Ga. Comp. R. & Regs. R. 268-11-1-.06 - Borrower Eligibility

(1) To qualify for a Stafford Loan and Federal interest benefits under the LLR Program, a student must meet all eligibility requirements prescribed by Federal and State laws and regulations and GHEAC policies and procedures governing the guaranteed student loan program and the additional eligibility requirements listed below.

(2) The applicant must submit a properly completed GHEAC Stafford Loan Application to GSFA.

(3) In accordance with [34 CFR 682.401(c)(2)(B)] the applicant must have made conscientious efforts to obtain a loan from another eligible lender for the same period of enrollment. This requirement will be met as follows:

(a) GSFA will require the applicant to complete and sign a "Student Certification and Request for Lender of last Resort Stafford Loan Processing" form. This must be an original form and must be fully completed and attached to the Stafford loan application when submitted to GSFA for processing. The student is required to certify that he/she is an eligible student, attending a school located in Georgia, and that he/she has contacted an eligible Georgia lender, has asked if that lender would make a student loan under the circumstances of his/her enrollment, and has been told the lender would not.

(4) The total financial situation of the applicant will be reviewed to ensure the applicant does not have derogatory credit. [Reference: Act 428(a)(6)]

(a) GSFA will obtain a credit report from a credit reporting agency.

(b) The applicant's credit report will be evaluated by a loan officer in accordance with the GSFA credit policy.

(c) Applicants who are deemed to have derogatory credit under the evaluation, will receive a denial notification letter in compliance with the Federal Fair Credit Opportunity Act.

(5) The applicant must receive a loan counseling interview as follows:

(a) A GSFA debt management/loan counselor will conduct an interview with the applicant by telephone in accordance with established counseling procedures, including but not limited to discussion of:

1. Acknowledgement by the applicant of the loan obligation and that it must be repaid;

2. The fees that will be deducted from the loan proceeds;

3. The estimate minimum monthly payment;

4. Student borrower responsibilities pertaining to name or address chances and withdrawal from school; and

5. The consequences of default.

(b) The applicant will provide references on the loan application and those references will be contacted by the GSFA loan counselor, who will verify the applicant's and references' addresses and the references' relationship to the applicant.

(c) If the counselor is unable, alter numerous attempts, to contact the applicant, GSFA will send a follow up letter advising the applicant that the loan will not be processed unless counseling is accomplished within or prior to five working days of the GHEAC loan application deadline.

Notes

Ga. Comp. R. & Regs. R. 268-11-1-.06

Ga. L. 1987 p. 589 (Ga. Code Ann. 20-3-316).

ER 268-11-1-0.4-.06 was F. Aug. 31, 1992, eff. Aug. 27, 1992, the date of adoption, to remain in effect for a period of 120 days or until the effective date of a permanent Rule covering the same subject matter superseding said ER, as specified by the Agency. Amended: Permanent Rule entitled "Borrower Eligibility" adopted. F. Nov. 20, 1992; eff. Dec. 10, 1992.