Ala. Admin. Code r. 300-4-10-.12
Current through Register Vol. 43, No. 02, November 27, 2024
Section 300-4-10-.12 - Scholarship/Loan Servicing(1) In-school servicing consists primarily of maintaining changes in a TSPAT recipient's name, home address, school address, and graduation date, if applicable. It is the TSPAT recipient's responsibility to notify the Alabama Commission on Higher Education, within thirty (30) calendar days, of any change of address, name change, or graduation date, if applicable.(2) Scholarship/loan repayment begins not later than ninety (90) calendar days after the TSPAT recipient withdraws from his/her approved course(s) or program of study.(3) Repayments due shall include interest assessed at the rate charged recipients of non-need-based federal guaranteed student loans.(4) The terms of repayment may provide for substantially equal installment payments. Repayment in full on all scholarship loans received must be completed within ten (10) years, unless a shorter period of time would occur when minimum payments of $100 per month plus interest result in an earlier payoff. (a) A TSPAT scholarship/loan recipient may make a prepayment of the whole or any part of a TSPAT scholarship/loan at any time without penalty.(b) The amount of repayment each year shall be a minimum of $1200 or the unpaid balance of all outstanding scholarship/loans, including interest, whichever is less. 1. If the TSPAT scholarship/loan recipient and the Commission agree, the amount paid may be less.2. A repayment schedule shall require a TSPAT scholarship/loan recipient to repay fully a TSPAT scholarship/loan within ten (10) years, except for periods of deferment.3. Within thirty (30) days after a TSPAT scholarship/loan has been repaid in full, the Alabama Commission on Higher Education shall verify to the scholarship/loan recipient the scholarship loan obligation has been paid.(5) Authorized deferments permit the postponement of principal payment during the specific period and under specific conditions after the repayment period has begun. (a) It is the responsibility of the TSPAT scholarship/loan recipient to provide to the Alabama Commission on Higher Education all documentation required to establish eligibility for a specific type of deferment.(b) Deferment is authorized during period when a TSPAT scholarship/loan recipient is engaged in one of the following activities:1. Not in excess of three (3) years during which the TSPAT scholarship/loan recipient is temporarily totally disabled, as established by a sworn affidavit of a qualified physician.2. Not in excess of three (3) years during which the TSPAT scholarship/loan recipient is serving on active duty as a member of the armed services of the United States.(6) If a TSPAT scholarship-loan recipient dies, or becomes permanently and totally disabled, the recipient's obligation to make any further payments of principal and interest on a TSPAT scholarship/loan is cancelled. (a) The Alabama Commission on Higher Education will not attempt to collect on a TSPAT scholarship-loan from the scholarship/loan recipient's estate.(b) The Alabama Commission on Higher Education may make a determination that the TSPAT scholarship-loan recipient has died on the basis of a certified death certificate or other proof of death which is acceptable under applicable State law.(c) The Alabama Commission on Higher Education may make a determination that the scholarship-loan recipient is permanently and totally disabled on the basis of a sworn affidavit of a qualified physician.(d) The Alabama Commission on Higher Education shall return to the sender any repayments received from the estate of the TSPAT scholarship-loan recipient or paid on behalf of the TSPAT scholarship-loan recipient after the date of death.(e) The Alabama Commission on Higher Education shall return to the sender any repayments received by or on behalf of a TSPAT scholarship-loan recipient after the date on which the recipient is designated as permanently and totally disabled.(7) If a TSPAT scholarship-loan recipient has been adjudicated a bankrupt, the Commission shall file proof of claim with the bankruptcy court. The Alabama Commission on Higher Education may determine that a recipient has been adjudicated a bankrupt upon the receipt of notice of the first meeting of the creditors from the bankruptcy court.(8) Upon the request of the Alabama Commission on Higher Education, the Attorney General or any District Attorney shall institute proceeding in the name of the State for the purpose of recovering any amount due the State under the provisions of the Technology Scholarship Program for Alabama Teachers. Author:
Ala. Admin. Code r. 300-4-10-.12
New Rule: Filed November 7, 1997; effective December 12, 1997.Statutory Authority: Act 93-636.