Terms Used In Louisiana Revised Statutes 17:3045.4

  • Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC

The commission shall:

(1)  Serve as a direct lender of non-subsidized student loans.

(2)  Accept and review each loan application.

(3)  Determine the applicant’s eligibility and continued eligibility.

(4)  Collect any balance which may become due as the result of default on any loan, for which purpose the commission shall have all the same authority as they have for the guaranteed student loan program.

(5)  Provide by rule for:

(a)  A mechanism for informing students of the availability of the loans.

(b)  The creation of all applications, forms, promissory notes, and other instruments necessary for the administration of the program.

(c)  An interest rate, which rate shall not exceed the maximum interest rate authorized by the Federal Higher Education Act of 1965.

(d)  Any other items necessary for the administration of the program.

Acts 1991, No. 799, §1, eff. July 22, 1991.