TITLE 5 POST-SECONDARY
EDUCATION
CHAPTER 7 TUITION AND
FINANCIAL AID
PART 31 PUBLIC
SERVICE LAW LOAN REPAYMENT PROGRAM
5.7.31.1 ISSUING
AGENCY: State of New Mexico Higher Education Department
[5.7.31.1
NMAC - N, 12/31/2007]
5.7.31.2 SCOPE:
Provisions for 5.7.31 NMAC apply to certain practicing public law
professionals in New Mexico.
[5.7.31.2
NMAC - N, 12/31/2007]
5.7.31.3 STATUTORY
AUTHORITY: Sections 21-22F-1 through 21-22F-11, NMSA
1978.
[5.7.31.3
NMAC - N, 12/31/2007]
5.7.31.4 DURATION:
Permanent.
[5.7.31.4
NMAC - N, 12/31/2007]
5.7.31.5 EFFECTIVE
DATE: December 31, 2007, unless a later date is
cited at the end of a section.
[5.7.31.5
NMAC - N, 12/31/2007]
5.7.31.6 OBJECTIVE:
The objective of the public service law loan repayment program is to
improve access to the justice systems in New Mexico by increasing the number of
attorneys in public service employment through a legal education loan repayment
program.
[5.7.31.6
NMAC - N, 12/31/2007]
5.7.31.7 DEFINITIONS:
A. "Department"
means the New Mexico higher education department.
B. "Committee"
means the public service law advisory committee.
C. "Legal education" means
education at an American bar association accredited law school and any bar
review preparation courses for the state bar examination.
D. "Loan"
means money allocated to defray the costs incidental to a legal education under
a contract between the federal government or a commercial lender and a law
school student, requiring either repayment of principal and interest or
repayment in services.
E. "Participating
attorney" means an attorney who receives a loan repayment award from
the department pursuant to the provisions of the public service law loan repayment
program.
F. "Public
service employment" means employment with:
(1) an
organization that is exempt from taxation pursuant to Section 501 (c) (3) of
Title 26 of the United States Code and that provides for the care and
maintenance of indigent persons in New Mexico through civil legal services;
(2) the
public defender department; or
(3) a
New Mexico district attorney’s office.
[5.7.31.7
NMAC - N, 12/31/2007; A,
7/24/2018]
5.7.31.8 HIGHER
EDUCATION DEPARTMENT - POWERS AND DUTIES:
A. The
department may:
(1) grant
an award to repay loans obtained for legal education expenses of a
participating attorney as consideration and inducement to the attorney to
engage in public service employment; and
(2) delegate
to other agencies or contract for the performance of services required by the
provisions of the public service law repayment program.
B. The
department shall make a full and careful investigation of the ability,
character and qualifications of each applicant and determine fitness to become
a participating attorney in the public service law loan repayment program.
[5.7.31.8
NMAC - N, 12/31/2007]
5.7.31.9 LOAN REPAYMENT PROGRAM ELIGIBILITY AND AWARD CRITERIA:
A. An
applicant shall be licensed to practice in New Mexico as an attorney and shall
declare intent to practice as an attorney in public service employment.
B. Prior
to submitting an application to the public service law loan repayment program,
an applicant shall apply to all available legal education loan repayment
programs offered by the applicant’s law school for which the applicant
qualifies.
C. An
applicant who intends to practice as an attorney in a public service employment
position that earns more than seventy-five thousand dollars ($75,000) per year
is not eligible for participation in the public service law loan repayment
program.
D. Prior
to receiving a loan repayment award, the applicant shall file with the
department:
(1) a
declaration of intent to practice as an attorney in public service employment;
(2) proof
of prior application to all legal education loan repayment programs offered by
the applicant’s law school for which the applicant qualifies; and
(3) documentation
that includes the applicant’s total legal education debt, salary, any amounts
received by the applicant from other law loan repayment programs and other
sources of income deemed by the department as appropriate for consideration;
provided that the applicant shall not be required to disclose amounts of income
from military service.
E. Award
criteria shall provide that:
(1) preference
in making awards shall be to applicants who:
(a) have
graduated from the university of New Mexico law school;
(b) have
the greatest financial need based on legal education indebtedness and salary;
(c) work
in public service employment that has the lowest salaries; and
(d) work
in public service employment in underserved areas of New Mexico that are in
greatest need of attorneys practicing in public service employment;
(2) an
applicant’s employment as an attorney in public service employment prior to
participation in the public service law loan repayment program shall not count
as time spent toward the minimum three-year period of service requirement
pursuant to the contract between the participating attorney and the department
acting on behalf of the state;
(3) award
amounts are dependent upon the applicant’s total legal education debt, salary
and other sources of income, other than income from military service, deemed by
the department as appropriate for consideration;
(4) award
amounts may be modified based upon available funding or other special
circumstances;
(5) an
award shall not exceed the total legal education debt of any participant; and
(6) award
amounts shall be reduced by the sum of the total award amounts received by the
participant from other legal education loan repayments programs.
F. The
following legal education debts are not eligible for repayment pursuant to the public
service law loan repayment program:
(1) amounts
incurred as a result of participation in state or law school loan-for-service
programs or other state or law school programs whose purposes state that
service be provided in exchange for financial assistance;
(2) scholarships
that have a service component or obligation;
(3) personal
loans from relatives or friends; and
(4) loans
that exceed individual standard school expense levels;
(5) an
award determination may be appealed to the secretary of higher education.
[5.7.31.9
NMAC - N, 12/31/2007; A, 5/30/2008; A, 10/31/2013; A, 7/24/2018]
5.7.31.10 LOAN
REPAYMENT CONTRACT TERMS
A. The
loan repayment award shall be evidenced by a contract between the participating
attorney and the department acting on behalf of the state. The contract shall state the amount of the
award and the obligations of the participating attorney under the public
service law loan repayment program, including a minimum three-year period of
service, quarterly reporting requirements and other policies established by the
department.
B. A
participating attorney shall serve a complete year in order to receive credit
for that year. The credit for a year
shall be established by the department but shall not exceed seven thousand two
hundred dollars ($7,200).
(1) Payments
are made quarterly during each year of service.
(2) The
advisory committee will conduct an annual review of eligibility for every
participant. If participant becomes
ineligible, future payments may be terminated.
(3) Once
a full year (12 months) of service is completed, no penalty which might
thereafter be imposed would be assessed with respect to the credit amount
satisfied by that year of completed service.
(4) Once
two years of service is completed, no penalty which might thereafter be imposed
would be assessed with respect to the credit amounts satisfied by those two
years of completed service.
C. If
a participating attorney does not comply with the terms of the contract, the
department shall require immediate repayment of the award plus eighteen percent
interest and may assess a penalty of up to three times the amount of award
disbursed, unless the department finds acceptable extenuating circumstances for
why the participating attorney cannot serve or comply with the terms of the
contract. If the department does not
find acceptable extenuating circumstances for the participating attorney’s
failure to comply with the contract, the department shall require immediate
repayment of the award plus the amount of the penalty.
D. The
department, in consultation with the committee, shall adopt rules to implement
the provisions of this section.
[5.7.31.10
NMAC - N, 12/31/2007]
5.7.31.11 CONTRACTS
AND ENFORCEMENT
A. The
general form of the contract required shall be prepared and approved by the
attorney general and the department of finance and administration and signed by
the participating attorney and by the cabinet secretary of the department or
the cabinet secretary’s designated representative on behalf of the state.
B. The
department is vested with full and complete authority and power to sue in its
own name for any balance due the state from any attorney on any such contract.
[5.7.31.11
NMAC - N, 12/31/2007]
5.7.31.12 PUBLIC
SERVICE LAW ADVISORY COMMITTEE
A. The
“public service law advisory committee” is created to advise the department on
matters relating to the administration of the public service loan repayment program.
B. The
committee is composed of:
(1) the
dean of the university of New Mexico law school or the dean’s designee;
(2) the
executive director of New Mexico legal aid or the director’s designee who shall
be an attorney employed with an organization that is exempt from taxation
pursuant to Section 501 (c) (3) of Title 26 of the United States Code and that
provides civil legal services to indigent persons in New Mexico;
(3) the
chief public defender of the chief’s designee;
(4) a
district attorney appointed by the New Mexico district attorney’s association;
and
(5) a
financial aid or career services officer of the university of New Mexico law
school designated by the dean.
C. The
committee shall:
(1) make
recommendations to the department on applicants for the public service law loan
repayment program;
(2) advise
the department on the adoption of rules to implement the provisions of the public
service law loan repayment program; and
(3) give
advice or other assistance to the department as requested.
[5.7.31.12
NMAC - N, 12/31/2007]
5.7.31.13 CANCELLATION:
The department may cancel any contract made between it and any
participating attorney for any reasonable cause deemed sufficient by the
department.
[5.7.31.13
NMAC - N, 12/31/2007]
5.7.31.14 REPORTS: The department shall make an annual report to
the governor and the legislature, prior to each regular session, of its
activities, including the loan repayment awards granted, the names and
addresses of participating attorneys and their employers who are in public
service employment pursuant to the public service law loan repayment program
and the names of participating attorneys who are not employed in public service
employment, the reason they are not employed in public service employment and
the amounts owed and paid on loans and loan repayment awards.
[5.7.31.14
NMAC - N, 12/31/2007]
HISTORY OF 5.7.31 NMAC: [RESERVED]