Sec. 9. 20-A MRSA §12505, as amended by PL 1995, c. 117, Pt. E, §8 and affected by §13, is further amended to read:

§12505. Eligibility requirements

1. Eligibility for postsecondary education loans. A postsecondary education loan may be given only to a high school graduate, or the equivalent, who is a resident of the State, who has been recognized as a Teachers Educators for Maine loan recipient and who has met other eligibility criteria established by rule of the authority. Preference must be given to students enrolled in a program that has been determined to be an underserved subject area.

2. Eligibility for graduate study or continuing education loans. A graduate study or continuing education loan may be given only to a teacher or speech pathologist in a Maine school who has met other eligibility criteria established by rule of the chief executive officer. Preference must be given to teachers of subjects determined to be underserved.

3. Eligibility for postbaccalaureate certification. A loan to a student pursuing postbaccalaureate teacher certification may be given only to a resident of the State who has shown academic achievement, who has a baccalaureate degree, who is not eligible for a loan for graduate study or continuing education pursuant to subsection 2, and who has met other eligibility criteria established by rule of the authority.

Sec. 10. 20-A MRSA §12507, first ¶, as amended by PL 1995, c. 117, Pt. E, §9 and affected by §13, is further amended to read:

Each graduating high school senior or college student who receives a loan may cancel the total amount of the loan by completing one year of return services in the public schools or private schools approved for tuition purposes in the State for each year the individual receives a loan. The return service requirement is one year for every 2 years or less that the individual receives a loan if return service is performed in underserved subject areas or in teacher educator shortage areas. Return service for this purpose must be performed within 5 years of graduation from the institution of higher education. If the chief executive officer grants a deferment, the time period for performance of return service may be extended for the same period as the deferment. Return service may not be credited for the same semester for which an individual receives a loan pursuant to this chapter. Failure to fulfill the return service option necessitates repayment to the authority as follows.