Section 1640-01-21-.07 - REPAYMENT(1) The Tennessee Rural Health Loan must be repaid unless cancelled as described elsewhere in these rules. Repayment will include the full amount of the loan received.(2) Repayment shall begin at the end of the grace period, and shall be in monthly installments over a period of no more than ten (10) years, provided that payments must be a minimum of one hundred fifty dollars ($150) per month.(3) Repayment for recipients who complete the plan of study shall begin in the first month following the end of the grace period, or upon demand by TSAC. Interest shall begin to accrue on the date of disbursement.(4) The Tennessee Rural Health Loan may be prepaid in whole or part at any time without penalty.(5) If the borrower of a Tennessee Rural Health Loan is determined to have received the award based on inaccurate application information, the full amount of the loan plus interest becomes due immediately.(6) If the borrower has any action against their licensure that would prevent them from obtaining or retaining their license the full amount advanced plus interest must be repaid. Repayment shall begin upon demand by TSAC.(7) If the borrower fails to complete an enrollment period for any reason, the eligible postsecondary institution shall apply its refund policy to determine whether a refund may be required and/or funds returned to TSAC. If the borrower withdraws after the refund period is over, the eligible postsecondary institution must follow the Return of Title IV guidelines, if applicable, to calculate any return of the Tennessee Rural Health Loan.(8) If a borrower issues a check, draft, warrant, or electronic funds transfer, which is subsequently returned to TSAC due to 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. Additionally, TSAC may charge a reasonable service fee for such a transaction.Tenn. Comp. R. & Regs. 1640-01-21-.07
Public necessity rule filed October 23, 2008; effective through April 6, 2009. Public necessity rule filed October 23, 2008; effective through April 6, 2009. Public necessity rule filed October 23, 2008 and effective through April 6, 2009, expired on April 7, 2009; rule reverted to its previous status. Original rule filed January 30, 2009; effective May 29, 2009.Authority T.C.A. §§ 49-4-201, 49-4-902, 49-4-924, and 49-4-939.