Penalty charges
Primary Care Loan
Payments made by you and other borrowers are the primary source of HPSL funds for current students. Also, your failure to make payments could jeopardize your school's eligibility to continue loaning HPSL funds to current and future students. Therefore, if you fail to remit payment as set forth in your repayment schedule, Student Account Assistance is required to implement aggressive collection efforts, including the use of collection agents, litigation, and credit bureaus.
For loans made on or after October 22, 1985, Student Account Assistance must assess a penalty charge if you fail to make a payment or file evidence of entitlement to deferment and your loan becomes more than 60 days past due. This charge may not exceed 6 percent of the amount due (principal and interest) at the time the charge is calculated. For loans made prior to October 22, 1985, Student Account Assistance may assess a late penalty charge if you fail to make a payment when due or to file “timely” evidence of entitlement to deferment. To avoid this penalty charge, payments or forms for deferment must reach Student Account Assistance on or before the due date of any scheduled installment in accordance with the repayment schedule you were given before leaving school.
