N.M. Admin. Code § 5.7.4.12

Current through Register Vol. 35, No. 23, December 10, 2024

Section 5.7.4.12 - LOAN REPAYMENT AND FORGIVENESS

All loans shall be repaid to the state together with interest or forgiven.

A. the loan shall be forgiven as follows:

(1) a loan term of one year shall require one year of practice as a primary care physician in an underserved area of the state for the one-year term of the loan received. Upon completion of service, 100% of the loan and accrued interest shall be forgiven;

(2) a loan term of two years shall require two years of practice as a primary care physician in an underserved area of the state for the two-year term of the loan received. Upon completion of the first year of service, 50% of the loan and accrued interest shall be forgiven; upon completion of the second year of service, the remainder of the loan and accrued interest shall be forgiven;

(3) a loan term of three years shall require three years of practice as a primary care physician in an underserved area of the state for the three-year term of the loan received. Upon completion of the first year of service, 25% of the loan and accrued interest shall be forgiven; upon completion of the second year of service, 50% of the loan and accrued interest shall be forgiven; and upon completion of the third year of service, the remainder of the loan and accrued interest shall be forgiven;

(4) a loan term of four years shall require four years of practice as a primary care physician in an underserved area of the state for the four-year term of the loan received. Upon completion of the first year of service, 30% of the loan and accrued interest shall be forgiven; upon completion of the second year of service, 40% of the loan and accrued interest shall be forgiven; upon completion of the third year of service, 50% of the loan and accrued interest shall be forgiven; and upon completion of the fourth year of service, the remainder of the loan and accrued interest shall be forgiven; or

(5) a loan term of five years shall require five years of practice as a primary care physician in an underserved area of the state for the five-year term of the loan received. Upon completion of the first year of service, 10% of the loan and accrued interest shall be forgiven; upon completion of the second year of service, 20% of the loan and accrued interest shall be forgiven; upon completion of the third year of service, 30% of the loan and accrued interest shall be forgiven; upon completion of the fourth year of service, 50% of the loan and accrued interest shall be forgiven; and upon completion of the fifth year of service, the remainder of the loan and accrued interest shall be forgiven;

B. in the event that a participant completes the participant's course of study and does not meet the program obligation to serve as a primary care physician in an underserved area of the state, the department shall assess a penalty of up to three times the principal due, plus 18% interest, unless the department finds acceptable extenuating circumstances for why the participant cannot serve. The department shall collect the penalty and remit it to the state treasury for deposit in the fund;

C. the department is authorized to cancel any contract made between it and any participant pursuant to the Conditional Tuition Waiver for Primary Care Medical Students Act, or set terms of alternative service in lieu of monetary repayment, for any cause the department deems reasonable;

D. the department shall be responsible for collecting repayments made pursuant to this section and shall exercise due diligence in collecting repayments and maintaining all necessary records to ensure that full repayments are made. The department shall collect and service repayments under this section to the full extent of the law, including wage garnishment where practicable. The department shall forgive all or parts of repayments under the criteria established in this section and shall maintain all necessary records of repayments it forgives; and

E. when a participant makes payment of principal or interest to the department pursuant to the provisions of this section, the department shall deposit these payments into the fund and shall use these payments to cover the costs of granting waivers and the administrative expenses associated with the program and collection activity on its behalf. The department shall maintain accurate records of these expenses, and all receipts beyond those necessary to pay these expenses shall be used to grant waivers to participants.

N.M. Admin. Code § 5.7.4.12

5.7.4.12 NMAC - N, 10/31/2013