Alternatives to Litigation. To avoid litigation, a school may offer to waive collection costs as incentive for repayment. You may waive all collection costs on a loan if the borrower makes a lump-sum payment of the entire amount outstanding, including principal and interest; a written repayment agreement is not required. You may also waive a portion of the collection costs on a loan if the borrower agrees to pay a corresponding portion of the loan within 30 days of entering into a written repayment agreement with the school. For example, if the borrower repays one-half the outstanding balance on a loan within 30 days of the agreement, the school may waive one-half of the collection costs incurred through the date of that payment. The amount of waived collection costs may be charged to the Xxxxxxx Loan Fund. You may compromise the repayment of a defaulted loan if you have fully complied with all due diligence requirements and the borrower pays, in a single lump-sum payment, at least 90% of the outstanding principal balance, plus all interest and collection fees. The federal share of the compromise repayment must bear the same relation to the school’s share as the Federal Capital Contribution (FCC) bears to the Institutional Capital Contribution (ICC). A borrower may rehabilitate a defaulted Xxxxxxx Loan by making 12 consecutive on-time payments. A rehabilitated loan is returned to regular repayment status. (See chapter 8 for more information.) Collection costs waiver cite 34 CFR 674.47(d) Compromise cite 34 CFR 674.33(e)
Alternatives to Litigation. Chapter 5 — Xxxxxxx Billing, Collection, and Default To avoid litigation, a school may offer to waive collection costs as incentive for repayment. You may waive all collection costs on a loan if the borrower makes a lump-sum payment of the entire amount outstanding, including principal and interest; a written repayment agreement is not required. You may also waive a portion of the collec- tion costs on a loan if the borrower agrees to pay a corresponding portion of the loan within 30 days of entering into a written repayment agreement with the school. For example, if the borrower repays one- half the outstanding balance on a loan within 30 days of the agree- ment, the school may waive one-half of the collection costs incurred through the date of that payment. The amount of waived collection costs may be charged to the Xxxxxxx Loan Fund. You may compromise the repayment of a defaulted loan if you have fully complied with all due diligence requirements and the borrower pays, in a single lump-sum payment, at least 90% of the outstanding principal balance, plus all interest and collection fees. The federal share of the compromise repayment must bear the same rela- tion to the school’s share as the Federal Capital Contribution (FCC) bears to the Institutional Capital Contribution (ICC). A borrower may rehabilitate a defaulted Xxxxxxx Loan by making 12 consecutive on-time payments. A rehabilitated loan is returned to regular repayment status. (See Rehabilitation later in this chapter.) A borrower may include his or her defaulted Xxxxxxx Loan, NDSL, or Defense Loan in a Direct or Federal Consolidation Loan. The amount eligible for consolidation under either program is the sum of the unpaid principal, accrued unpaid interest, late charges, and outstanding collection costs. A defaulted loan that is being repaid under a court order remains in default status until paid and is not eligible for consolidation.
Alternatives to Litigation. The Parties desire to resolve disputes arising out of this Agreement without litigation. Accordingly, except for action seeking a temporary restraining order, an injunction, or similar relief from the ICC related to the purposes of this Agreement, or suit to compel compliance with this dispute resolution process, the Parties agree to use the following dispute resolution procedure in § 11.3 and § 11.4 of this Agreement with respect to any controversy or claim arising out of or relating to this Agreement or its breach. Each Party agrees to promptly notify the other Party in writing of a dispute (“Dispute Notice”). The Parties will endeavor to resolve the dispute, including Billing Disputes, within thirty (30) days after the date of the Dispute Notice.
