| (a) Early childhood care providers receiving repayments during
the required two-year service period who fail to complete service within the
two years specified in the participation agreement must repay all repayments
received according to the stipulations in the promissory note signed with
the participation agreement.
(b) Early childhood care provider student loans may be reported
to credit reporting agencies.
(c) Early childhood care provider student loan recipients are
responsible for repaying not only the board but also holders of any outstanding
education loan notes.
(d) The board may require a creditworthy payment guarantor
or cosigner designated on the promissory note.
(e) The principal amount of all early childhood care provider
student loans shall be repaid in installments in a period not to exceed five
years.
(f) The interest on early childhood care provider student loans
shall be simple interest, and the interest rate shall be a fixed rate set
by the commissioner. Interest shall accrue from the date of the disbursement
of the first repayment.
(g) The first payment shall be due at least 60 days after the
date the early childhood care provider ceases to provide eligible services.
(h) The board shall provide a payment schedule calling for
a minimum payment amount sufficient to repay all amounts included in the promissory
note(s). The minimum annual amount required shall be $600 or the amount required
to repay the remaining balance within five years, whichever is greater.
(i) A charge of five percent (5%) of the monthly payment or
five dollars ($5.00), whichever is less, shall be assessed for any payment
received later than twenty days from the due date of such payment. Such charges
shall be collected out of the first payments made in excess of the interest
due with these payments.
(j) Periods of forbearance may be granted to recipients of
the early childhood care provider student loans under certain documented circumstances
as determined by the board. Periods of forbearance shall extend the five-year
repayment period.
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