(1) Upon approval of the loan application of an eligible student by the Oregon Student Assistance Commission, the Department of State Lands may loan an amount from the Common School Fund to the student in compliance with ORS 348.040 to 348.070. The loan shall be evidenced by a written obligation but no additional security shall be required. Notwithstanding any provision in this section, the department may require cosigners on the loans.
(2) Loans granted under ORS 348.040 to 348.070 to eligible students by the department shall:
(a) Not exceed $1,000 in a single academic year to an undergraduate student.
(b) Not exceed $4,000 in a single academic year to a graduate or professional student.
(c) Not exceed $16,000 for all loans made to a student under ORS 348.040 to 348.070.
(3) Payment of interest shall be as follows:
(a) Medical and dental student borrowers at the Oregon Health and Science University and veterinary student borrowers at Oregon State University shall be assessed at least six percent interest per annum on the unpaid balance from the date of the note. Interest payments by these borrowers shall be deferred until they cease to be enrolled. During the interest deferment period, the Oregon Student Assistance Commission shall pay the department the negotiated rate of interest on an annual basis. The borrower shall reimburse the Oregon Student Assistance Commission for these interest payments as provided in subsection (4) of this section. These borrowers shall commence direct payment of accruing interest to the department at the time they cease to be enrolled.
(b) All other borrowers are required to pay at least seven percent interest per annum on the unpaid balance from the date of the loan as provided in subsection (4) of this section.
(c) The Oregon Student Assistance Commission shall pay annually to the department a maximum of three percent per annum on the unpaid balance of all medical, dental and veterinary student borrower loans. The rate of this special payment may vary annually and will be negotiated by the Oregon Student Assistance Commission and the department.
(d) The interest rates to be charged the borrower for the school year as stated in paragraphs (a) and (b) of this subsection shall be negotiated by the department and the Oregon Student Assistance Commission.
(4)(a) Repayment of the principal and accruing and deferred interest on loans shall be commenced not later than 12 months after the student’s graduation or other termination of the student’s education.
(b) Notwithstanding any other provision of this section, medical, dental and veterinary student borrowers who enter approved post-graduate study programs shall commence repayment of the principal and the accruing and deferred interest on loans no later than 12 months following the completion of the post-graduate study program or 60 months, whichever is sooner.
(c) Repayment shall be completed in a maximum of 120 months from the time repayment is commenced. However, nothing in this section is intended to prevent repayment without penalty at an earlier date than provided in this section or to prohibit the department, with the consent of the Oregon Student Assistance Commission, from extending the repayment period to a date other than permitted by this subsection.
(5) Notwithstanding any other provision of this section, the department may loan an amount from the Common School Fund to a student under guaranteed programs authorized by the Higher Education Act of 1965, as amended, commonly known as the Guaranteed Student Loan Program and the Parent’s Loans for Undergraduate Students Program. Neither the limitations on amounts set forth in subsection (2) of this section nor the subsidies authorized by subsection (3) of this section apply to such loans. ORS 327.484 does not apply to such loans. [1965 c.532 §2; 1969 c.573 §3; 1977 c.725 §1; 1977 c.762 §7; 1981 c.324 §1; 1983 c.483 §1]
Section: Previous 348.005 348.010 348.040 348.050 348.060 348.070 348.080 348.090 348.095 348.105 348.115 348.117 348.120 348.125 348.130 NextLast modified: August 7, 2008