Louisiana Administrative Code
Title 28 - EDUCATION
Part IV - Student Financial Assistance-Higher Education Scholarship and Grant Programs
Chapter 16 - Health Care Educator Loan Forgiveness Program
Section IV-1609 - Discharge of Obligation
Universal Citation: LA Admin Code IV-1609
Current through Register Vol. 50, No. 9, September 20, 2024
A. The obligations of the recipient may be discharged by cancellation, teaching for the required period of obligation, or by monetary repayment.
B. Cancellation. The board may discharge the requirement to maintain full-time enrollment, or 2/3 time for doctoral degree students, the requirement to complete the degree program in which the recipient is enrolled, or the requirement to teach full-time as a registered nurse or allied health education faculty member under the following circumstances:
1. the recipient has a permanent mental or
physical disability, or other circumstance for which the board may deem
discharge is appropriate; and
2.
the recipient provides such documentation as the board requires in order to
evaluate whether a discharge should be granted; or
3. the participating institution at which the
recipient is employed requests that the board discharge the teaching
requirement and provides such documentation that the board requires to make a
determination that the obligation should be discharged.
C. Fulfillment of Teaching Requirement. The obligation may be discharged under the following conditions:
1. the recipient secures full-time employment
as a nurse or allied health program faculty member at the institution which
nominated him for the loan program or at another participating institution with
the assistance and approval of the institution which nominated him for the loan
program; and
2. the recipient
begins teaching full-time as a nurse or allied health program faculty member no
later than the semester following the semester the student obtains his masters
or doctoral degree; or
3. if the
student is unable to secure employment as a fulltime faculty member at the
institution which nominated him for the loan program or at another
participating institution with the assistance and approval of the institution
which nominated him for the loan program, the recipient may fulfill the
teaching obligation by working in a public health facility, state office, or
other alternative service as the board may deem appropriate. The student must
seek and obtain board approval prior to undertaking such an alternative service
position;
4. each year of full time
teaching or other alternative service as approved by the board will discharge
$10,000 of the obligation.
D. Monetary Repayment. A recipient may be terminated from participation in the program either with or without default.
1. Termination without Default
a. Termination without default occurs when:
i. the recipient's enrollment in the degree
program for which he received program funds is discontinued;
ii. the recipient fails to remain enrolled on
a fulltime basis, or 2/3 time for doctoral students; or
iii. the recipient fails to maintain good
academic standing.
b. In
the event of termination without default, the recipient must repay the total of
program funds received plus interest to LOSFA within 90 days of the date an
event listed in
§1609. D.1.a i-iii
occurs.
c. Interest will accrue at
the prime interest rate at the time the condition in
§1609. D.1.a i-iii
occurs plus 3 percent. Interest will accrue from the date of each
disbursement.
2.
Termination with Default
a. Termination with
default occurs:
i. if, upon completion of the
degree, the recipient fails to obtain a full-time faculty position in a nurse
or allied health education program or fails to obtain approval for an
alternative service position without just cause; or
ii. the recipient is terminated from his
employment for cause or voluntarily leaves his employment prior to fulfillment
of the teaching obligation.
b. In the event of termination with default,
the principal due at the time of default will be calculated in accordance with
the following formula:
i. [(a/b) x (b-c)]3 =
d.
ii. for purposes of the formula
above, "a" is equal to the total of the loans disbursed; "b" is equal to the
months of service obligation required; "c" is equal to the number of months of
the teaching obligation that were fulfilled; and "d" is equal to the total
principal balance at the time repayment begins.
c. Interest will accrue on the principal due
at the prime rate at the time of default plus 3 percent.
d. Interest will begin to accrue 60 days
following the board's determination that the recipient is in default and shall
accrue for the duration of the repayment period.
e. The recipient must make payment in full of
the total amount due or begin making monthly payments no later than 60 days
after the date of default and shall pay at least 25 percent of the total
amount, including interest, due each calendar year.
AUTHORITY NOTE: Promulgated in accordance with R.S. 17:3021-3031 and R.S. 17:3129.7.
Disclaimer: These regulations may not be the most recent version. Louisiana may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.
