§ 693. Repayment of loans. 1. Terms of repayment. The terms of\nrepayment of education loans made under this program shall be\nestablished in rules and regulations promulgated by the corporation\nsubject to the approval of the state of New York mortgage agency or\nother public benefit corporation authorized to issue bonds under the\npublic authorities law for purposes of this program with respect to\nloans that are expected to be financed by such entity.\n 2. Grace period. The terms of any grace period for education loans\nmade under this program shall be established in rules and regulations\npromulgated by the corporation subject to the approval of the state of\nNew York mortgage agency or other public benefit corporation authorized\nto issue bonds under the public authorities law for purposes of this\nprogram with respect to loans that are expected to be financed by such\nentity. Notwithstanding, the grace period established shall be no less\nthan six months.\n 3. Forbearance and deferments. Education loans made under this program\nshall be eligible for in-school and military deferments pursuant to\nrules and regulations promulgated by the corporation, or pursuant to\nsuch additional deferments and/or forbearance as offered by an eligible\nlender, in each case, subject to the approval of the state of New York\nmortgage agency, or other authorized public benefit corporation\nauthorized to issue bonds under the public authorities law for purposes\nof this program, with respect to loans that are expected to be financed\nby such entity. Upon the assignment of a defaulted education loan made\nunder this program for collection as described in subdivision five of\nthis section, the borrower shall no longer be eligible for any\nforbearance or deferments while such loan remains in default.\n 4. Delinquency. A borrower shall be considered delinquent on an\neducation loan under this program after thirty days of non-payment. The\nholder shall notify the corporation promptly after the first day of\ndelinquency and the corporation shall undertake actions to return the\nborrower to repayment pursuant to rules and regulations established by\nthe corporation. Such actions shall include, but not be limited to,\nattempts at: (i) locating and contacting the borrower and/or co-signer,\nas applicable, regarding the delinquent status of their loan; (ii)\nexplaining the account history and clarifying any discrepancies; (iii)\ncounseling the borrower and/or co-signer, as applicable, regarding all\navailable repayment options, inducing deferments, and any public\nassistance available to them; (iv) providing the borrower and/or\nco-signer, as applicable, with documentation in connection with their\nloan or loans; (v) informing the borrower and/or co-signer, as\napplicable, of the consequences of default; and (vi) any other\nassistance that would prevent a default by a borrower.\n 5. Default. Any education loan under this program that is delinquent\nfor one hundred eighty days shall be deemed in default. Upon default,\nthe holder shall file a claim with the corporation and, if applicable,\nthe state of New York mortgage agency, for payment from the New York\neducation loan program variable rate default reserve fund, the New York\neducation loan program fixed rate default reserve fund, or the state of\nNew York mortgage agency New York education loan program default reserve\nfund, as described in subdivision seven of section six hundred ninety\ntwo of the education law, as applicable, pursuant to regulations\npromulgated by the corporation. Upon receipt of a claim, the corporation\nshall notify the borrower that their loan is being assigned to the\ncorporation for collection. The lender, or holder shall be paid one\nhundred percent of the outstanding principal, and of the capitalized and\nunpaid accrued interest. Upon such payment, this amount shall be the\nprincipal owed by the borrower.\n All collection payments received by the corporation from a
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