(a) An eligible borrower shall become obligated to repay to the division the full amount of each outstanding loan, plus interest accrued thereon, according to the terms and conditions of the note and as described in this section, upon the occurrence of any of the following:
- (1) Prior to graduation, the eligible borrower discontinues his or her course of study;
- (2) The eligible borrower becomes a legal resident of another state;
(3) The eligible borrower does not obtain the license or other permit to practice in the State of Arkansas six (6) months following:
- (A) His or her graduation; or
- (B) The end of any applicable deferment period as described in 6 CAR § 402-107;
- (4) The eligible borrower commences practice outside the state;
- (5) The eligible borrower does not commence practice of dentistry or optometry in the state within six (6) months following his or her receipt of the license or other permit; or
- (6) The eligible borrower fails to complete all requirements necessary to discharge the loan completely under the terms and conditions of the note and as described in 6 CAR § 402-105.
- (b) The eligible borrower shall repay to the division the outstanding loan amount, plus interest accrued thereon, within five (5) years of the date the eligible borrower enters repayment status.
- (c) Interest, not to exceed four percent (4%) per annum, will begin to accrue on the outstanding loan amount, on the date of loan repayment.
- (d) All interest will be calculated as a simple, per annum interest charge on the outstanding balance.
(e)
- (1) Upon commencement of repayment, the eligible borrower shall make equal monthly payments sufficient in amount to retire the entire outstanding balance of the loan, plus interest, within the five-year period allowed for repayment.
- (2) However, in no case shall the minimum monthly payment amount be less than one hundred dollars ($100).
- (f) There shall be no penalty for prepayment of any amount of outstanding principal plus accrued interest.