INTRODUCTION
Act 1275 of 2007, effective July 31, 2007, established the Arkansas
Rehabilitation Services (ARS) Forgiveness of Student Loan Program (Program) to
assist qualified current employees and newly-hired rehabilitation counselors
employed by ARS with the repayment of student loans incurred while pursuing
credentials that are required for employment.
The act provides that ARS shall administer the Program and promulgate
rules for its administration.
PROVISIONS OF ACT 1275 OF 2007
Eligibility
An ARS rehabilitation counselor shall be eligible for the Program
who
1. Satisfactorily completes the
probationary employment period, as certified by the Commissioner of Arkansas
Rehabilitation Services.
2.
Provides proof of an unpaid student loan, including the name and address of the
creditor; and
3. Agrees
contractually to
a. Work for ARS for a term
that equals two (2) years for each year that the Program makes a payment on the
counselor's student loan; and
b.
Reimburse the Program the full amount of any loan payment(s) made under the
Program in the event that the counselor resigns his position with ARS or is
terminated by ARS for cause before the term of the contract expires.
Payments Under the Program
All payments made under the Program shall be made directly to the
counselor's student loan creditor.
Loan payments may not exceed two thousand dollars ($2,000.00) per
fiscal year.
Loan payments made for any counselor may not exceed ten thousand
dollars ($10,000).
RULES
1. A counselor must
complete the ARS six-month new-employee probationary period.
2. An eligible counselor who wishes to apply
to participate in the Program shall submit to the Program Director.
a. A completed Student Loan Program Request
form (Appendix A)
b. An original
statement and/or correspondence from the student loan creditor, dated within 30
days of the request. The proof of loan document must indicate the original loan
disbursement dates.
c. A completed
Student Loan Program Agreement(Appendix B), signed by the requesting counselor
and his immediate supervisor. In the contract, the counselor will agree to
i. Remain in the employ of ARS for a term
that equals two (2) years for each year that the Program makes a payment on the
counselor's student loan; and
ii.
Reimburse the Program the full amount of any loan payment(s) made under the
Program in the event that the counselor resigns his position with ARS or is
terminated by ARS for cause before the term of the contract expires.
3. A loan eligible for
the Program must have been incurred in the pursuit of a master's degree in
rehabilitation counseling, or a comparable degree as recognized by RSA and
required for employment with ARS.
4. The amount of payment(s) made directly to
the counselor's student loan creditor may not exceed two thousand dollars
($2,000.00) per year.
5. Cumulative
loan payments made for any counselor may not exceed the lesser of ten thousand
dollars ($10,000.00) or the amount of the balance due on the loan.
Arkansas Rehabilitation Services
Forgiveness of Student Loan Program
Request Form
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