Section 14.04. Terms of loans.

 

(1)  Eligible borrowers shall receive a minimum annual award of $250. The maximum annual award shall not exceed $10,000. The exact amount of the award shall not exceed the borrower's cost of education, as determined by the eligible institution using recognized federal methodology, minus the need-based aid the borrower is offered. Loans for students that are need-based may be replaced in the package of aid by the Teacher of the Visually Impaired Loan. The total the borrower receives under this program shall not exceed $40,000 in outstanding principal.

(2)  For loans that are not forgiven but must be repaid, the interest rate shall be 5% annually on the unpaid principal balance with accrual beginning upon the initial date of repayment. Interest shall not accrue during periods of at least half-time enrollment; grace period; employment that qualifies for forgiveness; or during board authorized periods of deferment from repayment.

(3)  The initial date of repayment shall be determined by the board in each instance beginning no sooner than 6 months after the borrower withdraws or graduates from the eligible institution. There shall be a six-month grace period that will start the day after the person withdraws or graduates from the eligible institution. The borrower shall not be required to make payment during the grace period.

History: CR 01-079 : Cr. Register January 2002 No. 553 , eff. 2-1-02.