Loan Amount And Terms

(1) Subject to appropriations, all loan amounts shall be equal to one thousand seven hundred fifty dollars ($1,750) per semester and three thousand five hundred dollars ($3,500) per academic year, based on full-time enrollment. Candidates shall execute one (1) promissory note for each semester payable to TSAC in an amount equal to the full value of the loan for that semester. (2) Award amounts are based on enrollment status and will be determined in the same manner as enrollment status for the HOPE scholarship in Rule Chapter 1640-01-19-.02. (3) Cancellation (a) The entire loan amount is cancelled for candidates who complete full-time teaching employment in a targeted setting for at least two (2) consecutive years after completion of the Approved EPP. TENNESSEE FUTURE TEACHER SCHOLARSHIP PROGRAM CHAPTER 1640-01-32 (b) Candidates who begin or end full-time teaching in a targeted setting that does not equal a full academic year, shall receive proportionate credit towards the total amount owed under the promissory note. (c) A candidate’s targeted setting is established upon disbursement of funds. 1. If the candidate’s chosen critical shortage subject area is subsequently removed from the targeted setting list, the candidate will receive full cancellation of the loan amount upon completion of the two-year teaching service period. 2. If the candidate’s designated distressed or at-risk county is removed from the targeted setting list prior to beginning the qualified teaching service, the candidate must designate a new distressed or at-risk county prior to beginning the qualified teaching service. 3. If the candidate’s designated distressed or at-risk county is removed from the targeted setting list after beginning the qualified teaching service, the candidate will receive full cancellation of the loan amount upon completion of two years of teaching service in a public K-12 school in Tennessee. (d) A grace period of up to one (1) year will be afforded to allow the candidate an opportunity to secure full-time employment before any outstanding loan amounts would otherwise be due. When a candidate has obtained a full-time teaching position in a targeted setting, the remaining balance of the grace period will be waived by TSAC. Exceptions to the one (1) year grace period may be requested in writing by the candidate for extraordinary circumstances. (e) Candidates teaching in targeted settings that meet the requirements for the loan forgiveness must notify TSAC of such teaching status. Individuals whom TSAC has verified to be teaching in a targeted setting shall be granted a postponement on repayment. At the end of such period, cancellation credit will be applied upon receipt of the verification of qualified teaching service. (f) The debt shall be canceled due to the death of the candidate upon documentation deemed acceptable by TSAC. (g) If a candidate is determined to be totally and permanently disabled under the standards established by T.C.A., Title 8, Chapter 36, Part 5, for determining disability for members of the Tennessee Consolidated Retirement System, the outstanding debt shall be canceled. A candidate is not considered totally and permanently disabled on the basis of a condition that existed prior to his or her application unless the candidate’s condition has substantially deteriorated since he or she submitted the application. If at any time subsequent to an initial determination of disability the candidate’s condition improves to the point where a total and permanent disability no longer exists, TSAC may reinstate any outstanding debt previously canceled. (4) Repayment (a) Repayment shall begin in the first month following the end of the grace period for candidates who complete the Approved EPP but who fail to enter teaching service in a targeted setting. For candidates who fail to complete the Approved EPP repayment will begin upon demand by TSAC. (b) Repayment of any remaining amount of the loan funds received may be in whole or monthly payments of at least one hundred dollars ($100) over a period of not more than ten (10) years from the end of the grace period or when TSAC determines that the TENNESSEE FUTURE TEACHER SCHOLARSHIP PROGRAM CHAPTER 1640-01-32 candidate has not complied with the requirements of the Act. Payments of less than the amount required to amortize the loan within ten (10) years may be made only if the candidate documents to TSAC’s satisfaction his or her inability to make payments of that amount. (c) If a candidate issues a check, draft, or warrant, which is subsequently returned to TSAC for reason of insufficient funds, a stop payment order by the issuer, or any other reason, the payment to which these funds was applied shall be reversed on the candidate’s account. (d) If a candidate should re-enter teaching at an eligible school after commencing monetary repayment, the repayments already made will not be returned to the candidate. However, any additional repayment balances that were not in arrears at the time of the reentry into teaching may be canceled by subsequent teaching service. (5) Deferment (a) Repayment of principal may be deferred for a period of time in which the candidate is unable to make payments due to documented extraordinary circumstances. Documentation must be submitted to TSAC for approval and verified on a semi-annual basis. Deferment may be granted for any of the following reasons: 1. The candidate is still enrolled in an accredited institution but is no longer seeking a teaching licensure or enrolled in an Approved EPP and shall not exceed three (3) years. 2. A period of time in which the candidate is unable to make payments due to extraordinary financial, medical, or personal circumstances beyond the candidate’s control and shall not exceed two (2) years. 3. Candidates who have begun qualified teaching service may receive a one-year deferment to secure another qualified teaching service position in Tennessee. 4. The candidate has been called into active military duty and shall not exceed the time of deployment.