SECTION 30.145. Conditions of Forgivable Loan

(a) The department awards forgivable loans based on the availability of money in the fund.

(b) Forgivable loan funds may be used only for educational expenses at the agreed upon academic institution.

(c) The forgivable loan shall not exceed the annual cost of attendance at the academic institution the student attends. The cost of attendance shall be determined by the academic institution's financial aid office. A student may receive financial aid from other sources; however, the department will reduce the amount of the forgivable loan by the amount of aid from other sources so that the combined financial aid does not exceed the allowable cost of attendance as determined by the financial aid office.

(d) The department may authorize forgivable loans to be awarded to eligible students provided:

(1) the sponsor has executed a Memorandum of Understanding with the department agreeing to provide 50% of the student's costs of attendance for the academic year;

(2) the sponsor and the student have executed a contract with the department which includes the responsibilities of each party and penalties for breach of contract; and

(3) the student has executed a promissory note with a qualified co-signor.

(e) A sponsor must notify the department in writing within two weeks of any information that may affect a student's program eligibility or the student's or sponsor's ability to meet contract requirements.

(f) The student must notify the department in writing within two weeks of any change in enrollment or employment status.

(g) Disbursements of forgivable loan funds shall be made directly to the academic institution according to a schedule determined by the department.

(h) A student who receives a forgivable loan under this program will be forgiven the total forgivable loan by providing full-time health care practice for an obligated period of service equal to 12 months for each year loan support is provided. The obligated period of service shall begin on the date full-time employment or practice begins in the sponsoring rural community after the student has become certified or licensed in the health care profession for which sponsored. If employment is on less than a full-time basis, forgiveness shall be prorated.

Source Note: The provisions of this §30.145 adopted to be effective January 1, 2015, 39 TexReg 10395