Virginia Code 23.1-619: Collection of loans
For each loan made from its fund, each institution shall:
Terms Used In Virginia Code 23.1-619
- Forbearance: A means of handling a delinquent loan. A
- Fund: means a student loan fund. See Virginia Code 23.1-617
- Institution: means a public institution of higher education that has established a student loan fund from appropriations from the general fund of the state treasury for fellowships, scholarships, and loans. See Virginia Code 23.1-617
- Process: includes subpoenas, the summons and complaint in a civil action, and process in statutory actions. See Virginia Code 1-237
- Student: means a medical student, dental student, intern, resident, or undergraduate student who is entitled to reduced rate tuition charges pursuant to Chapter 5 (§ 23. See Virginia Code 23.1-617
1. Include in loan documents for each loan an individual plan for the repayment of principal and interest and the payment of any late fees and clear and detailed information about the collection process for such loan pursuant to the Virginia Debt Collection Act (§ 2.2-4800 et seq.), including information about the agency or entity that is responsible for collection;
2. Establish a process for notifying each student or, in the case of an undergraduate student and as appropriate, the student’s parent of any loan payment that is past due no later than (i) 30 days after the payments become past due and (ii) if necessary, the end of the academic term during which such payment becomes past due; and
3. Make every effort to collect each loan and comply with the Virginia Debt Collection Act (§ 2.2-4800 et seq.) with regard to the collection of such loans, provided that, notwithstanding §§ 2.2-4805 and 2.2-4806, the institution may, with the consent of the borrower, modify the terms of any loan for which payments are past due to provide for repayment forbearance on such loan and repayment to commence on a mutually agreed-upon date in the future. Prior to entering into any such agreement, the institution shall provide the borrower with information regarding the effect of a forbearance on the loan amount, including (i) the amount of any additional accumulated principal and interest and (ii) the estimated total amount to be owed upon recommenced payments.
1978, c. 745, § 23-38.10:4; 1988, c. 544; 2016, c. 588; 2018, c. 786.