S.C. Code Regs. 62-580 - Loan Repayment

Current through Register Vol. 46, No. 3, March 25, 2022

A. The African-American Teacher Loan may be canceled if a recipient is employed as a teacher in South Carolina following receipt of initial certification. The loan shall be canceled in increments of $5,000 (or portion thereof) for each full year of employment in South Carolina as a teacher. There shall be no cancellation for partial terms.
(1) A student who indicates the intent to teach in the State will be entitled to cancellation of all loans received under this program beginning from his/her actual employment date.
(2) Upon employment, the borrower will be entitled to cancellation of all loans received under this program even if the borrower changes employment from one school district to another within the State.
B. If a borrower does not meet the requirements for cancellation as specified in paragraph A above, the borrower must begin repayment of the loan(s) received under this program in accordance with these regulations and subject to the terms of the Promissory Note(s) unless otherwise agreed to by the participating institution and the borrower. If a borrower does not initially meet the requirements for cancellations as set forth in paragraph A above, but subsequently does so, there will be no refund or credit provided for any amount paid. However, any unpaid balance at the time the borrower begins teaching will be eligible for cancellation subject to the regulations contained herein.
(1) Repayment of the principal amount of a loan made under this program together with the interest, shall be made in monthly installments beginning six (6) months after the date on which the borrower ceases to carry at least one-half the normal full-time academic work load at the participating institution. The monthly installment shall be at a rate which will repay the loan in not more than eight years (8) from the beginning of the repayment period. The monthly installment shall be at a rate of not less than $50 per month. The borrower may accelerate repayment of the loan, in whole or in part, without penalty.
(2) In the event a borrower dies, the obligation to make any further repayment shall be cancelled upon receipt of a Certification of Death. In the event a borrower becomes totally and permanently disabled, the obligation to make further repayment shall be cancelled upon receipt of certification by a licensed physician.
(3) The institution shall have the authority to assess a late charge for failure of the borrower to pay all or part of an installment within ten (10) days after it is due. The amount of such charge may not exceed six cents (.06) for each dollar of each installment due.
(4) The institution shall have the authority to collect from the borrower reasonable attorney's fees and other costs and charges necessary for the collection of any amount not paid when due.
(5) Nothing in this section shall preclude any forbearance for the benefit of the borrower which may be agreed upon by the parties to the loan and approved by the participating institution.
C. The participating institutions shall develop and maintain such procedures, subject to the approval of the Commission on Higher Education, as may be necessary to carry out proviso 19.89 of the 1994-95 Appropriations Bill, and as may be required to exercise reasonable care and diligence in the making and collection of loans.

Notes

S.C. Code Regs. 62-580
Added by State Register Volume 20, Issue No. 5, eff May 24, 1996.

The following state regulations pages link to this page.



State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.