HEA 14.05 HEA 14.05Application process.
HEA 14.05(1) (1) A borrower seeking a loan shall contact the eligible institution's financial aid office.
HEA 14.05(2) (2) The eligible institution's financial aid office shall determine the borrower's cost of education within the requirements set by the board. The board shall decide if the borrower shall receive a loan under this program.
HEA 14.05(3) (3) The eligible institution's financial aid office shall notify the board of the loan amount for the borrower. The board shall issue a check for the borrower's loan after the borrower's signed agreement form has been received by the board.
HEA 14.05(4) (4) All borrower contact concerning forgiveness and repayment shall be with the board. After leaving school the borrower shall maintain written annual contact with the board until the loan is either forgiven or repaid. The borrower is required to forward all name, address and telephone number changes to the board.
HEA 14.05 History History: CR 01-079: Cr. Register January 2002 No. 553, eff. 2-1-02.
HEA 14.06 HEA 14.06Loan forgiveness.
HEA 14.06(1) (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.
HEA 14.06(2) (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.
HEA 14.06(3) (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.
HEA 14.06(4) (4) Only borrowers holding a license in teaching visually impaired pupils or as an orientation and mobility instructor shall be eligible for forgiveness.
HEA 14.06(5) (5) No interest shall be charged the borrower during the forgiveness period.
HEA 14.06 History History: CR 01-079: Cr. Register January 2002 No. 553, eff. 2-1-02.
HEA 14.07 HEA 14.07Terms of repayment.
HEA 14.07(1) (1) Borrowers shall repay a loan if not employed, at least part-time, as a teacher of visually impaired pupils or as an orientation and mobility instructor in a Wisconsin school district, the Wisconsin Center for the Blind or an educational service agency. Repayment shall be required of borrowers who are employed for periods of time but who do not complete their forgiveness within the time allowed.
HEA 14.07(2) (2) The monthly payment shall be a minimum of $50 including principal and accrued interest. Accrued interest shall be paid first each month from the payment received. The board shall determine the monthly repayment schedule, although a borrower may request a schedule with a higher monthly payment.
HEA 14.07(3) (3) A borrower shall repay the loan within a maximum of 15 years not counting periods of deferment granted by the board. Interest shall not accrue during periods of deferment authorized by the board.
HEA 14.07(4) (4) Borrowers may prepay any or all of their loan account without penalty whether the borrower is in school, forgiveness, repayment or deferment.
HEA 14.07(5) (5) If the borrower dies or becomes totally and permanently disabled, all obligation to make any further payment of principal and interest on the loan shall be canceled.
HEA 14.07 History History: CR 01-079: Cr. Register January 2002 No. 553, eff. 2-1-02.
HEA 14.08 HEA 14.08Deferment of loan repayment for borrowers.
HEA 14.08(1)(1) Borrowers who return to school on a full-time basis in any course of study at an accredited institution shall be deferred by the board from repayment for the period of enrollment.
HEA 14.08(2) (2) Borrowers who are on active duty in the military shall be deferred by the board from repayment for the period of their active duty, not to exceed to 3 years.
HEA 14.08(3) (3) Borrowers, who enter the Peace Corps or Volunteers in Service to America, shall be deferred by the board from repayment for the term of their active service, not to exceed 3 years. Employment with similar private agencies is eligible for deferment, as determined by the executive secretary, if the agency is federally tax exempt.
HEA 14.08(4) (4) Borrowers who are unemployed shall be deferred from repayment by the board for up to 6 months at a time, up to a maximum of 24 months, as long as they provide proof, satisfactory to the board, of actively seeking employment.
HEA 14.08(5) (5) Borrowers who become pregnant, give birth or legally adopt a child shall be deferred from repayment by the board for up to 12 months.
HEA 14.08(6) (6) In order to receive a deferment, a borrower shall apply to the board. If the borrower submits written evidence, which verifies eligibility for the deferment, the board shall approve the deferment.
HEA 14.08(7) (7) The board may grant forbearance from repayment for the benefit of the borrower. The board may grant forbearance whenever unemployment, health, other personal problems, or educational study that is ineligible for deferment temporarily affects the borrower's ability to make scheduled payments on the loan. Periods of forbearance may not exceed 6 months for each approved request, up to a maximum total of 24 months.
HEA 14.08 History History: CR 01-079: Cr. Register January 2002 No. 553, eff. 2-1-02.
HEA 14.09 HEA 14.09Applicability. Chapter HEA 14 shall apply to all loans made since the inception of the program.
HEA 14.09 History History: CR 01-079: Cr. Register January 2002 No. 553, eff. 2-1-02.
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Published under s. 35.93, Stats. Updated on the first day of each month. Entire code is always current. The Register date on each page is the date the chapter was last published.