§12508. Repayment and return service provisions - loans

for teachers and speech pathologists and students

pursuing postbaccalaureate certification

Each recipient of a loan designated for students pursuing postbaccalaureate teacher certification may cancel the total amount of the loan by completing one year of return service for each year a loan is received in the public schools or private schools approved for tuition purposes in the State. The return service requirement is one year of return service for 2 loans received if return service is performed in underserved subject areas or in teacher educator shortage areas. Return service for this purpose must be performed within 3 years of graduation from the institution of higher education or completion of the course or courses for which the funds were given. In no event may return service be credited for the same semester for which an individual receives a loan pursuant to this chapter. An individual receiving loan forgiveness for a loan for a postbaccalaureate teacher certification loan may not receive loan forgiveness for any undergraduate loan simultaneously. 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. Failure to fulfill the return service option will necessitate repayment to the authority as follows.

1. Debt calculation. The debt must include the total amount of the loan less the amount, if any, that has been canceled by return service.

2. Time for repayment. The total debt must be repaid to the authority within 3 years of graduation from the institution of higher education or courses for which the funds were given or within 3 years of repayment of any other loans made pursuant to this chapter. If the chief executive officer grants a deferment, the time period may be extended up to the period of the deferment. A repayment schedule including due dates must be set by the chief executive officer.

3. Deferment. A recipient of a loan may seek a deferment of the annual payments for a period or periods as established by the chief executive officer who shall make a determination on a case- by-case basis. The chief executive officer may grant a deferment in the event that a recipient of a loan evidences intent to teach or practice speech pathology and inability to secure employment necessary to obtain forgiveness of the loan at the time the deferment is sought. The chief executive officer shall require certification of the intent annually and grant a one-year deferment for each successful request for deferment. A