15-1783. Mathematics, science and special
education teacher student loans; interest; obligations; repayment;
authority of attorney general
(L10, Ch. 332, sec. 22. Eff. 7/1/11)
A. Each applicant who is approved for a loan by the commission may be granted a
loan for a period of up to five years.
B. The commission, on behalf of this state, shall enter into a written contract
with the qualified 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 commission. 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
within one calendar year after attaining a bachelor's degree at a qualifying
postsecondary institution. The service commitment shall be full-time as determined by
the commission 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 a qualifying postsecondary institution, 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 commission 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 commission 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 commission 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 commission 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.
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 commission 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 commission determines that this action is justified after a
review of the individual's circumstances. At the discretion of the commission, the
commission may allow service by teaching in another area of recognized need in this state
that is not specified in the qualified student's contract, but only following prior
written approval by the commission.
E. The attorney general may commence whatever actions are necessary to enforce the
contract and achieve repayment of loans provided by the commission pursuant to this
article.
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