| (a) Interest rates. The interest rate to be charged
for any student loan shall be 6.0% per annum on all loans made under
the Hinson-Hazlewood College Student Loan Act on or before August
31, 1969, and the interest rate to be charged for any student loan
made on or after September 1, 1969, shall be 7.0% per annum, and such
interest shall accrue from the date of the note evidencing the loan
is executed. Except for loans subject to the interest subsidy provisions
of the Higher Education Act of 1965, Title IV, Part B, §428(a),
as amended, and 45 Code of Federal Regulations Part 177, payment of
interest by an undergraduate student shall be postponed so long as
such student is enrolled in an institution of higher education for
at least one-half of the normal course load, as determined by the
institution, and payment of interest by a graduate or professional
student shall be postponed so long as such student is enrolled in
an institution of higher education and is making satisfactory progress
toward the completion of his program, provided that such interest
shall accrue from the date of the note evidencing the loan is executed.
(b) Federal interest benefits. Loans made pursuant
to this subchapter are eligible for interest subsidy to be paid in
accordance with Public Law 89-329, the Higher Education Act of 1965,
and 45 Code of Federal Regulations Part 177. Students desiring these
benefits shall complete forms required by the United States Office
of Education and submit such forms to the Hinson-Hazlewood College
Student Loan Program officer at the institution at which the loan
is made. Students who do not desire to use these benefits shall waive
these benefits in writing. Students who do not meet the qualifications
as set forth in 45 Code of Federal Regulations Part 177 will be notified
by the Hinson-Hazlewood College Student Loan Program officer.
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