Current through Register Vol. 50, No. 9, September 20, 2024
A. The
loan may be discharged by engaging in a fulltime primary care medical practice
in a designated area for a period of five years, by monetary repayment or by
cancellation.
B. Discharging the
loan by entering into the full-time practice as a primary care physician in a
designated area is accomplished by:
1.
completing a residency in a primary care field of medicine within four years of
the graduation from medical school; and
2. practice as a primary care physician on a
full-time basis for a period of at least five consecutive years in a designated
area.
C. Recipients who
fail to complete the medical practice requirements as specified in the
promissory note shall be required to repay the entire loan obligation in
accordance with Subsection D, below.
D. Discharging the Promissory Note by
Monetary Repayment. Recipients who elect not to discharge the obligation by
practicing medicine as required in these rules and the promissory note and who
are not eligible for discharge by cancellation must immediately repay double
the loan principal plus accrued interest and any collection costs incurred
according to the following terms and conditions:
1. interest shall accrue on the outstanding
principal from the date of disbursement to the recipient, at the rate
determined by the board and reflected in the promissory note, not to exceed the
maximum rate of interest which can be legally charged under Louisiana law for
such loans. Annually, accrued interest shall be capitalized, meaning added to
principal;
2. interest on each
disbursement shall accrue from the date of disbursement until repaid, or
fulfilled and shall be capitalized annually and at the time the recipient
enters repayment status.
E. Repayment status:
1. the recipient will enter into a repayment
status the first of the month following:
a.
determination by the board that the recipient cannot discharge the loan by
practicing medicine as required by these rules and the promissory note within
the required time period; or
b. the
date the recipient notifies the board that monetary repayment is desired;
or
c. six months after the board
determines that the recipient is no longer participating in a residency program
in a primary care medical field or has otherwise failed to comply with the
terms of the promissory note;
2. determination that a recipient has entered
repayment status, the board will send written notice of the recipient's
repayment status including the total amount of tuition that must be repaid, the
amount of interest accrued and instructions for repayment;
3. the recipient must repay double the amount
of the total tuition disbursed no later than 30 days from the date of the
written notice of the recipient's repayment status. Accrued interest may be
amortized in accordance with
§2313. E 4;
4. the amount to be repaid annually will be
the greater of:
a. the amount necessary to
amortize the accrued loan interest, together with accruing interest, within
five years; or
b. $5,000 per year
or the unpaid balance, whichever is less;
5. recipients in repayment status may have
their payments deferred in accordance with
§2105 B, deferment of repayment
obligation;
6. during the period of
time a recipient is in a deferment status, a recipient is not required to make
payments and interest does not accrue;
7. the period of time for completion of
repayment will be extended by a period of time equal to the length of time the
recipient is in deferment status.
F. Cancellation. The obligation to repay any
remaining unpaid balance of the promissory note shall be canceled in the event
either of the following occurs:
1. upon
submission to the board of a sworn affidavit from a qualified physician that
the recipient is precluded from gainful employment because of a complete and
permanent medical disability or condition; or
2. upon submission to the board of a death
certificate or other evidence conclusive under state law, that the recipient is
deceased.
AUTHORITY NOTE:
Promulgated in accordance with
R.S.
17:3041.10-3041.26.
