Cancellation/Forgiveness

(1) For each year of continuous full-time employment in a Tennessee nursing education program in a teaching or administrative capacity, the borrower shall receive a credit of twenty-five per- cent (25%) of the amount borrowed, plus accrued interest on that portion of the debt can- celled. Cancellation credit will be applied at the end of each year and upon receipt of verifica- tion of such service. (2) For each year of continuous part-time employment in a Tennessee nursing education pro- gram in a teaching or administrative capacity, the borrower shall receive a credit of twelve and one-half percent (12.5%) of the amount borrowed, plus accrued interest on that portion of the debt cancelled. (3) To receive cancellation credit, the borrower shall provide employment verification as required by the TSAC. (4) Cancellation credit shall not begin until the borrower completes the program of study for which the graduate nursing loan was provided. (5) 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 teaching obligation out- lined 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 to- GRADUATE NURSING LOAN-SCHOLARSHIP PROGRAM CHAPTER 1640-01-03 tal and permanent disability no longer exists, the TSAC may reinstate any outstanding debt previously cancelled.