15-1783

15-1783. Mathematics, science, special education and elementary education teacher student loans; interest; obligations; repayment; authority of attorney general

(L10, Ch. 257, sec. 2)

A. Each applicant who is approved for a loan by the board may be granted a loan for a period of up to five years.

B. The board, on behalf of this state, shall enter into a written contract with the student. The contract shall set forth the methods and terms of repayment by the loan recipient to this state and shall be on terms and conditions and in a form provided by the board. The contract shall provide for the following:

1. The loan recipient shall begin the service commitment providing instruction in the area of mathematics, science or special education in a public school in this state or in elementary education in a public school that is located in a geographic area in this state that is experiencing a shortage of teachers, as determined by the state board of education, within one calendar year after attaining a bachelor's degree at an accredited university in this state. The service commitment shall be full-time as determined by the Arizona board of regents and requires one year of service for each year of loan support plus one additional year of service.

2. If the loan recipient engages in postgraduate studies without a lapse of more than one calendar year following the completion of the loan recipient's bachelor's degree at an accredited university in this state, the loan recipient shall begin the service commitment required under paragraph 1 within one calendar year after completing postgraduate studies.

3. If the loan recipient is inducted into military service, or for any other cause beyond the loan recipient's control deemed sufficient by the board is unable to begin the service commitment required under paragraph 1 within one calendar year after completing a bachelor's degree and any graduate studies, the loan recipient shall begin the service commitment required under paragraph 1 within one calendar year after completing the required military service or the termination of any other cause.

4. If the loan recipient fulfills the service commitment required under paragraph 1 in a public school in this state or while completing military service resulting from induction, the loan recipient's indebtedness to this state may be discharged in one of the following ways:

(a) One year of full-time service required under paragraph 1 for each year of loan support plus one additional year of service.

(b) Repayment to this state of the total loan amount for each year of support with interest at the rate prescribed in subsection C.

5. If the loan recipient fails to complete the required course of study, if the course of study is interrupted by one academic year or more for a cause or causes not resulting from induction into military service or any other cause beyond the loan recipient's control deemed sufficient by the board or if the loan recipient fails to fully discharge the service commitment required under paragraph 1, except for delays resulting from an excusable cause as prescribed in this section, the amount of the loan not repaid or fully discharged shall be due and payable with interest at the rate prescribed in subsection C. The board may extend the time of payment over a period not exceeding fifteen years and shall not require payment of interest during the existence of any excusable cause as prescribed in this section.

6. If the loan recipient does not begin the service commitment required under paragraph 1 within the time prescribed in this section but paid an agreed part of the loan, the board may allow the loan recipient to discharge the balance of the obligation by subsequent teaching in this state.

7. If the loan recipient dies during the period of the loan recipient's education or practice as a teacher, the loan recipient's obligation to this state under this article ceases.

8. The loan recipient may choose at any time to provide a different category of service commitment prescribed in paragraph 1 without violating the contract, unless the contract requires the loan recipient to provide instruction in the area of mathematics or science.

9. If the loan recipient begins the service commitment required under paragraph 1 in a geographic area in this state that is experiencing a shortage of teachers, as determined by the state board of education, but the state board of education subsequently determines that geographic area is no longer experiencing a shortage of teachers, the loan recipient may discharge the balance of the obligation by completing the service commitment in the geographic area where the loan recipient began the service commitment.

C. The loan recipient shall repay the full amount borrowed at an interest rate of at least seven per cent.

D. On receipt of supporting documentation, the board for good cause shown may defer the loan recipient's service commitment or repayment obligation or may enter into repayment arrangements with the loan recipient or allow service that is equivalent to full-time service if the board determines that this action is justified after a review of the individual's circumstances. At the discretion of the board, the board may allow service by teaching in another area of recognized need in this state that is not specified in the student's contract, but only following prior written approval by the board.

E. The attorney general may commence whatever actions are necessary to enforce the contract and achieve repayment of loans provided by the board pursuant to this article.