S.C. Code Regs. § § 62-522

Current through Register Vol. 48, No. 10, October 25, 2024

Section 62-522 - Repayment

A. A student who receives loans under this program shall be eligible to have 20% of the loan(s) canceled for each full year, or 10% for each complete term of teaching experience, up to a maximum of 100% of the amount of the loan(s) plus the interest thereon. There shall be no cancellation for partial terms.

B. If the borrower does not meet the requirements for cancellation as specified in paragraph A above, the borrower must begin repayment of the loan(s) received under this program in accordance with the Regulations of the Corporation and the Commission and subject to the terms of the Promissory Note(s), unless otherwise agreed to by the Corporation and the borrower. If a borrower does not initially meet the requirements for cancellation as set forth in paragraph A above, but subsequently does so, there will be no refund or credit provided for any amount paid; provided, however, any unpaid balance at the time the borrower begins teaching will be eligible for cancellation subject to the regulations contained herein.

(1) Repayment of the principal amount of a loan made under this program, together with interest, shall be made in monthly installments beginning six (6) months after the date on which the borrower ceases to carry at least one-half the normal full-time academic work load at an eligible institution as defined by the Authority. The monthly installment shall be at a rate which will repay the loan in not more than ten (10) years from the beginning of the repayment period. Unless specifically authorized by the Corporation, the monthly installment shall be at a rate of not less than $50 per month. A borrower may accelerate repayment of the loan, in whole or in part, without penalty.

(2) In the event a borrower dies, the obligation to make any further repayment shall be canceled upon receipt of a certificate of death, and in the event a borrower becomes totally and permanently disabled, the obligation to make any further repayment shall be canceled upon receipt of certification by a licensed physician and upon receipt of such other medical evidence as the Corporation may require.

(3) The Corporation shall have the authority to assess a late charge for failure of the borrower to pay all or part of an installment within the ten (10) days after its due date. The amount of such charge may not exceed six (6) cents for each dollar of each installment due.

(4) The Corporation shall have the authority to collect from the borrower reasonable attorney's fees and other costs and charges necessary for the collection of any amount not paid when due.

(5) Nothing in this section shall preclude any forbearance for the benefit of the borrower which may be agreed upon by the parties to the loan and approved by the Corporation.

C. The Corporation shall develop and maintain such procedures, subject to the approval of the Commission, as may be necessary to carry out applicable provisions of this Program and the regulations thereof; and as may be required to exercise reasonable care and diligence in the making and collection of loans.

S.C. Code Regs. § 62-522

Added by State Register Volume 16, Issue No. 3, eff March 27, 1992.