Legal Resources | Title 5 |  T5  30516  

Alteration of Repayment Schedule When Scholar's Financial Condition Warrants.   

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The California Student Aid Commission shall determine whether to reduce the amount of the required periodic payments for a scholar who does the following, in writing, at any time during the repayment process:

(a) Asks for a reduction of the periodic payment to a specified amount; and

(b) Asks for the payment reduction for a specified period of time, indicating the date of the commencement of the payment of the reduced amount and the date when it will return to its set amount; and

(c) Explains the reason for and provides appropriate documentation of a financial hardship; and

(d) Agrees to make supplemental payments after the lower payment period to complete repayment within the time specified by law.

Authority cited:

Education Code 69741

Education Code 69742

Reference:

Code of Federal Regulations, Title 34, Section 653.42(d) (2) (ii).

(Amended by Register 88, No. 53.)