What is the name of your state (only U.S. law)? North Carolina
Hello, I desperately need some advice.
I have a Teaching Fellows Loan (no longer in existence) that was a state mandated program. The program promissory note states that the loan will have to be paid back at a rate of 10% if you do not teach for four years in NC. I stayed in banking...
SO - I have to repay it. I have been charged 10% since the loan went into repayment status. I'm currently looking to try to get the state to take a settlement for the balance. The promissory note says that a minor under 18 can sign into a contract that is binding for student loans according to NC General Statute 116-174.1. I found this statute, and indeed at 17 you can sign this contract. It however states in Statute 116-174.1 that "All minors in North Carolina of the age of 17 years and upwards shall have full power and authority to enter into written contracts of indebtedness, at a rate of interest not exceeding the contract rate authorized in Chapter 24 of the General Statutes,". Chapter 24, Article 1 states that "The legal rate of interest shall be eight percent (8%) per annum for such time as interest may accrue, and no more." I could not find any clause in Chapter 24 that gives an exemption to Loans like the teaching fellow or student loan, only loans like Home equity lines and credit cards, and the like.
My question is multifold (is that a word?)
1. If Chapter 24 Article 1 used to (when I first signed the note) stipulate higher than 8% that can be charged, am I still subject to 10%?
2. If Chapter 24 Article 1 has always said 8%, should I be owed the additional 2% difference I paid (ideally I would just have them put it back on the principal-not even getting into whether its compounded or simple interest)
3. Are there any stipulations in Chapter 24 that excludes loans made by the State of NC Education System?
4. Are there any federal laws that are contrary to the state laws I'm referring to that might even help me more?
Thank you for any advice on this as I hope to reach a settlement soon with them.
Hello, I desperately need some advice.
I have a Teaching Fellows Loan (no longer in existence) that was a state mandated program. The program promissory note states that the loan will have to be paid back at a rate of 10% if you do not teach for four years in NC. I stayed in banking...
SO - I have to repay it. I have been charged 10% since the loan went into repayment status. I'm currently looking to try to get the state to take a settlement for the balance. The promissory note says that a minor under 18 can sign into a contract that is binding for student loans according to NC General Statute 116-174.1. I found this statute, and indeed at 17 you can sign this contract. It however states in Statute 116-174.1 that "All minors in North Carolina of the age of 17 years and upwards shall have full power and authority to enter into written contracts of indebtedness, at a rate of interest not exceeding the contract rate authorized in Chapter 24 of the General Statutes,". Chapter 24, Article 1 states that "The legal rate of interest shall be eight percent (8%) per annum for such time as interest may accrue, and no more." I could not find any clause in Chapter 24 that gives an exemption to Loans like the teaching fellow or student loan, only loans like Home equity lines and credit cards, and the like.
My question is multifold (is that a word?)
1. If Chapter 24 Article 1 used to (when I first signed the note) stipulate higher than 8% that can be charged, am I still subject to 10%?
2. If Chapter 24 Article 1 has always said 8%, should I be owed the additional 2% difference I paid (ideally I would just have them put it back on the principal-not even getting into whether its compounded or simple interest)
3. Are there any stipulations in Chapter 24 that excludes loans made by the State of NC Education System?
4. Are there any federal laws that are contrary to the state laws I'm referring to that might even help me more?
Thank you for any advice on this as I hope to reach a settlement soon with them.