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§674.40 Treatment of loan repayments where cancellation, loan repayments, and minimum monthly repayments apply.
(a) An institution may not exercise the minimum monthly repayment provisions on a note when the borrower has received a partial cancellation for the period covered by a postponement.
(b) If a borrower has received Defense, NDSL, and Perkins loans and only one can be cancelled, the amount due on the uncancelled loan is the amount established in §674.31(b) (2), loan repayment terms; §674.33(b), minimum repayment rates; or §674.33(c), extension of repayment period.
(Authority: 20 U.S.C. 425 and 1087dd, 1087ee)
[52 FR 45754, Dec. 1, 1987. Redesignated at 59 FR 61410, Nov. 30, 1994]