                                 CODE OF VIRGINIA

COLLECTION OF LOANS (§ 23.1-619)

For each loan made from its fund, each institution shall:

1. Include in loan documents for each loan an individual plan for the repayment
of principal and interest and the payment of any late fees and clear and
detailed information about the collection process for such loan pursuant to the
Virginia Debt Collection Act (&#xA7; 2.2-4800 et seq.), including information
about the agency or entity that is responsible for collection;

2. Establish a process for notifying each student or, in the case of an
undergraduate student and as appropriate, the student&#8217;s parent of any loan
payment that is past due no later than (i) 30 days after the payments become
past due and (ii) if necessary, the end of the academic term during which such
payment becomes past due; and

3. Make every effort to collect each loan and comply with the Virginia Debt
Collection Act (&#xA7; 2.2-4800 et seq.) with regard to the collection of such
loans, provided that, notwithstanding &#xA7;&#xA7; 2.2-4805 and 2.2-4806, the
institution may, with the consent of the borrower, modify the terms of any loan
for which payments are past due to provide for repayment forbearance on such
loan and repayment to commence on a mutually agreed-upon date in the future.
Prior to entering into any such agreement, the institution shall provide the
borrower with information regarding the effect of a forbearance on the loan
amount, including (i) the amount of any additional accumulated principal and
interest and (ii) the estimated total amount to be owed upon recommenced
payments.

HISTORY: 1978, c. 745, § 23-38.10:4; 1988, c. 544; 2016, c. 588; 2018, c. 786.