Section 14.06. Loan forgiveness.

 

(1)  Loans shall be forgiven when the borrower is licensed and employed, at least part-time, in Wisconsin as a teacher of visually impaired pupils or as orientation and mobility instructor by a Wisconsin school district, the Wisconsin Center for the Blind and Visually Impaired or a cooperative educational service agency. For the first academic year of full-time employment, 25% of the principal and accrued interest, if any, shall be forgiven, with the amount to be prorated in cases where less time has been worked. For the second academic year of full-time employment, 25% of the principal and accrued interest, if any, shall be forgiven, with the amount pro-rated in cases where less time has been worked. For the third academic year of full-time employment, 50% of the principal and accrued interest, if any shall be forgiven, with the amount pro-rated in cases where less time has been worked. The borrower shall be given a maximum of 6 years to work the required 3 years for full forgiveness.

(2)  The maximum of 6 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 14.08 . In no instance shall the term of forgiveness exceed 9 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 holding a license in teaching visually impaired pupils or as an orientation and mobility instructor shall be eligible for forgiveness.

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

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