Section 457-603-8 - Repayment and Return Service ProvisionsA. Student Recipients (Other Than Students Pursuing Postbaccalaureate Teacher Certification) (1) Student recipients begin repayment six months after graduation.(2) Each student recipient may cancel the total amount of the loan repayment by completing four years of return service in the public schools or private schools approved for tuition purposes in the state or in a state operated school.(3) Each student recipient may cancel the total amount of the loan repayment by completing two years of return service in the public schools or private schools approved for tuition purposes in the state or in a state operated school if such service is performed in underserved subject areas or in geographically isolated areas as determined by the chief executive officer.(4) Each student recipient may cancel the total amount of the loan(s) received on a proportional basis reducing the debt by 25% for each complete year of return service performed in the public schools or private schools approved for tuition purposes in the state or in a state operated school or by 50% for each year, if such return service is in an underserved subject area or a geographically isolated area.(5) Student recipients shall perform return service within five years of graduation from the institution of higher education.(6) A student recipient who fails to fulfill the return service option shall repay the Authority as follows: a. The debt shall include the total amount of all Blaine House Scholars Program loans less the amount, if any, which has been canceled by return service.b. The total debt shall be repaid to the Authority within five years of graduation on a schedule which specifies annual, semiannual, or monthly payments and indicates due dates. Exceptions due to extenuating circumstances may be granted on a case by case basis upon written request to the chief executive officer.(7) Once a recipient has begun fulfilling the return service option by teaching in an underserved subject area or teaching in a geographically isolated area the recipient shall be allowed to complete this option in the same subject area or geographic area even though the subject area or geographically isolated area is removed from the list of those designated.(8) Recipients who withdraw from school, for whatever reason, prior to completion of the course or courses for which the funds were loaned, will begin repayment one year from the end of the semester of last attendance and complete repayment within four years from the date of commencement of repayment, unless the student re-enrolls prior to that time.(9) A recipient of a loan may seek a deferment of the annual principal payments. A request for deferment must be made to the chief executive officer who shall make a determination on a case-by-case basis. The decision of the chief executive officer shall be final.(10) In the event of death or permanent disability (as determined by a physician) of a recipient, any unpaid amount due the Authority shall be canceled upon appropriate written verification of the death or disability to the Authority.(11) If a cash payment is not made within 30 days following the due date of that payment, the Authority may declare the entire amount due and payable subject to the recipients right to receive a notice of right to cure. If a default is declared the recipient shall be liable for the amount in default plus any accrued late fees and reasonable attorney's fees.(12) If any monthly payment is not paid when due, the holder of the Note may collect a late charge of five cents ($0.05) for each dollar of such payment more than thirty (30) days in arrears.B. Teacher and Student Pursuing Postbaccalaureate Teacher Certification Recipients (1) Teachers and students pursuing postbaccalaureate teacher certification must begin repayment six months after graduation or completion of the course or courses for which the funds were loaned.(2) Each recipient of a loan designated for teachers pursuing an advanced degree or continued study or for students pursuing postbaccalaureate teacher certification may cancel the total amount of the loan by completing two years of return service in the public schools or private schools approved for tuition purposes in the state or in a state operated school. Each recipient of a loan designated for teachers or for students pursuing postbaccalaureate teacher certification may cancel the total amount of the loan on a proportional basis reducing the debt by 50% for each complete year of return service in the public schools or private schools approved for tuition purposes in the state or in a state operated school.(3) Each recipient of a loan designated for teachers pursuing an advanced degree or continued study or for students pursuing postbaccalaureate teacher certification may cancel the total amount of the loan by completing one year of return service in the public schools or private schools approved for tuition purposes in the state or in a state operated school, if such service is performed in an underserved subject area or in a geographically isolated area.(4) Return service shall be performed within three years of graduation from the institution of higher education or completion of the course or courses for which the funds were given.(5) Failure to fulfill the return service option will necessitate repayment to the Authority as follows: a. The debt shall include the total amount of all Blaine House Scholars Program loans less the amount, if any, which has been canceled by return service.b. The total debt shall be repaid to the Authority within three years of graduation or completion of the course or courses for which the funds were given on a schedule which specifies annual, semi-annual or monthly payments and indicates due dates. Exceptions due to extenuating circumstances may be granted on a case by case basis upon written request to the chief executive officer.(6) Once a recipient has begun fulfilling the return service option by teaching in an underserved subject area or teaching in a geographically isolated area, the recipient shall be allowed to complete this option in the same subject area or geographic area even though the subject area or geographically isolated area is removed from the list of those designated.(7) Recipients who fail to successfully complete the course or courses for which the funds were given will not be allowed to exercise the return service option and will begin repayment six months from the end of the semester of last attendance.(8) A recipient of a loan may seek a deferment of the annual principal payments. A request for deferment must be made to the chief executive officer who shall make a determination on a case-by-case basis. The decision of the chief executive officer shall be final.(9) In the event of death or permanent disability (as determined by a physician) of a recipient upon appropriate written verification of the death or disability to the Authority, any unpaid amount due the Authority shall be canceled.(10) If a cash payment is not made within 30 days following the due date of that payment the Authority may declare the entire amount due and payable subject to the recipients right to receive a notice of right to cure. If a default is declared, the recipient shall be liable for the amount in default plus any accrued late fees and reasonable attorney's fees.(11) If any monthly payment is not paid when due, the holder of the Note may collect a late charge of five cents ($0.05) for each dollar of such payment more than thirty (30) days in arrears.94- 457 C.M.R. ch. 603, § 8