TOPS - Teacher and Rockefeller Award Deferment of Repayment
STUDENT FINANCIAL ASSISTANCE COMMISSION
TOPS BULLETIN NUMBER:
|March 21, 2000|
|DISTRIBUTION:||Louisiana College and University, Technical College and LAICU Chancellors, Financial Aid Offices and Business Offices, System Governance, Board of Regents, Department of Education, Louisiana Officials, and Commission Members|
|TOPIC:||TOPS - Teacher and Rockefeller Award Deferment of Repayment|
To assure that your Scholarship and Grant Policy and Procedure Manual remains current, please record this document on your TOPS Bulletin index and retain it with your manual.
Rules of the Louisiana Student Financial Assistance Commission, (specifically, Louisiana Administrative Code Title 28, Part IV) have been revised to provide that TOPS—Teacher and Rockefeller Award recipients may defer repayment of their obligation while they are in school. The text of the rules are revised as follows:
"Chapter 9. TOPS Teacher Award
§911. Discharge of Obligation
A. - B.2. ...
3. the first two full semesters of full-time teaching will be applied toward the earliest dated disbursement not previously paid under §911.C, the second two full semesters the next earliest dated disbursement, and continuing until all disbursements have been fulfilled;
C. Discharging the loan by Monetary Repayment. Recipients who elect not to discharge the obligation by teaching and who are not eligible for discharge by cancellation must repay the loan principal plus accrued interest and any collection costs incurred according to the following terms and conditions:
1. interest will accrue on the
outstanding principal at the rate of 8 percent per annum;
2. interest on each disbursement will accrue from the date of disbursement until repaid, canceled or fulfilled. Accrued interest will be capitalized when the recipient enters repayment status;
3. repayment status. The recipient enters repayment status the first of the month following:
a. determination by LASFAC that the recipient cannot discharge the loan by teaching within the required time period;
b. the date the recipient notifies LASFAC that monetary repayment is desired; or
c. six months after LASFAC determines that the recipient is no longer pursuing a degree program or course of study leading to a degree in education or alternative program leading to regular certification as a teacher at the elementary or secondary school level;
4. the amount to be repaid annually will be the greater of:
a. the amount necessary to repay the capitalized loan principal within 10 years; or
b. $1,200 per year or the unpaid balance, whichever is less;
5. recipients in repayment status may have their payments deferred in accordance with §2105.B., Deferment of Repayment Obligation;
6. during the period of time a recipient is in deferment status, a recipient is not required to make repayments and interest does not accrue;
7. the period of time for completion of repayment will be extended by a period of time equal to the length of time the recipient is in deferment status.
D. Cancellation. The obligation
to repay any remaining unpaid balance of the TOPS Teacher Award shall be
canceled in the event either of the following occurs:
1. upon submission to LASFAC of a sworn affidavit from a qualified physician that the recipient is precluded from gainful employment because of a complete and permanent medical disability or condition; or
2. upon submission to LASFAC of a death certificate or other evidence conclusive under state law, that the recipient is deceased.
§2105. Repayment Obligation, Deferment and Cancellation
A. - B. 4. ...
5. Recipient is engaging in a full-time course of study at an institution of higher education at the baccalaureate level or higher.