AUTHORITY: sections 173.105 and 173.160, RSMo 1978. Original rule filed June 8, 1979, effective Nov. 11, 1979. Rescinded: Filed Oct. 11, 1983, effective Jan. 13, 1984. 6 CSR 2.070 Missouri Prospective Teacher Loan Program PURPOSE: The Missouri Prospective Teacher Loan Program permits the Coordinating Board for Higher Education to provide loans to Missouri residents who are enrolled fulltime as upperclassmen at participating Missouri public or private institutions and who are enrolled in an approved teacher education program leading to qualifications necessary to obtain a teaching certificate. The program also allows the Coordinating Board for Higher Education to defer or forgive principal and interest payments for those who teach in areas of critical need as determined by the State Board of Education. (1) Definitions. (A) Academic year or the period of the loan shall mean August 1 of any year through July 31 of the following year. (B) Applicant is anyone who applies to the coordinating board for a loan under the MPTLP and, unless the context clearly requires otherwise, includes renewal applicants. (C) Approved standard student teaching block is a period of supervised teaching experience provided by the participating institution for the student applicant to teach and complete a required number of credit hours to earn a teaching certificate in his/her teacher education program. (D) Approved teacher education program shall mean a formal course of instruction leading to qualifications necessary to obtain a teaching certificate in Missouri and which has been approved by the State Board of Education. (E) Areas of critical need shall be areas defined by the State Board of Education which may be either geographic or teacher certification areas in Missouri. (F) Award is the granting of a loan under the MPTLP by the coordinating board to an applicant. (G) Borrower is an applicant who has received loan monies under the MPTLP. (H) Coordinating board or board is the Coordinating Board for Higher Education (CBHE) created by section 173.005, RSMo. (I) Fiscal year shall mean July 1 of any year through June 30 of the following year. (J) Full-time student shall be defined as an undergraduate student enrolled in college courses with credit hours equivalent to fulltime status as defined by the participating institution or enrolled and participating in an approved standard student teaching block as defined by the participating institution. (K) Fund shall mean the Missouri prospective teacher fund established by section 168.580, RSMo. (L) Grace period shall mean the six (6)- month period between graduation, withdrawal, transfer to a nonparticipating institution or reduction to less than half-time enrollment and the date repayment begins. (M) Missouri Prospective Teacher Loan Program or MPTLP shall mean the teacher loan program provisions included in sections 168.550—168.595, RSMo. (N) Need shall mean the difference between the financial resources available to an applicant as determined by the coordinating board, and the applicant’s cost of education (tuition, fees, room, board, books, supplies, transportation and other reasonable expenses) while attending a participating institution. (O) Nonparticipating institution is an institution which falls outside the definition of a participating institution. (P) Participating institution shall be a public or private Missouri institution offering an approved teacher education program and which has signed an agreement with the coordinating board to participate in the MPTLP. (Q) Renewal applicant is a borrower who received funds under the MPTLP the prior academic year and who makes an accurate application for another loan under the MPTLP and who continues to meet the eligibility criteria. (R) Resident of the state of Missouri is any person who meets the residency rule set forth by the coordinating board, 6 CSR 10-3.010. (S) Satisfactory academic progress is an estimate made and certified by the participating institution, according to the institution’s policies, regarding the student’s rate of completion of study objective (degree or certificate). (T) State Board of Education or state board is the State Board of Education as established in section 161.022, RSMo and includes the Department of Elementary and Secondary Education established in section 161.012, RSMo. 6 CSR 10-2 (U) Teaching certificate shall mean a certificate of license for any person to teach in the public schools of Missouri as granted by the State Board of Education under the rules prescribed by the state board. (2) Student Borrower Qualifications and Responsibilities. To be eligible for an award under the MPTLP, an applicant must meet the following conditions: (A) Be a citizen or a permanent resident of the United States; (B) Be a resident of Missouri; (C) Be enrolled as a full-time undergraduate student in an approved teacher education program at a participating institution for the period of the loan or be enrolled and participating in an approved standard student teaching block as defined by the participating institution for the period of the loan; (D) Have completed the equivalent number of college credit hours to be classified in junior status or above as determined by the participating institution but not have earned and completed one hundred fifty (150) semester credit hours nor have earned a previous baccalaureate degree; (E) Be evaluated on an entry level test and obtain a satisfactory rating prior to admission to an approved teacher education program in accordance with section 168.400.2, RSMo; (F) Demonstrate need for the loan amount requested as recommended by the participating institution in the institution’s section of the MPTLP application; (G) Intend to obtain a teaching certificate under the rules prescribed by the State Board of Education; (H) Maintain a cumulative grade point average in college credit of no less than 3.0 on a 4.0 scale or the equivalent determined by the coordinating board; (I) Be in good standing and maintain satisfactory academic progress in his/her course of study, according to standards determined by the participating institution; (J) Not be in default on other previous educational loans and not owe a refund or a repayment on other Title IV financial assistance programs included in the Higher Education Act of 1965; (K) Complete the student borrower’s section of the MPTLP application, MO 555- 0041 (1-86), including the borrower’s Social Security number subject to the provisions of section 7 of P. L. 93-579; and (L) Execute and deliver to the coordinating board a signed promissory note in accordance with these rules. The signed promissory note constitutes the loan contract required under section 168.570, RSMo and must be received by the coordinating board before the applicant’s award can be sent to the participating institution. (3) Responsibilities of Participating Institutions. (A) Participating institutions shall meet the following requirements: 1. Be a public or private institution located in Missouri; 2. Be accredited by either the North Central Association of Colleges and Secondary Schools, by other accrediting bodies recognized by the United States Department of Education or be approved by the State Board of Education pursuant to section 161.097, RSMo; 3. Admit only those students having a certificate of graduation from a school providing secondary education or the recognized equivalent of that certificate; 4. Offer an approved teacher education program for enrolled students to obtain a teaching certificate as defined by the state board; 5. Establish fair and equitable refund policies covering tuition, fees, and where paid to the school, room and board charges; 6. Sign the Agreement for Educational Institution Participation in the MPTLP as provided by the coordinating board; 7. Retain, pursuant to the provisions under this rule, MPTLP records for five (5) years and systematically organize records to be made readily available for review upon request by the coordinating board; and 8. Complete the institution’s section of the MPTLP application, MO 555-0041 (1- 86), to verify the student’s eligibility for the MPTLP and send to the coordinating board by June 1 of the current processing year. (B) When the participating institution receives the MPTLP funds for the awards made by the coordinating board, the participating institution must comply with the following: 1. Determine if the applicant is enrolled full-time making satisfactory academic progress in his/her course of study, according to standards determined by the participating institution; 2. Do not obtain an applicant’s autho- rization as an instrument of endorsement for the disbursement of funds on the applicant’s behalf; 3. Deliver the MPTLP funds to the applicant in the amount awarded to that applicant by the coordinating board and obtain the applicant’s endorsement, retaining the portion of the award which the applicant owes for the cost of education (tuition, fees, room, board, books, supplies, transportation and other reasonable expenses) to that particular participating institution and promptly give the applicant any remaining funds; 4. Inform the coordinating board of changes in the applicant’s enrollment status, graduation date(s) and last known address by promptly completing and returning enrollment verification reports to the coordinating board. Enrollment verification reports are to be submitted two (2) times during the academic year: one (1) in October and one (1) in March; 5. Notify the coordinating board direct- ly about the applicant’s status change within sixty (60) days of the participating institution becoming aware of the change if the institution does not expect to submit the next enrollment verification report within the next sixty (60) days; 6. Must notify if the applicant to whom an award has been made has not enrolled fulltime, or has indicated that s/he does not plan to enroll full-time, the coordinating board and return the applicant’s check within thirty (30) days of learning these facts; 7. Shall be responsible for the repay- ment of any loan funds sent to it by the coordinating board in the following instances: A. The participating institution deliv- ers funds to an applicant not eligible under the MPTLP if the award was based on erroneous, improper or misleading information provided by the participating institution to the coordinating board; or B. The participating institution deliv- ers the MPTLP funds to a person other than one to whom the coordinating board has directed the funds be delivered; and 8. Determine and calculate the amount of refunds to the coordinating board based on the refund formula of the participating institution. (4) Application and Evaluation. (A) The coordinating board annually shall prescribe the form of and the time and method for filing applications under the MPTLP. (B) An application for assistance under the MPTLP shall be made annually by the applicant upon the form prescribed by the coordinating board. (C) The application shall be divided into three (3) separate sections. The application will be completed in the following order according to the section name: 1. Student Applicant; 2. Student Financial Aid Office of the participating institution; and 3. Coordinating Board for Higher Education. (D) Applicants will be evaluated by the coordinating board according to the eligibility criteria under the provisions of this rule and the information submitted by the participating institution on the completed application and on any other information received by and deemed reliable by the coordinating board. (E) The completed MPTLP application must be received by the coordinating board on or before June 1 of the current processing year in order to be considered on time and to have priority consideration. (5) MPTLP Award Limits and Criteria. (A) For the Fiscal Years 1987, 1988 and 1989, the maximum loan amount for each applicant per academic year shall be one thousand dollars ($1000), not to exceed five hundred dollars ($500) per school term. (B) The fourth and each subsequent year in which loans are made under the MPTLP, the coordinating board shall determine the maximum amount for loans to eligible applicants in each academic year. (C) The minimum award amount for each applicant per academic year shall be five hundred dollars ($500), not to exceed two hundred fifty dollars ($250) per school term. (D) The loan amount recommended by the participating institution shall not exceed the cost of education (tuition, fees, room, board, books, supplies, transportation and other reasonable expenses) less any financial aid and other resources available to the applicant or the annual loan limits. (E) Funds under the MPTLP shall be awarded to applicants who otherwise qualify under this rule in the following order until all the funds have been expended. Class levels shall be defined by the participating institutions. 1. Renewal applicants who are obtaining a teaching certificate in an area of critical need. 2. Nonrenewal applicants classified as seniors who are obtaining a teaching certificate in an area of critical need. 3. Nonrenewal applicants classified as juniors who are obtaining a teaching certificate in an area of critical need. 4. Renewal applicants who are obtaining a teaching certificate in an area of noncritical need. 5. Nonrenewal applicants classified as seniors who are obtaining a teaching certificate in an area of noncritical need. 6. Nonrenewal applicants classified as juniors who are obtaining a teaching certificate in an area of noncritical need. (F) If the amount of MPTLP funds available to award for loans is insufficient to award the loan amount recommended by the participating institution, for each and all of those applicants who qualify for MPTLP funds from all the participating institutions, the qualified applicants with the highest cumulative grade point average shall have priority in receiving awards within the priority groupings described in subsection (5)(E). (G) An applicant shall have advanced to the next class level in order to be eligible for a subsequent loan under the MPTLP and the applicant shall receive only one (1) award under the MPTLP for each eligible class level of enrollment at the participating institution. (H) The annual award amount will be disbursed equally according to the number of semesters at the participating institution and awarded for each semester of enrollment. (I) An award(s) will not be made for the periods of enrollment during the summer term(s). (J) An applicant or borrower may change his/her participating institution choice prior to registration and may transfer between participating institutions during the academic year. The deadline for these actions is August 1 for the fall semester and January 1 for the winter or spring semester. Failure to notify the coordinating board of these actions may result in loss of the award. (K) Award notifications and promissory notes forms will be sent to applicants by the coordinating board once the awards have been determined. Notifications of awards also will be sent to the student financial aid office at the participating institution where the applicant plans to or has enrolled. (L) The applicant’s award will be sent to the participating institution to be endorsed by the applicant in accordance with the requirements of subsection (3)(B) of this rule. (M) Should a borrower withdraw prior to the end of the participating institution’s refund period for the period of the loan, then a refund shall be calculated and made to the coordinating board by the participating institution within forty (40) days from the day on which the borrower withdraws. The amount of the refund will be calculated by the participating institution based on the refund formula of that institution. The coordinating board may refuse to award loans to applicants who attend participating institutions which fail to make timely refunds to the coordinating board. (N) Interest shall be calculated on the total amount borrowed at the time repayment is required to begin. The interest rate shall be calculated at ten percent (10%) simple interest with daily accrual on the total unpaid principal balance. (O) If after making all the awards to those applicants whom the coordinating board finds qualified under these rules, there remains money in the fund, the coordinating board shall not be required to award those unexpended funds. (6) Grace Period. (A) A borrower shall be allowed a one (1)- time six (6)-month grace period following graduation, withdrawal, transfer to a nonparticipating institution, or reduction to less than half-time status at the participating institution before repayment must begin. (B) The grace period begins when a borrower graduates, transfers to a nonparticipating institution or reduces his/her academic load to less than half-time enrollment as determined by the participating institution. (C) The grace period terminates on the first day of the seventh month after the borrower graduates, withdraws, transfers to a nonparticipating institution or ceases halftime enrollment. No extensions of the grace period shall be allowed. (D) The grace period, for all borrowers who enter into a contract with a Missouri public elementary or secondary school in an area of critical need, shall be the length of time between graduation from an approved teacher education program and the effective date of the contract in the area of critical need or six (6) months, whichever is less. For borrowers not teaching in an area of critical need or not entering teaching, the grace period for the MPTLP shall be six (6) months following graduation from an approved teacher education program. (E) Nonattendance or enrollment in any school or participating institution for less than half-time status during the summer months does not affect the grace period. (F) The borrower can waive any or of his/her grace period and begin repayment early. The borrower must so inform MPTLP in writing. Once the borrower has waived the grace period, it cannot be reinstated. (7) Repayment. (A) Repayment shall begin at the end of the allowed grace period. (B) The coordinating board will mail the repayment schedule to the borrower during the grace period of the MPTLP. (C) The first payment must be made by the borrower no later than the last day of the seventh month after the borrower graduates, withdraws, transfers to an ineligible nonparticipating institution or ceases half-time enrollment. (D) The minimum payment amount shall be thirty dollars ($30) each month until the 6 CSR 10-2 loan is paid in full or cancelled. The loan payment amount will vary depending on the total amount borrowed, plus accrued interest. Under no circumstances shall the minimum annual repayment be less than three hundred sixty dollars ($360). (E) The borrower shall repay the total amount borrowed (principal and interest) within five (5) years of the first payment date. The periods of repayment, cancellation, or both, shall not extend beyond five (5) years from the first payment date. (F) If the borrower makes payments during the grace period, the payment shall be deducted from the principal amount owed by the borrower. (G) Payments made by the borrower after the allowed grace period has expired shall be applied first to the accrued interest with the balance of the payment, if any, being applied to principal. (H) The borrower may repay the whole or any part of the total award with accrued interest at any time without penalty. (8) Delinquency and Default. (A) A borrower shall be delinquent when one (1) scheduled payment is missed. (B) A borrower shall be in default when three (3) consecutive scheduled payments are missed; after that, payment of principal and interest is due in full immediately. (C) A borrower shall be notified by certified mail by the coordinating board of his/her default status within ten (10) days of when the loan is considered in default. The borrower will have thirty (30) days from the date of the certified letter to make satisfactory payment arrangements. (D) If satisfactory payment arrangements have not been made within thirty (30) days from the date the default notice is mailed, then the borrower’s default status will be reported to a national credit bureau. (E) Borrower’s responsibility includes maintaining a current address with the coordinating board. A notice of default returned to the coordinating board as undeliverable will be considered as no response and the borrower’s default status will be reported to a national credit bureau within thirty (30) days from the mailing date of the default notice. (9) Cancellation. (A) A borrower may cancel twenty percent (20%) of the remaining balance including principal and interest owed for each academic year the borrower is employed in a Missouri public elementary or secondary school in the state and is teaching in a teacher certification area or a geographic area of critical need. (B) The teacher certification area of critical need for a borrower shall be determined at the time the borrower initially receives and accepts funds under the MPTLP. (C) The geographic area of critical need for a borrower shall be determined at the time the borrower signs a contract to teach in a Missouri public elementary or secondary school. (D) A borrower requesting cancellation must enter into a contract with an elementary or secondary school recognized as a public school by the state board and the school official shall verify on the MPTLP Employment Status Form the borrower’s employment each academic year of teaching. (E) A borrower requesting cancellation as an elementary teacher must have a major area of emphasis in the teacher certification area of critical need and the school official must verify the borrower is teaching in the major area on the MPTLP Employment Status Form for the borrower to qualify for cancellation requirements in accordance with subsection (9)(A) of this rule. (F) No payment is due from a borrower as long as s/he is regularly employed by a public elementary or secondary school in Missouri and is teaching in an area of critical need. (G) Repayment of the loan and interest shall begin immediately if the borrower ceases employment with a public elementary or secondary school in Missouri or discontinues teaching in the area of critical need before or at the end of the academic year in which the borrower has begun teaching. (H) After five (5) years of employment and teaching by the borrower in an area of critical need, the total amount borrowed, principal and interest, or the remaining balance may be fully cancelled. (10) Deferment of Repayment. (A) A borrower may qualify for an inschool deferment and defer payments of principal and interest if the borrower returns to pursue a full-time course of study at the graduate level as defined by the educational institution. 1. A borrower enrolled as a full-time graduate student and requesting deferment of repayment must enroll in an educational institution regionally accredited. 2. A Request for Deferment of Repayment Form must be completed by the borrower and a school official and the educational institution must verify the student’s enrollment status in order to qualify for the in-school deferment. 3. The beginning date for the requested deferment is the date the borrower begins attending as a full-time graduate student. The deferment can continue for any length of time, as long as the borrower remains enrolled at an educational institution on a basis that meets the previously stated eligibility requirements. 4. A Request for Deferment of Repayment Form must be completed for each academic year the borrower is enrolled as a full-time graduate student and requests a deferment of principal and interest. (B) A borrower may request a temporary total disability deferment for up to three (3) years if the borrower, by reason of injury or illness, cannot be expected to be able to attend a participating institution or to be gainfully employed during a reasonable period of recovery from such injury or illness not to exceed twelve (12) months. 1. A Request for Deferment of Repayment Form must be completed by the borrower and submitted to the MPTLP along with a physician’s statement certifying the nature of the disability and the expected duration of the temporary total disability. 2. The borrower’s grace period must be used before the temporary total disability deferment can be granted. The beginning date of this deferment is the date on the Request for Deferment of Repayment Form indicating when the disability began or the day after the end of the grace period, whichever is later. (C) No other deferments shall be granted under the MPTLP. (11) Forbearance. (A) The Missouri Prospective Teacher Loan Program will consider the use of forbearance in cases where, because of temporary hardship, the borrower is willing but unable to pay in accordance with the repayment schedule. Forbearance shall not be used when a borrower is unwilling to make repayments. Forbearance is often granted in situations where the borrower is, for a period of time, unable but willing to meet his/her obligation, for example, hospitalization, prolonged illness or disability. (B) Forbearance for a borrower may consist of a reduction in the amount of scheduled payments for a specific period of time or the suspension of payments for a specific period. (C) The MPTLP shall determine the status of forbearance and if interest payments may be postponed during forbearance for each borrower. (12) Death, Disability and Bankruptcy. (A) In the event a borrower becomes totally and permanently disabled, the requirements of the borrower to make any further payment of principal and interest will be cancelled immediately upon approval of the disability. Disability exists when the borrower, by reason of injury or illness, cannot be gainfully employed for a period of not less than twelve (12) months from the injury or illness. S/he must have a severe impairment which makes him/her unable to do his/her previous work or any other substantial gainful activity which exists in the national economy. The appropriate documents necessary for filing a disability claim may be obtained from the MPTLP upon request. (B) In the event, either voluntary or involuntary, a borrower becomes subject to a proceeding under the bankruptcy laws of the United States of America, s/he immediately shall report this proceeding to the coordinating board and provide a copy of the petition. (13) Due Diligence. The coordinating board will monitor all student loans in deferment, cancellation, repayment or default status. The coordinating board may pursue all available legal remedies to ensure full repayment of loans. AUTHORITY: sections 168.550—168.595, RSMo 1995.* Original rule filed Jan. 11, 1986, effective June 12, 1986. *Original authority 1985.