Section 457-607-IV - PROVISIONS AFFECTING STUDENTS WHO COMMENCE PROFESSIONAL EDUCATION ON OR AFTER JULY 1, 1981 AND PRIOR TO JANUARY 1, 1993A.General Provisions1. The contract student shall sign a written Agreement, and Promissory Note and Disclosure Statement through which the student agrees to conditions for repayment of indebtedness as a participant in the Postgraduate Health Professions Program.2. The contract student upon completion of professional education or upon withdrawal from school for whatever reason shall enter the repayment period.3. Any contract student commencing professional education on or after July 1, 1981 shall repay the State the tuition differential for each year of attendance as a contract student if the student's obligation has not been fulfilled under the forgiveness provisions.4. Each student, except those who withdrew from professional education or no longer reside in Maine, shall return an annual report to the Authority no later than the date set forth by the Authority.5. The student will report any change of address when such occurs to the Authority.B.Repayment1. The amount due the State shall include interest at 9% on a simple annual basis. Interest will be assessed starting on the date which marks the beginning of the repayment period.2. Within three months following completion of professional education; including internship, residency, fellowship, and obligated public health service, and/or obligated national service, or upon withdrawal from school for whatever reason, a specific date will be determined marking the beginning of the repayment period.3. Payments will be made in ten (10) annual installments on a repayment schedule established by the Authority. The contract student may request a monthly or quarterly payment schedule.4. The first annual installment will be due three months following the date determined as marking the beginning of the repayment period.5. Contract students who practice either within or outside the State of Maine for less than a full calendar year will have their repayment computed on a pro rata basis.C.Default. If a payment is not made within 90 days following the due date, the State may declare the entire amount due and payable including attorney's fees of up to 15% of the amount in default subject to the student's right to receive a notice of right to cure.D.Forgiveness1. Contract students who return to Maine to practice in a designated underserved area may reduce the indebtedness by 25% for each year of practice.2. Contract students who complete an entire family practice residency program in the State may have their indebtedness reduced by 50% of the original outstanding indebtedness upon completion.3. Contract students eligible for the reduction of debt through return service must complete the "Practice Location and Date Form" section of the annual report duly notarized indicating the exact date of the beginning of the Maine practice.4. Contract students who practice out-of-state and then establish a Maine practice at some point during the ten (10) year repayment period may reduce the balance due through return service. Any monies due and payable for the time period spent in out-of-state practice must be paid in cash and will not be forgiven for return service in Maine. Each year of return service will reduce the existing balance by 25% of the total original tuition differential.5.Death or Permanent Disability. On the death of a loan recipient as evidenced by a certified death certificate or on the total and permanent disability of a loan recipient, as certified by a licensed physician, all amounts remaining due from the recipient will be forgiven.E.Deferment1. Deferments during the repayment period may be granted by the chief executive officer for a maximum of three years. A written request shall be made to the chief executive officer requesting a deferment by a contract student who during the repayment period, either returns to a Maine practice and then leaves the State or who initially remains out-of-state and then returns to a Maine practice. The request must state justification for the deferment and will be decided on a case-by-case basis. The decision of the chief executive officer shall be final.2. During the period of an approved deferment, simple interest will be assessed at the annual rate of 9%. At the conclusion of the deferment period, the total outstanding balance, including principal and interest shall be repaid either through return service or cash payments within the years remaining in the ten (10) year repayment period. Each year of return service will reduce the balance by 25% of the original total tuition differential.3. Deferments for other reasons may be granted in the discretion of the chief executive officer. Any request must state the justification for the deferment and must include supporting documentation. Deferments will be determined on a case-by-case basis. The decision of the chief executive officer shall be final.94- 457 C.M.R. ch. 607, § IV