TITLE 5               POST-SECONDARY EDUCATION

CHAPTER 7        TUITION AND FINANCIAL AID

PART 5                 TEACHER LOAN REPAYMENT PROGRAM

 

5.7.5.1                    ISSUING AGENCY:  State of New Mexico Higher Education Department

[5.7.5.1 NMAC - N, 10/31/2013]

 

5.7.5.2                    SCOPE:  Provisions for 5.7.5 NMAC apply to certain teachers that are selected to participate in the loan repayment program described in this rule.

[5.7.5.2 NMAC - N, 10/31/2013; A, 7/30/2019]

 

5.7.5.3                    STATUTORY AUTHORITY:  Sections 9-25-8, 21-1-26 and 21-22H-1 through 21-22H-9, NMSA 1978.

[5.7.5.3 NMAC - N, 10/31/2013]

 

5.7.5.4                    DURATION:  Permanent.

[5.7.5.4 NMAC - N, 10/31/2013]

 

5.7.5.5                    EFFECTIVE DATE:  October 31, 2013, unless a later date is cited at the end of a section.

[5.7.5.5 NMAC - N, 10/31/2013]

 

5.7.5.6                    OBJECTIVE:  The objective and purpose of 5.7.5 NMAC is to increase the number of teachers in public schools and the number of teachers in high-need positions in public schools through an educational loan repayment program.  The program provides for repayment of the principal and reasonable interest accrued on loans obtained from the federal government for teacher education purposes.

[5.7.5.6 NMAC - N, 10/31/2013; A, 7/30/2019]

 

5.7.5.7                    DEFINITIONS:

                A.            “Department” means the New Mexico higher education department.

                B.            “Loan” means a grant of funds to defray the educational expenses incidental to a teacher education, under a contract between the federal government and a teacher, requiring repayment of principal and interest.

[5.7.5.7 NMAC - N, 10/31/2013; A, 7/30/2019]

 

5.7.5.8                    HIGHER EDUCATION DEPARTMENT - POWERS AND DUTIES:

                A.            The department may grant a loan repayment award to repay loans obtained for the teacher educational expenses of a teacher upon such terms and conditions as may be imposed by rules of the department.

                B.            The department and the public education department shall jointly make a full and careful investigation of the ability and qualifications of each applicant and determine the fitness of a teacher to participate in the teacher loan repayment program.

[5.7.5.8 NMAC - N, 10/31/2013]

 

5.7.5.9                    TEACHER ELIGIBILITY:

                A.            To be considered for the program, an applicant must:

                                (1)           be a licensed New Mexico teacher;

                                (2)           be a bona fide citizen and resident of the United States and New Mexico; and

                                (3)           have taught at least three school-years in New Mexico.

            B.            To be considered a high-priority applicant for a loan repayment award the applicant shall be a teacher in a designated high-need position in the state.  High-need positions include positions that are:

                                (1)           for teachers who are endorsed and teach bilingual education;

                                (2)           for teachers who are endorsed and teach early childhood education or special education;

                                (3)           for teachers who are endorsed and teach science, technology, engineering, mathematics or career technical education courses; or

                                (4)           in a public school that is low performing or serves a high percentage of economically disadvantaged students.

                C.            Teachers that are not in a designated high-need teacher position may also be considered for loan repayment awards.

[5.7.5.9 NMAC - N, 10/31/2013; A, 7/30/2019]

 

5.7.5.10                 LOAN REPAYMENT AWARD CRITERIA; CONTRACT TERMS; PAYMENT:

                A.            Loan repayment award criteria shall provide that:

                                (1)           for high-priority applicants, award amounts shall be dependent upon a specific public school's need for the designated high-need teacher position, as determined by the public education department, the teacher's total teacher education indebtedness and available balances in the teacher loan repayment fund;

                                (2)           award amounts for other teachers shall be based on the need for a teacher position that can be filled by the applicant, as determined by the public education department, the teacher's total teacher education indebtedness and available balances in the teacher loan repayment fund;

                                (3)           preference in making awards shall be to teachers who are historically underrepresented minorities in New Mexico’s teaching profession or teachers who have graduated from a New Mexico public postsecondary educational institution;

                                (4)           award amounts shall not exceed six thousand dollars ($6,000) per year and may be modified based upon funding availability or other special circumstances; and

                                (5)           the total amount of awards made to any one teacher shall not exceed the total teacher education indebtedness remaining for that teacher.

                B.            The following teacher education debts are not eligible for repayment pursuant to the Teacher Loan Repayment Act:

                                (1)           amounts incurred as a result of participation in state loan-for-service programs or other state programs whose purpose states that service be provided in exchange for financial assistance;

                                (2)           scholarships that have a service component or obligation;

                                (3)           loans from a commercial lender;

                                (4)           personal loans from friends or relatives; and

                                (5)           loans that exceed individual standard school expense levels.

                C.            Every loan repayment award shall be evidenced by a contract between the teacher and the department acting on behalf of the state.  The contract shall provide for the annual payment by the state of a stated sum to the teacher's federal government lender and shall state the obligations of the teacher under the program, including a minimum two-school year period of service in a designated high-need teacher position, quarterly employment reporting requirements and other obligations established by the department.

                D.            Execution of the contracts shall occur prior to the start of a school year and the two school year period of service starts at the execution of the contract.  Each contract shall be for an initial two school year period.  Following completion of the contract a teacher may reapply for consideration of an additional contract.  Teachers may receive a maximum of three additional two-year contracts.  Contracts between a teacher and the department shall not provide for more than a total of eight years of repayment.

                E.            The department shall make an annual payment pursuant to the contract only after the teacher provides verification of satisfactory completion of a full year of teaching as certified by the public education department. If a teacher does not complete the first full year of teaching, the teacher shall forfeit any right to that year’s payment under the contract.

                F.            Loan repayment awards shall be in the form of payments from the teacher loan repayment fund directly to the federal government lender of a teacher who has received the award and shall be considered a payment on behalf of the teacher pursuant to the contract between the department and the teacher.  A loan repayment award shall not obligate the state or the department to the teacher's federal government lender for any other payment and shall not be considered to create any privity of contract between the state or the department and the lender.

 [5.7.5.10 NMAC - N, 10/31/2013; A, 7/30/2019]

 

5.7.5.11                 CONTRACTS:  The general form of a contract required pursuant to the Teacher Loan Repayment Act shall be prepared and approved by the attorney general, and each contract shall be signed by the teacher and the designated representative of the department on behalf of the state.

[5.7.5.11 NMAC - N, 10/31/2013; A, 7/30/2019]

 

5.7.5.12                 TEACHER LOAN REPAYMENT FUND CREATED AND METHOD OF PAYMENT:

                A.            The "teacher loan repayment fund" is created in the state treasury.  All money appropriated for the teacher loan repayment program shall be credited to the fund.  Income from the fund shall be credited to the fund, and balances in the fund shall not revert to any other fund.  Money in the fund is subject to appropriation by the legislature to the department for making loan repayment awards pursuant to the Teacher Loan Repayment Act.

                B.            All payments for loan repayment awards shall be made upon vouchers signed by the designated representative of the department and upon a warrant issued by the secretary of finance and administration.

[5.7.5.12 NMAC - N, 10/31/2013; A, 7/30/2019]

 

5.7.5.13                 CANCELLATION:  The department may cancel any contract made between it and a teacher pursuant to the Teacher Loan Repayment Act for any reasonable cause deemed sufficient by the department.

[5.7.5.13 NMAC - N, 10/31/2013]

 

5.7.5.14                 REPORTS:  Prior to each regular session of the legislature, the department shall make annual reports to the governor and the legislature of the department's activities pertaining to the Teacher Loan Repayment Act; the loan repayment awards granted; the names and addresses of teachers who received loan repayment awards; the names and locations of the positions filled by those teachers; the name of each teacher who received a loan repayment award who is not serving in a designated high-need teacher position; the amount owed on each teacher's loan and the amount paid on each teacher's loan by loan repayment awards; and the number of teachers who did not complete a full year of teaching.

[5.7.5.14 NMAC - N, 10/31/2013; A, 7/30/2019]

 

HISTORY OF 5.7.5 NMAC:  [RESERVED]