15-1783

15-1783. Mathematics, science, special
education and elementary education teacher student loans;
interest; obligations; repayment; authority of attorney general

(L10, Ch. 257, sec. 2)

A. Each applicant who is approved for a loan by the board may be granted a loan for
a period of up to five years.

B. The board, on behalf of this state, shall enter into a written contract with the
student. The contract shall set forth the methods and terms of repayment by the loan
recipient to this state and shall be on terms and conditions and in a form provided by
the board. The contract shall provide for the following:

1. The loan recipient shall begin the service commitment providing instruction in
the area of mathematics, science or special education in a public school in this state or
in elementary education in a public school that is located in a geographic area in this
state that is experiencing a shortage of teachers, as determined by the state board of
education, within one calendar year after attaining a bachelor's degree at an accredited
university in this state. The service commitment shall be full-time as determined by the
Arizona board of regents and requires one year of service for each year of loan support
plus one additional year of service.

2. If the loan recipient engages in postgraduate studies without a lapse of more
than one calendar year following the completion of the loan recipient's bachelor's degree
at an accredited university in this state, the loan recipient shall begin the service
commitment required under paragraph 1 within one calendar year after completing
postgraduate studies.

3. If the loan recipient is inducted into military service, or for any other cause
beyond the loan recipient's control deemed sufficient by the board is unable to begin the
service commitment required under paragraph 1 within one calendar year after completing a
bachelor's degree and any graduate studies, the loan recipient shall begin the service
commitment required under paragraph 1 within one calendar year after completing the
required military service or the termination of any other cause.

4. If the loan recipient fulfills the service commitment required under paragraph 1
in a public school in this state or while completing military service resulting from
induction, the loan recipient's indebtedness to this state may be discharged in one of
the following ways:

(a) One year of full-time service required under paragraph 1 for each year of loan
support plus one additional year of service.

(b) Repayment to this state of the total loan amount for each year of support with
interest at the rate prescribed in subsection C.

5. If the loan recipient fails to complete the required course of study, if the
course of study is interrupted by one academic year or more for a cause or causes not
resulting from induction into military service or any other cause beyond the loan
recipient's control deemed sufficient by the board or if the loan recipient fails to
fully discharge the service commitment required under paragraph 1, except for delays
resulting from an excusable cause as prescribed in this section, the amount of the loan
not repaid or fully discharged shall be due and payable with interest at the rate
prescribed in subsection C. The board may extend the time of payment over a period not
exceeding fifteen years and shall not require payment of interest during the existence of
any excusable cause as prescribed in this section.

6. If the loan recipient does not begin the service commitment required under
paragraph 1 within the time prescribed in this section but paid an agreed part of the
loan, the board may allow the loan recipient to discharge the balance of the obligation
by subsequent teaching in this state.

7. If the loan recipient dies during the period of the loan recipient's education
or practice as a teacher, the loan recipient's obligation to this state under this
article ceases.

8. The loan recipient may choose at any time to provide a different category of
service commitment prescribed in paragraph 1 without violating the contract, unless the
contract requires the loan recipient to provide instruction in the area of mathematics or
science.

9. If the loan recipient begins the service commitment required under paragraph 1
in a geographic area in this state that is experiencing a shortage of teachers, as
determined by the state board of education, but the state board of education subsequently
determines that geographic area is no longer experiencing a shortage of teachers, the
loan recipient may discharge the balance of the obligation by completing the service
commitment in the geographic area where the loan recipient began the service commitment.

C. The loan recipient shall repay the full amount borrowed at an interest rate of
at least seven per cent.

D. On receipt of supporting documentation, the board for good cause shown may defer
the loan recipient's service commitment or repayment obligation or may enter into
repayment arrangements with the loan recipient or allow service that is equivalent to
full-time service if the board determines that this action is justified after a review of
the individual's circumstances. At the discretion of the board, the board may allow
service by teaching in another area of recognized need in this state that is not
specified in the student's contract, but only following prior written approval by the
board.

E. The attorney general may commence whatever actions are necessary to enforce the
contract and achieve repayment of loans provided by the board pursuant to this article.