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Division 4. California Student Aid Commission. Chapter 1. California Student Aid Commission. Article 14. Assumption Program Of Loans For Education. Loan Assumption Agreements.   

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(a) The nominating entity provides a loan assumption agreement to each nominated eligible applicant. The loan assumption agreement shall be effective when the Commission sends the program participant acknowledgement of acceptance into the program.

(b) The loan assumption agreement shall include the following:

(1) For program participants who are enrolled in or admitted to an approved program the program participants agree to (Attachment A.2):

(A) maintain enrollment in an approved eligible institution and maintain satisfactory progress in either an academic program leading to a baccalaureate degree or a program of professional teacher preparation that has been approved by the Commission on Teacher Credentialing; and

(B) maintain a minimum of half-time enrollment in baccalaureate or credential coursework per academic term as defined by the eligible institution; and

(C) complete coursework and training necessary to obtain an initial teaching credential other than an emergency credential which requires receipt of a baccalaureate degree and completion of a Commission on Teacher Credentialing approved program of professional teacher preparation which includes a student teaching requirement and authorizes service for K-12 grades; and

(D) continue to satisfy the eligibility requirements in section 30702(a)(2)- (3); and

(E) teach on a full-time basis in a subject area that is designated as a current or projected shortage area or at an eligible school, as designated on the Loan Assumption Agreement, for four consecutive school years on a full-time basis, or on a part-time basis for the equivalent of four full-time school years, beginning the first school year of eligible teaching service within thirty-six (36) months after obtaining an initial teaching credential.

(2) For program participants who are credentialed teachers in a public school ranked in the lowest two deciles on the Academic Performance Index at the time of application, the program participant agrees to (Attachment B.2):

(A) continue to satisfy the eligibility requirements in sections 30702(a)(2) and (5); and

(B) possess and maintain a clear multiple subject or clear single subject teaching credential or level II education specialist credential in California; and

(C) continue to teach in at a public school ranked in the lowest two deciles on the Academic Performance Index on a full-time basis or the part-time equivalent for four full-time, or its equivalent, consecutive school years; and

(D) authorize the eligible institution attended by the applicant, employers, and lenders to provide information requested by the Commission for the purposes of administering the loan assumption agreement; and

(E) teaching service provided prior to the program participant entering into the program will not count toward assumption benefits.

(3) For program participants who are district interns, the program participants agree to (Attachment C.2):

(A) maintain satisfactory progress in an approved participating APLE for district intern program that that has been approved by the Commission on Teacher Credentialing; and

(B) complete training necessary to obtain an initial teaching credential (other than an emergency credential) that requires receipt of a baccalaureate degree and authorizes service for kindergarten through 12th grade; and

(C) teach in a subject area that is designated as a current or projected shortage area or at an eligible school for four consecutive school years on a full-time basis or on a part-time basis for the equivalent of four full-time school years beginning the first school year of eligible teaching within thirty-six (36) months after obtaining an initial teaching credential; and

(D) continue to satisfy the eligibility requirements in section 30702(a)(2) and (4); and

(E) authorize the district intern program, employers, and lenders to provide information requested by the Commission for the purposes of administering the loan assumption agreement.

(4) For program participants who sign a loan assumption agreement prior to January 1, 2009 the Commission shall agree that:

(A) after the program participant has obtained an initial teaching credential and provide the first full school year of eligible full-time teaching service in K-12 grade at an eligible school within thirty-six (36) months from the date the individual becomes eligible to receive their initial teaching credential; and

(B) after the program participant has completed one school year of teaching on a full-time basis in a subject that was designated as a current or projected shortage area at the time of application or at an eligible school, the Commission shall assume, subject to the requirements of section 30707, up to two thousand dollars ($2,000) of the outstanding liability of the program participant under one or more of the designated loan programs; and

(C) after the program participant has completed two consecutive school years of teaching on a full-time basis in a subject that was designated as a current or projected shortage area at the time of application or at an eligible school, the Commission shall assume, subject to the terms of section 30707, up to an additional three thousand dollars ($3,000) of the outstanding liability of the program participant under one or more of the designated loan programs, for a total loan assumption of up to five thousand dollars ($5,000); and

(D) after the program participant has completed three consecutive school years teaching on a full-time basis in a subject that is designated as a current or projected shortage area at the time of application or at an eligible school, the Commission shall assume, subject to the terms of section 30707, up to an additional three thousand dollars ($3,000) of the outstanding liability of the program participant under one or more of the designated loan programs, for a total loan assumption of up to eight thousand dollars ($8,000); and

(E) after the program participant has completed four consecutive school years teaching on a full-time basis in a subject that is designated as a current or projected shortage area at the time of application or at an eligible school, the Commission shall assume, subject to the terms of section 30707, up to an additional three thousand dollars ($3,000) of the outstanding liability of the program participant under one or more of the designated loan programs, for a total loan assumption of up to eleven thousand dollars ($11,000); and

(F) additional benefits shall be granted to program participants that hold the credential appropriate for teaching and who teach in mathematics, science, and special education as follows:

1. Up to one thousand dollars ($1,000) of additional liability per eligible full-time school year shall be assumed for each eligible year of service up to a maximum of four years; and

2. Up to one thousand dollars ($1,000) of additional liability per eligible full-time school year shall be assumed for persons who teach in schools in the lowest two deciles on the Academic Performance Index rating for each eligible year of service up to a maximum of four years.

(G) Loans obtained for coursework after the program participant has received an initial teaching credential are not eligible for assumption under the APLE.

(5) For program participants who sign a loan assumption agreement on or after January 1, 2009 the Commission shall agree that:

(A) after the program participant has completed one school year of teaching on a full-time basis, or on a part-time basis for the equivalent of one full-time school year, in a subject that was designated as a current or projected shortage area at the time of application, at a public school ranked in the lowest two deciles on the Academic Performance Index, or at an eligible school, pursuant to the designated teaching service area indicated on the signed loan assumption agreement the Commission shall assume, subject to the requirements of section 30707, up to two thousand dollars ($2,000) of the outstanding liability of the program participant under one or more of the designated loan programs; and

(B) after the program participant has completed two consecutive school years of teaching on a full-time basis, or on a part-time basis for the equivalent of two full-time school years, in a subject that was designated as a current or projected shortage area at the time of application, at a public school ranked in the lowest two deciles on the Academic Performance Index, or at an eligible school, pursuant to the designated teaching service area indicated on the signed loan assumption agreement the Commission shall assume, subject to the terms of section 30707, up to an additional three thousand dollars ($3,000) of the outstanding liability of the program participant under one or more of the designated loan programs, for a total loan assumption of up to five thousand dollars ($5,000); and

(C) after the program participant has completed three consecutive school years teaching on a full-time basis, or on a part-time basis for the equivalent of three full-time school years, in a subject that is designated as a current or projected shortage area at the time of application, at a public school ranked in the lowest two deciles on the Academic Performance Index, or at an eligible school, pursuant to the designated teaching service area indicated on the signed loan assumption agreement the Commission shall assume, subject to the terms of section 30707, up to an additional three thousand dollars ($3,000) of the outstanding liability of the program participant under one or more of the designated loan programs, for a total loan assumption of up to eight thousand dollars ($8,000); and

(D) after the program participant has completed four consecutive school years teaching on a full-time basis, or on a part-time basis for the equivalent of four full-time school years, in a subject that is designated as a current or projected shortage area at the time of application , at a public school ranked in the lowest two deciles on the Academic Performance Index, or at an eligible school, pursuant to the designated teaching service area indicated on the signed loan assumption agreement the Commission shall assume, subject to the terms of section 30707, up to an additional three thousand dollars ($3,000) of the outstanding liability of the program participant under one or more of the designated loan programs, for a total loan assumption of up to eleven thousand dollars ($11,000); and

(E) additional benefits shall be granted to program participants that hold the credential appropriate for teaching and who teaches in mathematics, science, and special education as follows :

1. Up to one thousand dollars ($1,000) of additional liability per eligible school year of full-time teaching or equivalent on a part-time basis shall be assumed for persons who teach in schools in the lowest 60th percentile of the Academic Performance Index rating up to a maximum of four years; and

2. Up to one thousand dollars ($1,000) of additional liability per eligible school year of full-time teaching or the equivalent on a part-time basis shall be assumed for persons who teach in schools in the lowest 20th percentile of the Academic Performance Index rating up to a maximum of four years; and

(F) loans obtained for coursework after the program participant has received an initial teaching credential are not eligible for assumption under the APLE; and

(6) Participant's Name; and

(7) School Name (for credentialed teachers); and

(8) Teaching service area; and

(9) Signature; and

(10) Date (for credentialed teachers and district interns); and

(11) Social Security Number; and

(12) Telephone Number; and

(13) E-mail Address; and

(14) Mailing Address.

(c) For subsections (b)(4)(F) and (b)(5)(E) of this section, the Commission shall make payments after all documentation is received to establish eligibility. The Commission will make payments in the order received until the five million dollars authorized has been expended, or to the extent that additional funding is authorized per the annual Budget Act.

(d) The loan assumption agreement shall constitute a conditional award that may be redeemed with the Commission as specified in section 30707. A program participant in this program shall not receive more than one loan assumption agreement. A prior participant who holds an invalid award may reapply for the program and be accepted into the program under a new loan assumption agreement if he or she meets program eligibility.

(e) The loan assumption agreement shall include the program participant's acknowledgement the individual understands the educational loan obligations of:

(1) Reporting all outstanding educational loans to the Commission prior to receiving any loan assumption payment; and

(2) Complying will all student loan repayment obligations and continue making scheduled payments on student loan(s) until notified by their lender(s) that the loan(s) are paid in full and understand that a loan assumption payment will not cancel or replace any scheduled student loan payment; and

(3) Provide written notification to the Commission within ten (10) days of any change in the status of any student loan(s), including notice of default and the sale, transfer or consolidation of any student loan(s) to another lender or servicer; and

(4) Be free of any obligation to repay any state or federal educational grant and not be in default on any student loan.

(f) The loan assumption agreement shall include the program participant's acknowledgement the individual understands the additional qualifiers for loan assumption benefits are:

(1) The term of the loan assumption agreement shall be no more than ten (10) years from the date signed by the individual and accepted by the Commission; and

(2) Loans eligible for loan assumptions payments are educational loans under the Federal Family Education Loan Program (20 USC Section 1071, et seq.) and any educational loan approved by the Commission; and

(3) Educational loans obtained for coursework other than a baccalaureate degree and an initial teaching credential are not eligible for assumption under the program; and

(4) Loans which are eligible for total or partial cancellation under state or federal provisions will never be eligible for assumption under the program even if the individual does not apply for the cancellation benefits or does not qualify for the benefits during subsequent years of eligible teaching service (e.g., Perkins Loans pursuant to the provisions of the Code of Federal Regulations, Title 34, Subtitle B, Chapter VI, Part 674, Subpart D, which is incorporated into this section by reference); and

(5) If the Commission determines that any loan assumption payment was authorized based on misleading or incorrect information, the program participant must reimburse such payment(s) to the Commission; and

(6) Respond to all communications and requests from the Commission within the time indicated or the program participant may be withdrawn from the program; and

(7) If the program participant fails to comply with any procedures deemed necessary and appropriate by the Commission, all conditions cited in the Loan Assumption Agreement and all applicable rules and regulations that the Loan Assumption Agreement will become invalid and the program participant will be withdrawn from the program; and

(8) The consequences of failing to comply with the loan assumption Agreement as specified in section 30708; and

(9) The requirements to redeem the conditional award as specified in section 30707; and

(10) Funding appropriations are contingent upon approved California budget acts.

Authority cited:

Education Code 69615

Reference:

Education Code 69613.4

Education Code 69613.6

Education Code 69613.8

(Repealed and added by Register 2010, No. 4.)