La. Admin. Code tit. 28 § IV-2313

Current through Register Vol. 50, No. 11, November 20, 2024

Section IV-2313 - Discharge of Obligation

A. The loan may be discharged by engaging in a fulltime primary care medical practice in a designated area for a period of five years, by monetary repayment or by cancellation.

B. Discharging the loan by entering into the full-time practice as a primary care physician in a designated area is accomplished by:

1. completing a residency in a primary care field of medicine within four years of the graduation from medical school; and

2. practice as a primary care physician on a full-time basis for a period of at least five consecutive years in a designated area.

C. Recipients who fail to complete the medical practice requirements as specified in the promissory note shall be required to repay the entire loan obligation in accordance with Subsection D, below.

D. Discharging the Promissory Note by Monetary Repayment. Recipients who elect not to discharge the obligation by practicing medicine as required in these rules and the promissory note and who are not eligible for discharge by cancellation must immediately repay double the loan principal plus accrued interest and any collection costs incurred according to the following terms and conditions:

1. interest shall accrue on the outstanding principal from the date of disbursement to the recipient, at the rate determined by the board and reflected in the promissory note, not to exceed the maximum rate of interest which can be legally charged under Louisiana law for such loans. Annually, accrued interest shall be capitalized, meaning added to principal;

2. interest on each disbursement shall accrue from the date of disbursement until repaid, or fulfilled and shall be capitalized annually and at the time the recipient enters repayment status.

E. Repayment status:

1. the recipient will enter into a repayment status the first of the month following:

a. determination by the board that the recipient cannot discharge the loan by practicing medicine as required by these rules and the promissory note within the required time period; or

b. the date the recipient notifies the board that monetary repayment is desired; or

c. six months after the board determines that the recipient is no longer participating in a residency program in a primary care medical field or has otherwise failed to comply with the terms of the promissory note;

2. determination that a recipient has entered repayment status, the board will send written notice of the recipient's repayment status including the total amount of tuition that must be repaid, the amount of interest accrued and instructions for repayment;

3. the recipient must repay double the amount of the total tuition disbursed no later than 30 days from the date of the written notice of the recipient's repayment status. Accrued interest may be amortized in accordance with §2313. E 4;

4. the amount to be repaid annually will be the greater of:

a. the amount necessary to amortize the accrued loan interest, together with accruing interest, within five years; or

b. $5,000 per year or the unpaid balance, whichever is less;

5. recipients in repayment status may have their payments deferred in accordance with §2105 B, deferment of repayment obligation;

6. during the period of time a recipient is in a deferment status, a recipient is not required to make payments and interest does not accrue;

7. the period of time for completion of repayment will be extended by a period of time equal to the length of time the recipient is in deferment status.

F. Cancellation. The obligation to repay any remaining unpaid balance of the promissory note shall be canceled in the event either of the following occurs:

1. upon submission to the board of a sworn affidavit from a qualified physician that the recipient is precluded from gainful employment because of a complete and permanent medical disability or condition; or

2. upon submission to the board of a death certificate or other evidence conclusive under state law, that the recipient is deceased.

La. Admin. Code tit. 28, § IV-2313

Promulgated by the Student Financial Assistance Commission, Office of Student Financial Assistance, LR 25:1463 (August 1999), amended LR 25:2177 (November 1999), repromulgated LR 27:1874 (November 2001), amended LR 31:42 (January 2005), Amended by the Board of Regents, Office of Student Financial Assistance, LR 44573 (3/1/2018).

AUTHORITY NOTE: Promulgated in accordance with R.S. 17:3041.10-3041.26.