Sec. 424. Reasonable collection costs and rehabilitation payments

215 words·~1 min read·/bill/113/s/2954/is/section-424

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Section 428F ( 20 U.S.C. 1078–6 ) is amended— in subsection (a)— by striking item

(aa)of paragraph (1)(D)(i)(II) and inserting the following: charge to the borrower an amount that is reasonable and that does not exceed the bona fide collection costs associated with such loan that are actually incurred in collecting the debt against the borrower, which amount shall not exceed 16 percent of the outstanding principal and interest at the time of the loan sale; and ; and by striking paragraph (5); and by adding at the end the following: For purposes of this section, a monthly payment shall be reasonable and affordable based upon the borrower's total financial circumstances if the payment is the equivalent of a monthly payment amount determined for a borrower under the income-based repayment plan under section 493C, except that in no cases shall the monthly payment under this section be less than $5. The Secretary shall establish a clear and accessible process for appealing the monthly payment amount determined as reasonable and affordable under this section in any case where a borrower believes that the borrower's monthly payment amount is incorrect, or that the amount calculated for the borrower under paragraph

(1)is based on incorrect information or is unreasonable based on the borrower's total circumstances. .

Connections1 off-index

1 reference not yet in our index

20 USC 1078–6

Citation graph

cites case law

Sec. 424

Reasonable collection costs and rehabilitation payments

Cite20 USC 1078–6

Cites 1Cited by 0 across 0 sources