(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.
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