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PA Bulletin, Doc. No. 96-1135b

[26 Pa.B. 3321]

[Continued from previous Web Page]

§ 121.142.  Co-maker/co-signer.

   (a)  Co-makers. Two eligible borrowers may take out one loan on behalf of one student under the Federal PLUS Loan Program. As co-makers, both borrowers shall meet the eligibility criteria, both borrowers are equally liable for the repayment of the loan and both must qualify in order for any special benefits associated with the loan, such as deferment or cancellation, to be received.

   (b)  Co-signers. A borrower may have another party as a co-signer to a Federal PLUS Loan. The borrower assumes the primary liability and is fully responsible for repaying the debt. The co-signer is secondary liable. Only if the person with primary liability fails to honor the repayment obligation shall the lender attempt to collect from the co-signer. The co-signer does not have to be an eligible borrower. If the borrower qualifies for a deferment under § 121.137 (relating to repayment) or cancellation under § 121.139 (relating to cancelled debt), the loan is deferred or cancelled. A co-signer who signs the Federal PLUS Loan Promissory Note is not eligible for deferment or cancellation.

Subchapter J.  CONSOLIDATION LOAN PROGRAM

§ 121.181.  Submission and processing of applications.

   (a)  Applicant. An applicant desiring to secure a Federal Consolidation Loan guaranty shall obtain from a participating lender or from the Agency a loan application packet containing the Federal Consolidation Loan Application/Promissory Note form. The information provided on the form will be used to determine the eligibility of the applicant to receive a Federal Consolidation Loan. The applicant shall complete the loan application and read, sign and date the promissory note that is part of the loan application form. After completing this form, the applicant shall retain a copy and forward the remaining copies of the form to the lender or to the Agency as instructed on the form.

   (b)  Lender. If the form is sent to the lender, the lender shall make sure the applicant has completed the application/promissory note and signed and dated the form. The lender shall obtain loan payoff data concerning the loans to be consolidated from the creditors holding the loans. The lender shall determine to its satisfaction that each loan being consolidated is a legal, valid and binding obligation of the borrower, that each loan was made and serviced in compliance with applicable law and regulations, and, in the case of Federal Family Education Loans that the guaranty on the loan is still in effect. The lender shall electronically or by other means forward a copy of the application/promissory note form to the Agency.

   (c)  PHEAA. The Agency will complete processing of the loan application and make a final determination of the amount of loan assistance the applicant is entitled to obtain. The Agency will then electronically or by other means inform the lender of the amount of the guaranty.

   (d)  Lender. The lender shall provide the borrower with a Federal Consolidation Loan Repayment Schedule Disclosure Statement and issue sufficient loan disbursement checks to discharge the borrower's liability on the loans selected and approved for consolidation. An adverse action notice will be provided to the borrower by the lender if Federal Consolidation Loan assistance is denied.

§ 121.182.  Lender eligibility.

   A bank, Federal or State savings and loan association, mutual savings bank, Federal or State credit union or other lender approved by the United States Secretary of Education and by the Agency which executes a Lender Participation Agreement for Federal Consolidation Loans with the Agency shall become an eligible lender.

§ 121.183.  Repayment.

   (a)  A loan is due for repayment within 60 days after the date upon which all holders of the loans consolidated have discharged the borrower's liability for these loans.

   (b)  The borrower shall repay a Federal Consolidation Loan according to the repayment schedule provided by the lender. The repayment schedule shall provide for repayment in monthly installments and over a term as specified in Federal statutes and regulations.

   (c)  Upon proper notice to the lender, repayment of principal may be deferred in accordance with, and during periods specified in, the Higher Education Act of 1965, the act of November 8, 1965 (Pub.L. No. 89-329, 79 Stat. 1219) and Federal regulations based on this act. The borrower is responsible for interest not paid by the Federal government that accrues during any period principal repayment is deferred. If the borrower has consolidated subsidized Federal Stafford Loans, the interest that accrues during a period of deferment will be paid by the Federal government.

§ 121.184.  Cancelled debt.

   The obligation to repay the indebtedness of a Federal Consolidation Loan borrower who dies, who becomes totally and permanently disabled, or whose loans are discharged in bankruptcy, shall be cancelled upon the acceptance of proper documentation by the lender or holder of the loan of the deceased, disabled or bankrupt borrower.

Subchapter K.  LENDING INSTITUTIONS

§ 121.191.  Approved lending institutions in Federal Stafford Loan, Federal Plus Loan and Federal Consolidation Loan Programs.

   (a)  To be approved, a lending institution shall comply with the following:

   (1)  The lending institution shall be approved by the Agency as an eligible institution for participation in the Federal Stafford Loan, Federal PLUS Loan and Federal Consolidation Loan Programs.

   (2)  The lending institution shall meet the United States Department of Education definition of ''eligible lender'' contained in section 435(d) of the Higher Education Act of 1965 (20 U.S.C.A. § 1085(d)).

   (3)  The lending institution shall have executed and filed with the Agency an agreement, on a form provided by the Agency, to make the loan program available to eligible students enrolled or accepted for enrollment in an approved educational institution to the extent of its resources available for these loans.

   (b)  The lending institution shall comply with the Federal laws and regulations governing the Federal Stafford Loan, Federal PLUS Loan and Federal Consolidation Loan Programs.

   (c)  Mailing dates and receipt dates referenced in this section shall be evidenced by United States Postal Service receipts. If a lending institution refuses or fails to accept a notice mailed as set forth in this section, the Agency will consider the notice as being received on the date that the lending institution refuses or fails to accept the notice as noted by the United States Postal Service.

   (d)  The following provisions deal with emergency action:

   (1)  The President and Chief Executive Officer may take emergency action as follows against a lending institution under which the processing of loan applications for students borrowing through the institution is withheld if the President and Chief Executive Officer:

   (i)  Receives information, determined by an Agency official to be reliable, that the lending institution is in violation of applicable laws, regulations, special arrangements, agreements or limitations.

   (ii)  Determines that immediate action is necessary to protect the interest of applicants, the United States, the Commonwealth or the Agency.

   (iii)  Determines that the likelihood of loss outweighs the importance of following the procedures set forth for suspension, limitation or termination in subsection (e).

   (2)  The Agency will begin an emergency action by notifying the lending institution by certified mail, with return receipt requested, of the emergency action and the basis on which the action is taken. The lending institution shall have an opportunity to show cause that the emergency action is unwarranted by submission of written documentation to the President and Chief Executive Officer. The effective date of the action shall be the date on which the notice is mailed to the lending institution.

   (3)  An emergency action may not exceed 30-calendar days unless a suspension, limitation or termination proceeding is begun under this section before the expiration of that period. In this case, the period may be extended until the completion of that proceeding, including an appeal to the Board.

   (e)  The following provisions deal with suspension, limitation or termination:

   (1)  The President and Chief Executive Officer may suspend the eligibility of a lending institution to participate in the Federal Stafford Loan, Federal PLUS Loan and Federal Consolidation Loan Programs if the lending institution violates applicable laws, regulations, special arrangements or agreements. The suspension may not exceed 60-calendar days unless the lending institution and the President and Chief Executive Officer agree to an extension if the lending institution has not requested a hearing or the Agency begins a limitation or termination proceeding under this section.

   (i)  A designated Agency official will notify the lending institution by certified mail, with return receipt requested, of the Agency's intent to suspend the participant from the Federal Stafford Loan, Federal PLUS Loan and Federal Consolidation Loan Programs, citing the consequences of that action and identifying the alleged violations on which the proposed action is based. The initially designated beginning date of suspension shall be at least 20-calendar days from the date the letter of intent is mailed.

   (ii)  The lending institution subject to the suspension notice may request in writing a hearing before a hearing examiner or submit written material for consideration by the designated Agency official. If the lending institution submits written material or requests a hearing at least 5-calendar days prior to the effective date of the suspension, the suspension date shall automatically be delayed until after a final determination is made.

   (iii)  If the lending institution does not request a hearing but submits written material, the designated Agency official will review the material and notify the lending institution that either the proposed suspension is dismissed or the suspension is effective as of a specified date.

   (iv)  If the lending institution requests a hearing at least 5-calendar days prior to the effective date of suspension, the date of the hearing shall be at least 15-calendar days after receipt of the request.

   (A)  A hearing examiner selected by the President and Chief Executive Officer will conduct the hearing at the Agency's principal office, and a written record will be made.

   (B)  The hearing examiner will consider all written material presented before the hearing and the evidence presented at the hearing.

   (C)  The hearing examiner will issue a decision to either uphold the suspension or to dismiss it and inform the President and Chief Executive Officer and lending institution of this decision in writing within 30-calendar days of the conclusion of the hearing.

   (D)  The hearing examiner's decision is final unless appealed under subsection (g). If the decision is in favor of suspension, the Agency will send a notice to the lending institution which sets forth the effective date of the suspension.

   (E)  If the Agency begins a limitation or termination proceeding before the suspension period ends, the suspension period may be extended until completion of the new proceeding.

   (F)  The President and Chief Executive Officer will inform the United States Department of Education of actions taken or decisions made by the Agency in regard to the suspension so the United States Department of Education can take appropriate action.

   (v)  In accordance with 1 Pa. Code §§ 35.111--35.116 (relating to prehearing conferences), at any time prior to or during the hearings, the Agency may schedule a conference with the parties.

   (2)  The President and Chief Executive Officer may limit the number or percentage of borrowers who may receive loan guaranties if the lending institution violates any applicable laws, regulations, special arrangements or agreements.

   (i)  A designated Agency official will notify the lending institution by certified mail, with return receipt requested, of the Agency's intent to limit the lending institution's participation in the Federal Stafford Loan, Federal PLUS Loan and Federal Consolidation Loan Programs, citing the consequences of that action and identifying the alleged violations on which the proposed action is based. The initially designated beginning date of limitation shall be at least 20-calendar days from the date the letter of intent is mailed.

   (ii)  The lending institution subject to the limitation notice may request a hearing before a hearing examiner or submit written material for consideration by the designated Agency official. If the lending institution submits written material or requests a hearing at least 5-calendar days prior to the effective date of the limitation, the designated limitation date shall automatically be delayed until after a final determination is made.

   (iii)  If the lending institution does not request a hearing but submits written material, the designated Agency official will review that material and notify the lending institution that either the proposed limitation is dismissed or the limitation is effective as of a specified date.

   (iv)  If the lending institution requests a hearing at least 5-calendar days prior to the effective date of limitation, the date of the hearing shall be at least 15-calendar days after receipt of the request.

   (A)  A hearing examiner selected by the President and Chief Executive Officer will conduct the hearing at the Agency's prinicipal office, and a written record will be made.

   (B)  The hearing examiner will consider the written material presented before the hearing and the evidence presented at the hearing.

   (C)  The hearing examiner will issue a decision to either uphold the limitation or to dismiss it and inform the President and Chief Executive Officer and lending institution of this decision in writing within 30-calendar days of the conclusion of the hearing.

   (D)  The hearing examiner's decision is final unless appealed under subsection (g). If the decision is in favor of limitation, the Agency will send a notice to the lending institution which sets forth the effective date of the limitation.

   (E)  If the Agency begins a termination proceeding before the limitation period ends, the limitation period may be extended until completion of the new proceeding.

   (F)  The President and Chief Executive Officer will inform the United States Department of Education of actions taken or decisions made by the Agency in regard to the limitation so the United States Department of Education can take appropriate action.

   (v)  In accordance with 1 Pa. Code §§ 35.111--35.116, at any time prior to or during the hearings, the Agency may schedule a conference with the parties.

   (3)  The President and Chief Executive Officer may terminate a lending institution's eligibility to participate in the Federal Stafford Loan, Federal PLUS Loan and Federal Consolidation Loan Programs if the lending institution violates applicable laws, regulations, special arrangements or agreements. Termination prohibits the future guaranty of Federal Stafford Loans, Federal PLUS Loans and Federal Consolidation Loans to borrowers applying through the lending institution.

   (i)  A designated Agency official will notify the lending institution by certified mail, with return receipt requested, of the Agency's intent to terminate the lending institution from the Federal Stafford Loan, Federal PLUS Loan and Federal Consolidation Loan Programs, citing the consequences of that action and identifying the alleged violations on which the proposed action is based. The initially designated beginning date of termination shall be at least 20-calendar days from the date the letter of intent is mailed.

   (ii)  The lending institution subject to the termination notice may request in writing a hearing before the hearing examiner or submit written material for consideration by the designated Agency official. If the lending institution submits written material or requests a hearing at least 5-calendar days prior to the effective date of termination, the designated termination date shall automatically be delayed until after a final determination is made.

   (iii)  If the lending institution does not request a hearing but submits written material, the designated Agency official will review the material and notify the lending institution that either the proposed termination is dismissed or the termination is effective as of a specified date.

   (iv)  If the lending institution requests a hearing at least 5-calendar days prior to the effective date of termination, the date of the hearing shall be at least 15-calendar days after receipt of the request.

   (A)  A hearing examiner selected by the President and Chief Executive Officer will conduct the hearing at the Agency's principal office, and a written record will be made.

   (B)  The hearing examiner will consider all written material presented before the hearing and the evidence presented at the hearing.

   (C)  The hearing examiner will issue a decision to either uphold the termination or to dismiss it and inform the President and Chief Executive Officer and the lending institution of this decision in writing within 30-calendar days of the conclusion of the hearing.

   (D)  The hearing examiner's decision is final unless appealed under subsection (g). If the decision is in favor of termination, the Agency will send a notice to the lending institution which sets forth the effective date of termination.

   (E)  The President and Chief Executive Officer will inform the United States Department of Education of actions taken or decisions made by the Agency in regard to the termination so the United States Department of Education can take appropriate action.

   (v)  In accordance with 1 Pa. Code §§ 35.111--35.116, at any time prior to or during the hearings, the Agency may schedule a conference with the parties.

   (f)  A lending institution may lose its eligibility to participate in the Federal Stafford Loan, Federal PLUS Loan and Federal Consolidation Loan Programs through other than emergency action, suspension, limitation or termination. This may occur under one or more of the following conditions:

   (1)  Permanent closure of the lending institution.

   (2)  Action taken by the United States Secretary of Education under applicable Federal regulations to limit, suspend or terminate the lending institution's eligibility.

   (g)  The Agency and the lending institution have the right to appeal the decision of the hearing examiner to the Board within 20-calendar days after the receipt or a copy of the decision, which shall be done by certified mail.

   (1)  Written notice of appeal and the materials submitted in support shall be addressed to the Chairperson of the Board at the Agency's principal address, with a copy to the other party.

   (2)  The appealing party has 20-calendar days from the date of the notice of appeal to submit exceptions to the hearing examiner's decision and supporting briefs and statements.

   (3)  The opposing party has 20-calendar days from receipt of the appealing party's exceptions and brief to respond.

   (4)  When the Chairperson of the Board receives notice of an appeal, the Chairperson will place the appeal on the meeting agenda of the Board at a time in the future that the Board has received a record of the hearing and the briefs and supporting materials and has had an opportunity to review the record. Before issuing a final order, the Board of Directors will review the record and hearing examiner's decision and may order oral argument.

   (5)  Notice of a final order by the Board of Directors will be mailed promptly to the lending institution, the Agency and the United States Department of Education.

   (6)  The decision of the Board of Directors will become final upon mailing. Within 30-calendar days after the decision of the Board of Directors becomes final, the lending institution may file an appeal with Commonwealth Court.

   (h)  A lending institution whose eligibility to participate was limited may not apply for removal of the limitation before the expiration of 12 months from the effective date of the limitation.

   (1)  After the minimum limitation period, the lending institution may request removal of the limitation. The request shall be in writing and be supported by documented evidence that the institution has corrected the violations on which the limitation was based.

   (2)  Within 60-calendar days after receipt of the request, the President and Chief Executive Officer will respond to the lending institution by granting the request, denying the request or granting the request subject to other limitation.

   (i)  A lending institution whose eligibility to participate has been terminated may file a request for reinstatement 18 months after the effective date of the termination. To be reinstated, a lending institution shall:

   (1)  Demonstrate to the President and Chief Executive Officer's satisfaction that it has corrected the violations on which termination was based and repaid any funds which it had improperly received.

   (2)  Meet the requirements for participation in the Federal Stafford Loan, Federal PLUS Loan and Federal Consolidation Loan Programs.

   (3)  Enter into a new participation agreement with the Agency.

Subchapter L.  URBAN AND RURAL TEACHER LOAN FORGIVENESS PROGRAM

Sec.

121.201.Application of existing Agency regulations.
121.202.Qualified applicant.
121.203.Loan forgiveness.
121.204.Teaching commitment.
121.205.Eligible public school districts.
121.206.State certification.
121.207.Classroom teaching.

§ 121.201.  Application of existing Agency regulations.

   The following higher education grant regulations contained in Subchapters A and B (relating to general provisions; and the State Higher Education Grant Program) apply to applicants in the Urban and Rural Teacher Loan Forgiveness Program:

   (1)  Section 121.1 (relating to definitions).

   (2)  Section 121.3 (relating to discrimination prohibited).

   (3)  Section 121.4(a) (relating to denial of eligibility to loan defaulters).

   (4)  Section 121.6 (relating to denial of eligibility for financial assistance).

   (5)  Section 121.7 (relating to notice of denial and preliminary review procedures).

   (6)  Section 121.8 (relating to applicant and recipient appeals and hearings).

§ 121.202.  Qualified applicant.

   A qualified applicant in the Urban and Rural Teacher Loan Forgiveness Program shall be a person who meets the following requirements. The person:

   (1)  Is certified by the Department of Education to teach in a preschool, elementary school or secondary school located in this Commonwealth.

   (2)  Is in the first year of full-time, permanent classroom teaching at the time of application.

   (3)  Is a classroom teacher at an eligible urban or rural public school district or at a nonprofit, nonpublic school in a district at which students may fulfill compulsory attendance requirements.

   (4)  Has borrowed through the Agency-administered Federal Family Education Loan Programs.

§ 121.203.  Loan forgiveness.

   Qualified applicants who are selected for the Urban and Rural Loan Forgiveness Program in accordance with the policies established by the Agency are eligible for payment by the Agency of the PHEAA-approved indebtedness in the Agency-administered Federal Family Education Loan Programs, including interest charges, if the indebtedness is at least $500. The indebtedness may not include loans advanced by relatives of the borrower and other individuals. For each academic year that the teaching commitment is fulfilled, and based upon the availability of funds, the forgiveness rate shall be the greater of either a maximum 25% of the PHEAA-approved indebtedness or the minimum annual payment required in order to keep each PHEAA-approved loan in good standing. Forgiveness may not exceed $2,500 for each year that the teaching commitment is fulfilled and no more than $10,000 will be forgiven for any participant. The payment shall be made in accordance with the procedures established by the Agency.

§ 121.204.  Teaching commitment.

   Qualified applicants for the Urban and Rural Teacher Loan Forgiveness Program shall be required to submit documentation the Agency may require as proof that the individual:

   (1)  Has spent the major portion of the school day during the school year teaching in a classroom at an eligible urban or rural school district.

   (2)  Has received a satisfactory rating by the district or nonpublic school for the academic year.

   (3)  Is in compliance with all other criteria for eligibility, as are legally promulgated and made available by the Agency on an annual basis.

§ 121.205.  Eligible public school districts.

   (a)  A rural public school district shall be one that has a population of less than 300 per square mile and one of the following:

   (1)  More than 8% of the pupils in average daily membership are low-income pupils as defined in section 2502.11 of the Public School Code of 1949 (24 P. S. § 25-2502).

   (2)  The market value/income aid ratio, as defined in section 2501 of the Public School Code of 1949 (24 P. S. § 2501), is greater than 7/10.

   (b)  An urban public school district shall be one that has a population greater than 850 per square mile and one of the following:

   (1)  More than 8% of the pupils in average daily membership are low-income pupils as defined in section 2502.11 of the Public School Code of 1949.

   (2)  The market value/income aid ratio, as defined in section 2501 of the Public School Code of 1949, is greater than 7/10.

   (c)  The definitions in subsections (a) and (b) also apply to an intermediate unit or area vocational-technical school if the composite data for all participating school districts meet the criteria specified in this section.

§ 121.206.  State certification.

   For the purposes of the Urban and Rural Teacher Loan Forgiveness Program, State certification means Pennsylvania public school certification that qualifies a professional educator to provide classroom instruction in the grade level and content area specified for that certificate. State certification does not mean an Educational Specialist Certificate whose primary responsibility is to render professional service other than classroom teaching.

§ 121.207.  Classroom teaching.

   (a)  For the purposes of the Urban and Rural Teacher Loan Forgiveness Program, classroom teaching means providing instruction in the grade level and content area specified on the teacher's State certificate and shall be for the major portion of the school day, which shall be at least 1/2 of the available periods used for instruction.

   (b)  Classroom teaching shall be on a full-time, permanent basis and does not include any form of substitute teaching.

Subchapter M.  AGRICULTURE EDUCATION LOAN FORGIVENESS PROGRAM

Sec.

121.301.Definitions.
121.302.Application of existing agency regulations.
121.303.Qualified applicant.
121.304.Loan forgiveness.
121.305.Employment verification.
121.306.Eligible place of employment.

§ 121.301.  Definitions.

   The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise:

   Agricultural products--Crops, livestock and livestock products, and commodities, including:

   (i)  Field crops, including corn, wheat, oats, rye, barley, hay, potatoes and dry beans.

   (ii)  Fruits, including apples, peaches, grapes, cherries and berries.

   (iii)  Vegetables, including tomatoes, snap beans, cabbage, carrots, beets, onions and mushrooms.

   (iv)  Horticultural specialties, including nursey stock, ornamental shrubs, ornamental trees and flowers.

   (v)  Cattle, sheep, hogs, goats, horses, poultry, fur-bearing animals, milk, eggs and furs.

   (vi)  Timber, wood and other wood products derived from trees.

   (vii)  Aquatic plants and animals and their by-products.

   (viii)  Products derived from one or more of the items listed in subparagraphs (i)--(vii) and other products derived from the business of farming, including other products manufactured, derived or prepared from the products mentioned in subparagraphs (i)--(vii), raw or processed, which are used as food for humans or animals.

   Immediate family member--A spouse, child, stepchild, parent, stepparent, grandparent, brother, stepbrother, sister, stepsister or like relative-in-law of an owner of real property.

   Mixed practice of veterinary medicine--As described by the American Veterinary Medical Association, that type of clinical veterinary practice or consultation which deals with more than one categorical species, including, but not limited to, agricultural animals.

   United States Department of Agriculture Certification--Certification by the United States Department of Agriculture that a graduate veterinarian has successfully passed an examination and is certified to sign health certificates allowing the interstate commerce of agricultural animals and animal products as well as the ability to certify regulatory testing such as bovine tuberculosis and brucellosis.

   Veterinary practice--The practice in the field of veterinary medicine by a person qualified by educational training and experience in the science and techniques of veterinary medicine and who is currently licensed to practice veterinary medicine by the State Board of Veterinary Medicine under the Veterinary Medicine Practice Act (63 P. S. §§ 485.1--485.33).

§ 121.302.  Application of existing Agency regulations.

   The following higher education grant regulations contained in Subchapters A and B (relating to general provisions; and the State Higher Education Grant Program) apply to applicants in the Agriculture Education Loan Forgiveness Program:

   (1)  Section 121.1 (relating to definitions).

   (2)  Section 121.3 (relating to discrimination prohibited).

   (3)  Section 121.4(a) (relating to denial of eligibility to loan defaulters).

   (4)  Section 121.6 (relating to denial of eligibility for financial assistance).

   (5)  Section 121.7 (relating to notice of denial and preliminary review procedures).

   (6)  Section 121.8 (relating to applicant and recipient appeals and hearings).

§ 121.303.  Qualified applicant.

   A qualified applicant in the Agriculture Education Loan Forgiveness Program shall be a person who meets the following requirements. The person:

   (1)  Is a resident of this Commonwealth.

   (2)  Holds a degree in a field related to the production of agricultural products or in the field of veterinary medicine, from an institution of higher education located within this Commonwealth.

   (3)  Is in the first year of full-time employment or work on a family farm or in the practice of veterinary medicine. A portion of this activity shall be for the protection and enhancement of agricultural animal health and productivity, on or after July 1, 1991.

   (4)  Has borrowed through the Agency-administered Federal Family Education Loan Programs.

§ 121.304.  Loan forgiveness.

   Qualified applicants who are selected for the Agriculture Education Loan Forgiveness Program in accordance with the policies established by the Agency shall be eligible for payment by the Agency of the PHEAA-approved indebtedness in the Agency-administered Federal Family Educational Loan Programs, including interest charges, if the indebtedness is at least $500. The indebtedness may not include loans advanced by relatives of the borrower and other individuals. For each year that the participant is employed full time on a family farm or works full time on a family farm, a portion of which shall be located within this Commonwealth, or is engaged in the mixed practice of veterinary medicine within this Commonwealth, a portion of which activity shall be for the protection and enhancement of agricultural animal health and productivity, and who has obtained United States Department of Agriculture certification, and based upon the availability of funds, the repayment shall be up to $2,000 per year. Forgiveness may not exceed $2,000 for each year that the employment is fulfilled and no more than $10,000 will be forgiven for any participant. The payment shall be made in accordance with the procedures established by the Agency.

§ 121.305.  Employment verification.

   Qualified applicants selected for the Agriculture Education Loan Forgiveness Program shall be required to submit documentation the Agency may require as proof that the individual has spent at least 35 hours per week working full time on a family farm or a family farm corporation, and is in compliance with all other criteria for eligibility as are annually made public by the Agency. The veterinarian shall provide proof that he is accredited by the United States Department of Agriculture/Animal, Plant, Health Inspection Service to perform accredited tasks in this Commonwealth and show that a portion of the applicant's activities are devoted to farm animals and are consistent with the American Veterinary Medical Association definition of ''mixed practice of veterinary medicine'' (see § 121.301 (relating to definitions)). The veterinarian shall also be in compliance with the other criteria for eligibility.

§ 121.306.  Eligible place of employment.

   For the purposes of the Agriculture Education Loan Forgiveness Program, a family farm shall be the real property of a farm owned by members of an immediate family or by a family farm corporation used for the production, for commercial purposes, of agricultural products. A family farm corporation shall be a corporation of which at least 75% of its assets are devoted to the business of agriculture and at least 75% of each class of stock of the corporation is continuously owned by members of the immediate family.

[Pa.B. Doc. No. 96-1135. Filed for public inspection July 12, 1996, 9:00 a.m.]



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