Section 457-606-8 - Repayment ProvisionsA. Each recipient must sign an Agreement with the authority which will detail repayment obligations.B. Repayment obligations either through return service or cash payments must be completed within a ten year period after completing the postsecondary education program for which the loans were awarded.C. Each recipient may utilize a return service/forgiveness option by teaching full-time for a period of two years for each year for which the loan was received, providing such teaching is in a public or private nonprofit preschool, elementary school or secondary school in any state or private nonprofit education program in any state. The requirement to teach two years for each year of scholarship assistance is reduced by one-half in the case of individuals who teach full-time in a teacher shortage area as designated by the United States Secretary of Education.D. A recipient shall not be considered to be in violation of the provisions of the repayment Agreement with the authority if the recipient: 1. Returns to a full-time course of study related to the field of teaching at an eligible institution2. Is serving not in excess of three years as a member of the armed forces of the United States;3. Is temporarily totally disabled for a period of time not to exceed three years as established by a sworn affidavit of a qualified physician;4. Is unable to secure employment for a period not to exceed twelve months by reason of the care required by a spouse who is disabled;5. Is seeking and unable to find full-time employment for a single period not to exceed twelve months;6. Is seeking and unable to find full-time employment as a teacher in a public or private nonprofit preschool, elementary or secondary school or a public or private non-profit education program for a single period not to exceed 27 months. During the time a recipient qualifies for any of these exceptions, the recipient is not required to make scholarship repayments and interest does not accrue.
A recipient seeking an exception under items 1 through 6 must notify the authority in writing when the above conditions are applicable and provide supporting documentation satisfactory to the authority.
E. If the authority finds that the recipient is not in compliance with the terms of the Agreement or is no longer pursuing a course of study leading to certification as a teacher at the preschool, elementary or secondary level, the recipient shall: (1) Repay the amount of the scholarship received prorated according to the fraction of the teaching obligation not completed as determined by the authority;(2) Pay a single per annum interest charge on the outstanding principal; and(3) Pay all reasonable collection costs as determined by the authority;F. The interest charge accrues from the date of the initial scholarship payment if the recipient has ceased to pursue a course of study leading to certification as a teacher at the preschool, elementary or secondary level or the day after that portion of the scholarship period for which the teaching obligation has been fulfilled.G. The interest charge shall not be at a rate higher than the rate applicable to loans made in the applicable period under Title IV, Part B of the Higher Education Amendments of 1986.H. The recipient shall enter repayment status on the first day of the calendar month after the authority has determined that the recipient has ceased to pursue a course of study leading to certification as a teacher at the preschool, elementary or secondary level, but not before 6 months have elapsed after cessation of the scholar's full-time enrollment in such a course of study, or the date the recipient informs the authority the recipient does not plan to fulfill the teaching obligation, or the latest date on which the recipient must have begun teaching in order to have completed the teaching obligation within ten years after completing the postsecondary education for which the loan was awarded, as determined by the authority.I. The recipient shall make monthly or quarterly payments to the authority which cover principal, interest, and collection costs according to a schedule established by the authority, which calls for complete repayment within ten years after the recipient enters repayment status (except as provided in item L), and which amounts annually to no less than $1200 or the unpaid balance, whichever is less, unless the recipient's inability to pay this amount because of the recipient's financial condition has been established to the chief executive officer's satisfaction. If a cash payment is not made within 90 days following the payment date set by the authority, it may declare the entire amount due and payable subject to the right to receive a notice of right to cure.J. The authority shall not require loan repayments amounting to more than $1200 annually unless higher payments are needed to complete the entire repayment within the ten year period described in item I.K. The authority shall capitalize any accrued interest at the time it establishes a recipient's repayment schedule.L. The authority shall extend the ten year scholarship repayment period by a period equal to the length of time a recipient meets any of the conditions in item D and the authority may also extend the repayment period if the recipient is unable to complete the repayment within the ten year period because of the recipient's financial condition as documented to the satisfaction of the chief executive officer.M. The authority shall cancel a recipient's repayment obligation if it determines: 1. On the basis of a sworn affidavit of a qualified physician, that the recipient is unable to teach on a full-time basis because of an impairment that is expected to continue indefinitely or result in death; or2. On the basis of a death certificate or other evidence of death that is conclusive under State law, that the recipient has died.N. The recipient may appeal any determination of noncompliance with the law or regulations governing the implementation of this program by pursuing an appeal process as follows: 1. The applicant must notify the chief executive officer within thirty (30) days of date of the determination of noncompliance of the applicant's intent to seek an appeal of the decision.2. The appeal will be heard at a regularly scheduled meeting of the members of the authority, at the earliest date such an appeal can reasonably be scheduled. The applicant must be notified of the date and time of the appeal and must be present to support the appeal.94- 457 C.M.R. ch. 606, § 8