340.390. Failure to meet employment obligations, repayment of loan required--deferral on repayment permitted, when. - Missouri Statutes

Failure to meet employment obligations, repayment of loanrequired--deferral on repayment permitted, when.

340.390. 1. A recipient of financial assistance under sections340.381 to 340.396 who does not meet the qualified employment obligationsagreed upon by contract under section 340.387 shall begin repayment of theloan principal and interest in accordance with the contract within sixmonths of the first day on which the recipient did not meet the qualifiedemployment obligations. If a qualified applicant ceases his or her studyprior to successful completion of a degree or graduation from the college,interest at the rate specified in section 340.387 shall be charged on theamount of financial assistance received from the state under the provisionsof sections 340.381 to 340.396, and repayment, in accordance with thecontract, shall begin within ninety days of the date the financial aidrecipient ceased to be an eligible student. All funds repaid by recipientsof financial assistance to the department shall be deposited in theveterinary student loan payment fund for use pursuant to sections 340.381to 340.396.

2. The department shall grant a deferral of interest and principalpayments to a recipient of financial assistance under sections 340.381 to340.396 who is pursuing a post-degree training program, is on active dutyin any branch of the armed forces of the United States, or upon specialconditions established by the department. The deferral shall not exceedfour years. The status of each deferral shall be reviewed annually by thedepartment to ensure compliance with the intent of this section.

(L. 2007 S.B. 320, A.L. 2008 S.B. 931)

Expires 6-30-13