Section 457-607-V - PROVISIONS AFFECTING STUDENTS WHO COMMENCE PROFESSIONAL EDUCATION ON OR AFTER SEPTEMBER°1977 AND PRIOR TO JULY 1, 1981A.Annual Report. Contract students, except those who withdrew from professional education or no longer reside in Maine, shall indicate on the annual report their status commencing with graduation from the institution and annually throughout the remaining years of professional training and repayment period.B.Repayment1. Any students commencing their professional education on or after September 1977, but prior to July 1, 1981 shall repay the State an amount of money equal to the capitation payments expended by the State in purchasing the student's space if the student's obligation has not been fulfilled under the forgiveness provision.2. The amount of money due the State shall include interest at 6% on a simple annual basis for students covered under P.L. 1977, chap. 703, with the interest assessed starting on the date which marks the beginning of the repayment period. The amount due shall be paid in not more than ten (10) annual equal installments. For students covered under P.L. 1975, chap. 769, the amount shall be repaid in twenty (20) annual equal installments without interest. A student may request a monthly or quarterly payment schedule.3. The first payment will be due three months following the date determined as marking the beginning of the repayment period.4. 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 monthly basis.C.Forgiveness1. Contract students who return to Maine to practice within a reasonable period of time in primary care or other specialized areas as determined by the Authority after consultation with the Commissioner of Health and Human Services may reduce the indebtedness by 25% per year of practice.2. 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, excepting any monies due and payable for the time period spent in out-of-state practice. Each year of return service will reduce the existing balance by 25% of the original indebtedness.3. Whenever the balance due is less than one-quarter (1/4) of the indebtedness, the return service time to complete the student's obligation will be a proportionally prorated part of a year, and return service for the computed time will sever the contractual obligations between the State and the student.4. The student will complete and have notarized the annual report including the "Practice Location and Date Form" section indicating the exact date of the beginning of the Maine practice in order to be eligible for the reduction of his debt through return service.5. A contract student who has selected a field of practice which is other than primary care or other specialized areas as determined by the Authority after consultation with the Commissioner of Health and Human Services is entitled to 25% forgiveness for each of the first two years in a Maine practice. The remaining debt must be repaid in the time remaining in the original ten (10) year repayment period.6.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.D.Deferment1. Deferments may be granted by the chief executive officer during the repayment period 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. Deferments may be granted to students covered under P.L. 1975, chap. 769 with a simple annual interest of 6 percent being assessed during the deferment period only.2. During the period of an approved deferment, simple interest will be assessed at the annual rate of 6%. 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 indebtedness.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 will be final.E.Students Subject to the Provisions of P.L. 1975, chap. 7691. Those contract students subject to the provisions of P.L. 1975, chap. 769 may reduce the indebtedness, through return service, the full amount of their indebtedness. Each year of practice in Maine will allow the students to have one-quarter (1/4) of their original indebtedness forgiven.2. For those contract students subject to the provisions of P.L. 1975, chap. 769, the phrase "completion of professional education" does not include obligated public health service.3. All other provisions of this section V will apply where appropriate to this section.94- 457 C.M.R. ch. 607, § V