Definitions

As used in this subpart, the term: (1) ‘‘Cost of attendance’’ of a student means the cost of attendance calculated in accordance with Title IV. (2) ‘‘Education for Public Service Student Loan’’ or ‘‘EPS Student Loan’’ means a student loan provided in accordance with the provisions of this subpart. 251 20-3-405.1 EDUCATION 20-3-405.1 (3) ‘‘Eligible high school’’ has the same meaning as set forth in Code Section 20-3-519. (4) ‘‘Eligible postsecondary institution’’ means: (A) A unit of the University System of Georgia that offers associate degrees, baccalaureate degrees, or graduate degrees; or (B) An institution of higher education located in this state that offers associate degrees, baccalaureate degrees, or graduate degrees; that is accredited by a regional accrediting agency recognized by the United States Department of Education; that is not a Bible school or college; that admits as regular students only persons who have a high school diploma, a general educational development diploma, or a degree from an accredited postsecondary institution; and whose students are eligible to participate in the federal Pell Grant program. (5) ‘‘Employee’’ means an individual who receives an Internal Revenue Service Form W-2 from the employer and who is an employee as defined in Code Section 34-9-1 for purposes of workers’ compensation. (6) ‘‘First degree’’ means the first baccalaureate degree or the first graduate degree completed by a student with the assistance of an EPS Student Loan. (7) ‘‘Graduate degree’’ means a degree earned after a student has earned a baccalaureate degree, including, but not limited to, a master’s degree, a juris doctor degree, or a medical doctor degree. (8) ‘‘Public service’’ means service as an employee of any of the following: the State of Georgia; an agency or instrumentality of this state; the executive, legislative, or judicial branch of government of this state; a political subdivision of this state; the University System of Georgia or any unit of the university system; an authority or public corporation of this state; a local board of education of this state; or an agency or instrumentality of a political subdivision of this state. (9) ‘‘Reasonable interest rate’’ means an interest rate no higher than the Wall Street Journal prime rate effective on July 1 for the fiscal year beginning July 1 of each year. The reasonable interest rate for the fiscal year shall apply to all outstanding EPS Student Loans during that fiscal year without regard for the interest rate at the time of a loan’s origination or at the time of the student’s default, except for EPS Student Loans that: (A) Have been converted to 1 percent interest loans in accordance with subsection (a) of Code Section 20-3-405.3; and (B) Have been converted to interest-free loans in accordance with subsection (b) of Code Section 20-3-405.3. 252 20-3-405.1 POSTSECONDARY EDUCATION 20-3-405.2 (10) ‘‘Second degree’’ means the second degree completed by a student with the assistance of an EPS Student Loan. (11) ‘‘Title IV’’ means Title IV of the federal Higher Education Act of 1965, 20 U.S.C. Section 1070, et seq. (12) ‘‘Undergraduate degree’’ means a baccalaureate degree. (Code 1981, § 20-3-405.1, enacted by Ga. L. 2008, p. 626, § 4/SB 169.) 20-3-405.2. Eligibility; repayment period; maximum amount; application; statement of requirements. (a) The authority is authorized to provide direct loans to students who are legal residents of this state and who are not ineligible under Code Section 20-3-405.7 in accordance with the provisions of this subpart and regulations of the authority promulgated to implement this subpart. (b) The repayment period for an EPS Student Loan shall be ten years; provided, however, that, subject to the provisions of Code Section 20-3-405.6, the commission may provide by regulation for deferral of payments and forbearance of payments similar to deferral and forbearance under federal student loan programs. The maximum amount of an EPS Student Loan shall be the lesser of $10,000.00 or the cost of attendance for a calendar year minus the estimated amount of the student’s loans, grants, and scholarships, including loans, grants, and scholarships provided under Title IV, for the calendar year for which such loan is sought. The maximum amount of EPS Student Loans for a degree shall be $10,000.00 times the number of academic years required for a full-time student to earn the degree. (c) A student may apply for an EPS Student Loan annually. A student who is a legal resident of this state and who has graduated from an eligible high school shall be eligible for an EPS Student Loan for the first year of attendance at an eligible postsecondary institution. Any student who is a legal resident of this state attending an eligible postsecondary institution is eligible for an EPS Student Loan for the second and subsequent years of attendance. A student who is otherwise eligible for an EPS Student Loan is eligible for such a loan for expenses as a student seeking an associate degree, baccalaureate degree, and a graduate degree. (d) Except as otherwise provided by subsections (a) and (b) of Code Section 20-3-405.3, the interest rate for an EPS Student Loan shall be a reasonable interest rate as defined by paragraph (9) of Code Section 20-3-405.1 and as established by the authority by rule or regulation. (e) The promissory note signed for each EPS Student Loan shall include a statement of the requirements a student must meet for 253 20-3-405.2 EDUCATION 20-3-405.3 conversion of the loan to a 1 percent loan and for conversion of the loan to an interest-free loan. (Code 1981, § 20-3-405.2, enacted by Ga. L. 2008, p. 626, § 4/SB 169.) 20-3-405.3. Interest rate; recalculation.