N.M. Admin. Code § 5.7.32.13

Current through Register Vol. 35, No. 23, December 10, 2024

Section 5.7.32.13 - LOAN REPAYMENT AND FORGIVENESS

All loans shall be repaid to the state together with interest or forgiven according to the following.

A. If a loan recipient fails to fullfill or is unable to commence their service obligation, the loan shall become due with interest at seven percent (7%) per year. The department, in consultation with the student, shall establish terms of repayment, alternative service, or cancellation terms.

B. Interest will only begin to accrue if loan recipient ceases employment or fails to complete the degree program as a nurse educator prior to completing their service obligation.

C. If the borrower teaches as a nursing faculty at an eligible institution, loan principal may be forgiven according to the following formula.

(1)Loan terms less than one (1) academic year shall require one (1) academic year of practice as a nurse educator. Upon completion of first year of service, one hundred percent (100%) of the principal shall be forgiven.

(2) Loan terms of two (2) academic years shall require two (2) academic years of practice as a nurse educator at an eligible institution. Upon completion of the first year of service, fifty percent (50%) of the principal shall be forgiven. Upon completion of the second year of service, the remainder of the principal shall be forgiven.

(3) Loan terms of three (3) academic years or more shall require three (3) years of practice as a nurse educator at an eligible institution. Forty percent (40%) of the principal shall be forgiven upon completion of the first year of service as a nurse educator, thirty percent (30%) of the principal shall be forgiven upon completion of the second year of service, and the remainder of the principal shall be forgiven upon completion of the third year of service.

D. Recipients must serve a complete academic year of service in order to receive credit for that year. Service as a nurse educator while attending college courses will be credited toward the service obligation.

E. Subject to applicable statutory limitations, the department may extend or modify the foregoing repayment periods for good cause.

F. In the event it becomes necessary, the department may suspend or defer loan payments using the following provisions. The borrower must submit a written request accompanied by a financial statement and a consent-waiver for authorization for current employment and address information concerning the borrower, and any other information as requested.

(1) If the borrower is willing, but financially unable to make payments under the repayment schedule, the borrower may request forbearance for a period not to exceed six (6) months. Interest will accrue during this period.

(2) The borrower may request deferment of payment obligation for a period not to exceed three (3) years for any purpose deemed acceptable by the department.

G. Loans may be prepaid at any time. Payment on a loan not in repayment status may be made in any amount. Payments on a matured promissory note shall be in the amounts of and be applied on the principal installments due on such note in the inverse order of the maturities of such installments, unless otherwise agreed.

H.Authorized charges and fees:

(1) Late charges: Borrower may be charged a late charge in the amount of five percent (5%) of the installment payment or five dollars ($5.00), whichever is less, on any payment made later than ten (10) days after it is due.

(2) Attorney's fees, other charges, and costs: Borrower shall agree to pay all reasonable attorney's fees, and other costs and charges necessary for the collection of any loan amount not paid when due.

I.Borrower has the responsibility to notify the department in advance of any change of address and of any action which necessitates reconsideration of a promissory note.

N.M. Admin. Code § 5.7.32.13

5.7.32.13 NMAC - N, 1/15/2008

Amended by New Mexico Register, Volume XXVI, Issue 13, July 15, 2015, eff. 7/15/2015