28B.102.055 - Loan repayment agreements -- Rules.

Loan repayment agreements — Rules.

(1) Upon documentation of federal student loan indebtedness, the board may enter into agreements with participants to repay all or part of a federal student loan in exchange for teaching service in an approved educational program. The ratio of loan repayment to years of teaching service for the loan repayment program shall be the same as established for the conditional scholarship program.

     (2) The agreement shall specify the period of time it is in effect and detail the obligations of the board and the participant, including the amount to be paid to the participant. The agreement may also specify the geographic location and subject matter area of teaching service for which loan repayment will be provided.

     (3) At the end of each school year, a participant under this section shall provide evidence to the board that the requisite teaching service has been provided. Upon receipt of the evidence, the board shall pay the participant the agreed-upon amount for one year of full-time teaching service or a prorated amount for less than full-time teaching service. To qualify for additional loan repayments, the participant must be engaged in continuous teaching service as defined by the board.

     (4) The board may, at its discretion, arrange to make the loan repayment directly to the holder of the participant's federal student loan.

     (5) The board's obligations to a participant under this section shall cease when:

     (a) The terms of the agreement have been fulfilled;

     (b) The participant fails to maintain continuous teaching service as determined by the board; or

     (c) All of the participant's federal student loans have been repaid.

     (6) The board shall adopt rules governing loan repayments, including approved leaves of absence from continuous teaching service and other deferments as may be necessary.

[2004 c 58 § 8.]