(1) Upon approval of the loan application of an eligible student by the Oregon Student Assistance Commission, the commission may lend an amount from the Oregon Teacher Corps Account to the student in compliance with this section. The loan shall be evidenced by a written obligation but no additional security shall be required. Notwithstanding any provision in this section, the commission may require cosigners on the loans.
(2) Loans granted under this section to eligible students by the commission shall:
(a) Not exceed $2,000 in a single academic year to an undergraduate student enrolled in a teacher education program leading to a basic or initial license.
(b) Not exceed $4,000 in a single academic year to a graduate student enrolled in a teacher education program leading to a basic or initial license.
(c) Not exceed $8,000 for all loans made to a student under this section.
(3) Borrowers are required to pay at least seven percent interest per annum on the unpaid balance from the date of the loan as provided in subsection (4) of this section.
(4)(a) Repayment of the principal and accruing and deferred interest on loans shall be commenced not later than 12 months after the studentís completion of the teacher education program or other termination of the studentís education. Repayment of loans under ORS 329.765 shall be delayed for the period of time the student is teaching at least half-time in a public school in this state but becomes payable under the usual terms if the student ceases teaching before completing three full years. Repayment of loans shall be delayed up to three years upon application of the borrower showing inability to locate suitable employment.
(b) Repayment shall be completed in a maximum of 120 months from the time repayment is commenced. However, nothing in this section is intended to prevent repayment without penalty at an earlier date than provided in this section or to prohibit the commission from extending the repayment period to a date other than permitted by this subsection.
(5)(a) An eligible student who receives a loan under this section, preparing to be an elementary or secondary school teacher in this state, is not required to repay a loan made under this section if the student completes:
(A) At least three years of equivalent full-time teaching in a public elementary or secondary school within the five-year period following completion of the teacher education program in this state; or
(B) At least 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 a public elementary or secondary school within the five-year period following completion of the teacher education program in this state, as approved by the Oregon Student Assistance Commission upon written request of the borrower.
(b) Repayment of remaining principal and interest shall be waived upon the death or total and permanent disability of the borrower. [Formerly 348.130; 1997 c.383 §8; 1999 c.704 §7]Section: Previous 329.750 329.753 329.755 329.757 329.760 329.765 329.770 329.775 329.780 329.788 329.790 329.795 329.800 329.805 329.810 Next
Last modified: August 7, 2008