11 KAR 19:020. Service cancellation
and repayment of Coal County Pharmacy Scholarship.
RELATES TO: KRS
AUTHORITY: KRS 164.744(2), 164.748(4), 164.753(3), 164.7890(9)
FUNCTION, AND CONFORMITY: KRS 164.744(2) authorizes the authority to provide
scholarships. KRS 164.748(4) and 164.753(3) require the authority to promulgate
administrative regulations pertaining to the awarding of scholarships as
provided in KRS 164.740 to 164.7891. KRS 164.7890(9) requires the authority to
promulgate administrative regulations establishing the terms and conditions for
the award, cancellation, and repayment of coal county scholarships for pharmacy
students. This administrative regulation establishes the requirements for
service cancellation and repayment of
scholarships provided under the program.
Section 1. Definitions.
(1) "Coal-producing county" is defined
in KRS 164.7890(2).
means the status of an obligation under this program that has entered repayment
and upon which no payment has been made for a cumulative period of 180 days
following the repayment begin date for the obligation.
practice" means providing services as a pharmacist in a coal-producing
county for a minimum of 2,000 hours per calendar year.
service" is defined in KRS 164.7890(3)(d).
Cancellation. (1) A recipient shall
receive cancellation under this program for each year during which service is
provided as specified in KRS 164.7890(5)(b) if the recipient:
completed the program of study;
provided qualified service in a coal-producing county in Kentucky; and
submitted to the authority written verification of qualified service.
(2) A recipient
rendering qualified service shall remain eligible for the credit cancellation
(a) The county
in which qualified service is provided ceases to be a coal-producing county as
defined in KRS 164.7890(2); and
recipient continues to render continuous qualified service in the area.
Section 3. Repayment. (1) Interest at the rate of six (6)
percent per annum shall be applicable to the coal county scholarship under this
section and shall begin accruing upon disbursement of the award.
repayment becomes necessary pursuant to KRS 164.7890(5)(c), the authority shall
send a written notification of demand for repayment to the scholarship
recipient’s last known address. The notification shall be effective upon mailing.
Application of Payment. (1) The authority may agree to accept repayment in
installments in accordance with a schedule established by the authority.
shall first be applied to interest and then to principal on the earliest unpaid
(3) If a
repayment obligation subsequently becomes eligible for service credit
cancellation as a result of the recipient's provision of pharmacy service,
refund of payments previously made shall not be given to the recipient.
Default. (1) Upon default on a repayment obligation under this program, the
recipient's account shall be transferred to the appropriate agency of the
Commonwealth of Kentucky for collections and shall be subject to the collection
charges and fees assessed by that agency.
(2) A recipient
whose repayment obligation has defaulted and who subsequently begins providing
pharmacy service in a coal-producing county in the Commonwealth of Kentucky
shall be removed from default status.
Rehabilitation. (1) The authority shall offer a recipient in default under this
program an opportunity to rehabilitate the loan obligation in order to remove
it from default.
(2) A defaulted
recipient interested in pursuing loan rehabilitation shall contact the
authority and enter into a written agreement to submit six (6) consecutive, voluntary,
on-time monthly payments to the agency of the Commonwealth currently charged
with collecting the obligation.
(3) At the
completion of the rehabilitation repayment agreement, the recipient’s loan
shall be removed from default and the account shall be transferred back to the
authority which shall resume servicing the loan.
(4) A refund of
fees or charges assessed during the default period shall not be due a recipient
who completes rehabilitation.
(5) A recipient
whose loan obligation has been removed from default due to rehabilitation shall
not be eligible for subsequent rehabilitation if there is a subsequent default.
Disability Discharge. A conditional or permanent discharge of the repayment
obligation required by this program shall be granted by the Authority upon
submission by the recipient of the documentation required by this section.
discharge. A conditional discharge shall be granted for a maximum two (2) year
period, subject to annual review by the Authority, upon the submission of one
(1) of the following as proof of the recipient’s qualifying disability:
(a) A finding
of permanent disability by the Social Security Administration; or
(b) A statement
by the recipient’s treating physician that:
a. The nature
of the condition; and
b. The date the
condition occurred; and
a. Recipient is
unable to work or earn money; and
b. Condition is
expected to persist indefinitely.
discharge. At the expiration of the two (2) year Conditional Discharge period
specified in subsection (1) of this section, the Authority shall grant a
permanent discharge to a recipient under this program upon the Authority’s
review of the submission by the recipient of current documentation verifying
that the qualifying disability continues to exist at the time the documentation
is submitted. (37 Ky.R. 1925; Am. 2152;