Current through Register Vol. 51, No. 3, September 1, 2024
RELATES TO:
KRS
164.740,
164.7890
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
164.744(2) authorizes the
authority to provide scholarships.
KRS
164.748(4) and
164.753(3)
require the authority to promulgate administrative regulations pertaining to
the awarding of scholarships as provided in
KRS
164.740 to
164.7891.
KRS
164.7890(9) requires the
authority to promulgate administrative regulations establishing the terms and
conditions for the award, cancellation, and repayment of coal county
scholarships for pharmacy students including deferments. This administrative
regulation establishes conditions for deferment of the repayment
obligation.
Section 1. Definitions.
(1) "Authority" is defined by
KRS
164.740(1).
(2) "Coal-producing county" is defined in
KRS
164.7890(2).
(3) "Default" means the status of an
obligation under this program that has entered repayment and upon which no
payment has been made for a cumulative period of 180 days following the
repayment begin date for the obligation.
(4) "Deferment" means a temporary waiver of
the obligation of a recipient of a coal county scholarship for pharmacy
students to make payments to the authority, pursuant to one (1) or more
promissory notes executed between the recipient and the authority, which is
granted by the authority, for a specified period of time, upon a showing of
cause by the recipient.
(5)
"Full-time practice" means providing services as a pharmacist in a
coal-producing county for a minimum of 2,000 hours per calendar year.
(6) "Qualified service" is defined in
KRS
164.7890(3)(e).
Section 2. Request for Deferment.
(1) The recipient shall request a deferment
in writing by submitting to the Authority complete and accurate information
verifying the recipient's circumstances that qualify for deferment in
accordance with this administrative regulation.
(2) The recipient's submission of a request
for deferment shall constitute authorization for the authority to request and
receive the verification of facts represented by the recipient as may be deemed
necessary by the Authority.
Section
3. Effect on Repayment.
(1)
During a deferment, principal or interest payments shall not be required.
Interest shall:
(a) Continue to accrue on the
unpaid principal balance owed by the recipient during a period specified in
Section 4(1), (4), and (5) of this administrative regulation; and
(b) Not accrue during a period specified in
Section 4(2) or (3) of this administrative regulation.
(2) The authority shall not grant a deferment
that legally impairs the ultimate recovery of the principal and accrued
interest otherwise owed by the recipient.
Section 4. Types of Deferment. Except as
provided in Section 5 of this administrative regulation, if the requirements
established in this section are met, the authority shall grant an enrollment
deferment, disability deferment, unemployment deferment, hardship deferment,
military service deferment or residency deferment.
(1) Enrollment deferment.
(a) An enrollment deferment shall be granted
to a recipient who is enrolled on at least a halftime basis at an eligible
institution in the United States.
(b) Each semester, the recipient shall
provide to the Authority written certification from the recipient's institution
of current enrollment.
(c) The
Authority shall grant deferment of repayment upon this basis for a period not
to exceed an aggregate of forty-eight (48) months.
(2) The Authority shall grant deferment of
repayment for periods not to exceed an aggregate of thirty-six (36) months for
any one (1) or combination of the following circumstances, unless a documented
extenuating circumstance is approved by the executive director of the
authority:
(a) Disability deferment.
1. A disability deferment shall be a
deferment granted to a recipient who is:
a.
Temporarily totally disabled and, therefore, unable to obtain full-time
employment or attend school; or
b.
Unable to obtain full-time employment or attend school due to the temporary
total disability of the recipient's spouse who:
(i) Requires continuous (twenty-four (24)
hour) nursing or similar care by the recipient; and
(ii) Is not confined to a hospital, nursing
home, intermediate care facility, or similar institution.
2. For purposes of a disability
deferment, a recipient, or the spouse of a recipient, shall be considered
temporarily totally disabled if the person suffers an injury or illness which
necessitates an extended or indefinite period of recovery which can be expected
to preclude gainful employment or school attendance.
3. The recipient shall provide to the
authority a statement from a licensed physician certifying that the recipient
or spouse is temporarily totally disabled in accordance with subparagraphs 1
and 2 of this paragraph. The recipient shall be solely responsible for securing
the physician's certification.
4.
The authority shall grant a disability deferment subject to an annual review of
the physician's certification.
5.
After the third year of a disability deferment, the authority shall cancel the
debt if it appears that the disability is expected to continue for an
indefinite time.
(b)
Unemployment deferment. An unemployment deferment shall be granted to a
recipient seeking, but unable to obtain, a service-creditable position as a
pharmacist in a coal-producing county within six (6) months following
completion of a pharmacy program at a participating institution. The recipient
shall:
1. Be eligible to begin practice as a
pharmacist;
2. Have applied for a
service-creditable position with at least three (3) employers within Kentucky
coal-producing counties;
3. Not
have refused an offer of employment in a service-creditable pharmacy position
within a Kentucky coal-producing county to which the recipient applied;
and
4. Provide the authority with a
signed statement which sets forth:
a. The
recipient's current address;
b. The
names of the employers to which the recipient has applied for qualified
service-creditable employment as a pharmacist; and c. The recipient's agreement
to notify the authority if the recipient obtains full-time employment in a
service-creditable position.
(c) Hardship deferment. The authority shall
determine that a hardship exists and grant a hardship deferment if:
1. Enrollment in a pharmacy program or
employment in a service-creditable pharmacy position is temporarily interrupted
due to circumstances beyond the recipient's control, including major illness,
accident or death in the family, after which the recipient intends to resume
enrollment in a pharmacy program or a full-time pharmacy practice; or
2. The recipient is insolvent due to
circumstances beyond his control, including natural disaster, involuntary
unemployment, or unforeseen medical expenses.
(3) Military service deferment. The authority
shall grant a military service deferment to a recipient upon proof of current
active duty status in the United States Armed Forces, subject to annual review
and verification by the authority.
(4) Residency deferment. The authority shall
grant a deferment for a maximum of twenty-four (24) months to a recipient who
provides proof of participation in a qualified pharmacy residency
program.
(5) Pharmacy service
deferment. A deferment shall be granted to a recipient who, due to verified
current employment in a service-creditable position as a pharmacist in a
coal-producing Kentucky county, is reasonably expected, on an annual basis, to
qualify for cancellation benefits pursuant to
11
KAR 19:020.
Section 5. Upon default of a repayment
obligation under this program, a recipient shall be permanently barred from
eligibility for the deferment options provided for in this administrative
regulation unless the obligation is rehabilitated as provided in
11
KAR 19:020, Section 6.
STATUTORY AUTHORITY:
KRS
164.744(2),
164.748(4),
164.753(3),
174.7890(9)