Section 835.10  Purpose and Management of Fund

 

a)         The Therkelsen/Hansen College Loan Fund (Fund) is established to provide assistance to Illinois deaf and hard of hearing individuals with a financial need to pay for post-secondary expenses at any institution of higher learning which has a program specifically designed for deaf and hard of hearing students.

 

b)         The loan fund is managed through the Illinois School for the Deaf (ISD) by the Therkelsen/Hansen College Loan Fund Committee (Committee) which is established by the Department of Human Services (DHS).  The Committee shall consist of five individuals.  The DHS' Associate Director or his/her designee shall appoint four individuals representing the Illinois State Board of Education, DHS, public schools serving the deaf and hard of hearing, and the deaf community.  Their terms shall be for two years and shall not exceed two consecutive terms.  The ISD Superintendent shall serve ex-officio.

 

(Source:  Amended at 23 Ill. Reg. 10321, effective August 10, 1999)

 

Section 835.20  Definitions

 

For the purpose of this Part, the following terms have the following meanings:

 

"Deaf" and "Hard of Hearing" means a diagnosis of a hearing impairment of 30 db or greater in the better ear.

 

"Full Time Student" means a student carrying a full study load as determined by the institution he or she is attending or plans to attend.

 

"Illinois Resident" means a person who shall have resided in Illinois in some capacity other than as a student at a post-secondary educational institution for a period of at least twenty-four continuous months immediately prior to the application for the loan.

 

"Institution of Higher Learning" means a institution with educational or vocational programs which offer a certificate, associate degree, bachelor's degree, master's degree or any other specialized degree and provides direct communication, instructional programs or support services for the deaf or hard of hearing.

 

(Source:  Amended at 23 Ill. Reg. 10321, effective August 10, 1999)

 

Section 835.30  Eligibility for Loan

 

a)         The applicant for a loan from this Fund shall be a graduate of the Illinois School for the Deaf (ISD) or be a deaf or hard of hearing resident of the State of Illinois (as defined in Section 835.20).

 

b)         If the applicant is not a graduate of ISD, the following records and/or identification cards shall show proof of Illinois Residency:

 

1)         Illinois high school or college transcript;

 

2)         Illinois driver's license;

 

3)         State identification card;

 

4)         apartment rent agreement, house mortgage statement or property tax bill;

 

5)         Illinois Income Tax form IL-1040; or

 

6)         hospital, doctor or clinic record.

 

c)         A person who reapplies for a second, third or fourth loan must continue to meet the Illinois residency requirement and shall have achieved a "C" average (2.0 on a 4.0 point scale).

 

d)         Successful applicants shall be registered as full-time students.

 

e)         The applicant will be required to give permission to the Committee to make inquiries and obtain information so that the information on the application may be verified by the Committee.

 

(Source:  Amended at 23 Ill. Reg. 10321, effective August 10, 1999)

 

Section 835.35  Award of the Loan

 

a)         In awarding the loan, the Committee shall consider the amount of funds available, the applicant's stated financial need supplied in the loan application, the applicant's available financial resources and the total number of applicants.

 

b)         When all eligibility criteria are met and funds are not available to cover all requests, an applicant from an undergraduate program shall receive priority over a student from a graduate program.

 

(Source:  Amended at 23 Ill. Reg. 10321, effective August 10, 1999)

 

Section 835.40  Terms of the Loan Agreement

 

a)         The minimum yearly amount of a loan shall be $500 and the maximum yearly amount shall be $4,000, and the maximum amount that can be borrowed over four years shall be $16,000.

 

b)         The interest rate for each loan shall be assigned at the time the original loan is made and shall remain fixed at that rate for all successive loans for that student.

 

c)         A student shall receive only one loan per calendar year up to a maximum of four years, but the four years need not be consecutive.

 

d)         Interest shall begin accruing and repayment of the loan shall begin six months after:

 

1)         graduation,

 

2)         the student ceases to be a full-time student, or

 

3)         the expiration of the four years of eligibility, whichever comes first.

 

            Payment of the principal, but not the interest, may be deferred if the individual continues his or her undergraduate program or enters graduate school.

 

e)         Repayment of the loan will follow a payment schedule as established by the Committee based on the ability to repay, employment and earnings.  The maximum time period that will be allowed to repay a loan is ten years.  The minimum monthly repayment is $50.00.

 

f)         The loan may be paid off prior to the time it is due without penalty.

 

g)         The loan will be forgiven if the individual who received the loan dies or becomes further disabled in a way that permanently interferes with employment or the ability to repay.  Repayment of the loan may be deferred if the individual incurs temporary disability that interferes with employment of the ability to repay until the temporary disability ceases.

 

h)         Legal or other collection action shall be taken against individuals judged by the Committee capable of making reasonable monthly payments based upon employment, earnings and other debts, but not making payments in accord with the loan agreement.

 

(Source:  Amended at 23 Ill. Reg. 10321, effective August 10, 1999)

 

Section 835.50  Use of Funds

 

a)         Loan funds can only be used to pay tuition, fees, books, specialized educational equipment and room and board, and when approved by the Committee, costs of transportation and specific living expenses necessary for completion of the educational program.

 

b)         Loan funds will be sent directly to the institution of higher learning. If it is not possible to make direct payment to the institution, a receipt for expenses shall be required from the student before payment is issued.  An advance of funds may be provided if the student can show financial hardship, need for the expense and a reasonable estimate of the cost.

 

(Source:  Amended at 23 Ill. Reg. 10321, effective August 10, 1999)