Texas Education Code - Section 52.40. Cancellation Of Certain Loan Repayments
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§ 52.40. CANCELLATION OF CERTAIN LOAN REPAYMENTS. (a)
The board may cancel the repayment of a loan received by a student
who earns a doctorate of psychology degree and who is employed by
the Texas Youth Commission, Texas Department of Human Services,
Texas Department of Corrections, or Texas Department of Mental
Health and Mental Retardation prior to the date on which repayment
of the loan is to commence.
(b) A person who wishes to apply for a loan cancellation
shall enter into a contract with the board which contains the
following provisions:
(1) No payment is due from the person as long as he is
employed by one of the designated state agencies.
(2) Half of the total amount of the loan plus interest
due is to be cancelled after two years of the appropriate service,
and the remainder is to be cancelled after two additional years of
service.
(3) Repayment of the loan and interest is to commence
immediately if the person leaves the designated state agency before
the expiration of two years; repayment of one-half of the loan and
interest is to commence immediately if the person leaves the
designated state agency after completing two years service; upon
completion of four years service, the loan, principal and interest,
shall be fully cancelled.
(4) Interest continues to accrue until the loan is
cancelled or repaid.
(c) Loans and interest on loans may be cancelled under the
Texas Opportunity Plan Fund in any year in a total amount not to
exceed the amount appropriated for that purpose from general
revenue funds.
(d) The board shall publicize the availability of the loan
cancellation procedures provided in this section at all
institutions of higher education which offer graduate programs in
psychology.
Added by Acts 1975, 64th Leg., p. 1344, ch. 503, § 1, eff. Sept.
1, 1975. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 28, art.
III, part K, § 1, eff. Sept. 1, 1984; Acts 1985, 69th Leg., ch.
264, § 33, eff. Aug. 26, 1985; Acts 1985, 69th Leg., ch. 517,
§ 2, eff. Sept. 1, 1985; Acts 1989, 71st Leg., ch. 1084, §
2.03, eff. Sept. 1, 1989.
Section: 52.33 52.34 52.35 52.36 52.37 52.38 52.39 52.40 52.41 52.501 52.51 52.52 52.521 52.53 52.54
Last modified: August 10, 2007
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