Chapter 18. Maryland Loan Assistance Repayment Program for Foster Care Recipients

In this chapter, the following terms have the meanings indicated.

Terms Defined.

Shall have received an undergraduate or graduate degree from an institution of higher education located within the State;

Shall be employed at least 20 hours per week by the State, or by a county or municipality of the State;

May not be in default on any higher education loan; and

Shall be a foster care recipient, as defined under Regulation .02 of this chapter.

To be considered for assistance under MLARP Foster Care, an applicant shall provide to OSFA:

Applications shall be received between October 1 and December 15 of each year. An application postmarked later than December 15 will not be considered.

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. The applicant’s failure or refusal to provide requested information or a signed authorization 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 service obligation.

An award amount shall be determined by the Secretary, acting through OSFA, based upon a recipient’s verified overall reported educational debt at the time of application.

Award funds are distributed in annual amounts, for up to 3 years, provided that the recipient remains eligible and continues to submit required annual employment, lender, and tax documentation.

An award amount shall be equal to the lesser of 10 percent of the applicant’s total educational loan debt, or $5,000, for each year the individual qualifies.

Eligible applicants shall be ranked and awarded in the order of the submission dates of their completed applications.

Applicants who are not selected shall be placed on a waitlist pending the availability of funding.

Applicants not selected in an award year must reapply for consideration in a subsequent award year, and will be ranked according to the submission dates of their completed applications in the year the award is granted.

OSFA may verify information concerning applicants and recipients for the purpose of administering this program.

A recipient shall furnish to OSFA written acceptance of the award and a signed promissory note and employment obligation agreement.

The promissory note and service obligation agreement shall include:

A recipient shall:

OSFA shall require annual verification that the recipient is fulfilling the recipient's obligation under the service obligation agreement.

Prior to issuing checks for subsequent years of service, OSFA shall receive confirmation from the eligible employer that the recipient, in accordance with the service obligation agreement, remains employed.

Recipients of the MLARP Foster Care shall receive an annual loan repayment under the following conditions:

If a recipient fails to notify OSFA that the recipient receives other loan repayment assistance, the recipient’s MLARP Foster Care award shall be canceled.

If a recipient is employed for at least 20 hours per week at an eligible employer, the employment obligation shall be fulfilled at a rate of 1 year for each year that the award was received.

Those recipients not completing the required employment obligation shall be responsible for repaying the award in full or in part, proportionally to that part of the year for which eligible employment was not completed.

If a recipient fails to carry out the obligations required under this chapter, the recipient shall repay the State the amount of the award provided plus interest.

Repayment may be prorated if the recipient partially fulfills the employment obligation, as determined under Regulation .10 of this chapter.

If repayment is required, interest on the funds provided to the recipient shall accrue at an interest rate equal to the interest rate established by the U.S. 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 are provided to the student.

A recipient may request that repayment required under Regulation .12 of this chapter be deferred:

A recipient’s deferment request shall include satisfactory supporting documentation. Such documentation shall consist of the following, as applicable:

OSFA shall review all documentation and determine if the deferment conditions have been met and, if so, determine the deferment period. OSFA’s determinations regarding whether to grant deferment and the length of deferment are final.

During a deferment approved by OSFA, a recipient need not make repayments, and interest does not accrue.

OSFA may under extenuating circumstances grant the request of a recipient who is assigned, or whose spouse is assigned, military duty outside of the State, to extend the deferment of repayment beyond 3 years. The recipient’s request shall be in writing and shall include a copy of the military orders.

Any employment or payment obligation incurred by a recipient is canceled upon the recipient’s death, upon provision to OSFA of a death certificate, or other evidence of death that is conclusive under State law.

OSFA may waive or temporarily suspend a recipient's employment obligation:

OSFA may suspend a recipient’s employment obligation: