Tenn. Comp. R. & Regs. 1640-01-21-.09 - CANCELLATION/FORGIVENESS

(1) For each year of continuous full-time employment, the borrower shall receive a credit of one hundred percent (100%) of one (1) year's loan amount. Cancellation credit will be applied at the end of each year and upon receipt of verification of such service by the Tennessee Department of Health. Cancellation credit cannot be earned prior to completion of the advanced degree.

(2) In order to receive cancellation credit, the borrower shall provide employment verification as required by TSAC.

(3) Cancellation credit shall begin immediately following the grace period for which the loan was provided.

(4) The debt shall be cancelled on the basis of conclusive evidence that the borrower has died or has been totally and permanently disabled and cannot perform the service obligation outlined in the regulations. The borrower is not considered totally and permanently disabled on the basis of a condition that existed prior to the loan application. If, at any time subsequent to an initial determination of disability, the borrower's condition improves to the point where a total and permanent disability no longer exists, TSAC may reinstate any outstanding debt previously cancelled.

Notes

Tenn. Comp. R. & Regs. 1640-01-21-.09

Public necessity rule filed October 23, 2008; effective through April 6, 2009. Public necessity rule filed October 23, 2008; effective through April 6, 2009. Public necessity rule filed October 23, 2008 and effective through April 6, 2009, expired on April 7, 2009; rule reverted to its previous status. Original rule filed January 30, 2009; effective May 29, 2009.

Authority: T.C.A. §§ 49-4-201, 49-4-902, 49-4-924, and 49-4-939.