Section 457-612-III - Loans for Dental Students ProgramA. Application deadline. Applications for loans must be received at the Authority on or before the application deadline as set by the Authority, annually. In the event funds are available for additional loans after the Authority has considered all applications received on or before the deadline, the Authority may consider additional applications.B. Eligibility. To receive a loan an applicant must: 2. Provide all financial aid information requested by the Authority prior to any deadline established by the Authority and evidence financial need for a loan.3. Be admitted to a program of dentistry at an institution of medical education that has been accredited by the appropriate accreditation agency.4. Demonstrate, in an application essay, an interest in practicing primary dental care in an underserved population area and serving patients regardless of ability to pay through insurance or other payment sources.5. Applicants agree to be interviewed if requested by the Authority.6. Loans may not be used as a substitute for:c. Financial aid from funds of an institution;d. Any other financial aid available from the loan applicant's undergraduate college or university or any professional medical associations;e. Loans made pursuant to Title VII of the Federal Public Health Service Act;f. Notwithstanding the foregoing, a financial aid officer from an institution may request that loans from the Authority pursuant to this Rule substitute for any of the financial aid listed if such substitution will be in the best interests of the applicant. Such requests may be granted in the discretion of the chief executive officer. The chief executive officer's decision on any such request shall be final.C. Priority for loans. Awards of loans shall be made according to the following order of priority: 1. First priority for loans is for students who wish to renew loans and who continue to demonstrate financial need, with priority within this category in order of greatest financial need.2. Second priority for loans is for incoming students with intent to practice primary dental care in an underserved population area, with priority within this category in order of greatest financial need.D. The Authority will determine financial need based on cost of attendance less financial aid.E. In no event may a student receive loan funds which when combined with other financial assistance, will exceed the student's cost of attendance at the institution.F. Agreement Requirements. Each loan recipient must sign an agreement with the Authority including at a minimum each of the following provisions: 1. The loan recipient must provide an annual report to the Authority on forms supplied annually on or before the date indicated by the Authority as the due date.2. Until the loan is satisfied, the loan recipient must report any change of address to the Authority within four weeks of any address change.3. Repayment/Forgiveness a. Upon compliance with all necessary procedures loan recipients practicing primary dental care in an underserved population area in a dental care facility will be forgiven 25% of their original outstanding indebtedness under this section III. The loan recipient must provide evidence of such practice satisfactory to the chief executive officer.b. The repayment period will begin six months following completion of professional education, or upon withdrawal from school for whatever reason. The loan recipient is responsible for notifying the Authority of completion of professional education or withdrawal from school.c. Payments must be made in monthly installments on a repayment schedule established by the Authority.d. Interest will begin to accrue at the beginning of the repayment period. The first monthly installment will be due one month following the date determined as marking the beginning of the repayment period.e. Loan recipients may receive partial loan forgiveness on a pro rata basis for eligible employment of at least 20 hours per week, and/or for eligible employment for less than a full calendar year. The accrual of interest will commence one month after the cessation of a practice environment which qualifies for forgiveness of a loan. Cash payments will be due after the cessation of a practice environment which qualifies for forgiveness of the loan.f. Loan recipients who practice in an environment which does not qualify them to receive loan forgiveness but who later establish a practice which does qualify for loan forgiveness during the repayment period may reduce the balance due through return service. Any monies due and payable for the time spent in the practice ineligible for forgiveness must be paid in cash and will not be forgiven for return service in Maine. Each year of return service will reduce the remaining balance including accrued interest by 25% of the total original indebtedness.g. The Authority may, in the discretion of the chief executive officer, refuse to credit all or any part of forgiveness of any loan if the loan recipient fails to return the annual report or any information requested by the Maine Department of Health and Human Services by the due date which shall be no less than 30 days after the mailing of the annual report form by the Authority.4. Default. a. If a payment is not made within 30 days following the due date, the Authority may declare the loan in default and give the loan recipient 30 days to cure the default. If the loan recipient fails to cure the default after 30 days notice, the Authority may declare the entire amount due and payable including attorney's fees. The Authority may increase the interest rate up to an additional 5% in the event of a default.b. A loan recipient may be granted permission to default without penalty from an agreement to practice in an underserved population area by petitioning the Authority. The Authority may grant permission to default without penalty if the recipient provides evidence that catastrophic circumstances prohibit the recipient's practice in the underserved population area for the required period of time, and for such other reasons as may be determined by the chief executive officer on a case-by-case basis. The Authority will credit a successful petitioner with forgiveness for the number of months served. The remaining obligation must be paid in full with interest.5. Deferment a. Deferments during the repayment period may be granted by the chief executive officer. A written request must be made to the chief executive officer requesting a deferment by a borrower. The request must state the justification for the deferment and must include all supporting documentation. Deferments will be decided on a case-by-case basis. The decision of the chief executive officer shall be final. Deferments may be granted for each of the following reasons: (1) The temporary disability of the borrower;(2) The borrower's temporary inability to meet the requirements necessary to obtain forgiveness of the loan, if the student evidences the intent to pursue one of the forgiveness provisions;(3) The demonstration of the borrower that immediate repayment of the loan will cause an undue hardship, as determined by the chief executive officer;(4) Such other reasons as the chief executive officer may approve. b. A deferment will not ordinarily be granted for a period greater than one year. However, upon request of the borrower, the chief executive officer may renew any deferment on a case-by-case basis.c. During the period of an approved deferment, simple interest will be assessed at an annual rate of interest equal to the rate of interest applicable to Federal Stafford loans at the time of the recipient's first note plus 1.5%. During deferment of loans first made after January 1, 2016, and renewals of those loans, the annual interest rate is 5%. At the conclusion of the deferment period the total outstanding balance including principal and interest shall be repaid either through return service or cash payments within the years remaining in the ten year repayment period.6. Loan Term. Loans must be repaid over a term no greater than ten years. The term may be extended upon a finding by the chief executive officer that such an extension is necessary to assure the repayment of the loan.7. Maximum Loan Amount. a. Loans may not exceed $20,000 (or $25,000 for loan agreements first signed after January 1, 2020) annually for up to four years. Notwithstanding the financial need of the students, the Authority may, in the discretion of the chief executive officer, provide loans of a lesser amount based on demand for loans, the actual funds available, and such other factors as the chief executive officer deems to be material. No applicant may receive an aggregate amount greater than $80,000 (or $100,000 for recipients of loan agreements first signed after January 1, 2020) of amounts received under section II and section III hereof.b. For the purposes of determining terms of repayment and forgiveness, all loans made under this section III shall be combined.8. Interest Rate. a. Any loan recipient who maintains a practice in the State of Maine, who devotes 75% or more of the practice to the provision of primary dental care and is not eligible for forgiveness pursuant to section III. F.3 shall owe the Authority interest at an annual rate of interest equal to the rate of interest applicable to Stafford loans at the time of the recipient's original note plus .5% per annum computed as simple annual interest. For loans first made after January 1, 2016, and renewals of those loans, the annual interest rate pursuant to this subsection shall be 3%.b. Any loan recipient who maintains a practice in the State of Maine, but who does not devote 75% or more of the practice to the provision of primary dental care and is not eligible for forgiveness pursuant to section III. F.3 shall owe the Authority interest at an annual rate of interest equal to the rate of interest applicable to Stafford loans at the time of the recipient's original note plus 1% per annum computed as simple annual interest. For loans first made after January 1, 2016, and renewals of those loans, the annual interest rate pursuant to this subsection shall be 5%.c. Any loan recipient who does not maintain a practice in the State of Maine shall owe the Authority interest at an annual rate of interest equal to the rate of interest applicable to Stafford loans at the time of the recipient's original note plus 1.5%, computed as simple annual interest. For loans first made after January 1, 2016, and renewals of those loans, the annual interest rate pursuant to this subsection shall be 8%.d. No interest shall accrue on the loan recipient's indebtedness while the loan recipient receives loan forgiveness.9. Death or Permanent Disability. On the death of the recipient as evidenced by a certified death certificate or on the total and permanent disability of the recipient, as certified by a licensed physician, all amounts or service remaining due from the recipient will be forgiven.
94- 457 C.M.R. ch. 612, § III