Current through Register Vol. 35, No. 18, September 24, 2024
A. All loans shall be repaid to the state
together with interest or forgiven according to the following:
(1) If a program loan recipient completes
his/her professional education and does not provide service in New Mexico for a
period of at least one year, the commission may assess a penalty of up to three
times the principal due, plus eighteen percent interest, unless the WICHE
commissioners find acceptable extenuating circumstances for why the student
cannot serve and comply with the forgiveness provisions outlined in this
section.
(a) The full penalty shall apply
unless the circumstances reflect that the penalty should be reduced on a
prorata basis reasonably reached based upon the degree of control which the
recipient has over the decision not to serve. The recipient shall have the
burden of proof.
(b) If the WICHE
commissioners do not find acceptable extenuating circumstances for the
student's failure to carry out his/her declared intent to provide service in
New Mexico, the commission shall require immediate repayment of the unpaid
principal amount of the loan plus accrued interest owed plus the amount of any
penalty assessed pursuant to this section
(2) If a program loan recipient fails to
complete their eligible profession education, the principal shall come due
together with interest immediately upon termination of their education. The
commission, in consultation with the student, shall establish terms of
repayment, alternative service or cancellation terms. Loans meeting this
provision will bear interest rate of seven percent per year.
B. The contract shall further
provide that immediately upon completion or termination of the student's
eligible profession education, all interest then accrued due shall be
capitalized.
C. If the borrower,
after completion of their eligible profession education and any period of
internship and/or residency, provides service in New Mexico, loan principal and
interest may be forgiven according to the following formula:
(1) loan terms of one academic year or less
shall require one year of practice in New Mexico. Upon completion of service,
one hundred percent of the principal plus accrued interest shall be
forgiven;
(2) loan terms of two
academic years shall require one year of practice in New Mexico for each
academic year of the loan. Upon completion of the first year of service, fifty
percent of the principal plus accrued interest shall be forgiven. Upon
completion of the second year of service, the remainder of the principal plus
accrued interest shall be forgiven; and,
(3) for loan terms of three academic years or
more, forty percent of the principal plus accrued interest shall be forgiven
upon completion of the first year of service in New Mexico, thirty percent of
the principal plus accrued interest shall be forgiven upon completion of the
second year of service and the remainder of the principal plus accrued interest
shall be forgiven upon completion of the third year of service.
D. Recipients must serve a
complete year of service in order to receive credit for that year. The minimum
credit for a year of service shall be established by the WICHE
commissioners.
E. Subject to
applicable statutory limitations, the WICHE commissioners may extend or modify
the foregoing repayment periods for good cause.
F. In the event it becomes necessary, the
WICHE commissioners may suspend loan payments using the following forbearance
provisions:
(1) If the borrower is willing,
but financially unable to make payments under the repayment schedule, the
borrower may request forbearance to allow for any of the following:
(a) a short period during which no payments
are made, interest would continue to accrue;
(b) an extension of time for making payments,
interest would continue to accrue; or
(c) a period during which the borrower makes
smaller payments than were originally scheduled, interest would continue to
accrue on the unpaid principal.
(2) Forbearance following completion of
program, internship, or residency will not be granted for periods extending
beyond six months. The granting of a subsequent forbearance must be approved by
the designated staff representative of the commission.
(3) The borrower must submit a written
request accompanied by a financial statement and a consent-waiver for
authorization for current employment and address information concerning the
borrower and other information as requested.
(4) Deferral of repayment obligation may be
as follows, at the determination by the designated staff representative of the
commission:
(a) the borrower is serving up to
a maximum of three years as an active duty member of the Armed Forces of the
United States;
(b) the borrower is
temporarily totally disabled, for a period not to exceed three years, as
established by sworn affidavit of a qualified physician;
(c) the borrower is seeking but unable to
find full-time employment for a single period not to exceed twelve
months;
(d) the borrower is unable
to secure employment for a period not to exceed twelve months while caring for
a disabled spouse;
(e) the borrower
is unable to satisfy the terms of the repayment schedule while seeking but
unable to find full-time employment in an eligible health profession, in a
designated shortage area, for a single period not to exceed twenty-seven
months; or
(f) other extenuating
circumstances as provided for under the American Family Leave Act.
G. Loans may be prepaid
at any time, subject to the penalty provision set forth in this section.
Payment on a loan not in repayment may be made in any amount. Payments on a
matured promissory note shall be in the amounts of and be applied on the
principal installments due on such note in the inverse order of the maturities
of such installments, unless otherwise agreed.
H. Authorized charges and fees:
(1) Borrower may be charged a late charge in
the amount of five percent of the installment payment or five dollars ($5.00),
whichever is less, on any payment made later than ten days after it is
due.
(2) Attorney's fees, other
charges, and costs: Borrower shall agree to pay all reasonable attorney's fees,
and other costs and charges necessary for the collection of any loan amount not
paid when due.
I.
Borrower has the responsibility to notify the commission in advance of any
change of address and of any action which necessitates reconsideration of a
promissory note (i.e. the failure to serve in a designated shortage area) the
termination of service in a designated shortage area, or his/her ceasing to be
enrolled in an eligible institution in an eligible health profession program.
Borrower's failure to notify the commission and to execute a promissory note on
request shall cause the full amount of principal and accumulated interest to
become due immediately.
