Code of Maine Rules
94 - INDEPENDENT AGENCIES
457 - FINANCE AUTHORITY OF MAINE (FAME)
Chapter 604 - OSTEOPATHIC LOAN PROGRAM
Section 457-604-III - Students Commencing Professional Education On or After July 1, 1981

Universal Citation: 94 ME Code Rules ยง 457-604-III

Current through 2024-38, September 18, 2024

A. Application Deadlines and Requirements

1. First Time Applicants
a. A First Time Applicant shall return a completed application to the Maine Education Assistance Division of the Authority no later than May 15th annually.

b. A First Time Applicant shall submit verification that the applicant is a resident of the State to the Authority not later than June 15th annually. Such verification shall consist of:
1 Copies of the applicant's tax returns for independent applicants or copies of the parents' tax return for dependent applicants for the three applicable years; and

2 Copy of the applicant's current driver's license.

The Authority, in its discretion may require such other proof as it deems necessary to confirm the residence of the applicant.

c. A First Time Applicant shall submit an affidavit of independence, if applicable.

d. A First Time Applicant shall provide evidence that the applicant is or will be attending an osteopathic college or university.

2. Renewal Applicants
a. A renewal applicant shall return a completed application to the Maine Education Assistance Division of the Authority no later than May 15th annually.

b. A renewal applicant shall submit an affidavit of independence, if applicable.

c. A renewal applicant shall submit evidence that the applicant is or will be attending an osteopathic college or university.

B. Loan Awards

The Authority shall determine the recipients of awards in accordance with the following criteria:

1. The maximum loan amount will be $10, 000 in each year. The Authority, at the discretion of the chief executive officer may, based on the amount available to make loans in each year, determine the maximum loan amount for the year. Such maximum amount may be less than $10,000.

2. Renewal applicants submitting timely applications shall receive priority for any available loan funds.

3. In the event any loan funds remain available after all eligible Renewal Applicants have received the maximum amount available for the year, the Authority shall make loans to all eligible First Time Applicants by dividing the remaining amount of the loan fund to be distributed in that year by all eligible First Time Applicants and making a loan of an equal amount to each applicant.

C. Loan Fund Administration

1. In any year the Authority, in the discretion of the chief executive officer, may distribute all or any part of the Osteopathic Loan Fund to eligible applicants.

2. Each loan recipient shall sign a Promissory Note and Loan Agreement ("Note"), which shall contain such terms and conditions necessary to assure the repayment/forgiveness of the loan in accordance with law and this rule. The Note shall provide that the recipient must file an annual report. Failure to file such annual report in a timely manner shall be deemed a default of the Note.

D. Repayment

1. The amount due the Authority shall include simple annual interest at 9%. The accrual of interest shall commence on the same date as the beginning of the repayment period.

2. The repayment period shall commence three (3) months following the loan recipient's conclusion of professional education or upon the loan recipient's withdrawal from the Osteopathic College, Postgraduate Program or Obligated Service for any reason and shall continue until such time as the loan is paid in full by either repayment or return service or a combination thereof.

3. Payments shall be made over a payment period not to exceed ten (10) years. Provided, however, a recipient may apply to the chief executive officer for an extension of the payment period. In the discretion of the chief executive officer, an extension of the payment period of up to ten years may be granted. The decision of the chief executive officer shall be final.

4. In the event the recipient files a notarized annual report form indicating that the recipient is practicing in an underserved area, the Authority may advise the recipient that no payments are due during the time of such practice. Repayment shall be due the Authority unless the Authority receives and accepts the Practice Location and Date form.

E. Forgiveness

1. Loan recipients may reduce their indebtedness by 25% for each year of practice within an underserved area in the State during the repayment period.

2. In the event that a loan recipient repays a portion of the indebtedness in cash prior to the commencement of return service, each year of return service completed will reduce the existing balance of the indebtedness by 25% of the total outstanding indebtedness. In no event shall, the Authority be deemed to owe any amount to a loan recipient who commences return service after making any cash payment.

3. In the event that a loan recipient completes only a portion of a year of return service, such service shall be credited to the indebtedness and a pro rata cash payment will be due for the remaining amount of the payment due in that year.

4. Return service shall not be credited to the indebtedness of the loan recipient until the Authority's receipt of a properly notarized annual report indicating that the recipient has practiced in an underserved area for all or a portion of a year. The Authority may verify the contents of said form as it deems necessary or appropriate.

F. Default. If payment or a notarized annual report is not received within 60 days following the due date, the Authority may declare the full amount due and payable, including reasonable costs of collection and attorney's fees.

G. Deferment.

1. Deferments shall be considered under those circumstances permitted by applicable law. Such requests shall be made in writing to the chief executive officer, who shall consider each request on a case-by-case basis. The decision of the chief executive officer shall be final.

2. During the period of approved deferment, simple interest will accrue on the indebtedness at an annual rate of nine percent. At the conclusion of the deferment period, the indebtedness shall be repaid either through return service or by cash payments within the years remaining in the repayment period, provided however, that all interest accrued during any deferment shall be paid in cash.

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