New Mexico Administrative Code
Title 5 - POST-SECONDARY EDUCATION
Chapter 7 - TUITION AND FINANCIAL AID
Part 7 - CHILDREN, YOUTH AND FAMILIES WORKER LOAN REPAYMENT PROGRAM
Section 5.7.7.10 - LOAN REPAYMENT AWARD CRITERIA; CONTRACT TERMS; PAYMENT

Universal Citation: 5 NM Admin Code 5.7.7.10

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

A. The secretaries of the department and the CYFD shall designate a selection committee for the purpose of review and selection of qualified applicants.

B. Loan repayment award criteria shall provide that:

(1)award amounts shall be dependent upon a specifc need for the designated critical need public service worker position as determined by the department, the public service worker's total education indebtedness, and available balances in the public service worker loan repayment fund;

(2) preference in making awards shall be to public service workers who have graduated from a New Mexico public post-secondary educational institution;

(3) awards shall be made to eligible public service workers who fill a designated critical need position;

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

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

(6) an award for each public service worker shall not exceed twenty-five thousand dollars ($25,000) or the loan indebtedness of the worker, whichever is less.

C. The following public service worker education debts are not eligible for repayment pursuant to the Children, Youth and Families Worker Loan Repayment 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.

D. Every loan repayment award shall be evidenced by a contract between the public service worker 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 public service worker's approved lender and shall state the obligations of the public service worker under the program, including a minimum period of service in a designated critical need public service worker position, quarterly reporting requirements, and other obligations established by the department.

E. Public service workers who have completed their probationary period and serve an additional year in a designated critical need position shall receive credit for one (1) year for the purpose of calculating any loan repayment award amounts.

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

G. Loan repayment awards shall be in the form of payments from the public service worker loan repayment fund directly to the federal government or commercial lender of a public service worker who has received the award and shall be considered a payment on behalf of the public service worker pursuant to the contract between the department and the public service worker. A loan repayment award shall not obligate the state or the department to the public service worker'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.

H.The department, after consulting with the CYFD, shall develop policies and procedures to implement the Children, Youth and Families Worker Loan Repayment 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 public service worker 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 geographic area or facility served, total loan indebtedness of the worker, years of service in a critical need position, and prior loan repayment or other financial support provided to the worker; and

(3) shall provide for the disbursement of loan repayment awards to a public service worker's federal government or commercial lender 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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