Current through Register Vol. 48, No. 9, September 27, 2024
A. The
African-American Teacher Loan may be canceled if a recipient is employed as a
teacher in South Carolina following receipt of initial certification. The loan
shall be canceled in increments of $5,000 (or portion thereof) for each full
year of employment in South Carolina as a teacher. There shall be no
cancellation for partial terms.
(1) A student
who indicates the intent to teach in the State will be entitled to cancellation
of all loans received under this program beginning from his/her actual
employment date.
(2) Upon
employment, the borrower will be entitled to cancellation of all loans received
under this program even if the borrower changes employment from one school
district to another within the State.
B. If a borrower does not meet the
requirements for cancellation as specified in paragraph A above, the borrower
must begin repayment of the loan(s) received under this program in accordance
with these regulations and subject to the terms of the Promissory Note(s)
unless otherwise agreed to by the participating institution and the borrower.
If a borrower does not initially meet the requirements for cancellations as set
forth in paragraph A above, but subsequently does so, there will be no refund
or credit provided for any amount paid. However, any unpaid balance at the time
the borrower begins teaching will be eligible for cancellation subject to the
regulations contained herein.
(1) Repayment of
the principal amount of a loan made under this program together with the
interest, shall be made in monthly installments beginning six (6) months after
the date on which the borrower ceases to carry at least one-half the normal
full-time academic work load at the participating institution. The monthly
installment shall be at a rate which will repay the loan in not more than eight
years (8) from the beginning of the repayment period. The monthly installment
shall be at a rate of not less than $50 per month. The borrower may accelerate
repayment of the loan, in whole or in part, without penalty.
(2) In the event a borrower dies, the
obligation to make any further repayment shall be cancelled upon receipt of a
Certification of Death. In the event a borrower becomes totally and permanently
disabled, the obligation to make further repayment shall be cancelled upon
receipt of certification by a licensed physician.
(3) The institution shall have the authority
to assess a late charge for failure of the borrower to pay all or part of an
installment within ten (10) days after it is due. The amount of such charge may
not exceed six cents (.06) for each dollar of each installment due.
(4) The institution shall have the authority
to collect from the borrower reasonable attorney's fees and other costs and
charges necessary for the collection of any amount not paid when due.
(5) Nothing in this section shall preclude
any forbearance for the benefit of the borrower which may be agreed upon by the
parties to the loan and approved by the participating institution.
C. The participating institutions
shall develop and maintain such procedures, subject to the approval of the
Commission on Higher Education, as may be necessary to carry out proviso 19.89
of the 1994-95 Appropriations Bill, and as may be required to exercise
reasonable care and diligence in the making and collection of loans.
