Code of Maine Rules
94 - INDEPENDENT AGENCIES
457 - FINANCE AUTHORITY OF MAINE (FAME)
Chapter 607 - ACCESS TO MEDICAL EDUCATION AND HEALTH PROFESSIONS LOAN PROGRAMS
Section 457-607-IV - PROVISIONS AFFECTING STUDENTS WHO COMMENCE PROFESSIONAL EDUCATION ON OR AFTER JULY 1, 1981 AND PRIOR TO JANUARY 1, 1993
Universal Citation: 94 ME Code Rules ยง 457-607-IV
Current through 2024-13, March 27, 2024
A. General Provisions
1. The
contract student shall sign a written Agreement, and Promissory Note and
Disclosure Statement through which the student agrees to conditions for
repayment of indebtedness as a participant in the Postgraduate Health
Professions Program.
2. The
contract student upon completion of professional education or upon withdrawal
from school for whatever reason shall enter the repayment period.
3. Any contract student commencing
professional education on or after July 1, 1981 shall repay the State the
tuition differential for each year of attendance as a contract student if the
student's obligation has not been fulfilled under the forgiveness
provisions.
4. Each student, except
those who withdrew from professional education or no longer reside in Maine,
shall return an annual report to the Authority no later than the date set forth
by the Authority.
5. The student
will report any change of address when such occurs to the Authority.
B. Repayment
1. The amount due the State shall include
interest at 9% on a simple annual basis. Interest will be assessed starting on
the date which marks the beginning of the repayment period.
2. Within three months following completion
of professional education; including internship, residency, fellowship, and
obligated public health service, and/or obligated national service, or upon
withdrawal from school for whatever reason, a specific date will be determined
marking the beginning of the repayment period.
3. Payments will be made in ten (10) annual
installments on a repayment schedule established by the Authority. The contract
student may request a monthly or quarterly payment schedule.
4. The first annual installment will be due
three months following the date determined as marking the beginning of the
repayment period.
5. Contract
students who practice either within or outside the State of Maine for less than
a full calendar year will have their repayment computed on a pro rata
basis.
C. Default. If a payment is not made within 90 days following the due date, the State may declare the entire amount due and payable including attorney's fees of up to 15% of the amount in default subject to the student's right to receive a notice of right to cure.
D. Forgiveness
1. Contract students who return to Maine to
practice in a designated underserved area may reduce the indebtedness by 25%
for each year of practice.
2.
Contract students who complete an entire family practice residency program in
the State may have their indebtedness reduced by 50% of the original
outstanding indebtedness upon completion.
3. Contract students eligible for the
reduction of debt through return service must complete the "Practice Location
and Date Form" section of the annual report duly notarized indicating the exact
date of the beginning of the Maine practice.
4. Contract students who practice
out-of-state and then establish a Maine practice at some point during the ten
(10) year repayment period may reduce the balance due through return service.
Any monies due and payable for the time period spent in out-of-state practice
must be paid in cash and will not be forgiven for return service in Maine. Each
year of return service will reduce the existing balance by 25% of the total
original tuition differential.
5.
Death or Permanent Disability. On the death of a loan recipient as
evidenced by a certified death certificate or on the total and permanent
disability of a loan recipient, as certified by a licensed physician, all
amounts remaining due from the recipient will be forgiven.
E. Deferment
1. Deferments during the repayment period may
be granted by the chief executive officer for a maximum of three years. A
written request shall be made to the chief executive officer requesting a
deferment by a contract student who during the repayment period, either returns
to a Maine practice and then leaves the State or who initially remains
out-of-state and then returns to a Maine practice. The request must state
justification for the deferment and will be decided on a case-by-case basis.
The decision of the chief executive officer shall be final.
2. During the period of an approved
deferment, simple interest will be assessed at the annual rate of 9%. At the
conclusion of the deferment period, the total outstanding balance, including
principal and interest shall be repaid either through return service or cash
payments within the years remaining in the ten (10) year repayment period. Each
year of return service will reduce the balance by 25% of the original total
tuition differential.
3. Deferments
for other reasons may be granted in the discretion of the chief executive
officer. Any request must state the justification for the deferment and must
include supporting documentation. Deferments will be determined on a
case-by-case basis. The decision of the chief executive officer shall be
final.
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