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Division 4. California Student Aid Commission. Chapter 1. California Student Aid Commission. Article 14. Assumption Program Of Loans For Education. Failure to Comply with the Loan Assumption Agreement.   

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(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 The loan assumption agreement shall be deemed terminated, the program participant withdrawn from the program, and the Commission shall not make any further payments.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.

(b) For program participants who sign a loan assumption agreement after January 1, 2009 the following applies:

(1) Except as otherwise specified in subsections (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, failure to begin teaching the first full year in at an eligible area within 36 months of obtaining a teaching credential, 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, or the equivalent on a part-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 fulfill any obligation 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 maintain half-time enrollment, begin the first school year of eligible teaching service within 36 months of obtaining teaching credential, or 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, or the equivalent on a part-time basis due to serious illness, pregnancy, 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.

(3) If a program participant is unable to begin the first school year of eligible teaching service within 36 months of obtaining teaching credential or 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, or the equivalent on a part-time basis 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.

(4) If a natural disaster prevents a program participant from maintaining half-time enrollment, 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.

(c) If a program participant is withdrawn, the individual may send in a written appeal that describes why he or she should be reinstated into the program along with supporting documentation, if applicable, showing that he or she has continually met program eligibility. If the Commission determines the program participant should not have been withdrawn, the individual's loan assumption agreement shall be reinstated. The program participant will not be eligible for any benefits for awards years that are closed.

Authority cited:

Education Code 69615

Reference:

Education Code 69613

Education Code 69613.6

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