The new proprietor of a beneficial consolidated financing have to notify the debtor one the loan might have been paid in full

The new proprietor of a beneficial consolidated financing have to notify the debtor one the loan might have been paid in full

(2) Abreast of bill of continues from a direct Combination Loan, the fresh owner out-of a beneficial consolidated financing need certainly to on time apply the new continues to fully launch the borrower’s duty to your consolidated loan.

The Secretary find this new fees period under § (i) based on the a fantastic stability with the all the borrower’s financing which can be entitled to combination and balances towards the other education loans except once the offered in sentences (i)(3)(i), (ii), and you can (iii) regarding the area

(3) The primary balance off a primary Combination Loan is equivalent to the entire amounts paid into holders of the consolidated financing.

(4) In case your count reduced from the Secretary on the owner from an excellent consolidated financing is higher than extent needed seriously to discharge that loan, the new owner of one’s consolidated mortgage need certainly to promptly reimburse the excess add up to the Secretary as credited against the a fantastic balance of one’s Head Combination Financing.

(5) In the event the amount repaid of the Secretary on the manager off this new consolidated financing are not enough to release a loan, the latest proprietor must alert this new Secretary on paper of the left matter due to the loan. Les mer