OREGON TEACHER CORPS LOAN PROGRAM
For purposes of the Oregon Teacher Corps Loan Program rules, the following definitions shall be used:
(1) "Enrolled or Accepted for Enrollment in an Approved Teacher Education Program" means enrolled at a postsecondary institution in Oregon in a program approved by the Oregon Teacher Standards and Practices Commission which leads to basic certification for elementary or secondary school teaching, or in a curriculum defined by the Education Department (Division) (School) of that institution as a prerequisite for such a program.
(2) "Inability to Locate Suitable Employment " means that the borrower can document, on an annual basis, that he/she has applied for teaching positions, without success, in at least three public school districts in Oregon.
(3) "Equivalent Full-Time Teaching" means working under a full-time contract with teaching duties and other duties for which administrative certification is not required.
(4) "Resident of Oregon" -- See definitions under OAR Chapter 575, Division 30.
(5) "Graduate Student" means a student enrolled in a program leading to the Master of Arts in Teaching (MAT) or Master of Science in Teaching (MST) degree.
(1) The Oregon State Scholarship Commission, hereafter called, "the Scholarship Commission", shall be responsible for the administration of the Oregon Teacher Corps Program.
(2) The Scholarship Commission shall be responsible for making such rules as are required for the administration of the Oregon Teacher Corps Program.
Eligible institutions are postsecondary institutions in Oregon which offer teacher education programs approved by the Oregon Teacher Standards and Practices Commission.
To be eligible for a loan under the Oregon Teacher Corps Program, a student must:
(1) Be a resident of Oregon, as defined by the Scholarship Commission.
(2) Be enrolled or accepted for enrollment as at least a half-time student in an approved teacher education program at an eligible institution.
(3) Have graduated in the top 20 percent of his/her high school class, or must have demonstrated equivalent academic attainment in postsecondary education, as defined and documented by the institution most recently attended.
(4) Demonstrate superior potential for teaching through such means as written works, letters of recommendation, accounts of relevant teaching experience, or other appropriate information.
Selection of Recipients
(1) Recipients shall be selected by the Scholarship Commission.
(2) Priority in the selection process shall be given to eligible students (under the criteria in OAR 575-070-0030) who also meet at least one of the following criteria:
(a) He/she is a member of a racial minority as defined in ORS 279.059;
(b) He/she is a prospective teacher in a "scarce endorsement area", as defined by the Oregon Teacher Standards and Practices Commission;
(c) He/she expresses willingness to teach in remote and difficult to serve school districts in Oregon, as defined by the Oregon State Scholarship Commission.
Renewal of Awards
Awards made under this program are renewable in subsequent academic years provided that:
(1) The awardee continues to be enrolled as at least a half-time student in an approved teacher education program at an eligible institution;
(2) The awardee is making satisfactory academic progress, as defined by the institution; and
(3) The awardee arranges for the Scholarship Commission to receive a transcript of the academic work completed in the prior year of award.
Terms of Oregon Teacher Corps Loans
(1) Loans under this program shall be evidenced by a written obligation but no additional security shall be required.
(2) The Scholarship Commission may require co-signers.
(3) Loans under this program shall accrue interest from the date of the loan at no less than 7% interest per annum on the unpaid balance.
(4) Interest rates shall be set by the Scholarship Commission annually at a rate equal to the current "initial loan" interest rate in the Guaranteed Student Loan Program.
(5) Loans shall not exceed the following limits:
(a) $2,000 in a single academic year for an undergraduate student;
(b) $4,000 in a single academic year for a graduate student;
(c) $8,000 for all loans to an individual student.
(6) Repayment of principal and interest shall begin on the first day of the eleventh month following completion of the approved teacher education program, or following cessation of documentable enrollment in that program.
(7) The duration of the repayment period shall be a maximum of 120 months from the time repayment commences.
(8) Minimum monthly payments shall be $50 per month.
(9) Early repayment of these loans may be made without penalty.
(10) The Scholarship Commission may extend the beginning of the repayment period under circumstances set forth in OAR 575-070-0070 of these rules.
(11) If a borrower in repayment satisfies the criteria for loan cancellation set forth in OAR 575-070-0080(1), then all payments made by that borrower will be returned.
Conditions of Award
To receive disbursements of a loan made under the Oregon Teacher Corps program a student must:
(1) Be enrolled in an approved teacher education program;
(2) Be making satisfactory academic progress, as defined by the institution attended;
(3) Not be in default on any federal Title IV loan or owing a refund on federal Title IV funds previously disbursed.
Authorized Deferment of Repayment
(1) A borrower under contract to teach at least half-time in a public elementary or secondary school in Oregon may defer the beginning of the repayment period for up to three years, subject to annual verification of employment status.
(2) A borrower who can document his/her inability to locate suitable employment may defer the beginning of the repayment period for up to three years, subject to annual verification efforts to locate employment.
(3) No borrower may receive more than three years of authorized deferment of repayment.
Complete Cancellation of Loans
(1) One hundred percent of principal and interest will be cancelled for borrowers who, within a period of five years following completion of either the authorized teacher education program or a period of authorized deferment, complete:
(a) Three years of equivalent full-time teaching in public elementary or secondary schools in Oregon; or
(b) Three years of teaching under a full-time contract (working at least three-fourths time in classroom teaching and no more than one-fourth time not in classroom teaching duties during regular school hours) in public elementary or secondary school in Oregon, as approved by the State Scholarship Commission upon written request of the borrower.
(2) One hundred percent of remaining principal and interest will be cancelled upon the death or total and permanent disability of the borrower.
Stat. Auth.: ORS 348
Stats. Implemented: ORS 329.757 - ORS 329.780
Hist.: SSC 4-1987(Temp), f. 10-12-87, ef. 10-15-87; SSC 1-1988, f. & cert. ef. 1-6-88; SSC 2-1988, f. & cert. ef. 6-9-88; SSC 1-1989, f. & cert. ef. 7-31-89
(1) A loan shall be judged to be in default when an installment is due and not paid within 120 days.
(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.
(3) The maker or co-maker shall pay all charges incurred should the note(s) be referred to an outside collection agency.
(4) The application of offsets to a defaulted loan shall not be credited to future payments nor be a substitute for regular monthly installments.
(5) The prepayment of a portion of a defaulted loan shall not be credited to future payments nor be a substitute for regular monthly installments.
Oregon Secretary of State • 136 State Capitol • Salem, OR 97310-0722
Phone: (503) 986-1523 • Fax: (503) 986-1616 • firstname.lastname@example.org
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