Code of Maine Rules › 94 - INDEPENDENT AGENCIES › 457 - FINANCE AUTHORITY OF MAINE (FAME) › Chapter 603 - RULES FOR THE CONDUCT OF THE BLAINE HOUSE SCHOLARS PROGRAM › Section 457-603-8 - Repayment and Return Service Provisions

Current through 2024-29, July 17, 2024
A. Student
				Recipients (Other Than Students Pursuing Postbaccalaureate Teacher
				Certification)
(1) Student recipients begin
				repayment six months after graduation.
(2) Each student recipient may cancel the
				total amount of the loan repayment by completing four years of return service
				in the public schools or private schools approved for tuition purposes in the
				state or in a state operated school.
(3) Each student recipient may cancel the
				total amount of the loan repayment by completing two years of return service in
				the public schools or private schools approved for tuition purposes in the
				state or in a state operated school if such service is performed in underserved
				subject areas or in geographically isolated areas as determined by the chief
				executive officer.
(4) Each student
				recipient may cancel the total amount of the loan(s) received on a proportional
				basis reducing the debt by 25% for each complete year of return service
				performed in the public schools or private schools approved for tuition
				purposes in the state or in a state operated school or by 50% for each year, if
				such return service is in an underserved subject area or a geographically
				isolated area.
(5) Student
				recipients shall perform return service within five years of graduation from
				the institution of higher education.
(6) A student recipient who fails to fulfill
				the return service option shall repay the Authority as follows:
a. The debt shall include the total amount of
				all Blaine House Scholars Program loans less the amount, if any, which has been
				canceled by return service.
b. The
				total debt shall be repaid to the Authority within five years of graduation on
				a schedule which specifies annual, semiannual, or monthly payments and
				indicates due dates. Exceptions due to extenuating circumstances may be granted
				on a case by case basis upon written request to the chief executive
				officer.
(7) Once a
				recipient has begun fulfilling the return service option by teaching in an
				underserved subject area or teaching in a geographically isolated area the
				recipient shall be allowed to complete this option in the same subject area or
				geographic area even though the subject area or geographically isolated area is
				removed from the list of those designated.
(8) Recipients who withdraw from school, for
				whatever reason, prior to completion of the course or courses for which the
				funds were loaned, will begin repayment one year from the end of the semester
				of last attendance and complete repayment within four years from the date of
				commencement of repayment, unless the student re-enrolls prior to that
				time.
(9) A recipient of a loan may
				seek a deferment of the annual principal payments. A request for deferment must
				be made to the chief executive officer who shall make a determination on a
				case-by-case basis. The decision of the chief executive officer shall be
				final.
(10) In the event of death
				or permanent disability (as determined by a physician) of a recipient, any
				unpaid amount due the Authority shall be canceled upon appropriate written
				verification of the death or disability to the Authority.
(11) If a cash payment is not made within 30
				days following the due date of that payment, the Authority may declare the
				entire amount due and payable subject to the recipients right to receive a
				notice of right to cure. If a default is declared the recipient shall be liable
				for the amount in default plus any accrued late fees and reasonable attorney's
				fees.
(12) If any monthly payment
				is not paid when due, the holder of the Note may collect a late charge of five
				cents ($0.05) for each dollar of such payment more than thirty (30) days in
				arrears.