Section 13.06. Loan forgiveness.

 

(1)  Loans shall be forgiven when the borrower is employed as a full-time teacher in the eligible school district. For every academic year of employment, 50% of the principal and accrued interest, if any, shall be forgiven, with the amount to be prorated in cases where fewer months are worked. The borrower shall be given a maximum of 3 years to work the required 2 years for full forgiveness.

(2)  The maximum of 3 years allowed for forgiveness shall be extended by the board for up to a total of 3 years for approved periods of deferment, as referenced in s. HEA 13.09 . In no instance shall the term of forgiveness exceed 6 years including periods of deferments authorized by the board. The executive secretary may allow additional periods of deferment in exceptional situations.

(3)  Any loan principal remaining unforgiven either because the forgiveness period as defined in subs. (1) and (2) is over, or because the borrower has not been employed for forgiveness as defined in sub. (1) or has moved out of state, shall be repaid to the state of Wisconsin with interest accrued from the date on which the forgiveness period ended.

(4)  Only borrowers who have completed the teacher education program at MTEC and who are licensed to teach by the Wisconsin department of public instruction shall be eligible for forgiveness.

(5)  No interest shall be charged to the borrower during the forgiveness period.

History: CR 01-078 : Cr. Register January 2002 No. 553 , eff. 2-1-02.