46th legislature - STATE OF NEW MEXICO - first session, 2003
RELATING TO EDUCATION; CHANGING PAYBACK PROVISIONS FOR SOME STUDENT LOANS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 21-21I-1 NMSA 1978 (being Laws 1990 (1st S.S.), Chapter 8, Section 1, as amended) is amended to read:
"21-21I-1. SHORT TITLE.--Chapter 21, Article 21I NMSA
1978 may be cited as the "Minority Doctoral Assistance [Loan
for] Service Program Act"."
Section 2. Section 21-21I-2 NMSA 1978 (being Laws 1990 (1st S.S.), Chapter 8, Section 2, as amended) is amended to read:
"21-21I-2. PURPOSE.--The purpose of the Minority Doctoral
Assistance [Loan for] Service Program Act is to increase the
number of ethnic minorities and women available to teach
engineering, physical or life sciences, mathematics and other
academic disciplines in which ethnic minorities and women are
demonstrably underrepresented in New Mexico colleges and
universities. Additionally, the purpose of the Minority
Doctoral Assistance [Loan for] Service Program Act is to create
a partnership [between] among the state, higher education
institutions and students that will lead to greater
participation of ethnic minorities and women in the ranks of
college and university faculties, enhancing educational
opportunities and quality for all New Mexico citizens."
Section 3. Section 21-21I-3 NMSA 1978 (being Laws 1990 (1st S.S.), Chapter 8, Section 3, as amended) is amended to read:
"21-21I-3. DEFINITIONS.--As used in the Minority Doctoral
Assistance [Loan for] Service Program Act:
A. "academic committee" means a committee at a sponsoring institution appointed by the president of the institution and composed of two faculty members, two academic administrators and one central administrator;
B. "commission" means the commission on higher education;
C. "eligible institution" means a commission-approved institution of higher education that offers a doctoral degree-granting program in the fields of engineering, physical or life sciences, mathematics or other academic disciplines in which ethnic minorities and women are demonstrably underrepresented;
D. "sponsoring institution" means a four-year public post-secondary institution located in New Mexico; and
E. "student" means an individual who is an ethnic minority or a woman and who has been accepted for enrollment at an eligible institution to undertake a post-baccalaureate course of instruction in the field of engineering, physical or life sciences or mathematics."
Section 4. Section 21-21I-5 NMSA 1978 (being Laws 1990 (1st S.S.), Chapter 8, Section 5) is amended to read:
"21-21I-5. MINORITY DOCTORAL ASSISTANCE CONTRACTS AND TERMS.--
A. A minority doctoral assistance grant shall be evidenced by a contract between the student and the sponsoring institution.
B. The contract shall:
(1) provide for the payment to the student by the sponsoring institution of no more than twenty-five thousand dollars ($25,000) per year for no more than four years;
(2) be conditioned upon the student's earning a doctoral degree in the field of engineering, physical or life sciences, mathematics or any other academic discipline in which ethnic minorities and women are demonstrably underrepresented;
(3) require the student to agree to begin to teach in a faculty position at the sponsoring institution within five years of completion of the doctoral degree; and
(4) require the student to teach in a faculty position at the sponsoring institution for a minimum of one year for each year a minority doctoral assistance grant was awarded.
C. Grants to students who fail to complete the
terms of their contract shall be considered loans with an
applied annual interest rate [equal to the treasury note rate
in existence at the time the contract is entered into plus two]
of seven percent. The loan shall become due in equal parts to
the state and the sponsoring institution immediately upon the
student's termination of the contractual agreement.
D. The general form of the contract shall be approved by the attorney general and signed by the student and an authorized representative of the sponsoring institution. The sponsoring institution is vested with full and complete authority and power to sue in its own name for any balance due it and the state from any student violating the terms of any such contract.
E. The commission shall approve all minority doctoral assistance contracts entered into between students and sponsoring institutions."
Section 5. Section 21-21I-7 NMSA 1978 (being Laws 1990 (1st S.S.), Chapter 8, Section 7, as amended) is amended to read:
"21-21I-7. RULES AND REGULATIONS.--The commission may
adopt such rules, regulations and procedures as necessary or
appropriate to implement the provisions of the Minority
Doctoral Assistance [Loan for] Service Program Act. A
financial aid officer may exercise professional judgment when
special circumstances exist to adjust the cost of attendance or
the expected family contribution or to modify other factors
that make this program responsive to a student's special
financial circumstances and for which documentation exists in
the student's file within the parameters authorized for this
program."
Section 6. Section 21-22-1 NMSA 1978 (being Laws 1975, Chapter 244, Section 1, as amended) is amended to read:
"21-22-1. SHORT TITLE.--Chapter 21, Article 22 NMSA 1978
may be cited as the "Medical Student [Loan for] Service Program
Act"."
Section 7. Section 21-22-2 NMSA 1978 (being Laws 1975, Chapter 244, Section 2, as amended) is amended to read:
"21-22-2. PURPOSE--COMMITTEE.--The purpose of the Medical
Student [Loan for] Service Program Act is to meet the emergency
currently existing resulting from the shortage of medical
doctors and physician assistants in the less populated areas of
the state by increasing the number of practitioners in rural
areas through a program of loans for medical and physician
assistant students. The program shall require as a condition
of each loan that the student declare his intent that after
licensure he will commence his practice of medicine within one
of the areas of the state designated by the health profession
advisory committee."
Section 8. Section 21-22-3 NMSA 1978 (being Laws 1975, Chapter 244, Section 3, as amended) is amended to read:
"21-22-3. DEFINITIONS.--As used in the Medical Student
[Loan for] Service Program Act:
A. "commission" means the commission on higher education;
B. "loan" means a grant of funds to defray the costs incidental to a medical education, under a contract between the commission and a medical student, requiring either repayment with interest or repayment in services; and
C. "student" means a resident of New Mexico who is a student enrolled in a school of medicine."
Section 9. Section 21-22-6 NMSA 1978 (being Laws 1975, Chapter 244, Section 6, as amended) is amended to read:
"21-22-6. MEDICAL STUDENT LOANS--CONTRACT TERMS--REPAYMENT.--
A. Each applicant who is approved for a loan by the commission may be granted a loan, in such amounts and for such periods as determined by the commission, with which to defray expenses incurred in obtaining a medical education at any reputable and accredited medical school in the United States if the applicant files with the commission a declaration of his intent to practice his profession as a licensed physician or physician assistant in areas of New Mexico designated as not being adequately served by medical practitioners.
B. The loans shall not exceed the necessary expenses incurred while attending a medical school or college and shall bear interest at the rate of
[(1) eighteen percent per year if the student
completes his medical education and no portion of the principal
and interest is forgiven pursuant to Subsection E of this
section; and
(2)] seven percent per year [in all other
cases].
C. The loan shall be evidenced by a contract
between the student and the commission acting on behalf of the
state. The contract shall provide for the payment by the state
of a stated sum covering the costs of a medical education and
shall be conditioned upon the repayment of the loan to the
state, together with interest, over a period established by the
commission in consultation with the student after completion of
medical school and any period of internship or residency
required to complete the student's education. [The contract
shall further provide that immediately upon completion or
termination of the student's medical education, all interest
then accrued shall be capitalized.]
D. Loans made to students who fail to complete their medical education shall become due, together with interest, immediately upon termination of their medical education. The commission, in consultation with the student, shall establish terms of repayment, alternate service or cancellation terms. The contract shall further provide that immediately upon termination of the student's medical education, the loan shall bear interest at a rate of seven percent per year and shall be capitalized.
E. The contract shall provide that the commission
shall forgive a portion of the loan [principal and interest]
for each year that a loan recipient practices his profession as
a licensed physician or physician assistant in areas approved
by the health profession advisory committee as not being
adequately served by medical practitioners. [Loan principal
and interest] Loans shall be forgiven as follows:
(1) loan terms of one year shall require one
year of practice in a designated health professional shortage
area. Upon completion of service, one hundred percent of the
[principal plus accrued interest] loan shall be forgiven;
(2) loan terms of two years shall require one
year of practice in a designated health professional shortage
area for each year of the loan. Upon completion of the first
year of service, fifty percent of the [principal plus accrued
interest] loan shall be forgiven. Upon completion of the
second year of service, the remainder of the [principal plus
accrued interest] loan shall be forgiven; and
(3) for loan terms of three years or more,
forty percent of the [principal plus accrued interest] loan
shall be forgiven upon completion of the first year of service
in a designated health professional shortage area, thirty
percent of the [principal plus accrued interest] loan shall be
forgiven upon completion of the second year of service and the
remainder of the [principal plus accrued interest] loan shall
be forgiven upon completion of the third year of service.
F. Recipients shall serve a complete year in order to receive credit for that year. The minimum credit for a year shall be established by the commission.
G. If a loan recipient completes his professional
education and does not serve in a health professional shortage
area, the commission shall assess a penalty of up to [three]
two times the principal due, plus [eighteen] seven percent
interest, unless the commission finds acceptable extenuating
circumstances for why the student cannot serve. If the
commission does not find acceptable extenuating circumstances
for the student's failure to carry out his declared intent to
serve in a health professional shortage area in the state, the
commission shall require immediate repayment of the unpaid
principal amount of the loan plus accrued interest owed the
state plus the amount of any penalty assessed pursuant to this
subsection. The contract shall further provide that upon
failure to provide service, interest shall be accrued from the
date of the loan disbursement and shall be capitalized.
H. The commission shall adopt regulations to implement the provisions of this section. The regulations may provide for the repayment of medical student loans in annual or other periodic installments."
Section 10. Section 21-22-8 NMSA 1978 (being Laws 1975, Chapter 244, Section 8, as amended) is amended to read:
"21-22-8. FUND CREATED--METHOD OF PAYMENT.--
A. There is created in the state treasury the
"medical student [loan for service] assistance program fund".
All money appropriated for loans to medical students under the
Medical Student [Loan for] Service Program Act shall be
credited to the fund. All payments of principal and interest
on loans made pursuant to that act received by the commission
shall be deposited with the state treasurer to the credit of
the fund. All payments of funds for loans shall be made upon
vouchers signed by the designated representatives of the
commission.
B. The medical student assistance program fund is a new name for the medical student loan for service fund and is not a new fund created by this 2003 act. The purposes and balances of the medical student loan for service fund as they existed before July 1, 2003 remain the purposes and balances of the medical student assistance program fund."
Section 11. Section 21-22-10 NMSA 1978 (being Laws 1975, Chapter 244, Section 10, as amended) is amended to read:
"21-22-10. REPORTS.--The commission shall make annual
reports to the governor and to the legislature, prior to each
regular session, of its activities, the loans granted, the
names and addresses of persons to whom loans were granted and
the medical schools or colleges attended by those receiving the
loans, together with a list of the names and locations of
practice of those students who have completed their education
and have become licensed physicians or physician assistants in
New Mexico as a result of a student loan pursuant to the
Medical Student [Loan for] Service Program Act."
Section 12. Section 21-22A-1 NMSA 1978 (being Laws 1978, Chapter 109, Section 1, as amended) is amended to read:
"21-22A-1. SHORT TITLE.--Chapter 21, Article 22A NMSA
1978 may be cited as the "Osteopathic Medical Student [Loan
for] Service Program Act"."
Section 13. Section 21-22A-2 NMSA 1978 (being Laws 1978, Chapter 109, Section 2, as amended) is amended to read:
"21-22A-2. PURPOSE--COMMITTEE.--The purpose of the
Osteopathic Medical Student [Loan for] Service Program Act is
to meet the emergency currently existing resulting from the
shortage of osteopathic medical doctors and osteopathic
physician's assistants in the less populated areas of the state
by increasing the number of practitioners in rural areas
through a program of loans for osteopathic medical students.
The program shall require as a condition of each loan that the
student declare his intent that after licensure he will
commence his practice as an osteopathic physician or
osteopathic physician's assistant within one of the areas of
the state designated by the health profession advisory
committee."
Section 14. Section 21-22A-3 NMSA 1978 (being Laws 1978, Chapter 109, Section 3, as amended) is amended to read:
"21-22A-3. DEFINITIONS.--As used in the Osteopathic
Medical Student [Loan for] Service Program Act:
A. "commission" means the commission on higher education;
B. "loan" means a grant of funds to defray the costs incidental to an osteopathic medical education, under a contract between the commission and an osteopathic medical student, requiring either repayment with interest or repayment in services;
C. "osteopathic medical education" means the education required to be an osteopathic physician or osteopathic physician's assistant; and
D. "student" means a resident of New Mexico who is a student enrolled in a school of osteopathic medicine or an osteopathic physician's assistant program."
Section 15. Section 21-22A-6 NMSA 1978 (being Laws 1978, Chapter 109, Section 6, as amended) is amended to read:
"21-22A-6. OSTEOPATHIC MEDICAL STUDENT LOANS--CONTRACT TERMS--REPAYMENT.--
A. Each applicant who is approved for a loan by the commission may be granted a loan, in such amounts and for such periods as determined by the commission, with which to defray expenses incurred in obtaining an osteopathic medical education at any reputable and accredited osteopathic medical school in the United States if the applicant files with the commission a declaration of his intent to practice his profession as a licensed osteopathic physician or osteopathic physician's assistant in areas of New Mexico designated as not being adequately served by osteopathic medical practitioners.
B. The loan shall not exceed the necessary expenses incurred while attending an osteopathic medical school or college or osteopathic physician's assistant program and shall bear interest at the rate of
[(1) eighteen percent per year if the student
completes his osteopathic medical education and no portion of
the principal and interest is forgiven pursuant to Subsection E
of this section; and
(2)] seven percent per year [in all other
cases].
C. The loan shall be evidenced by a contract
between the student and the commission acting on behalf of the
state. The contract shall provide for the payment by the state
of a stated sum covering the costs of an osteopathic medical
education and shall be conditioned upon the repayment of the
loan to the state, together with interest, over a period
established by the commission in consultation with the student
after the completion of osteopathic medical school or an
osteopathic physician's assistant program and any period of
internship or residency required to complete the student's
education. [The contract shall further provide that
immediately upon completion or termination of the student's
osteopathic medical education, all interest then accrued shall
be capitalized.]
D. Loans made to students who fail to complete their osteopathic medical education shall become due, together with interest, immediately upon termination of their osteopathic medical education. The commission, in consultation with the student, shall establish terms of repayment, alternate service or cancellation terms. The contract shall further provide that immediately upon termination of the student's osteopathic medical education, the loan shall bear interest at a rate of seven percent per year and shall be capitalized.
E. The contract shall provide that the commission
shall forgive a portion of the loan [principal and interest]
for each year that a loan recipient practices his profession as
a licensed osteopathic physician or osteopathic physician's
assistant in areas approved by the health profession advisory
committee as not being adequately served by osteopathic medical
practitioners. [Loan principal and interest] Loans shall be
forgiven as follows:
(1) loan terms of one year shall require one
year of practice in a designated health professional shortage
area. Upon completion of service, one hundred percent of the
[principal plus accrued interest] loan shall be forgiven;
(2) loan terms of two years shall require one
year of practice in a designated health professional shortage
area for each year of the loan. Upon completion of the first
year of service, fifty percent of the [principal plus accrued
interest] loan shall be forgiven. Upon completion of the
second year of service, the remainder of the [principal plus
accrued interest] loan shall be forgiven; and
(3) for loan terms of three years or more,
forty percent of the [principal plus accrued interest] loan
shall be forgiven upon completion of the first year of service
in a designated health professional shortage area, thirty
percent of the [principal plus accrued interest] loan shall be
forgiven upon completion of the second year of service and the
remainder of the [principal plus accrued interest] loan shall
be forgiven upon completion of the third year of service.
F. Recipients shall serve a complete year in order to receive credit for that year. The minimum credit for a year shall be established by the commission.
G. If a loan recipient completes his professional
education and does not serve in a health professional shortage
area, the commission shall assess a penalty of up to [three]
two times the principal due, plus [eighteen] seven percent
interest, unless the commission finds acceptable extenuating
circumstances for why the student cannot serve. If the
commission does not find acceptable extenuating circumstances
for the student's failure to carry out his declared intent to
serve in a health professional shortage area in the state, the
commission shall require immediate repayment of the unpaid
principal amount of the loan plus accrued interest owed the
state plus the amount of any penalty assessed pursuant to this
section. The contract shall further provide that upon failure
to provide service, interest shall be accrued from the date of
the loan disbursement and shall be capitalized.
H. The commission shall adopt regulations to implement the provisions of this section. The regulations may provide for the repayment of osteopathic medical student loans in annual or other periodic installments."
Section 16. Section 21-22A-8 NMSA 1978 (being Laws 1978, Chapter 109, Section 8, as amended) is amended to read:
"21-22A-8. FUND CREATED--METHOD OF PAYMENT.--
A. There is created in the state treasury the
"osteopathic medical student [loan for service] assistance
program fund". All money appropriated for loans to osteopathic
medical students under the Osteopathic Medical Student [Loan
for] Service Program Act shall be credited to the fund. All
payments of principal and interest on loans made pursuant to
that act received by the commission shall be deposited with the
state treasurer to the credit of the fund or shall be deposited
with the commission's administrative agent. All payments of
funds for loans shall be made upon vouchers signed by
designated representatives of the commission.
B. The osteopathic medical student assistance program fund is a new name for the osteopathic medical student loan for service fund and is not a new fund created by this 2003 act. The purposes and balances of the osteopathic medical student loan for service fund as they existed before July 1, 2003 remain the purposes and balances of the osteopathic medical student assistance program fund."
Section 17. Section 21-22A-10 NMSA 1978 (being Laws 1978, Chapter 109, Section 10, as amended) is amended to read:
"21-22A-10. REPORTS.--The commission shall make annual
reports to the governor and to the legislature, prior to each
regular session, of its activities, the loans granted and the
names and addresses of persons to whom loans were granted and
the osteopathic medical schools or colleges or osteopathic
physician's assistant programs attended by those receiving the
loans, together with a list of the names and locations of
practice of those students who have completed their education
and have become licensed osteopathic physicians or osteopathic
physician's assistants in New Mexico as a result of a student
loan pursuant to the Osteopathic Medical Student [Loan for]
Service Program Act."
Section 18. Section 21-22B-1 NMSA 1978 (being Laws 1987, Chapter 299, Section 1, as amended) is amended to read:
"21-22B-1. SHORT TITLE.--Chapter 21, Article 22B NMSA
1978 may be cited as the "Nursing Student [Loan for] Service
Program Act"."
Section 19. Section 21-22B-2 NMSA 1978 (being Laws 1987, Chapter 299, Section 2, as amended) is amended to read:
"21-22B-2. PURPOSE.--The purpose of the Nursing Student
[Loan for] Service Program Act is to meet the emergency
currently existing resulting from the shortage of nurses in the
underserved areas of the state by increasing the number of
practitioners in rural areas through a program of loans for
nursing students. The program will require as a condition of
each loan that the student declare intent prior to the granting
of the loan that the nurse will practice nursing within one of
the areas of the state designated as an underserved area by the
health profession advisory committee."
Section 20. Section 21-22B-3 NMSA 1978 (being Laws 1987, Chapter 299, Section 3, as amended) is amended to read:
"21-22B-3. DEFINITIONS.--As used in the Nursing Student
[Loan for] Service Program Act:
A. "commission" means the commission on higher education;
B. "loan" means a grant of funds to defray the costs incidental to a nursing education, under a contract between the commission and a nursing student, requiring repayment with services or repayment with interest;
C. "student" means a resident of New Mexico who is a student enrolled in a program of nursing; and
D. "program of nursing" means a nursing education
program in a New Mexico institution accredited by a member of
the council on post-secondary accreditation or a nursing
education program approved by the [New Mexico] board of
nursing."
Section 21. Section 21-22B-6 NMSA 1978 (being Laws 1987, Chapter 299, Section 6, as amended) is amended to read:
"21-22B-6. NURSING STUDENT LOANS--CONTRACT TERMS--REPAYMENT.--
A. Each applicant who is approved for a loan by the commission may be granted a loan, in such amounts for such periods as determined by the commission, with which to defray expenses incurred in obtaining a nursing education; provided that the applicant files with the commission a declaration of intent to practice as a licensed nurse in areas of New Mexico designated as underserved.
B. The loans shall not exceed the necessary expenses incurred while attending a program of nursing and shall bear interest at the rate of
[(1) eighteen percent per year if the student
completes his nursing education and no portion of the principal
and interest is forgiven pursuant to Subsection E of this
section; and
(2)] seven percent per year [in all other
cases].
C. The loan shall be evidenced by a contract
between the student and the commission acting on behalf of the
state. The contract shall provide for the payment by the state
of a stated sum covering the costs of a nursing education and
shall be conditioned upon the repayment of the loan to the
state, together with interest, over a period negotiated between
the student and the commission after completion of a nursing
program. [The contract shall further provide that immediately
upon completion or termination of the student's nursing
education, all interest then accrued shall be capitalized.]
D. Loans made to students who fail to complete their nursing education shall become due, together with interest, immediately upon termination of nursing education. The commission, in consultation with the student, shall establish terms of repayment, alternate service or cancellation terms with the commission. The contract shall further provide that immediately upon termination of the student's nursing education, the loan shall bear interest at a rate of seven percent per year and shall be capitalized.
E. The contract shall provide that the commission
may forgive a portion of the loan [principal and interest] for
each year that a loan recipient practices nursing in areas
approved by the health profession advisory committee. [Loan
principal and interest] Loans shall be forgiven as follows:
(1) loan terms of one year shall require one
year of practice in a designated health professional shortage
area. Upon completion of service, one hundred percent of the
[principal plus accrued interest] loan shall be forgiven;
(2) loan terms of two years shall require one
year of practice in a designated health professional shortage
area for each year of the loan. Upon completion of the first
year of service, fifty percent of the [principal plus accrued
interest] loan shall be forgiven. Upon completion of the
second year of service, the remainder of the [principal plus
accrued interest] loan shall be forgiven; and
(3) for loan terms of three years or more,
forty percent of the [principal plus accrued interest] loan
shall be forgiven upon completion of the first year of service
in a designated health professional shortage area, thirty
percent of the [principal plus accrued interest] loan shall be
forgiven upon completion of the second year of service and the
remainder of the [principal plus accrued interest] loan shall
be forgiven upon completion of the third year of service.
F. Recipients shall serve a complete year in order to receive credit for that year. The minimum credit for a year shall be established by the commission.
G. If a loan recipient completes his professional education and does not serve in a health professional shortage area, the commission shall assess a penalty of up to two times the principal due, plus seven percent interest, unless the commission finds acceptable extenuating circumstances for why the student cannot serve. If the commission does not find acceptable extenuating circumstances for the student's failure to carry out his declared intent to serve in a health professional shortage area in the state, the commission shall require immediate repayment of the unpaid principal amount of the loan plus accrued interest owed the state plus the amount of any penalty assessed pursuant to this section. The contract shall further provide that upon failure to provide service, interest shall be accrued from the date of the loan disbursement and shall be capitalized.
[G.] H. The commission shall adopt regulations to
implement the provisions of this section. The regulations may
provide for the repayment of nursing student loans in annual or
other periodic installments."
Section 22. Section 21-22B-8 NMSA 1978 (being Laws 1987, Chapter 299, Section 8, as amended) is amended to read:
"21-22B-8. FUND CREATED--METHOD OF PAYMENT.--
A. There is created in the state treasury the
"nursing student [loan for] service program fund". All money
appropriated for loans to nursing students under the Nursing
Student [Loan for] Service Program Act shall be credited to the
fund and all payments of principal and interest on loans made
pursuant to that act received by the commission shall be
deposited with the state treasurer for credit to the fund or
shall be deposited with the commission's administrative agent.
All payments for loans shall be made upon vouchers signed by
the designated representatives of the commission.
B. The nursing student service program fund is a new name for the nursing student loan for service fund and is not a new fund created by this 2003 act. The purposes and balances of the nursing student loan for service fund as they existed before July 1, 2003 remain the purposes and balances of the nursing student service program fund."
Section 23. Section 21-22C-1 NMSA 1978 (being Laws 1994, Chapter 57, Section 3) is amended to read:
"21-22C-1. SHORT TITLE.--[Sections 3 through 12 of this
act] Chapter 21, Article 22C NMSA 1978 may be cited as the
"Allied Health Student [Loan for] Service Program Act"."
Section 24. Section 21-22C-2 NMSA 1978 (being Laws 1994, Chapter 57, Section 4, as amended) is amended to read:
"21-22C-2. PURPOSE.--The purpose of the Allied Health
Student [Loan for] Service Program Act is to meet the emergency
currently existing resulting from the shortage of allied health
professionals in underserved areas of the state by increasing
the number of practitioners in rural areas through a program of
loans for allied health students. Each applicant shall declare
his intent to practice his allied health profession within one
of the areas of the state designated as an underserved area by
the health profession advisory committee."
Section 25. Section 21-22C-3 NMSA 1978 (being Laws 1994, Chapter 57, Section 5, as amended) is amended to read:
"21-22C-3. DEFINITIONS.--As used in the Allied Health
Student [Loan for] Service Program Act:
A. "allied health profession" means physical therapy, occupational therapy, speech-language pathology, audiology, pharmacy, nutrition, respiratory care, laboratory technology, radiologic technology, mental health services, emergency medical services or a licensed or certified health profession as defined by the commission;
B. "commission" means the commission on higher education;
C. "loan" means a grant of money to defray the costs incidental to an allied health profession education, under a contract between the commission and an allied health profession student, requiring repayment with services or repayment of principal and interest; and
D. "student" means a resident of New Mexico who is enrolled in an accredited program for one of the allied health professions."
Section 26. Section 21-22C-4 NMSA 1978 (being Laws 1994, Chapter 57, Section 6) is amended to read:
"21-22C-4. ALLIED HEALTH LOANS--QUALIFICATIONS.--
A. The commission may grant a loan to a student it
deems qualified to receive the loan upon terms and conditions
it determines pursuant to the provisions of the Allied Health
Student [Loan for] Service Program Act and regulations adopted
pursuant to that act.
B. The commission shall only receive, pass on and allow or disallow an application for a loan made by a student enrolled or accepted in an allied health profession program who is a bona fide citizen and resident of the United States and of New Mexico and who declares his intent to practice an allied health profession within a designated area of the state.
C. The commission shall make a full and careful investigation of the ability, character and qualifications of each applicant and determine fitness to become a recipient of a student loan. The investigation of each applicant shall include an investigation of the ability of the applicant and the applicant's parent or guardian to pay the applicant's expenses for an allied health profession education. The commission shall give preference to qualified applicants who are unable, or whose parents or guardians are unable, to pay the educational expenses.
D. The commission shall arrange for loan recipients to receive assistance in locating appropriate practice positions in designated underserved areas."
Section 27. Section 21-22C-5 NMSA 1978 (being Laws 1994, Chapter 57, Section 7) is amended to read:
"21-22C-5. DELEGATION OF DUTIES.--The commission may
arrange with other agencies for the performance of services
required by the provisions of the Allied Health Student [Loan
for] Service Program Act."
Section 28. Section 21-22C-6 NMSA 1978 (being Laws 1994, Chapter 57, Section 8, as amended) is amended to read:
"21-22C-6. ALLIED HEALTH STUDENT LOANS--CONTRACT
TERMS--REPAYMENT.--
A. Prior to receiving a loan, each applicant approved for a loan shall file with the commission a declaration of intent to practice as a licensed allied health professional in areas of New Mexico designated as underserved.
B. The loans shall not exceed the necessary expenses incurred while attending an allied health profession program and shall bear interest at the rate of
[(1) eighteen percent per year if the student
completes his allied health profession education and no portion
of the principal and interest is forgiven pursuant to
Subsection E of this section; and
(2)] seven percent per year [in all other
cases].
C. The loan shall be evidenced by a contract
between the student and the commission acting on behalf of the
state. The contract shall provide for the payment by the state
of a stated sum covering the costs of an allied health
profession education and shall be conditioned on the repayment
of the loan to the state, together with interest, over a period
negotiated between the student and the commission after
completion of an allied health profession education. [The
contract shall further provide that immediately upon completion
or termination of the student's allied health profession
education, all interest then accrued shall be capitalized.]
D. Loans made to students who fail to complete their allied health profession education shall become due, together with interest, immediately upon termination of that education. The commission, in consultation with the student, shall establish repayment terms, alternate service or cancellation terms. The contract shall further provide that immediately upon termination of the loan recipient's education, the loan shall bear interest at a rate of seven percent per year and shall be capitalized.
E. The contract shall provide that the commission
shall forgive a portion of the loan [principal and interest]
for each year that a loan recipient practices an allied health
profession in areas approved by the health profession advisory
committee. [Loan principal and interest] Loans shall be
forgiven as follows:
(1) loan terms of one year shall require one
year of practice in a designated health professional shortage
area. Upon completion of service, one hundred percent of the
[principal plus accrued interest] loan shall be forgiven;
(2) loan terms of two years shall require one
year of practice in a designated health professional shortage
area for each year of the loan. Upon completion of the first
year of service, fifty percent of the [principal plus accrued
interest] loan shall be forgiven. Upon completion of the
second year of service, the remainder of the [principal plus
accrued interest] loan shall be forgiven; and
(3) for loan terms of three years or more,
forty percent of the [principal plus accrued interest] loan
shall be forgiven upon completion of the first year of service,
thirty percent of the [principal plus accrued interest] loan
shall be forgiven upon completion of the second year of service
and the remainder of the [principal plus accrued interest] loan
shall be forgiven upon completion of the third year of service.
F. Recipients shall serve a complete year in order to receive credit for that year. The minimum credit for a year shall be established by the commission.
G. If a loan recipient completes his professional
education and does not serve the required number of years in a
health professional shortage area, the commission shall assess
a penalty of up to [three] two times the principal due, plus
[eighteen] seven percent interest, unless the commission finds
acceptable extenuating circumstances for why the student cannot
serve. If the commission does not find acceptable extenuating
circumstances for the student's failure to carry out his
declared intent to serve in a health professional shortage area
in the state, the commission shall require immediate repayment
of the unpaid principal amount of the loan plus accrued
interest owed the state plus the amount of any penalty assessed
pursuant to this subsection. The contract shall further
provide that upon failure to provide service, interest shall be
accrued from the date of the loan disbursement and shall be
capitalized.
H. The commission shall adopt regulations to implement the provisions of this section. The regulations may provide for the repayment of allied health student loans in annual or other periodic installments."
Section 29. Section 21-22C-8 NMSA 1978 (being Laws 1994, Chapter 57, Section 10) is amended to read:
"21-22C-8. FUND CREATED--METHOD OF PAYMENT.--
A. The "allied health student [loan for service]
assistance program fund" is created in the state treasury. All
money appropriated for loans to allied health students pursuant
to the provisions of the Allied Health Student [Loan for]
Service Program Act shall be credited to the fund and all
payments of principal and interest on loans made pursuant to
that act received by the commission shall be credited to the
fund or shall be deposited with the commission's administrative
agent. All payments for loans shall be made upon vouchers
signed by the designated representative of the commission.
B. The allied health student assistance program fund is a new name for the allied health student loan for service fund and is not a new fund created by this 2003 act. The purposes and balances of the allied health student loan for service fund as they existed before July 1, 2003 remain the purposes and balances of the allied health student assistance program fund."
Section 30. Section 21-22E-1 NMSA 1978 (being Laws 2001, Chapter 288, Section 1) is amended to read:
"21-22E-1. SHORT TITLE.--[This act] Chapter 21, Article
22E NMSA 1978 may be cited as the "Teacher [Loan for] Service
Program Act"."
Section 31. Section 21-22E-2 NMSA 1978 (being Laws 2001, Chapter 288, Section 2) is amended to read:
"21-22E-2. PURPOSE.--The purpose of the Teacher [Loan
for] Service Program Act is to proactively address New Mexico's
looming teacher shortage by providing students with the
financial means to complete or enhance their post-secondary
teacher preparation education."
Section 32. Section 21-22E-3 NMSA 1978 (being Laws 2001, Chapter 288, Section 3) is amended to read:
"21-22E-3. DEFINITIONS.--As used in the Teacher [Loan
for] Service Program Act:
A. "commission" means the commission on higher education;
B. "loan" means a payment of money under contract between the commission and a student that defrays the costs incidental to a teacher preparation program offered in a regionally accredited post-secondary educational institution in New Mexico and that requires repayment in services;
C. "student" means a United States citizen who is enrolled in or accepted by an undergraduate or graduate teacher preparation program at a regionally accredited post-secondary educational institution in New Mexico; and
D. "teacher preparation program" means [one] a
program that has been formally approved as meeting the
requirements of the [New Mexico] state board of education and
that leads to initial licensure or to additional licensure
endorsements."
Section 33. Section 21-22E-5 NMSA 1978 (being Laws 2001, Chapter 288, Section 5) is amended to read:
"21-22E-5. DELEGATION OF DUTIES TO OTHER STATE
AGENCIES.--The commission may arrange with other agencies for
the performance of services required by the provisions of
Section [4 of the Teacher Loan for Service Act] 21-22E-4 NMSA
1978."
Section 34. Section 21-22E-6 NMSA 1978 (being Laws 2001, Chapter 288, Section 6) is amended to read:
"21-22E-6. TEACHER LOANS--CONTRACT TERMS--REPAYMENT.--
A. Each applicant who is approved for a loan by the commission may be granted a loan in such amounts and for such periods as the commission determines. The loan shall not exceed the necessary expenses incurred while attending a teacher preparation program.
B. A loan shall bear interest at the rate of
[(1) eighteen percent per year if the loan
recipient completes his teacher preparation program and no
portion of the principal and interest is forgiven pursuant to
Subsection E of this section; or
(2)] seven percent per year [in all other
cases].
C. The loan shall be evidenced by a contract
between the loan recipient and the commission acting on behalf
of the state. The contract shall provide for the payment by
the state of a stated sum covering the costs of a teacher
preparation program and shall be conditioned on the repayment
of the loan to the state, together with interest, over a period
established by the commission after the completion of the
teacher preparation program and any postgraduate study or
internship required to complete the loan recipient's education.
[The contract shall further provide that immediately upon
completion or termination of the loan recipient's education,
all interest then accrued shall be capitalized.]
D. A loan made to a recipient who fails to complete his teacher preparation program shall become due, together with interest, immediately upon termination of his teacher preparation program. The commission, in consultation with the loan recipient, shall establish terms of repayment, alternate service or cancellation terms. The contract shall further provide that immediately upon termination of the loan recipient's education, the loan shall bear interest at a rate of seven percent per year and shall be capitalized.
E. The contract shall provide that the commission
shall forgive a portion of the loan [principal and interest]
for each year that the loan recipient practices his profession
as a licensed teacher in New Mexico. [Loan principal and
interest] Loans shall be forgiven as follows:
(1) loan terms of one year shall require one
year of practice. Upon completion of service, one hundred
percent of the [principal plus accrued interest] loan shall be
forgiven;
(2) loan terms of two years shall require one
year of practice for each year of the loan. Upon completion of
the first year of service, fifty percent of the [principal plus
accrued interest] loan shall be forgiven. Upon completion of
the second year of service, the remainder of the [principal
plus accrued interest] loan shall be forgiven; and
(3) for loan terms of three years or more,
forty percent of the [principal plus accrued interest] loan
shall be forgiven upon completion of the first year of service,
thirty percent of the [principal plus accrued interest] loan
shall be forgiven upon completion of the second year of service
and the remainder of the [principal plus accrued interest] loan
shall be forgiven upon completion of the third year of service.
F. A loan recipient shall serve a complete contract year in order to receive credit for that year. The minimum credit for a year shall be established by the commission.
G. If a loan recipient completes his teacher
preparation program and does not serve in a New Mexico public
school, the commission shall assess a penalty of up to [three]
two times the principal due, plus [eighteen] seven percent
interest, unless the commission finds acceptable extenuating
circumstances that prevent the loan recipient from serving. If
the commission does not find acceptable extenuating
circumstances for the loan recipient's failure to carry out his
declared intent to serve, the commission shall require
immediate repayment of the unpaid principal amount of the loan
plus accrued interest owed the state plus the amount of any
penalty assessed pursuant to this section. The contract shall
further provide that upon failure to provide service, interest
shall be accrued from the date of the loan disbursement and
shall be capitalized.
H. The commission shall adopt and promulgate rules to implement the provisions of this section. The rules may provide for the repayment of loans in annual or other periodic installments."
Section 35. Section 21-22E-8 NMSA 1978 (being Laws 2001, Chapter 288, Section 8) is amended to read:
"21-22E-8. FUND CREATED--METHOD OF PAYMENT.--
A. The "teacher [loan for service] assistance
program fund" is created in the state treasury. Money
appropriated for loans pursuant to the Teacher [Loan for]
Service Program Act; earnings from investment of the fund;
gifts, grants and donations to the fund; and all payments of
principal and interest on loans made pursuant to that act shall
be deposited in the fund. Money in the fund shall not revert
at the end of a fiscal year. The fund shall be administered by
the commission. All payments of money for loans shall be made
on warrants drawn by the secretary of finance and
administration pursuant to vouchers signed by the commission's
designated representative.
B. The teacher assistance program fund is a new name for the teacher loan for service fund and is not a new fund created by this 2003 act. The purposes and balances of the teacher loan for service fund as they existed before July 1, 2003 remain the purposes and balances of the teacher assistance program fund."
Section 36. Section 21-22E-10 NMSA 1978 (being Laws 2001, Chapter 288, Section 10) is amended to read:
"21-22E-10. REPORTS.--The commission shall report
annually by January 1 to the governor and the legislature on
its activities pursuant to the Teacher [Loan for] Service
Program Act, including the loans granted, the names and
addresses of loan recipients, the teacher preparation programs
loan recipients are attending and the names and locations of
practice of loan recipients who have completed their teacher
preparation education and are teaching."
Section 37. Section 21-29-3 NMSA 1978 (being Laws 1997, Chapter 126, Section 3) is amended to read:
"21-29-3. STUDENT EXCHANGE PROGRAM--TERMS OF STUDENT LOANS--PAYBACK REQUIREMENTS.--
A. Financial assistance by the state for the student exchange program of the western interstate commission on higher education shall be through a loan program established pursuant to this section.
B. A student may receive a loan of tuition assistance on the following terms:
(1) the loan shall not exceed an amount equivalent to the negotiated support fee for the graduate or professional program; and
(2) the loan shall bear interest at the rate of
[(a) eighteen percent per year if the
student completes his education and no portion of the principal
and interest is forgiven pursuant to Subsection E of this
section; and
(b)] seven percent per year [in all other
cases].
C. The loan shall be evidenced by a contract
between the student and the commission acting on behalf of the
state. The contract shall provide for the payment by the state
of a stated sum covering the cost of tuition assistance and
shall be conditioned on the repayment of the loan to the state,
together with interest, over a period established by the
commission. [The contract shall provide further that
immediately upon completion or termination of the student's
education, all interest then accrued shall be capitalized.]
D. Loans made to a student who fails to complete his education shall become due, together with interest, immediately upon termination of his education. The commission shall establish terms of repayment, alternate service or cancellation terms. The loan contract shall provide that, immediately upon termination of the student's education, the loan shall bear interest at a rate of seven percent per year and shall be capitalized.
E. The contract shall provide that the commission
shall forgive a portion of the loan [principal and interest]
for each year that a loan recipient practices his profession in
New Mexico. [Loan principal and interest] Loans shall be
forgiven as follows:
(1) loan terms of one year shall require one
year of practice for each year of the loan. Upon completion of
service, one hundred percent of the [principal plus accrued
interest] loan shall be forgiven;
(2) loan terms of two years shall require one
year of practice for each year of the loan. Upon completion of
the first year of service, fifty percent of the [principal plus
accrued interest] loan shall be forgiven; upon completion of
the second year of service, the remainder of the [principal
plus accrued interest] loan shall be forgiven;
(3) for loan terms of three years or more,
forty percent of the [principal plus accrued interest] loan
shall be forgiven upon completion of the first year of service,
thirty percent of the [principal plus accrued interest] loan
shall be forgiven upon completion of the second year of service
and the remainder of the [principal plus accrued interest] loan
shall be forgiven upon completion of the third year of service;
and
(4) the commission may establish other forgiveness terms for professionals providing service in serious shortage areas.
F. Loan recipients shall serve a complete year in order to receive credit for that year. The minimum credit for a year shall be established by the commission.
G. If a student completes his professional
education and does not return to New Mexico to practice his
profession, the commission shall assess a penalty of up to
[three] two times the principal due, plus [eighteen] seven
percent interest, unless the commission finds acceptable
extenuating circumstances for why the student cannot serve. If
the commission does not find acceptable extenuating
circumstances for the student's failure to carry out his
declared intent to practice his profession in New Mexico, the
commission shall require immediate repayment of the unpaid
principal amount of the loan plus accrued interest owed the
state plus the amount of any penalty assessed pursuant to this
subsection. The loan contract shall provide that, upon failure
to provide service, interest shall accrue from the date of the
loan disbursement and shall be capitalized.
H. The commission may provide by regulation for the repayment of student exchange program loans in annual or other periodic installments."
Section 38. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2003.