Section 1640-01-03-.07 - REPAYMENT(1) The graduate nursing loan must be repaid unless cancelled as described elsewhere in these rules. Repayment will include the full amount of the graduate nursing loan received plus accrued interest.(2) Repayment shall begin at the end of the grace period, or upon demand by TSAC, and shall be in monthly installments over a period of no more than eight (8) years, provided that payments must be a minimum of one hundred dollars ($100) per month.(3) The graduate nursing loan and accrued interest may be prepaid in whole or part at any time without penalty.(4) If the borrower of a graduate nursing loan is determined to have received the award based on inaccurate application information, the full amount of the loan and accrued interest shall become due immediately.(5) If the borrower fails to complete an enrollment period for any reason, the postsecondary institution must determine if any of the graduate nursing loans should be returned to TSAC. The postsecondary institution should use its own institutional refund policy to calculate the refund amount. If the student withdraws after the refund period is over, the postsecondary institution must follow the Return of Title IV guidelines, if applicable, to calculate any return of the graduate nursing loan.(6) If a borrower issues a check, draft, or warrant, which is subsequently returned to TSAC for reason of insufficient funds, a stop payment order by the issuer, or any other reason, the payment to which these funds was applied shall be reversed on the borrower's account and interest shall continue to accrue from the date of the last valid payment. Additionally, TSAC may charge a reasonable service fee for such a transaction.Tenn. Comp. R. & Regs. 1640-01-03-.07
Original rule filed January 23, 1976; effective April 15, 1976. Amendment filed March 18, 1977; effective April 18, 1977. Repeal and new rule filed as a public necessity rule on December 11, 2006; effective through May 25, 2007. Original rule filed December 11, 2006; effective April 30, 2007. Repeal and new rule filed March 1, 2013; effective August 29, 2013. Amendments filed December 27, 2013; effective 5/31/2014.Authority: T.C.A. §§ 49-4-201, 49-4-203, 49-4-204, and 49-4-702.