Compilation of Rules and Regulations of the State of Georgia › Department 268 - GEORGIA STUDENT FINANCE COMMISSION › Chapter 268-11 › Subject 268-11-1 - LENDER OF LAST RESORT PROGRAM RULE › Rule 268-11-1-.02 - Definitions

Current through Rules and Regulations filed through June 27, 2024
(1) "Act" or "Federal Act" means Title IV, Part B, of the Higher Education Act of 1965, (P.L. 89-329) as amended, (20 U.S.C. 1071
et seq
).
(2) "Authority" means the Georgia Student Finance Authority created by Georgia Code Section 20-3-313.
(3) "Borrower" means an eligible student or eligible parent who has obtained an educational loan.
(4) "Certification" means the act of confirming formally by signing one's name certain information as true, accurate, or genuine.
(5) "Cohort Default Rate" means the percentage of current and former student borrowers who enter the repayment period in a given Federal Fiscal Year that default before the end of the following Federal Fiscal Year.
(6) "Corporation" means the Georgia Higher Education Assistance Corporation created by Georgia Code Section 20-3-263.
(7) "Credit Report" means a report of an applicant's consumer credit history obtained from a credit reporting agency.
(8) "Credit Worthy" means the condition of an applicant who has been deemed able to repay an educational loan based upon an evaluation of the applicant's credit history.
(9) "Default" means the term "default" as defined in 34 CFR 682.200(b).
(10) "Derogatory Credit" means an applicant's credit history that reflects a negative payment record in accordance with the GSFA credit policy.
(11) "Federal Interest Benefits" means quarterly interest payments made to the lender by the federal government on behalf of the Stafford borrower while the borrower is enrolled at least half-time in an eligible school, during the grace period, and during any authorized period of deferment.
(12) "Loan" or "Educational Loan" means an obligation representing advances of money by a lender to an eligible student or eligible parent evidenced by one or more promissory note, on note forms prescribed by the corporation, as to which the payment of principal and interest is fully guaranteed by the corporation as evidenced by one or more loan guarantees issued by the corporation and reinsured by the secretary to the maximum extent permitted under the federal act, but in any event so reinsured for not less than 80 percent of principal and interest. In the event of the purchase and sale or the pledge or assignment of such loans or a participating interest in such loans, the term shall include contingent interests, security interests, pledges, commitments, chooses in action, or other property interests in such loans.
(13) "Overaward" means any disbursement that exceeds the amount of assistance for which a student is eligible, taking into account other financial aid awarded to the student.
(14) "PLUS Loans" means educational loans authorized by the federal and state governments to help parents of dependent under-graduate or graduate students pay the costs of education beyond high school.
(15) "Refund" means that amount of tuition and fees paid by a student to a school for an attendance period that is due to be returned to the student because of his/her withdrawal from the school before the end of the attendance period. By applying for a Stafford loan, a borrower authorizes the school to pay directly to the lender that portion of a refund that is allocable to the loan.
(16) "Secretary" means the United States secretary of education or any official succeeding to the powers of such secretary under the federal act.
(17) "SLS Loans" means supplemental loans for students authorized by the federal and state governments to help independent undergraduate, graduate, and professional students pay the costs of education beyond high school.
(18) "Stafford Loans" means a low interest, educational loan, authorized by the federal and state governments to help dependent students who demonstrate financial need pay the costs of education beyond high school.
Ga. L. 1987 p. 589 (Ga. Code Ann. 20-3-316).