Chapter HEA 11

HEA 11.04 History History: Cr. Register, April, 1992, No. 436, eff. 5-1-92.

HEA 11.05 HEA 11.05 Loan forms and application process.

HEA 11.05(1) (1) A student seeking a loan shall contact the institutional financial aid office.

HEA 11.05(2) (2) The institutional financial aid office shall determine the borrower’s cost of education within the requirements set by the board. The institutional financial aid office shall decide if the borrower shall receive a loan under this program.

HEA 11.05(3) (3) The institutional financial aid office shall notify the board of the loan amount for the borrower. The board shall voucher a check for the borrower’s loan after the borrower’s signed agreement form has been received by the board. The agreement form shall set forth the terms of the loan; the terms of forgiveness; the terms of repayment; and the borrower’s rights and responsibilities.

HEA 11.05(4) (4) All borrower contact concerning forgiveness and repayment shall be with the board. After leaving school the borrower shall maintain contact with the board until the loan is either forgiven or repaid. The borrower is required to forward all name, address and telephone number changes to the board.

HEA 11.05 History History: Cr. Register, April, 1992, No. 436, eff. 5-1-92.

HEA 11.06 HEA 11.06 Loan forgiveness.

HEA 11.06(1) (1) Loans shall be forgiven when the borrower is employed as a teacher in an eligible Wisconsin school district. For every academic year of full-time employment, 25% of the principal and accrued interest, if any, shall be forgiven, with the amount to be prorated in cases where less time has been worked. The borrower shall be given a maximum of 6 years to work the required 4 years for full forgiveness.

HEA 11.06(2) (2) The maximum of 6 years allowed for forgiveness shall be extended by the board for up to a total of 3 years for active duty military service; peace corps and vista; and a year for pregnancy, childbirth or the legal adoption of a child or for temporary physical or emotional disability. In no instance shall the term of forgiveness exceed 9 years including periods of deferments authorized by the board. The executive secretary may allow additional periods of deferment in exceptional situations.

HEA 11.06(3) (3) Any loan principal remaining unforgiven shall be repaid with interest accrued from the date the borrower ceased working as a teacher in Wisconsin or ceased being a student, whichever is the latest date.

HEA 11.06(4) (4) Only borrowers holding a bachelor’s degree in teaching and licensed by the department of public instruction shall be eligible for forgiveness.

HEA 11.06(5) (5) No interest shall be charged the borrower during the forgiveness period.

HEA 11.06 History History: Cr. Register, April, 1992, No. 436, eff. 5-1-92.

HEA 11.07 HEA 11.07 Terms of repayment.

HEA 11.07(1) (1) Borrowers shall repay a loan if not employed as a teacher in an eligible Wisconsin school district. Repayment shall be required of borrowers who are employed for periods of time but who do not complete their forgiveness within the time allowed under s. HEA 11.06 (1) and (2).

HEA 11.07(2) (2) The minimum monthly payment shall be $50 including principal and accrued interest. Accrued interest shall be paid first each month from the payment received. The board shall determine the monthly repayment schedule, although a borrower may request a schedule with a higher monthly payment.

HEA 11.07(3) (3) A borrower shall repay the loan within a maximum of 10 years not counting periods of deferment granted by the board. Interest shall not accrue during periods of deferment authorized by the board.

HEA 11.07(4) (4) Borrowers may prepay any or all of their loan account without penalty whether the borrower is in school, forgiveness, repayment or deferment.

HEA 11.07(5) (5) If a borrower dies or becomes totally and permanently disabled, his or her obligation to make any further payment of principal and interest on the loan is canceled.

HEA 11.07 History History: Cr. Register, April, 1992, No. 436, eff. 5-1-92.

HEA 11.08 HEA 11.08 Deferment of loan repayment for borrowers.

HEA 11.08(1) (1) Borrowers who return to school on a full-time basis in any course of study at an accredited institution shall be deferred by the board from repayment for the period of enrollment.

HEA 11.08(2) (2) Borrowers who enter the military on active duty shall be deferred by the board from repayment for up to 3 years. Students on national guard or on reserve duty for training are not eligible for deferment.

HEA 11.08(3) (3) Borrowers who enter the peace corps or vista, shall be deferred by the board from repayment for up to 3 years. Employment with similar private agencies is not eligible for deferment unless the agencies are federally tax exempt.

HEA 11.08(4) (4) Borrowers who are unemployed may be deferred from repayment by the board for up to 6 months at a time as long as they provide proof, satisfactory to the board, of actively seeking employment.

HEA 11.08(5) (5) The board shall defer borrowers from repayment for up to a year due to pregnancy, childbirth, or the legal adoption of a child.

HEA 11.08(6) (6) The board may grant forbearance from repayment for the benefit of the borrower. Forbearance means an extension of time for making loan payments or the acceptance of smaller payments than were previously scheduled. The board may grant forbearance whenever unemployment, health, other personal problems, or educational study that is ineligible for deferment temporarily affects the borrower’s ability to make scheduled payments on the loan. Periods of forbearance shall not exceed 6 months for each approved request.

HEA 11.08(7) (7) In order to receive a deferment, a borrower shall apply to the board. If the borrower submits written evidence which verifies eligibility for the deferment, the board shall approve the deferment.

HEA 11.08 History History: Cr. Register, April, 1992, No. 436, eff. 5-1-92.