.(3) TSAC will consider a candidate to be delinquent if the candidate fails to make an installment payment within thirty (30) days of the due date. Upon delinquency, TSAC will attempt to contact the candidate to give notice of the delinquency and inform the candidate of the consequences of default.(4) TSAC will consider a candidate to be in default if the candidate fails to make a payment for a period of two hundred seventy (270) consecutive days.(5) Once the candidate is in default, TSAC may take one (1) or more of the following actions:(a) Assign the defaulted loan(s) to a collection agency. Collection costs may be added to the defaulted loan at a rate not to exceed twenty percent (20%) of the original principal balance. Payments on the combined principal and collection costs shall not exceed an amount determined to be reasonable and affordable.(b) Assign the defaulted loan(s) to the Office of the Attorney General for collection.(c) Make the candidate ineligible for state student aid programs.(d) Report the default to one (1) or more of the credit reporting agencies.Tenn. Comp. R. & Regs. 1640-01-32-.04
New rules filed February 21, 2024; effective 5/21/2024.Authority: T.C.A. §§ 49-4-204 and 49-4-701.