New Mexico Administrative Code › Title 5 - POST-SECONDARY EDUCATION › Chapter 7 - TUITION AND FINANCIAL AID › Part 27 - NEW MEXICO EDUCATIONAL ASSISTANCE FOUNDATION ALTERNATIVELOAN FUND PROGRAM REGULATIONS › Section 5.7.27.7 - DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A. Borrower. The
				individual who signs the promissory note, receives the proceeds of the loan,
				and is liable for repayment. A student who is either a credit-worthy individual
				or who obtains a credit-worthy individual as cosigner may be a borrower. A
				borrower maybe someone who is not a student but is a credit-worthy
				individual.
B. Citizen or permanent
				alien resident. A citizen of the United States or person who has been granted
				permanent alien resident status by the U.S. department of justice immigration
				and naturalization service.
C.
				Cosigner. A credit-worthy individual who signs the promissory note along with
				the borrower, but does not receive the proceeds of the loan. The cosigner is
				equally liable with the borrower for repayment of the loan. The cosigner is
				usually a parent of the student borrower, but can also be any credit-worthy
				individual willing to be liable for the loan.
D. Credit-worthy individual. An individual
				who meets the credit criteria established in Section Seven [now 5.7.27.13
				NMAC].
E. Default. The failure to
				make payments on the loan when due, or to meet any of the other terms of the
				promissory note under circumstances where the lender finds it reasonable to
				conclude that the borrower, and/or cosigner no longer intend to honor the
				obligation to repay. Upon default, the outstanding loan balance will be
				accelerated with the total amount of principal and interest being immediately
				due and payable.
F. Disbursement.
				The transfer of funds to the borrower by means of a check payable to the order
				of the borrower.
G. Due Diligence.
				The utilization by the lender of the practices set forth in Section Three [now
				Section 5.7.27.9 NMAC] in the making, servicing, and collection of the
				loan.
H. Eligible school. A
				two-year (if located in New Mexico) or four-year public or non-profit
				collegiate or graduate degree granting educational institution which has been
				approved by the lender for participation in the NMALF program.
I. Enrolled. The status of a student who has
				completed the registration requirements at an eligible school, and has
				commenced attendance.
J. Estimated
				cost of attendance. As defined in the most current regulations promulgated
				under the Federal Higher Education Act of 1965, as amended.
K. Estimated financial assistance. The
				estimated amount of assistance a student has been or will be awarded in
				federal, state, or privately supported scholarship, grant, work study, or loan
				programs for the period of time for which the loan is sought.
L. Full-time student. An individual enrolled
				at an eligible school who is carrying a full-time academic workload as
				determined by the school, under standards applicable to all students enrolled
				in that individual's particular program. The individual's workload may include
				any combination of courses, work experience, research or special studies that
				the school considers sufficient to classify the student as a full-time
				student.
M. Half-time student. An
				individual enrolled in an eligible school who is carrying a workload as
				determined by an eligible school that is at least one half the workload of a
				full-time student.
N. Lender. The
				New Mexico educational assistance foundation is the lender in the NMALF
				program.
O. Loan. The amount of
				money lent to the borrower by the lender for the purpose of financing
				educational costs of a student at an eligible school.
P. New Mexico educational assistance
				foundation (NMEAF). A private, non-profit organization established to assist
				students and their families in financing post-secondary education. NMEAF is the
				lender, manager, and operator of the new mexico alternative loan fund program
				(NMALF). NMEAF is an equal opportunity lender and does not discriminate on the
				basis of gender, race, color, national origin, religion, age, disability,
				sexual orientation, marital status or ancestry.
Q. Promissory note. The instrument used to
				evidence the loan.
R. Repayment
				period. The repayment period begins on the day the loan is disbursed and ends
				when the loan is paid in full. The repayment period is 60 to 120 months
				depending on the original amount of the loan and as otherwise set forth in the
				promissory note.
S. Student. A
				full-time student or a half-time student.