2006 New York Code - Repayment Of Loans.

 
    §  683.  Repayment  of  loans. 1. The terms and conditions of any loan
  made or guaranteed by the corporation shall  not  require  the  borrower
  thereof  to  commence  the repayment of his loan earlier than six months
  following  his  completion  or  other  termination  of  his  college  or
  vocational   institution   program,  except  that  the  corporation  may
  accelerate the repayment of any loan made or guaranteed in error  or  in
  reliance  upon  a  false  statement.  Loans shall be repayable over such
  period as the corporation shall determine, provided,  however  that  the
  maximum  period of repayment of loans made or guaranteed pursuant to the
  federal student aid programs shall not exceed the  maximum  period  then
  permitted under the applicable provisions of such program.
    2.  Notwithstanding anything to the contrary provided in this section,
  the corporation may make or guarantee a loan under terms and  conditions
  with  respect to repayment which are more lenient or more restrictive as
  to the  borrower  than  provided  for  by  this  section  if  the  board
  determines  that  such  action  on  its  part  is  justified  by special
  circumstances and would be consistent with the general objectives of the
  corporation. In the case of  medical  students  consideration  shall  be
  given  to  the  period  of  formal  internship,  residency  training and
  fellowship, if any, and to financial need in determining the  period  of
  repayment.
    3.  In  the case of student loans covered by the corporation's program
  which are  outstanding  on  and  after  April  first,  nineteen  hundred
  sixty-nine  and  which  provide  for periodic installment payments, such
  installments of principal need not be paid but interest shall accrue and
  be paid during any period of service occurring on and after April first,
  nineteen hundred sixty-nine for not in  excess  of  three  years  during
  which  the  borrower  is  (1) a member of the armed forces of the United
  States, (2) in service as a volunteer under the Peace Corps Act  of  the
  United  States,  or  (3)  in  service  as a fulltime volunteer under the
  Domestic Volunteer Service Act of 1973.  There  shall  be  paid  to  the
  corporation  from the state treasury annually a sufficient sum to pay to
  the lenders on behalf of the borrowers the interest which  shall  accrue
  during  these  periods  of service, provided, however, that such amounts
  shall not be payable from the  state  treasury  to  the  corporation  on
  behalf  of  student  borrowers  who  are  eligible to have such payments
  payable on their behalf by the United States.
    4. If a student borrower who has received a loan disbursed on or after
  December  fifteenth,  nineteen  hundred  sixty-eight  dies  or   becomes
  permanently  and  totally  disabled  (as  determined  in accordance with
  regulations of the corporation), there shall be paid to the  corporation
  from  the  state  treasury  a sum sufficient to discharge the borrower's
  liability on the loan which shall be done by the corporation by repaying
  the lender the amount owed thereon, provided, however, that such  amount
  shall  not  be payable by the corporation on behalf of student borrowers
  who are eligible to have such repayment in discharge of their  liability
  on such loan made on their behalf by the United States.
    6.  The corporation shall adopt rules and regulations, consistent with
  law, to effectuate the provisions  of  this  section.  Such  regulations
  shall  include  provision  for the cessation of collection activities by
  lenders or  by  the  corporation  in  cases  in  which  the  educational
  institution  at  which  the student borrower enrolled has terminated its
  teaching activities during the academic period for which such  loan  was
  made or guaranteed.