Kentucky Administrative Regulations › Title 11 - KENTUCKY HIGHER EDUCATION ASSISTANCE AUTHORITY › Chapter 7 - Incentive Loan Program › Section 11 KAR 7:020 - Deferment

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS 164.768
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS 156.611, repealed
				and reenacted as
				KRS 164.768 by Section 1
				of House Bill 74 of the 1988 regular session of the General Assembly,
				establishes the math/science incentive loan program and provides that the
				Kentucky Higher Education Assistance Authority (authority) may permit deferment
				of repayment for cause. This administrative regulation defines "deferment" and
				establishes conditions under which specified types of deferments may be
				approved by the authority. This amendment is necessary and is intended only to
				correct the statutory citation.
Section
			 1. Definitions. Unless otherwise specified, the words and phrases
			 used herein shall have the same meaning as set forth in
			 11 KAR
			 7:010. "Deferment" means a temporary waiver of the
			 obligation of a math/science incentive loan recipient to make payments to the
			 authority, pursuant to one (1) or more promissory notes executed between the
			 recipient and the authority, which is granted by the authority, for a specified
			 period of time, upon a showing of cause by the recipient.
Section 2. Request for Deferment. The
			 recipient must request a deferment in writing by submitting complete and
			 accurate information on a form prescribed by the authority. The recipient's
			 submission of a request for deferment shall constitute authorization for the
			 authority to request and receive such verification of facts represented by the
			 recipient as may be deemed necessary by the authority.
Section 3. Effect on Repayments. During a
			 deferment, no principal or interest repayments shall be required but interest
			 shall continue to accrue on the unpaid principal balance owed by the recipient.
			 Nothing contained herein shall require the authority to grant a deferment if
			 such deferment would legally impair the ultimate recovery of the principal and
			 accrued interest otherwise owed by the recipient. If, during a deferment, the
			 recipient resumes full-time enrollment in a teacher education program leading
			 to certification in a critical shortage field at a participating institution or
			 renders qualified teaching service, then the deferment shall nullify the
			 commencement of repayment, such that any promissory note so deferred may be
			 subsequently cancelled in accordance with
			 KRS 164.768 and
			 11 KAR
			 7:010.
Section
			 4. Types of Deferments. The following deferments may be granted by
			 the authority:
(1) Enrollment deferment. A
			 deferment granted to a recipient who is enrolled on at least a half-time basis
			 at a business school, college, vocational school or school of nursing (as those
			 terms are defined in
			 KRS
			 164.740) in the United States. The recipient
			 must provide to the authority, at least annually, evidence of such enrollment
			 on properly completed forms provided by the authority.
(2) Disability deferment. A deferment granted
			 to a recipient who is temporarily totally disabled and, therefore, unable to
			 obtain any full-time employment or to attend school; or, a deferment granted to
			 a recipient who is unable to obtain any full-time employment or attend school
			 due to the temporary total disability of the recipient's spouse who requires
			 continuous (twenty-four (24) hour) nursing or similar care by the recipient.
			 For purposes of this deferment, a recipient, or the spouse of a recipient, is
			 temporarily totally disabled if he/she suffers an injury or illness which
			 necessitates an extended or indefinite period of recovery which can be expected
			 to preclude gainful employment or school attendance and, in the case of a
			 recipient's spouse, he/she is not confined to a hospital, nursing home,
			 intermediate care facility, or similar institution. The recipient must provide
			 to the authority a statement from a licensed physician certifying that the
			 recipient or spouse is temporarily totally disabled in accordance with the
			 preceding terms and conditions. The recipient is solely responsible for
			 securing the physician's certifications. This deferment may, at the authority's
			 discretion, be granted for a period not to exceed three (3) years, subject to
			 annual review of a physician's certification. After the third year of any
			 deferment, pursuant to this subsection, the authority may, in its sole
			 discretion, cancel the debt.
(3)
			 Unemployment deferment.
(a) A recipient
			 seeking, but unable to obtain, a qualified teaching service position within six
			 (6) months following completion of a qualified teacher education program at a
			 participating institution may be granted a single deferment for a period not to
			 exceed one (1) year. The recipient must have applied for a qualified teaching
			 service position with at least three (3) public school districts and must not
			 have refused an offer of employment in a qualified teaching service position in
			 such public school districts or in any other public school districts to which
			 the recipient may have applied, and must provide the authority a signed
			 statement which sets forth:
1. The recipient's
			 current address;
2. The names of
			 public school districts to which the recipient has applied for qualified
			 teaching service employment; and
3.
			 The recipient's agreement to notify the authority when he/she obtains full-time
			 employment in a qualified teaching service position; or
(b) A recipient seeking, but unable to
			 obtain, any full-time (at least thirty (30) hours per week) employment may be
			 granted a single deferment for a period not to exceed one (1) year. The
			 recipient must provide, on the form prescribed by the authority, a signed
			 statement which sets forth:
1. The
			 recipient's current address;
2.
			 Certification that the recipient has registered with a public or private
			 employment agency, if one is accessible, specifying the name and address of
			 such agency; and
3. The borrower's
			 agreement to notify the authority within thirty (30) days of a date upon which
			 he/she obtains full-time employment. If full-time employment is obtained at any
			 time during the period of a deferment approved pursuant to this section, such
			 deferment shall be immediately terminated.
(c) The immediately preceding subsections of
			 this section are alternative ways to qualify for a single deferment for a
			 period not to exceed one (1) year. Pursuant to paragraph (a) of this
			 subsection, a recipient, who is seeking, but unable to obtain, a qualified
			 teaching service position, may receive a deferment even if employed full-time
			 in another type of position. Pursuant to paragraph (b) of this subsection, a
			 recipient, who is not actively seeking a qualified teaching service position,
			 may receive a deferment only if actively seeking and unable to obtain any type
			 of full-time employment.
(4) Parenting deferment. A deferment may be
			 granted by the authority when a recipient interrupts qualified teaching service
			 or enrollment in a qualified teacher education program at a participating
			 institution under an approved leave of absence for purposes of rearing a
			 preschool age child. The borrower must provide to the authority a statement,
			 signed by an authorized representative of the public school district or
			 participating institution, evidencing that such a leave of absence has been
			 approved for the recipient. This deferment shall remain in effect during the
			 period of the leave of absence not to exceed two (2) years. The recipient is
			 solely responsible for securing, at least annually, the required verification
			 of an approved leave of absence.
(5) Hardship deferment. If enrollment in a
			 teacher education program leading to certification in a critical shortage field
			 or employment in a qualified teaching service position is temporarily
			 interrupted due to circumstances beyond the recipient's control, including, but
			 not limited to, illness, accident or death in the family, after which the
			 recipient intends to resume such enrollment or qualified teaching service
			 position, then the authority may determine that a hardship exists and may grant
			 a single deferment of a period not in excess of one (1) year.
(6) Qualified teaching service deferment.
(a) Deferments may be granted, from time to
			 time, to a recipient who, due to current employment in a qualified teaching
			 service position, may reasonably be expected, solely with the passage of six
			 (6) months or less time, to qualify for cancellation benefits pursuant to
			 11 KAR
			 8:010.
(b)
			 In the event that a recipient has received loans or scholarships from more than
			 one (1) program administered by the authority, which require a period of
			 qualified teaching service for repayment or cancellation, and the recipient is
			 either:
1. Obligated to concurrently make
			 cash payments on the math/science incentive loan and another such program;
			 or
2. Performing qualified teaching
			 service to fulfill the requirement of another such program; then a deferment of
			 repayment of the math/science incentive loan may be granted during the period
			 in which the recipient is making payments or performing qualified teaching
			 service in accordance with the requirements of the other program.