The purpose of the Janet L. Hoffman Loan Assistance Repayment Program (Hoffman LARP) is to attract qualified individuals to fields of employment in government and the nonprofit sector, particularly those in which there are critical manpower shortages in the State and lower salaries than in the private sector, by providing State assistance in the repayment of educational loans. To be eligible for assistance under the Hoffman LARP, an applicant: Shall possess: An undergraduate, graduate, or professional degree from a college or university located in Maryland; A law degree from any school of law; or A resident teacher certificate from the Maryland State Department of Education after completing an alternative teaching preparation program approved by the State Superintendent of Education; Shall have obtained employment with the State (not including employment as a judicial clerk in any court), a local government, or an organization, institution, association, society, or corporation that is tax exempt under §501(c)(3) or (4) of the Internal Revenue Code of 1986; May not be in default on any higher education loan; Shall have a higher education loan for undergraduate, graduate, professional, or resident teacher certificate study obtained for tuition, educational expenses, or living expenses from a college, university, government, or commercial source; and Shall meet annual income requirements as established by the Office of Student Financial Assistance. In addition to the eligibility requirements in §A of this regulation, an applicant for a Nancy Grasmick Teacher Award shall have: Taught in a public school in the State for at least 2 years: In science, technology, engineering, fine arts, or math; In a school in which the following percentages of the students are enrolled in the free and reduced lunch program: On or before June 30, 2025, at least 75 percent; and On or after July 1, 2025, at least 55 percent; or In a school that: Had Title I status during the 2018—2019 school year; Lost Title I status after the 2018—2019 school year; and Participates in the United States Department of Agriculture Community Eligibility Provision; and Received the highest performance evaluation rating possible for the most recent year that is available in the county in which the teacher has taught. In addition to the eligibility requirements in §A of this regulation, an applicant employed as a licensed clinical counselor shall work in a high need geographic area of the State, as determined by the Maryland Department of Health, in one of the following fields: Licensed clinical alcohol and drug counseling; Licensed clinical marriage and family therapy counseling; or Licensed clinical professional counseling. To be considered for the Hoffman LARP, an applicant shall provide to the Office for Student Financial Assistance (OSFA): A completed application; Current repayment data on all education loans; Proof that the applicant has: Graduated from a college or university in Maryland; Graduated from a school of law; or Obtained of a resident teacher certificate; A statement from an eligible employer confirming the nature of the applicant’s job, length of employment, full-time status, and annual salary; and A copy of the applicant’s Maryland tax return for the most recent available year or, if not filed with the State, a copy of the applicant’s most recent federal return. If the applicant has not filed a tax return, they shall submit verification from the IRS confirming nonfiling status. Applications from law school students shall be received between July 1 and September 30 each year. Applicants shall be attending the University of Maryland Francis King Carey School of Law or the University of Baltimore School of Law and be in their final year of school. Applications from individuals possessing a Resident Teacher Certificate shall be received in the individual’s second year of the program and shall meet all the requirements in §A of this regulation. Each applicant shall agree to provide any information or documentation requested by OSFA for the purpose of administering this program and, if requested, shall sign an authorization for the release of information to OFSA for the purpose of administering this program. An applicant’s failure or refusal to provide requested information or a signed release may result in a determination of ineligibility, the cancellation of an award, and the denial of a request for the deferment or waiver of a repayment obligation. Recipients shall receive an award depending upon their level of debt for a 3-year period. Award funds are distributed in annual or monthly amounts as long as the recipient retains eligibility and continues to submit required annual employment, lender, and tax documentation. Priority for participation in the program shall be given to an individual who: Graduated from an institution of higher education in the last 3 years; Is a resident of Maryland; Is employed on a full-time basis; and As the principal part of the individual’s employment: Provides legal services to low-income residents in the State who cannot afford legal services; Provides nursing services in nursing shortage areas in the State as defined in Education Article, §18-802, Annotated Code of Maryland; Provides other services in an eligible field of employment in which there is a shortage of qualified practitioners to low-income or underserved residents or areas of the State; or Qualifies for a Nancy Grasmick Teacher Award. Priority fields of employment are: Legal services; Nursing services; Teachers who qualify for a Nancy Grasmick Teacher Award; and Other fields of employment in which there is a shortage of qualified practitioners providing services to low income or underserved residents or areas of the State as identified by the Office for Student Financial Assistance using appropriate workforce shortage data. No more than 50 percent of the awards under the Janet L. Hoffman LARP may be awarded to Nancy Grasmick Teacher Scholars. Eligible applicants employed in priority fields shall be grouped by field, and the number of awards shall be proportionally distributed among priority fields. Within priority fields, applicants shall be ranked according to graduation date, with the most recent graduation date receiving the highest priority, and then application completion date, with the earliest application completion date receiving the highest priority. If applicants have identical graduation dates and application completion dates, applicants shall be ranked according to income, with the lowest income receiving the highest priority. The top 50 percent of applicants, determined by the priority rankings, shall receive an award for 3 years, and the remaining applicants shall receive an award for 1 year but may reapply annually for 2 additional years. Except as provided in §G of this regulation, award decisions shall be announced in December of each year. Except as provided in Regulation .06 of this chapter, awards for resident teacher certificates shall only receive a one-time award regardless of the amount of their loan debt. Award decisions for law school students shall be announced in mid-January of each year. The Office of Student Financial Assistance has the authority to verify information concerning applicants and recipients for the purpose of administering this program. Awards shall be determined by an applicant’s overall reported debt at the time of application as follows: Recipients shall lock in to an award level that contains set award amounts for each year the recipient continues to remain eligible. Payments vary for each award level. One-time, 1-year only award amounts shall be equivalent to the yearly payment for the overall debt range for the applicant. A recipient shall furnish the Office of Student Financial Assistance (OSFA) with written acceptance of the award and sign a promissory note and employment obligation agreement with OSFA. The promissory note and employment obligation agreement shall include: The obligations of the recipient; The total and annual amounts of the award; Penalties for breach of the promissory note and employment obligation agreement; Circumstances under which the employment obligation may be canceled, suspended, or waived; and Any other terms the Maryland Secretary of Higher Education considers necessary. A recipient shall: Verify eligible employment and salary level initially, after 6 months, and at the end of each year in the program; Verify the current status of all education loans each year in the program; Submit a copy of their Maryland tax returns for any year during which an award is received and, if requested, a copy of their federal return; and Notify OSFA and their lending institutions of any change in employment status or salary level. Recipients of the Hoffman LARP are eligible to receive a monthly or annual payment. A recipient is eligible for the monthly loan repayment option under the following conditions: The recipient applies to a federal loan forgiveness program; The recipient notifies the Office of Student Financial Assistance (OSFA) each year in writing by the designated deadline, with accompanying documentation; OSFA verifies the recipient’s employment and lender verifications; OSFA issues a monthly check co-payable to the recipient and their lender, not to exceed 12 payments; The check shall be issued on or before the recipient’s monthly due date as assigned by their lender, if possible; The recipient’s monthly payment amount shall be a portion of the total annual award amount awarded to the student; The recipient shall pay any amount owed the lender which is not covered by the monthly payment amount; and The recipient shall notify OSFA if they receive other loan repayment assistance. A recipient who is not in a federal loan forgiveness program or a recipient that applies to a federal loan forgiveness program and declines to receive a monthly repayment option shall receive an annual loan repayment under the following conditions: OSFA shall verify the recipient’s employment and lender verification; OSFA shall issue an annual check co-payable to the recipient and their lender; and The recipient shall endorse the check and forward it to the lender. If a recipient fails to notify OSFA that they receive other loan repayment assistance, their award shall be canceled. If a recipient fails to carry out the employment obligations required under this program, the recipient shall repay the State the amount of the award plus interest. Repayment may be prorated if the recipient partially fulfills the employment obligation, as determined by the Office of Student Financial Assistance. Interest on the funds advanced shall accrue at an interest rate equal to the interest rate established by the United States Department of Education for the Federal Stafford Loan on the first day of July of each year. Interest shall begin accruing as of the date the funds were provided to the recipient. A recipient may request that their repayment be deferred if the recipient is: Unable to maintain employment within their current field for a period not to exceed 12 months because they must care for a spouse or child who is disabled; Assigned military duty outside of the State, not to exceed 3 years without filing an appeal; or Married to a spouse assigned military duty outside of the State, not to exceed 3 years without filing an appeal. A recipient’s deferment request shall include satisfactory supporting documentation. Such documentation shall consist of the following, as appropriate: A sworn affidavit by a qualified physician that the recipient is unable to maintain employment within their current field because they must care for a spouse or child who is disabled; or A copy of military orders. The Office of Student Financial Assistance (OSFA) shall review all documentation and determine if the deferment conditions have been met and, if so, determine the deferment period. A recipient need not make repayments and interest does not accrue during the period of an approved deferment. The OSFA shall, on a case-by-case basis, review appeals from individuals assigned military duty outside the State, or married to a spouse assigned military duty outside the State, that exceeds the 3-year deferral limit. Appeals shall be in writing and include a copy of the military orders. The Office of Student Financial Assistance shall waive a recipient's repayment if it determines on the basis of a death certificate or other evidence of death that is conclusive under State law that the recipient has died. The Office of Student Financial Assistance shall submit an annual statement by January 1 of each year to the General Assembly on the implementation of the Hoffman LARP. Education Article, §§11-105(u), 18-204(c), and 18-1503, Annotated Code of Maryland Effective date: August 28, 2017 (44:17 Md. R. 836) Regulation .02A, B amended effective July 25, 2022 (49:15 Md. R. 738)