New Mexico Administrative Code
Title 5 - POST-SECONDARY EDUCATION
Chapter 7 - TUITION AND FINANCIAL AID
Part 12 - MINORITY DOCTORAL ASSISTANCE
Section 5.7.12.9 - LOAN REPAYMENT AWARD CRITERIA; CONTRACT TERMS; PAYMENT

Universal Citation: 5 NM Admin Code 5.7.12.9

Current through Register Vol. 35, No. 18, September 24, 2024

A. Loan repayment award criteria shall provide that:

(1) award amounts shall be dependent upon a specific need for the recipient as determined by the department, the recipient's total education indebtedness, and available balances in the minority doctoral loan repayment fund;

(2) awards shall be made to eligible tenure track faculty teaching in the fields of engineering, physical or life sciences, mathematics or other academic disciplines in which ethnic minorities or women are demonstrably underrepresented;

(3) award amounts may be modified based upon funding availability or other special circumstances;

(4) awards may be distributed on a pro-rata basis for each year of service completed; and

(5) the recipient shall teach in a full-time faculty position at a public post-secondary educational institution in New Mexico for a minimum of one year for each year a minority doctoral loan repayment assistance grant is awarded.

B. The following education debts are not eligible for repayment pursuant to the Minority Doctoral Loan Repayment Assistance Act:

(1) amounts incurred as a result of participation in state loan-for-service programs or other state programs whose purpose states that service be provided in exchange for financial assistance;

(2) scholarships that have a service component or obligation;

(3) personal loans from friends or relatives;

(4) loans that exceed individual standard school expense levels; and

(5) loans that are eligible for another federal or state loan repayment program.

C. Every loan repayment award shall be evidenced by a contract between the recipient and the department acting on behalf of the state. The contract shall provide for the payment by the state of a stated sum to the recipient's approved lender and shall state the obligations of the recipient under the program, including a minimum period of service in a designated critical need recipient position, quarterly reporting requirements, and other obligations established by the department.

D. Recipients who have completed their probationary period and serve an additional year in a tenure track faculty position shall receive credit for one year for the purpose of calculating any loan repayment award amounts.

E. The contract between a recipient and the department shall provide that, if the recipient does not comply with the terms of the contract, the recipient shall reimburse the department for all loan payments made on the recipient's behalf, plus reasonable interest at a rate to be determined by the department, unless the department finds acceptable extenuating circumstances for why the recipient cannot comply with the terms of the contract.

F. Loan repayment awards shall be in the form of payments from the minority doctoral loan repayment fund directly to the federal government or commercial lender of a recipient who has received the award and shall be considered a payment on behalf of the recipient pursuant to the contract between the department and the recipient. A loan repayment award shall not obligate the state or the department to the recipient's federal government lender for any other payment and shall not be considered to create any contract between the state or the department and the lender.

G. The department shall develop policies and procedures to implement the Minority Doctoral Loan Repayment Assistance Act. The policies and procedures:

(1) shall provide a procedure for determining the amount of a loan that will be repaid for each year of service in a designated recipient position; the maximum annual award amount shall be based on program demand and available appropriations;

(2) shall incorporate scoring criteria including but not limited to public postsecondary institution served, eligible doctoral field of study, total loan indebtedness of the worker, years of service in a tenure track faculty position, and prior loan repayment or other financial support provided to the worker; and

(3) may provide for the disbursement of loan repayment awards to lender on behalf of the recipient in annual or other periodic installments.

Disclaimer: These regulations may not be the most recent version. New Mexico 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.
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