Georgia § 20-3-400 - 3. Recalculation of interest rate.
Full text of Georgia Official Code of Georgia Annotated § 20-3-400 — 3. Recalculation of interest rate., with citation guidance and answers to common questions.
§ 20-3-400. 3. Recalculation of interest rate.
When the annual interest rate is converted to 1 percent in accordance with subsection (e) of Code Section 20-3-400.2, the authority shall recalculate the balance owed on the loan to reflect the retroactive change in the interest rate. The steps of the recalculation required by subsection (a) of this Code section shall include the following: Calculate the total interest paid by the student on the loan to date; Calculate the total principal paid by the student on the loan to date; Calculate the total of fees other than interest paid by the student on the loan to date; Calculate the current balance owed on the loan by subtracting the principal paid by the student on the loan to date from the original amount borrowed; Calculate the amount of interest due on the loan from its origination to date at the rate of 1 percent; Subtract the amount of interest due at 1 percent calculated in paragraph (5) of this subsection from the total interest paid by the student to date calculated in paragraph (1) of this subsection; Add the difference calculated in paragraph (6) of this subsection to the principal paid by the student to date in paragraph (2) of this subsection; this sum shall become the new total principal paid by the student on the loan; and Subtract the new principal paid calculated in paragraph (7) of this subsection from the original amount borrowed by the student in this loan to produce the new balance owed by the student on the loan. When the annual interest rate is converted to 2 percent in accordance with subsection (f) of Code Section 20-3-400.2, the Student Finance Authority shall recalculate the balance owed on the loan to reflect the retroactive change in the interest rate. The steps of the recalculation required by subsection (c) of this Code section shall include the following: Calculate the total interest paid by the student on the loan to date; Calculate the total principal paid by the student on the loan to date; Calculate the total of fees other than interest paid by the student on the loan to date; Calculate the current balance owed on the loan by subtracting the principal paid by the student on the loan to date from the original amount borrowed; Calculate the amount of interest due on the loan from its origination to date at the rate of 2 percent; Subtract the amount of interest due at 2 percent calculated in paragraph (5) of this subsection from the total interest paid by the student to date calculated in paragraph (1) of this subsection; Add the difference calculated in paragraph (6) of this subsection to the principal paid by the student to date in paragraph (2) of this subsection; this sum shall become the new total principal paid by the student on the loan; and Subtract the new principal paid calculated in paragraph (7) of this subsection from the original amount borrowed by the student in this loan to produce the new balance owed by the student on the loan. (Code 1981, § 20-3-400.3 , enacted by Ga. L. 2008, p. 626, § 3/SB 169.)
Source: official Georgia text · Last verified 2026-08-27
Frequently Asked Questions About Georgia § 20-3-400
What does Official Code of Georgia Annotated § 20-3-400 cover?
Section 20-3-400 ("3. Recalculation of interest rate.") is part of the Official Code of Georgia Annotated, the codified statutory law of Georgia. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Georgia § 20-3-400?
A common citation format is "Official Code of Georgia Annotated § 20-3-400" (Georgia). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Georgia law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Georgia official source linked on this page or consult a licensed Georgia attorney.
How does Georgia § 20-3-400 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Georgia can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
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