15-62.1-03. Rates of interest permissible for guaranteed loans

15-62.1-03. Rates of interest permissible for guaranteed loans

All loans guaranteed by the agency and coinsured by the federal government must bear

interest at rates which are no greater than those provided under the federally coinsured loan

programs. In the event that the agency guarantees student loans without federal coinsurance

pursuant to section 15-62.1-02, the interest rate on such loans may be fixed or variable. Any

prohibition on the capitalization of interest does not apply to loans guaranteed under this

chapter. A loan guaranteed under this chapter may provide for interest which remains unpaid at

the end of any period specified in the loan to be added to the principal amount of the debt and

thereafter accumulate interest.