575-072-0070 Terms of Loans Made Under this Program (1) Student borrowers under this program shall be required to pay at least seven percent interest per annum on the unpaid balance of their loans from the date of the loan, as provided in section (5) of this rule. The interest rate for new loans shall be set annually by the Commission. (2) Repayment of the principal and accruing and deferred interest on loans shall be commenced not later than 12 months after the student's completion of the nursing program or other termination of the student's education. (3) Repayment of loans shall be deferred upon application therefore for up to three years during which: (a) The student borrower is enrolled as at least a half-time student in a subsequent nursing program leading to a nursing degree higher than that attained in the initial program; (b) The student borrower is employed as a nurse in this state on at least a half-time basis; or (c) The student borrower shows inability to locate suitable employment. (4) The Commission may extend the beginning of the repayment period for students who qualify for deferment of repayment as described in section (3) of this rule. (5) Repayment commences under the usual terms if the student borrower ceases to be employed as a nurse in this state before completing the practice requirements set forth in section (8) of this rule. (6) Repayment shall: (a) Be made in monthly installments of no less than $50 per month; (b) Be completed in a maximum of 120 months from the time repayment is commenced. (7) Nothing in section (6) of this rule is intended to prevent repayment without penalty at an earlier date than provided in that section, or to prohibit the Commission from extending the repayment period to a date other than specified by this section. (8) A student who borrows under this program shall have 100 percent of principal and accrued interest on loans under this program cancelled when it can be documented to the satisfaction of the Commission that, within five years of graduation, the student has completed one calendar year of full-time employment or two calendar years of half-time employment as a nurse in the State of Oregon in a nursing shortage area as determined through OAR 575-072-0540 for each academic year in which a loan was received. (9) A student who borrows under this program and completes at least one calendar year of the full-time practice obligation described in section (8) of this rule shall have the amount of principal and accrued interest on loans under this program cancelled for each calendar year of qualifying practice, as follows: (a) For full-time practice, equal to the principal and accrued interest on the loan borrowed for the comparable academic year of award; or (b) For half-time practice, equal to half of the principal and accrued interest on the loan borrowed for the comparable academic year of the award. (10) Repayment of any remaining principal and interest shall be waived upon the death or total and permanent disability of the student borrower. (11) If a borrower in repayment satisfies the criteria for loan cancellation set forth in section (8) of this rule, then all payment made by that borrower will be returned. Statutory/Other Authority: ORS 348 Statutes/Other Implemented: SB 331 & 2001 OLA History: OSAC 4-2002, f. & cert. ef. 2-6-02 OSAC 4-2001(Temp), f. & cert. ef. 10-12-01 thru 3-27-02 SSC 6-1994, f. & cert. ef. 1-25-94 SSC 3-1992, f. & cert. ef. 2-28-92