TITLE 5 POST-SECONDARY EDUCATION
CHAPTER 7 TUITION AND FINANCIAL AID
PART 4 PRIMARY
CARE PHYSICIAN STUDENT LOAN-FOR-SERVICE PROGRAM
5.7.4.1 ISSUING
AGENCY:
State of New Mexico Higher Education
Department
[5.7.4.1 NMAC - N, 10/31/2013]
5.7.4.2 SCOPE: Provisions of 5.7.4 NMAC apply to New Mexico
residents that are selected to participate in primary care physician loan for
service program described in this rule.
Participants must be pursuing a medical doctor degree in with the intent
to serve as primary care physician in an underserved area.
[5.7.4.2 NMAC - N, 10/31/2013]
5.7.4.3 STATUTORY AUTHORITY: Sections 9-25-8, 21-1-26
and 21-22G-1 through 21-22G-4, NMSA 1978.
[5.7.4.3 NMAC - N, 10/31/2013]
5.7.4.4 DURATION: Permanent.
[5.7.4.4 NMAC - N, 10/31/2013; A,
12/31/2019]
5.7.4.5 EFFECTIVE DATE: October 31, 2013,
unless a later date is cited at the end of a section.
[5.7.4.5 NMAC - N, 10/31/2013]
5.7.4.6 OBJECTIVE: The objective and
purpose of 5.7.4 NMAC is to increase the number of primary care physicians in
underserved areas of the state, by making educational loans to medical students
seeking to become primary care physicians.
The program requires, as a condition of each loan, that the student
declare the intent to practice as a primary care physician within one of the
counties of the state designated by the U.S. department of health and human services
as having a shortage of primary care physicians.
[5.7.4.6 NMAC - N, 10/31/2013]
5.7.4.7 DEFINITIONS:
A. “Course of study” means a medical
student’s medical education, including residency program.
B. “Department” means New Mexico higher
education department.
C. “Extenuating circumstances” means
circumstances not within the control of the recipient.
D. “Fund” means the primary care physician
loan for service fund.
E. “Loan” means a grant of funds or waiver
to defray the educational expenses of medical school, under a contract between
the department and a student, requiring repayment with services or repayment of
principal and interest and any fees.
F. “Participant” means an individual that
has applied to participate in, has been accepted into
and has signed a contract agreeing to the terms of the program.
G. “Primary care physician” means a
medical doctor with specialty training in family medicine, general internal
medicine or general pediatrics.
H. “Program” means the primary care
physician student loan for service program.
I. “Residency” means three years of
specialty training in family medicine, general internal medicine or general pediatrics
after medical school.
J. “Secretary” means the secretary of
higher education.
K. “Service” means full-time, on-site
practice area as a primary care physician.
L. “Student” means a student who is a
resident of New Mexico and is enrolled at least half-time in, or has been
accepted by a university for medical school.
M. “Underserved area” means a health care
underserved area as defined in the Rural Primary Health Care Act (Section 24-1A-1
NMSA 1978).
N. “University” means the university of New Mexico school of medicine.
[5.7.4.7 NMAC - N, 10/31/2013]
5.7.4.8 STUDENT ELIGIBILITY: To be eligible for
this program, a student must:
A. be
pursuing a medical degree, and enrolled in or accepted by the university;
B. be enrolled at the time the loan is awarded and disbursed in
a program leading to a medical degree at the university.
C. be
a resident of New Mexico and either a graduate of a New Mexico high school or a
graduate of a New Mexico college or university; and
D. declare his/her intent to practice as a primary care
physician for at least one year, not to exceed five years, with year to year
renewal within an underserved area.
[5.7.4.8 NMAC - N, 10/31/2013]
5.7.4.9 SELECTION OF LOAN
RECIPIENTS:
The department shall select participants according to rules it
promulgates and, in consultation with the university, shall create a standard
process for medical students to declare their intentions to be primary care
physicians and to apply to participate in the program. The department shall select loan recipients
based on the following considerations and preferences:
A. the
ability, character, and qualifications of each applicant; this is to include:
(1) review of the applicant’s educational transcripts,
(2) letters of recommendation from educational and medical field
professionals, and
(3) references;
B. the
demonstrated interest of the applicant in serving in an underserved area;
C. an
underserved area endorsement of the applicant; and
D. an
applicant seeking to obtain a medical degree in a New Mexico
certified/accredited program.
[5.7.4.9 NMAC - N, 10/31/2013]
5.7.4.10 RESPONSIBILITIES OF THE
DEPARTMENT: The department shall:
A. promulgate rules for implementing the program in
consultation with the university;
B. publicize the program to medical students and to prospective
medical students;
C. collect and manage repayments from students who do not meet
their obligations under the program;
D. solicit and accept funds for the program, including grants
and donations;
E. award
no more than 10 new loans a year, in addition to renewing existing waivers for
eligible participants, subject to the availability of funding;
F. promulgate rules setting the maximum amount of the
reasonable living stipend. The department shall determine the maximum amount of
the living stipend based upon the availability of funds and information
provided by the university regarding the current cost of attendance at the
school of medicine;
G. for
a period of no more than five years, allow participants to remain in the
program and receive continued loans in accordance with the availability of
funds and the department's finding that the participant is meeting the
university's standards for satisfactory academic progress;
H. shall award
loans to participants from the fund.
Approve the amount of the loan granted to a participant. The amount of
the loan awarded to a participant shall not exceed a reasonable living stipend
plus the amount of resident tuition and fees that a participant incurs.
[5.7.4.10 NMAC - N, 10/31/2013]
5.7.4.11 LOANS: Loans can be made to
students to defray educational expenses incurred in obtaining a medical degree
under the following conditions and limitations:
A. the
amount is dependent upon relative need of each student, but may not exceed
$30,000 per academic year;
B. upon
approval of the loan, a contract shall be drawn between the student and the
department and signed by the student and the department;
C. a
student may receive a loan on the following terms:
(1) interest
shall accrue upon termination of the participant's course of study; the waiver amount
shall bear interest at the rate of eighteen percent per year if the participant
completes a course of study and no portion of the principal and interest is
forgiven pursuant to Subsection D of this section; and
(2) the maximum
period for repayment shall be 10 years, commencing six months from the date the
participant completes or discontinues the course of study, including a
residency; and
D. the
contract shall provide that the department forgive a portion of the waiver for
each year that a participant practices as a primary care physician in an
underserved area of New Mexico as defined in the Rural Primary Health Care Act
(Section 24-1A-1 NMSA 1978).
[5.7.4.11 NMAC - N, 10/31/2013]
5.7.4.12 LOAN REPAYMENT AND FORGIVENESS: All loans shall be repaid
to the state together with interest or forgiven.
A. the
loan shall be forgiven as follows:
(1) a loan term of one year shall require one year of practice
as a primary care physician in an underserved area of the state for the
one-year term of the loan received. Upon
completion of service, one hundred percent of the loan and accrued interest
shall be forgiven;
(2) a loan term of two years shall require two years of practice
as a primary care physician in an underserved area of the state for the two-year
term of the loan received. Upon
completion of the first year of service, fifty percent of the loan and accrued
interest shall be forgiven; upon completion of the second year of service, the
remainder of the loan and accrued interest shall be forgiven;
(3) a loan term of three years shall require three years of
practice as a primary care physician in an underserved area of the state for
the three-year term of the loan received. Upon completion of the first year of service, twenty-five
percent of the loan and accrued interest shall be forgiven; upon completion of
the second year of service, fifty percent of the loan and accrued interest
shall be forgiven; and upon completion of the third year of service, the
remainder of the loan and accrued interest shall be forgiven;
(4) a loan term of four years shall require four years of
practice as a primary care physician in an underserved area of the state for
the four-year term of the loan received. Upon completion of the first year of service, thirty
percent of the loan and accrued interest shall be forgiven; upon completion of
the second year of service, forty percent of the loan and accrued interest
shall be forgiven; upon completion of the third year of service, fifty percent
of the loan and accrued interest shall be forgiven; and upon completion of the
fourth year of service, the remainder of the loan and accrued interest shall be
forgiven; or
(5) a loan term of five years shall require five years of
practice as a primary care physician in an underserved area of the state for
the five-year term of the loan received. Upon completion of the first year of service, ten
percent of the loan and accrued interest shall be forgiven; upon completion of
the second year of service, twenty percent of the loan and accrued interest
shall be forgiven; upon completion of the third year of service, thirty percent
of the loan and accrued interest shall be forgiven; upon completion of the
fourth year of service, fifty percent of the loan and accrued interest shall be
forgiven; and upon completion of the fifth year of service, the remainder of
the loan and accrued interest shall be forgiven;
B. in
the event that a participant completes the participant's course of study and
does not meet the program obligation to serve as a primary care physician in an
underserved area of the state, the department shall assess a penalty of up to
three times the principal due, plus eighteen percent interest, unless the
department finds acceptable extenuating circumstances for why the participant
cannot serve. The department shall
collect the penalty and remit it to the state treasury for deposit in the fund;
C. the
department is authorized to cancel any contract made between it and any
participant pursuant to the Conditional Tuition Waiver for Primary Care Medical
Students Act, or set terms of alternative service in lieu of monetary
repayment, for any cause the department deems reasonable;
D. the
department shall be responsible for collecting repayments made pursuant to this
section and shall exercise due diligence in collecting repayments and
maintaining all necessary records to ensure that full repayments are made. The department shall collect and service
repayments under this section to the full extent of the law, including wage
garnishment where practicable. The
department shall forgive all or parts of repayments under the criteria
established in this section and shall maintain all necessary records of
repayments it forgives; and
E. when
a participant makes payment of principal or interest to the department pursuant
to the provisions of this section, the department shall deposit these payments
into the fund and shall use these payments to cover the costs of granting
waivers and the administrative expenses associated with the program and
collection activity on its behalf. The
department shall maintain accurate records of these expenses, and all receipts
beyond those necessary to pay these expenses shall be used to grant waivers to
participants.
[5.7.4.12 NMAC - N, 10/31/2013]
5.7.4.13 CONTRACTS: A contract shall be
drawn between each student receiving a loan and the department on behalf of the
state of New Mexico. The contract shall:
A. provide
for the payment by the department of a specified sum as determined in 5.7.4.12
NMAC;
B. state
that the borrower shall select from the list of underserviced areas at the time
he/she is ready to begin service;
C. state that immediately upon completion or termination of the
student's eligible medical degree education, to include residency, the loan
shall become due;
D. state the conditions of repayment or forgiveness as detailed
in 5.7.4.12 NMAC;
E. state
that the loan shall bear interest at the designated rate per annum from the
date of default until paid, making provision for conversion to a payout note,
and state that interest will be charged on the unpaid balance of the principal
only;
F. state the legal responsibilities of the borrower and that
delinquent loans shall be referred to the department for appropriate action,
which may include referral to the office of the attorney general, if deemed
necessary;
G. state
that the borrower's obligations of the contract with the department shall be
binding on borrower's estate;
H. state that the department may cancel any contract on 30 days
written notice for any reasonable and sufficient cause;
I. state
that in the event the borrower fails to make any payment when due, the entire
indebtedness including interest due and accrued thereon shall, at the option of
the department, become immediately due and payable; and
J. state that jurisdiction and venue shall be proper in
Bernalillo or Santa Fe county, New Mexico for purposes of any suit to enforce
the contract.
[5.7.4.13 NMAC - N, 10/31/2013]
5.7.4.14 REPORTS: The department shall
submit a report to the governor and the legislature prior to each regular
legislative session. The report shall
describe the activities during the previous years, including the statistics,
and analysis of the progress of the program in meeting the health and medical
needs of the citizens of the state.
[5.7.4.14 NMAC - N, 10/31/2013]
HISTORY
OF 5.7.4 NMAC: [RESERVED]