Division 4. California Student Aid Commission. Chapter 1. California Student Aid Commission. Article 14. Assumption Program Of Loans For Education. Loan Payments.
(a) A program participant may redeem the conditional agreement and the Commission shall make loan payments, pursuant to the loan assumption agreement and as provided in Section 30706 and subsection (c), when the Commission has received the following information on forms provided by the Commission for each qualifying year of teaching:
(1) For student or district intern program participants, documentation certifying that the program participant has received an initial teaching credential; and
(2) The following information for each applicable year of employment subject to the loan assumption agreement:
(A) name and social security number; and
(B) authorization for the Commission to change the teaching service area if the school does not qualify under the current designated service area; and
(C) name, address, district, county, and California Department of Education School Code of the employer; and
(D) the updated participant's name, mailing address, city, state, zip code, email address and phone number, if applicable; and
(E) authorization for the employer to release information needed to qualify program participants for program benefits; and
(F) verification the program participant provided teaching service in an eligible school, at a public school ranked in the lowest two deciles on the Academic Performance Index, or in an area that was designated as a current or projected shortage area at the time of application pursuant to the teaching service area indicated on the signed loan assumption agreement; and
(G) program participant's signature under penalty of perjury under the laws of the State of California.
(3) The following employment information from the program participant's employer(s) for each applicable year of employment subject to the loan assumption agreement:
(A) statement that the program participant completed a school year of teaching on a full-time basis, or, if the program participant is employed on a part-time basis, the percentage of employment as related to a full-time school year; and
(B) verification if the program participant provided service as a Special Education teacher and area of specialization, if applicable; and
(C) the grade level in which the program participant provided the instruction; and
(D) the subject area the program participant instructed for the fall and spring term
(E) if the program participant will be employed by the school district for the upcoming school year; and
(F) employer representative's printed or typed name, telephone number, and date; and
(G) the name of school, school district, and school county; and
(H) employer representative's signature under penalty of perjury under the laws of the State of California.
(4) The following information shall be provided by the program participant or the lender and verified by the Commission for each loan that qualifies for payment under the program and the loan assumption agreement:
(A) for participants who have completed their first year of eligible teaching service or have consolidated student loans after their first year of qualified teaching service, the following information from each lending institution for each loan that qualifies for payment under the program and the loan assumption agreement:
1. program participant's name, social security number, phone number, date, and lending institution's contact information; and
2. program participant's signature authorizing the lending institution official to complete and release information needed to qualify participant for program benefits; and
3. account number for each loan; and
4. loan type; and
5. if the loan is a consolidated loan; and
6. if the loan is subsidized or unsubsidized; and
7. interest rate for each loan; and
8. disbursement date for each loan; and
9. payoff amount for each loan as of June 30; and
10. indication for each loan whether the loan is in default; and
11. lending institution/servicer name; and
12. U.S. Dept of Education lender or servicer ID number; and
13. address for where payment is to be sent; and
14. a signature of the lending institution official under penalty of perjury under the laws of the State of California; and
15. printed name of the lending institution official; and
16. e-mail address of the lending institution official; and
17. telephone number of the lending institution official;
(B) for program participants who have completed a subsequent year of eligible teaching service, the following information shall be provided by the program participant and verified by the Commission for each loan that qualifies for payment under the program and the loan assumption agreement:
1. program participant's name, social security number, phone number; and
2. Lender Name(s); and
3. Account number for each loan; and
4. Approximate June 30 balance for each loan; and
5. Interest Rate for each loan.
(5) The Commission has determined that the program participant has satisfied the requirements for payment to be made under the loan assumption agreement.
(b) Loan payments shall be made by lump-sum payment to the lender, to be applied directly to the principal balance, if not otherwise prohibited by applicable law or by the terms of the loan agreement between the program participant and the lender.
(1) Each year, for each assumable loan, the Commission shall pay to the lender either the maximum assumable amount or the the outstanding balance verified by the Commission at the time payment is processed, whichever is smaller, in the following order of priority:
(A) All assumable loans guaranteed by the Commission, ranked in descending order by rate of interest (highest interest rate first, lowest last), and
(B) All other assumable loans ranked in descending order by rate of interest (highest interest rate first, lowest last).
(2) A Federal Perkins Loan Program loan becomes non-assumable in its entirety upon the teacher's becoming eligible for cancellation of any part of that loan 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.
(c) A program participant may submit a written appeal for additional funds if the amount assumed is less than the maximum assumable amount and less than the program participant's June 30th balance. The appeal must include documentation from the program participant's lender verifying the outstanding balance as of June 30. If the Commission determines the program participant is eligible for an additional payment, payment will be made as specified in subsection (b) of this section. After Commission review and the program participant is determined to be eligible for an additional payment and the program participant's loans are paid in full after the June 30th balance census and before the Commission remits payment to the lender and the program participant does not have any other loans eligible for repayment, the payment will be issued directly to the program participant.
(d) Any credit generated on the program participant's account due to a payment made by the Commission shall be returned to the Commission. The Commission will research if the program participant has any other outstanding loans eligible for repayment and shall send the remaining balance of the payment due as a lump payment to the next eligible lender.
(1) If the program participant's loans are paid in full after the June 30th balance census and before the Commission remits payment to the lender and the program participant does not have any other loans eligible for repayment, the credit will be issued directly to the program participant.
(e) The program participant shall continue to make payments as required under the terms of the loans to avoid defaulting on those loans, until notified by the lenders or loan servicers that the loans are paid in full.
Education Code 69615
Education Code 69613.2
Education Code 69613.4
(Repealed and added by Register 2010, No. 4.)