Md. Code Regs. 13B.08.22.11

Current through Register Vol. 51, No. 12, June 14, 2024

Section 13B.08.22.11 - Scholarship Conditions and Repayment

A. Recipient Obligations. A scholarship recipient shall:

(1) Maintain all scholarship eligibility requirements set forth in Education Article, Title 18, Subtitle 22, Annotated Code of Maryland, and this chapter;

(2) Satisfy the degree requirements of the course of study or program for which the scholarship was received;

(3) After completion of the course of study or program for which the scholarship was received, perform a service obligation that meets the requirements of Regulation .12 of this chapter;

(4) Become professionally certified to teach in the State of Maryland no later than 2 years after completion of the course of study or program for which the scholarship was received; and

(5) Satisfy any other criteria established by the Commission.

B. Required Documents. A recipient shall:

(1) Enter into a written agreement with the Commission, in the form and manner prescribed by the Office, to meet the scholarship conditions in §A of this regulation; and

(2) Sign a promissory note, in the form prescribed by the Office, to repay the award if the recipient does not perform the obligations set forth in the written agreement.

C. Conversion of Scholarship to Loan.

(1) Except as provided in Regulation .12 of this chapter, if a recipient breaches the agreement or promissory note in §B of this regulation, the scholarship shall be converted to a student loan, payable to the State.

(2) Except as set forth in §C(3) of this regulation, the amount of the loan shall be equivalent to the total of the awards received by the recipient from the State.

(3) The loan amount may be prorated based on partial fulfillment of the service obligation.

(4) Interest on the loan shall be charged at an interest rate equal to the interest rate established by the United States Department of Education for the Federal Stafford Loan on July 1st each year. Interest will not accrue prior to a recipient's graduation or termination from an eligible institution.

(5) The Office shall establish a repayment schedule for the loan. Except as otherwise provided in this regulation, repayment shall be made to the State within 6 years after the repayment period begins.

D. Loan Forgiveness.

(1) The Office shall partially forgive a recipient's repayment obligation, in an amount equal to 2 years' awards, if it determines that:

(a) The recipient has:

(i) Taken the teacher certification examination approved by the State Board of Education, in 2 consecutive years; and

(ii) Failed to pass the teacher certification examination within 2 years after completion of the course of study or program for which the scholarship was received; or

(b) The recipient has provided to the Office satisfactory evidence of extenuating circumstances that prevented the recipient from becoming professionally certified to teach in the State.

(2) Decisions of the Office regarding loan forgiveness are final and not subject to further review or appeal.

Md. Code Regs. 13B.08.22.11

Regulation .11 adopted effective 49:15 Md. R. 739, eff. 7/25/2022