(a) If a borrower earns a doctoral degree and serves as a full-time academic administrator or a faculty member at an institution of higher education in Texas, the program will repay from the fund eligible education loans through eligible lenders or holders of those loans at the rate of one-fifth of the outstanding principal balance and interest for each year of service, not to exceed five years. (b) The guarantee of payment may not be issued to a participant in the Minority Doctoral Incentive Program of Texas to cover education loans made before the doctoral student is admitted to the program. (c) If the borrower enters a postdoctoral fellowship no later than the first day of the seventh month after the borrower ceases to be enrolled full-time, the lender or holder, as agreed upon, shall provide an in-school deferment of payments or forbearance until the borrower completes the postdoctoral fellowship and begins serving as a full-time academic administrator or faculty member at an institution of higher education in Texas. The period of deferment or forbearance may not exceed two years. (d) A conditional guarantee of repayment of an eligible education loan shall be provided to an eligible doctoral student and to any eligible lender stating that   (1) the Board will repay from the fund any eligible education loan incurred by the eligible doctoral student at the rate of one-fifth of the outstanding principal and interest for each full year of service as an academic administrator or faculty member at an institution of higher education in Texas and   (2) an eligible education loan becomes due and payable by the borrower to the eligible lender on the first day of the seventh month after the borrower ceases to be enrolled full time at an institution of higher education and is not serving as an academic administrator or faculty member at an institution of higher education in Texas or on the day after the borrower ceases to serve as an academic administrator or faculty member at an institution of higher education in Texas and has outstanding principal and interest on eligible education loans.

Source Note: The provisions of this §21.978 adopted to be effective November 28, 2004, 29 TexReg 10777