Section 97743 - Loan Repayment Program Provisions(a) Subject to the availability of funds, the Office may contract to repay educational loans in return for services health professionals provide in medically underserved areas. The loan repayment commitment made by the Office shall consist of a promise to repay, on behalf of a program participant, the principal, interest and related expense on outstanding governmental and commercial educational loans, not in default, received by the participants for: (1) Tuition expenses; and,(2) Other reasonable educational and living expenses incurred while a participant attended school (subject to approval as to eligibility by the Office).(b) The service obligation of the participant shall be 12 months for each loan repayment contract entered into with the Office. However, a service obligation in a medially underserved area shall not be for a period of less than 24 months. The service obligation must be fulfilled on a full-time basis. "Full-time basis" means a forty-hour work week, minus normal time off for vacation (not to exceed 4 weeks per year) and sick leave. The service obligation must be in direct patient care.(c) After each 12 month period when a recipient has fulfilled his or her service obligation, the Office shall pay up to $20,000 in retirement of the outstanding educational debt. The precise terms and conditions of the loan repayment commitment and the service obligation shall be detailed in the agreement entered into between the Office and the participant.(d) The Office may enter into a collateral agreement with a lender (or note holder) to repay directly a loan or loans. Repayment shall be conditioned on satisfactory performance of the service obligation by the participant. The repayments shall be made in accordance with a schedule agreed to between the Office and the program participant. The Office may agree to repay all of a particular loan, or only partially repay a loan. If an individual has more than one eligible loan outstanding, the Office may select which loan it will repay. Nothing in this paragraph shall prohibit the Office from paying a participant directly, instead of a lender or note holder.(e) During the period of service obligation, the participant shall continue to make any required periodic payments on all outstanding loans. The Office shall require periodic reports substantiating service in a medially underserved area (and other information) prior to releasing funds to a participant or a lender (or note holder).Cal. Code Regs. Tit. 22, § 97743
1. New section filed 5-24-90 as an emergency; operative 5-24-90 (Register 90, No. 27). Section remains in effect pursuant to Education Code section 69801 unless amended or repealed by the Office of Statewide Health Planning and Development.
2. Change without regulatory effect amending subsection (b) and NOTE filed 7-3-2017 pursuant to section 100, title 1, California Code of Regulations (Register 2017, No. 27). Note: Authority cited: Section 128360, Health and Safety Code. Reference: Sections 128345 and 128350, Health and Safety Code.
1. New section filed 5-24-90 as an emergency; operative 5-24-90 (Register 90, No. 27). Section remains in effect pursuant to Education Code section 69801 unless amended or repealed by the Office of Statewide Health Planning and Development.
2. Change without regulatory effect amending subsection (b) and Note filed 7-3-2017 pursuant to section 100, title 1, California Code of Regulations (Register 2017, No. 27).