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The Oregon Administrative Rules contain OARs filed through July 15, 2014
 
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OREGON STUDENT ACCESS COMMISSION

 

DIVISION 50

MEDICAL-DENTAL STUDENT LOAN PROGRAM

575-050-0005

Definitions

For the purposes of the Medical and Dental Student Loan Program, the following definitions shall be used:

(1) "Academic Year". A period of time, beginning September 1, in which a full-time student would normally be expected to complete three quarters of instruction.

(2) "Commission". The Oregon State Scholarship Commission.

(3) "Dependent/Independent Student". The definition of independent/dependent student shall be the definition used for the student aid programs under Title IV of the Higher Education Act of 1965 as amended.

(4) "Division". The Division of State Lands.

(5) "Full-Time Student". A student who is carrying a full-time academic workload as determined by the institution.

(6) "Guarantor or Guarantee Agency". The Oregon State Scholarship Commission.

(7) "Institution". The Oregon Health Sciences University and Oregon State University.

(8) "Interim Note". The basic contract between the student-borrower and the lender whereby the lender makes funds available to qualifying individuals to pay educational costs. It reflects the amount borrowed, rate and maturity, the terms and conditions under which the loan is made, a Disclosure Statement and endorsement by the Commission.

(9) "Lender". The Division of State Lands.

(10) "Resident of Oregon". Residency is established by virtue of the student (in the case of independent students)or the student's parents (in the case of dependent students) having been in continuous residency in this state for the 12 months preceding enrollment. Residency is immediate in the case of a dependent whose parents have moved to this state for a reason other than the student's enrollment. The residency period may be reduced to the preceding six months in the case of an independent student who moved to this state for a purpose other than education:

(a) A dependent resident student whose Oregon domiciled parent(s) move out-of-state shall retain resident classification as long as such students are continuously enrolled at an Oregon high school or postsecondary institution. Continuous enrollment is defined as completion of an academic year within any 12-month period;

(b) An independent resident student shall retain resident classification as long as the student is continuously enrolled at an Oregon postsecondary institution. Continuous enrollment is defined as completion of an academic year within any 12-month period;

(c) A dependent student whose parent(s) are serving on active duty in the United States Armed Forces outside the state of Oregon shall have residency status determined by the parents' declared "home of record". An independent student who is serving on active duty in the United States Armed Forces outside the State of Oregon shall have residency status determined by the student's declared "home of record";

(d) A student from a state other than Oregon or the Trust Territories who is receiving, or is eligible to receive financial assistance through the government of the state or the Trust Territories, shall not be considered a resident of Oregon;

(e) An independent student who otherwise qualifies as an Oregon resident, but pays out-of state tuition and fees shall not be considered a resident of Oregon.

(11) "Schedule of Payments". The schedule which includes the number of payments, the amount of each payment and the date(s) due.

(12) "Deferred Interest".

(a) For medical, dental, and veterinary student borrowers, the interest which accrues during the period commencing on the date of the disbursement check and ending on the date the borrower ceases to be enrolled full-time;

(b) For undergraduate nursing student borrowers, the interest which accrues from September 1 each year following the date of graduation or termination as a full-time student to the date repayment commences.

(13) "Accruing Interest".

(a) For medical, dental, and veterinary student borrowers, the interest which accrues commencing on the date the borrower ceases to be enrolled full-time at the Institution and continuing until the loan is paid in full;

(b) For nursing student borrowers, the interest which accrues from the date repayment of the loan begins until the loan is paid in full.

(14) "Annual Interest". For undergraduate nursing student borrowers, the interest which accrues from the date of the disbursement check to the end of the school year, August 31 of each year.

Stat. Auth.: ORS 348
Stats. Implemented: ORS 348.040 - ORS 348.095
Hist.: SSC 2-1978(Temp), f. & ef. 1-4-78; SSC 3-1978, f. & ef. 2-16-78; SSC 1-1979, f. & ef. 1-17-79; SSC 2-1979, f. 7-24-79, ef. 8-1-79; SSC 2-1980, f. 1-31-80, ef. 4-1-80; SSC 4-1980, f. & ef. 10-22-80; SSC 1-1981, f. & ef. 9-3-81; SSC 4-1983, f. & ef. 11-29-83; SSC 4-1990, f. & cert. ef. 6-22-90

 

575-050-0010

Administrative Responsibility

(1) The Commission shall be responsible for the implementation of all policies and procedures for the administration of the Medical-Dental Student Loan Program under the provision of ORS 348.040 through 348.095.

(2) The Commission may establish rules for the administration of the program in those instances in which the state law allows or mandates discretion in interpretation and implementation.

(3) The Commission shall have authority to approve loan applications submitted by the institution.

(4) The Division shall be responsible for the loan of funds from the Common School Fund to eligible students under this program and for the subsequent collection of such loans.

(5) The Division shall prepare the Schedule of Payments.

(6) The institution shall be responsible for the initial processing of applications for this program, the assessment of eligibility and need for the loan, periodical reports to the Commission and Division with regard to borrowers status and recommendations to the Commission on submitted applications.

(7) The institution shall prepare the interim notes in compliance with the requirements of the Division.

(8) Prior to the borrower leaving the institution, the institution shall conduct an exit interview, at which time the institution shall explain the repayment provisions of the loan and shall obtain the borrower's signature on the Schedule of Payments.

Stat. Auth.: ORS 348
Stats. Implemented: ORS 348.040 - ORS 348.095
Hist.: SSC 2-1978(Temp), f. & ef. 1-4-78; SSC 3-1978, f. & ef. 2-16-78; SSC 4-1983, f. & ef. 11-29-83

 

575-050-0015

Eligibility

To be eligible for a loan under this program, a student must:

(1) Be a full-time professional medical or dental student or undergraduate nursing student at the Oregon Health Sciences University or a full-time student in a veterinary program offered by Oregon State University.

(2) Be a resident of Oregon as defined by OAR 575-050-0005(9).

(3) Have financial need computed by the needs analysis system adopted by the Commission.

(4) Complete, execute, and deliver the required application which shall include a signed statement by the student consenting to the release of personally identifiable information to the Division and the Commission.

(5) Submit the loan application prior to the final day of registration for the semester(s) or term(s) for which the loan is to be used, except as may be dictated by individual circumstances and approved by the Division and Commission.

Stat. Auth.: ORS 348
Stats. Implemented: ORS 348.040 - ORS 348.095
Hist.: SSC 2-1978(Temp), f. & ef. 1-4-78; SSC 3-1978, f. & ef. 2-16-78; SSC 1-1981, f. & ef. 9-3-81; SSC 4-1983, f. & ef. 11-29-83

575-050-0020

Loan Limits

(1) The maximum loan for any academic year for medical, dental and veterinary students shall be $4,000.

(2) The maximum loan for any academic year for undergraduate nursing students shall be $1,000.

(3) The principal amount of all loans for any individual shall not exceed $16,000.

Stat. Auth.: ORS 348
Stats. Implemented: ORS 348.040 - ORS 348.095
Hist.: SSC 2-1978(Temp), f. & ef. 1-4-78; SSC 3-1978, f. & ef. 2-16-78; SSC 1-1981, f. & ef. 9-3-81; SSC 4-1983, f. & ef. 11-29-83

 

575-050-0025

Disbursements

(1) The loan amount for an academic year shall be divided into equal disbursements to correspond with the number of terms for which the loan is granted, except as may be dictated by individual circumstances and approved by the Commission and the Division.

(2) All disbursements will be by state check drawn by the Division payable to the student to be dispersed by the Institution not more than ten days prior to the commencement of the term for which drawn.

Stat. Auth.: ORS 348
Stats. Implemented: ORS 348.040 - ORS 348.095
Hist.: SSC 2-1978(Temp), f. & ef. 1-4-78; SSC 3-1978, f. & ef. 2-16-78

 

575-050-0030

Repayment

(1) Repayment of the principal of the loans, accruing interest and deferred interest shall commence not later than 12 months after the borrower graduates or otherwise terminates his/her education program. The "education program" may include post-graduate study approved by the Commission. If a borrower enrolls in an approved post-graduate study program after a portion of the above 12-month period has elapsed, then repayment of the principal and deferred interest shall commence following the termination of that program and after any remaining balance of the original 12-month period has elapsed, except that repayment of principal and deferred interest must commence in all cases within 60 months following the borrower's graduation from the institution.

(2) These payments shall be made in equal successive monthly installments of not less than $50 and shall end not more than 120 months after the beginning of the principal repayment period.

(3) The length of repayment for students who borrow under this program following the commencement of repayment shall be negotiated by the student and the Division at the time the subsequent loan is made.

Stat. Auth.: ORS 348
Stats. Implemented: ORS 348.040 - ORS 348.095
Hist.: SSC 2-1978(Temp), f. & ef. 1-4-78; SSC 3-1978, f. & ef. 2-16-78; SSC 2-1979, f. 7-24-79, ef. 8-1-79; SSC 1-1981, f. & ef. 9-3-81; SSC 4-1983, f. & ef. 11-29-83

 

575-050-0035

Default

(1) A loan shall be judged to be in default upon the occurrence of any one or more of the following conditions:

(a) Failure of the borrower to acknowledge the Schedule of Payments within 60 calendar days following graduation or termination;

(b) Failure of the borrower to fully remit two consecutive quarterly installments of accruing interest or failure to fully remit a monthly installment of accruing interest which is due for more than 120 days;

(c) Failure of the borrower to fully remit any other installment which is due for more than 120 days; or

(d) Borrower is adjudicated a bankrupt.

(2) The holder of a note may exercise the right of offset against any maker or co-maker of defaulted loans under the conditions set forth by the laws of the State of Oregon. The maker or co-maker shall pay any charges for assistance in exercising the right of offset incurred by the holder of the note(s).

(3) From funds available, therefore, the Commission shall reimburse the Division for any loss resulting from default of a loan. The Commission shall then take the action necessary for the recovery of those funds.

(4) A five percent collection charge shall be assessed against all loans that are judged to be in default. This charge will be assessed by the Commission for the actual servicing and collection of defaulted loans and is based on the amount paid to the previous holder of the note(s). The maker or co-maker shall pay all charges incurred should the note(s) be referred to an outside collection agency.

(5) The application of offsets to a defaulted loan(s) shall not be credited to future payments nor be a substitute for regular monthly installments.

(6) The prepayment of a portion of a defaulted loan(s) shall not be credited to future payments nor be a substitute for regular monthly installments.

Stat. Auth.: ORS 348
Stats. Implemented: ORS 348.040 - ORS 348.095
Hist.: SSC 2-1978(Temp), f. & ef. 1-4-78; SSC 3-1978, f. & ef. 2-16-78; SSC 1-1981, f. & ef. 9-3-81; SSC 4-1983, f. & ef. 11-29-83; SSC 3-1985, f. & ef. 4-17-85; SSC 1-1987, f. 2-23-87, ef. 2-25-87

 

575-050-0040

Interest for Medical, Dental, and Veterinary Student Borrowers

(1) Borrowers shall be assessed at least six percent interest per annum on the unpaid balance from the date of the note.

(2) In-school interest payments by the borrower shall be deferred until the borrower ceases to be enrolled full-time:

(a) During the interest deferment period, the Commission shall pay the Division the applicable interest on an annual basis;

(b) The borrower shall reimburse the Commission for these deferred interest payments as provided in OAR 575-050-0030.

(3) The borrower shall commence direct payment of accruing interest to the Division at the time he/she ceases to be enrolled full-time. These payments of interest will be made in quarterly or monthly installments, as specified in the Interim Note and Addendum, until repayment of principal begins, at which time they will be incorporated into the monthly installments of principal and deferred interest.

Stat. Auth.: ORS 348
Stats. Implemented: ORS 348.040 - ORS 348.095
Hist.: SSC 2-1978(Temp), f. & ef. 1-4-78; SSC 3-1978, f. & ef. 2-16-78; SSC 1-1981, f. & ef. 9-3-81; SSC 4-1983, f. & ef. 11-29-83; SSC 1-1987, f. 2-23-87, ef. 2-25-87

 

575-050-0042

Interest for Undergraduate Nursing Student Borrowers

(1) Borrowers shall pay such rate of interest as is negotiated between the Division of State Lands and the State Scholarship Commission, but in no event shall such rate of interest be less than seven percent.

(2) Annual interest shall be paid by the nursing student borrower within 30 days from the date interest is due and payable.

Stat. Auth.: ORS 348
Stats. Implemented: ORS 348.040 - ORS 348.095
Hist.: SSC 4-1983, f. & ef. 11-29-83

 

575-050-0045

Special Payments

The Commission shall pay annually to the Division a maximum of three percent per annum on the unpaid balance of all medical, dental, and veterinary student borrower loans.

Stat. Auth.: ORS 348
Stats. Implemented: ORS 348.040 - ORS 348.095
Hist.: SSC 2-1978(Temp), f. & ef. 1-4-78; SSC 3-1978, f. & ef. 2-16-78; SSC 4-1983, f. & ef. 11-29-83

575-050-0050

Record Keeping

(1) The institution shall maintain sufficient records to document its activities in the program.

(2) The institution shall retain records relevant to the program for not less than five years following the borrower's graduation or termination.

(3) The institution shall make its records available to the Commission at reasonable times for the purpose of assuring that the institution is complying with the rules relating to the administration of the program.

Stat. Auth.: ORS 348
Stats. Implemented: ORS 348.040 - ORS 348.095
Hist.: SSC 4-1983, f. & ef. 11-29-83

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