Tenn. Comp. R. & Regs. 1640-01-11-.07 - TSAC AGREEMENT WITH SCHOLARSHIP RECIPIENTS

All recipients of the scholarship must enter into the following agreement with TSAC prior to receiving their awards.

TENNESSEE STUDENT ASSISTANCE CORPORATION/SCHOLAR AGREEMENT

(Higher Education Act of 1965, as amended)

(As required by 34 CFR 653.40 )

PAUL DOUGLAS TEACHER SCHOLARSHIP PROGRAM

(Formerly the Congressional Teacher Scholarship Program)

(1) We, the undersigned Paul Douglas Teacher Scholarship recipient (referred to hereafter as "the scholar"), and an authorized official of the Tennessee Student Assistance Corporation (referred to hereafter as "the State agency") agree that the scholar shall:

(a) Teach on a full-time basis in any state, for a period of not less than two years for each year for which he or she received a Paul Douglas Teacher Scholarship (referred to hereafter as "scholarship"), in a public or private nonprofit preschool, elementary school, or secondary school, or, on a full-time basis, children with disabilities or children with limited English proficiency in a private non-profit school;

(b) Fulfill the teaching obligation described above within ten years after completing the postsecondary education degree program for which the scholarship was awarded; and

(c) Provide the State agency, as it requires, evidence of compliance with the above requirements and the requirements of Item 13.

(2) We agree that the requirement in Item 1 to teach two years for each year of scholarship assistance, is reduced by one-half if the scholar teaches on a full-time basis in a teacher shortage area designated by the U.S. Secretary of Education as provided by Section 530 (A) of the Higher Education Amendments of 1992.

(3) We agree that if the scholar fails to meet the conditions described in Items 1 and 2 or if the State agency determines the scholar is no longer pursuing a course of study leading to certification as a teacher at the preschool, elementary, or secondary level, the scholar shall:

(a) Repay the amount of the scholarship received, prorated according to the fraction of the teaching obligation not completed, as determined by the State agency;

(b) Pay a simple, per annum interest charge on the outstanding principal; and

(c)

1. Pay all reasonable collection costs as determined by the State agency, subject to applicable State and Federal laws.

2. The interest charge accrues from the date of the initial scholarship payment if the State agency has determined that the scholar is no longer pursuing a course of study leading to certification as a teacher at the preschool, elementary, or secondary level; or the date completing a course of study leading to certification as a teacher at the preschool, elementary, or secondary level, but never taught; or the day after the last day of the scholarship period for which the teaching obligation has been fulfilled.

3. From the time interest begins to accrue to the time the repayment period begins (as described in Item 4 below), the interest charge is adjusted annually and is set by the U.S. Secretary of Education by regulation at a rate which in no event is higher than the rate applicable to loans under Part B of Title IV, HEA, or 428A and 428B of the HEA during the same twelve-month period. The interest rate for the annual period beginning July 1, 19_ through June 30, 19_ is _ %. The interest rate applicable during the repayment period is the interest rate prescribed by the Secretary which is in effect as of the beginning date of the repayment period.

(4) We agree that a scholar required by Item 3 to repay his or her scholarship shall:

(a) Enter repayment status on the first day of the first calendar month after:

1. The State agency has determined that the scholar is no longer pursuing a course of study leading to certification as a teacher at the preschool, elementary, or secondary level, but not before six months have elapsed since the scholar was enrolled full-time in such a course of study; or

2. The date the scholar informs the State agency he or she does not plan to fulfill the teaching obligation; or

3. The latest date on which the scholar must have begun teaching in order to have completed the teaching obligation within ten years after completing the postsecondary education for which the scholarship was awarded, as determined by the State agency.

(b) Make payments to the State agency that cover principal, interest, and collection costs according to a schedule established by the State agency that calls for complete repayment within ten years after the scholar enters repayment status (except as provided in Item 10), and which amount annually to no less than $1200 or the unpaid balance, whichever is less, unless the scholar's inability to pay this amount because of his or her financial condition has been established to the State agency's satisfaction.

(5) We agree that the State agency shall not require scholarship repayments amounting to more than $1200 annually unless higher payments are needed to complete the entire repayment within the ten-year period described in Item 4 above.

(6) We agree that the State agency shall capitalize any accrued unpaid interest at the time it establishes a scholar's repayment schedule.

(7) We agree that a scholar is not considered in violation of the repayment schedule during the time he or she is:

(a) Engaging in a full-time course of study at an eligible institution of higher education, as defined in Section 1201 (a) of the HEA as evidenced by an official certification of such enrollment by the institution to the State agency on at least a semi-annual basis;

(b) Serving on active duty as a member of the armed services of the United States, or serving as a member of VISTA or the Peace Corps, for a period not in excess of three years, as evidenced by an annual statement from the scholar's commanding officer or, for the latter two, his/her supervisor sent to the State agency;

(c) Temporarily totally disabled, for a period not to exceed three years, as established by sworn affidavit of a qualified physician, subject to semi-annual reconfirmation;

(d) Unable to secure employment by reason of the care required by a disabled child, spouse, or parent for a period not to exceed twelve months, as evidenced by a statement from the disabled person's attending physician sent to the State agency;

(e) Seeking and unable to find full-time employment for a single period not to exceed twelve months, as supported by documentation deemed credible by the State agency, such as a statement from the State Department of Employment Security which confirms such unsuccessful efforts;

(f) Unable to satisfy the terms of the repayment schedule established by the State agency (as described in Items 3 and 4) and is also seeking and unable to find full-time employment as a teacher in a public or private nonprofit preschool, elementary school, or secondary school for a single period not to exceed 27 months. Documentation by annual statements to the State agency from the State Department of Education or the chief executive officers of the school district in which the scholar resides and of all contiguous districts shall be secured.

(8) We agree that to qualify for any of the exceptions (as described in Item 7) a scholar shall notify the State agency of his or her claim to the exception and provide appropriate supporting documentation as indicated in Item 7.

(9) We agree that during the time a scholar qualifies for any of the exceptions described in Item 7 the scholar need not make the scholarship repayments described in Item 4 and interest does not accrue.

(10) We agree that the State agency shall extend the ten-year scholarship repayment period described in Item 4 by a period equal to the length of time a scholar meets any of the conditions in Item 7 or if a scholar's inability to complete the scholarship repayments within this ten-year period because his or her financial condition has been established to the State agency's satisfaction.

(11) We agree that the State agency shall cancel a scholar's repayment obligations if it determines:

(a) On the basis of a sworn affidavit of a qualified physician, that the scholar is unable to teach on a full-time basis because the scholar is permanently totally disabled; or

(b) On the basis of a death certificate or other evidence of death that is conclusive under State law, that the scholar has died.

(12) We agree that, except in the case of the scholar's death, the State agency will confirm the scholar's status at least annually, or more frequently if the information available to the State agency so dictates. The scholar shall inform the State agency in writing whenever a significant change in his or her status occurs and provide the proper documentation to support it. Changes of address by the scholar are considered as major changes for this purpose. Any conflicting information held by the State agency must be resolved with the scholar's or his/her representative's assistance. A failure on the part of the scholar or his/her representative to cooperate will cause repayment by the scholar to be initiated or continued, as appropriate.

(13) We agree that to maintain eligibility for a scholarship, a scholar must:

(a) Be enrolled as a full-time student in an institution of higher education, as defined by Section 1201(a) of the HEA;

(b) Be pursuing a course of study leading to certification as a teacher at the preschool, elementary, or secondary level, as determined by the State agency but not including graduate study that is not required for initial teacher certification;

(c) Be maintaining satisfactory progress toward a degree, or, if the student already has a degree, toward teacher certification, as determined by the postsecondary institution the student is attending;

(d) Provide scholarship information, as requested by the Secretary, for an evaluation of this program; and

(e) Complete the Free Application for Federal Student Aid (FAFSA) and provide for release of information to the State agency.

(14) We agree that this document must be interpreted and applied in accordance with Tennessee Student Assistance Corporation regulations 1640-1-11, federal regulations 34 CFR Part 653, and federal legislation Title V, Part C, Sub Part 1 of the Higher Education Act of 1965, as amended. Any conflict between this document and the referenced enabling regulations and legislation shall cause the offending portion of this agreement to become null and void. But the remainder of this agreement thereby, shall be severed and considered as still binding.

(15) We agree that, generally, all rulings of the State agency's program administrator shall apply. Those who believe that his/her rulings were not according to the published regulations and laws may appeal to the State agency's Executive Director for relief. Subject to review by the State agency's Board of Directors, the Executive Director, upon sufficient cause, may waive portions of the program's regulations which are not mandated by federal statute or regulations. If the Executive Director does not rule in the favor of the complainant the complainant may request a hearing before the State agency's Appeals Committee. The ruling of the Appeals Committee shall be the last administrative remedy.

(16) CERTIFICATION OF ELIGIBILITY FOR FEDERAL ASSISTANCE IN CERTAIN PROGRAMS I understand that 34 CFR 75.60, 75.61, and 75.62 require that I make specific certifications of eligibility to the U.S. Department of Education as a condition of applying for Federal funds in certain programs and that these requirements are in addition to any other eligibility requirements that the U.S. Department of Education imposes under program regulations. Under 34 CFR 75.60 - 75.62:

(a) I certify that:

1. I do not owe a debt, or I am current in repaying a debt, or I am not in default (as that term is used at 34 CFR Part 668) on a debt:

(i) To the Federal Government under a nonprocurement transaction (e.g., a previous loan, scholarship, grant, or cooperative agreement); or

(ii) For a fellowship, scholarship, stipend, discretionary grant, or loan in any program of the U.S. Department of Education that is subject to 34 CFR 75.60, 75.61, and 75.62, including:

* Federal Pell Grant Program (20 U.S.C. 1070a, et seq.);

* Federal Supplemental Educational Opportunity Grant (SEOG) Program (20 U.S.C. 1070b, et seq.);

* State Student Incentive Grant Program (SSIG) (20 U.S.C. 1070C, et seq.);

* Federal Perkins Loan Program (20 U.S.C. 1087aa, et seq.);

* Income Contingent Direct Loan Demonstration Project (20 U.S.C. 1087a, note);

* Federal Stafford Loan Program, Federal Supplemental Loans for Students (SLS), Federal PLUS, or Federal Consolidation Loan Program (20 U.S.C. 1071, et seq.);

* Cuban Student Loan Program ( 20 U.S.C. 2601, et seq.);

* Robert C. Byrd Honors Scholarship Program ( 20 U.S.C. 1070d-3l, et seq.);

* Jacob K- Javits Fellows Program ( 20 U.S.C. 1134h - 11341 );

* Patricia Roberts Harris Fellowship Program (20 U.S.C. 1134d- 1134g );

* Christa McAuliffe Fellowship Program ( 20 U.S.C. 1105 - 1105i );

* Bilingual Education Fellowship Program ( 20 U.S.C. 3221 - 3262 );

* Rehabilitation Long-Term Training Program ( 29 U.S.C. 774(b) );

* Paul Douglas Teacher Scholarship Program ( 20 U.S.C. 1104, et seq.);

* Law Enforcement Education Program ( 42 U.S.C. 3775 );

* Indian Fellowship Program ( 29 U.S.C. 774(b)); or

2. I have made arrangements satisfactory to the U.S. Department of Education to repay a debt as described in A.1. or A.2. (above) on which I had not been current in repaying or on which I was in default (as that term is used in 34 CFR Part 668 ).

(b) I certify also that I have not been declared by a judge, as a condition of sentencing under Section 5301 of the Anti-Drug Abuse Act of 1988 (21 U.S.C. 862), ineligible to receive Federal assistance for the period of this requested funding.

(c) I understand that providing a false certification to any of the statements above makes me liable for repayment to the U.S. Department of Education for funds received on the basis of this certification, for civil penalties, and for criminal prosecution under 18 U.S.C. 1001.

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Notes

Tenn. Comp. R. & Regs. 1640-01-11-.07

Original rule filed January 20, 1987; effective April 29, 1987. Amendment filed March 31, 1987; effective June 29, 1987. Amendment filed March 11, 1988; effective June 29, 1988. Amendment filed February 9, 1990; effective May 29, 1990. Amendment filed February 15, 1994; effective June 28, 1994. Amendment filed May 11, 1995; effective September 28, 1995.

Authority: T.C.A. §§ 49-4-204 and 49-4-203.