18A:68-11.4 - Interest; computation - New Jersey Statutes

18A:68-11.4.  Interest;  computation
    An institution of higher education may make educational loans and may charge  and collect interest thereon at a rate not in excess of 1% per month on the  first $10,000.00 of the principal sum owing on all such loans for the payment  of which a person is liable to the institution in any capacity, and 3/4   of  1% on the excess over $10,000.00 owing on all such loans for the payment of  which a person is so liable to the institution of higher education.  Interest  shall be calculated according to the actuarial method, pursuant to which  payments made on the loan are applied first to accumulated interest on the  principal amount of the loan and the remainder applied to the unpaid principal  balance of the loan in reduction thereof. All payments shall be applied no  later than the next day, other than a Sunday or a public holiday, after the  date of receipt, and a day shall be counted as one-three hundred sixty-fifth of  a year.

     L.1977, c. 123, s. 4, eff. June 6, 1977.