New Mexico Administrative Code
Title 5 - POST-SECONDARY EDUCATION
Chapter 7 - TUITION AND FINANCIAL AID
Part 32 - NURSE EDUCATOR LOAN-FOR-SERVICE PROGRAM
Section 5.7.32.13 - LOAN REPAYMENT AND FORGIVENESS
Current through Register Vol. 35, No. 18, September 24, 2024
All loans shall be repaid to the state together with interest or forgiven according to the following.
A. If a loan recipient fails to fullfill or is unable to commence their service obligation, the loan shall become due with interest at seven percent (7%) per year. The department, in consultation with the student, shall establish terms of repayment, alternative service, or cancellation terms.
B. Interest will only begin to accrue if loan recipient ceases employment or fails to complete the degree program as a nurse educator prior to completing their service obligation.
C. If the borrower teaches as a nursing faculty at an eligible institution, loan principal may be forgiven according to the following formula.
D. Recipients must serve a complete academic year of service in order to receive credit for that year. Service as a nurse educator while attending college courses will be credited toward the service obligation.
E. Subject to applicable statutory limitations, the department may extend or modify the foregoing repayment periods for good cause.
F. In the event it becomes necessary, the department may suspend or defer loan payments using the following provisions. 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 any other information as requested.
G. Loans may be prepaid at any time. Payment on a loan not in repayment status 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:
I.Borrower has the responsibility to notify the department in advance of any change of address and of any action which necessitates reconsideration of a promissory note.