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TITLE 19EDUCATION
PART 1TEXAS HIGHER EDUCATION COORDINATING BOARD
CHAPTER 21STUDENT SERVICES
SUBCHAPTER OEARLY CHILDHOOD CARE PROVIDER STUDENT LOAN REPAYMENT PROGRAM
RULE §21.474Terms of Early Childhood Care Provider Student Loans

(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.


Source Note: The provisions of this §21.474 adopted to be effective December 28, 1999, 24 TexReg 11750

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