Title 34: Education
PART 674—FEDERAL PERKINS LOAN PROGRAM
Subpart D—Loan Cancellation
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Appendix E to Part 674—Examples for Computing Maximum Penalty Charges (6 Months Unpaid Overdue Payments) on Direct Loans Made for Periods of Enrollment Before January 1, 1986
---------------------------------------------------------------------------------------------------------------- Installment due dates_Missed payments Separate ------------------------------------------------------------------ monthly Monthly repayment schedule maximum Jan. 2 Feb. 2 Mar. 2 Apr. 2 May 2 June 2 penalty charges----------------------------------------------------------------------------------------------------------------1st Past due installment......... $1 ......... ......... ......... ......... ......... $12nd Past due installment......... ......... $1+$2 ......... ......... ......... ......... 33rd Past due installment......... ......... ......... $3+$2 ......... ......... ......... 54th Past due installment......... ......... ......... ......... $5+$2 ......... ......... 75th Past due installment......... ......... ......... ......... ......... $7+$2 ......... 96th Past due installment......... ......... ......... ......... ......... ......... $9+$2 11 ------------------------------------------------------------------------------ Cumulative maximum subtotals. 1 4 9 16 25 36 ...........----------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------- Installment due dates_Missed Separate payments bimonthly Bimonthly repayment schedule --------------------------------- maximum penalty Jan. 2 Mar. 2 May 2 charges----------------------------------------------------------------------------------------------------------------1st Past due installment.......................................... $3 ......... ......... $32nd Past due installment.......................................... ......... $3+$3 ......... 63rd Past due installment.......................................... ......... ......... $6+$3 9 --------------------------------------------- Cumulative maximum subtotals.................................. 3 9 18 ...........----------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------- Installment due dates_Missed payments Quarterly repayment schedule -------------------------------------------------- Separate quarterly Jan. 2 Apr. 2 maximum penalty charges----------------------------------------------------------------------------------------------------------------1st Past due installment............. $6 ....................... $62nd Past due installment............. ....................... $6+$6 12 -------------------------------------------------------------------------- Cumulative maximum subtotals..... 6 18 .......................----------------------------------------------------------------------------------------------------------------Note. In the above table of examples, the Cumulative Maximum Subtotal line contains the maximum penalty charges that can be assessed on an NDSL borrower for any given installment that was missed on its due date. For example, if three borrowers, all on different repayment schedules, owed and missed their first installment payment on January 2 and all three made their next payment on April 10, the maximum penalty charges that could be assessed each individual borrower would be as follows: $16 to the monthly repayment schedule borrower; $9 to the bimonthly repayment schedule borrower; and $18 to the quarterly repayment schedule borrower.
