California Code of Regulations › Title 5 - Education › Division 4 - California Student Aid Commission › Chapter 1 - California Student Aid Commission › Article 14 - Assumption Program of Loans for Education › Section 30708 - Failure to Comply with the Loan Assumption Agreement

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) For program participants who sign loan
				  assumption agreement prior to January 1, 2009 the following applies:
(1) Except as otherwise specified in subsection
				  (2)-(4), a program participant who fails to meet the requirements for payment
				  pursuant to the terms of the loan assumption agreement, including; failure to
				  maintain half-time enrollment or satisfactory academic progress while attending an
				  eligible institution, or failure to complete a minimum of four consecutive school
				  years of teaching in a subject area that was designated as a current or projected
				  shortage area at the time of application or at an eligible school on a full-time
				  basis will not qualify for loan payment. The loan assumption agreement shall be
				  deemed terminated, the program participant withdrawn from the program, and the
				  Commission shall not make any further payments. The program participant shall retain
				  responsibility to continue to make any payments required for any remaining loan
				  obligations under the terms of any outstanding loans to avoid defaulting on those
				  loans but shall not be required to repay any loan payments previously made through
				  the program.
(2) If a program
				  participant is unable to complete one of the four consecutive school years of
				  teaching in a subject area that is designated as a current or projected shortage
				  area at the time of application or at an eligible school on a full-time basis, due
				  to serious illness, pregnancy, or other natural causes, the program participant
				  shall submit a written request for a leave of absence and upon Commission approval,
				  shall be excused from this requirement for a period not to exceed one year. The
				  Commission shall make no further payments under the loan assumption agreement until
				  the applicable teaching requirements specified have been satisfied. The program
				  participant shall retain responsibility to continue to fulfill any obligation
				  required under the terms of any outstanding loans to avoid defaulting on those
				  loans.
(3) If a program participant is
				  unable to teach the first full year in an eligible area within 36 months of
				  obtaining a teaching credential, due to serious illness, pregnancy, or other natural
				  causes, or is called to active military duty status the program participant shall
				  submit a written request for a leave of absence and upon Commission approval, shall
				  be excused from this requirement for a period not to exceed one calendar year unless
				  approved by the Commission for a longer period of time. The Commission shall make no
				  further payments under the loan assumption agreement until the applicable teaching
				  requirements specified have been satisfied. The program participant shall retain
				  responsibility to continue to fulfill any obligation required under the terms of any
				  outstanding loans to avoid defaulting on those loans.
(4) If a program participant is unable to teach
				  the first full year in at an eligible area within 36 months of obtaining teaching
				  credential due to being laid off, reassigned, or other reason beyond the control of
				  the program participant, the program participant shall submit a written request for
				  a leave of absence and upon Commission approval, shall be excused from this
				  requirement for a period not to exceed one calendar year unless approved by the
				  Commission for a longer period of time. The Commission shall make no further
				  payments under the loan assumption agreement until the applicable teaching
				  requirements specified have been satisfied. The program participant shall retain
				  responsibility to continue to fulfill any obligation required under the terms of any
				  outstanding loans to avoid defaulting on those loans.