R615, Talent Development Incentive Loan Program

R615-1. Purpose: To establish the criteria and process for awarding incentive loans from the Talent Development Incentive Loan Program under Utah Code Section 53B-10-201.

R615-2. References

2.1. Utah Code Section 53B-10-201

R615-3. Definitions

3.1. “Full-time student” means a student who is enrolled in a minimum of 12 credit hours.

3.2. “GOED” means the Governor’s Office of Economic Development created in 50 Section 63N-1-201.

3.3. “Incentive loan” means an incentive loan awarded by an institution to a full-time student who has met the eligibility criteria as established by the Board of Regents.

3.4. “Qualifying degree” means an associate or a bachelor’s degree that qualifies an individual to work in a qualifying job.

3.5. “Qualifying job” means a job described in Section 6.2 for which an individual may receive an incentive loan.

R615-4. Appropriations: The program is funded by appropriations from the Legislature made in accordance with Section 53B-10-201.

R615-5. Application Procedures: A full-time student pursuing a qualifying degree may apply for an incentive loan from the institution at which he or she is attending by doing the following:

5.1. The institutions shall develop an application that, at minimum, collects the following information:

5.1.1. The applicant’s status as a full-time or part-time student.

5.1.2. The applicant’s current enrollment or registered enrollment for and the upcoming semester if available.

5.1.3. A transcript demonstrating the applicant’s completed course work.

5.1.4. A section for the applicant to formally declare his or her intent to pursue a qualifying degree and to work in a qualifying job, with a signature.

5.2. Institutions shall set application deadlines by which applicants must submit all required materials.

5.3. Institutions shall determine the most efficient method for issuing incentive loan funds and collect the necessary information for that purpose.

R615-6. Qualifying Criteria

6.1. Applicants must meet the following criteria to qualify for an incentive loan:

6.1.1. The applicant must have completed at least two semesters of full-time equivalent course work if he or she is pursuing a bachelor’s degree, or at least one semester of full-time equivalent course work if he or she is pursuing an associate degree.

6.1.2. The applicant is enrolled full-time.

6.1.3. The applicant signs a declaration stating he or she is pursuing or will pursue a qualifying degree.

6.1.4. The applicant signs a declaration stating his or her intent to work in a qualifying job in Utah following graduation.

6.1.5. The applicant must provide the institution verification of registration for classes within the qualifying degree program before the institution may release the funds.

6.2. Every other academic year, the Governor’s Office of Economic Development (GOED) shall select five jobs that have the highest demand for new employees, and offer high wages.  Beginning the August of that year, those five positions are designated as qualifying jobs for the purposes of this incentive loan program.  When selecting the qualifying jobs, GOED shall ensure the jobs meet the following criteria:

6.2.1. Rank in the top 40 percent of jobs based on an employment index that considers job growth rates and total openings.

6.2.2. Rank in the top 40 percent for wages.

6.2.3. Requires an associate degree or a bachelor’s degree.

6.3. In conjunction with selecting the qualifying jobs, GOED will identify and designate the bachelor’s or associate degrees required to qualify for the five qualifying jobs.

R615-7. Loan Amounts.

7.1. Institutions may loan an amount up to the cost of resident tuition, books, and fees for their respective institutions.

7.2. Institutions may loan amounts up to the expected time for the recipient to complete the qualifying degree, as determined by the institution.

R615-8. Funding Distribution.

8.1. The Board will disburse appropriated funds to the institutions by calculating the three-year average of the qualifying degrees each institution awarded using the following assumptions:

8.1.1. Tuition and fees (not including books, differential, course, or program fees)

8.1.2. Full tuition and fee cost of associate degree students by institution for three semesters (requires 1 semester before applying)

8.1.3. Full tuition and fee cost of bachelor’s degree students by institution for six semesters (requires 2 semesters before applying)

8.1.4. After year one, tuition and fees adjusted for inflation (five-year average of 3.5 percent)

R615-9. Loan Cancellation, Repayment, and Waiver. 

9.1. For each year that a recipient works in a qualifying job in Utah following completion of a qualifying degree, the institution that awarded the incentive loan shall waive repayment of the amount of one year of the recipient’s incentive loan.

9.2. An institution shall require a recipient to repay to the institution the full amount of an incentive loan if the recipient fails to:

9.2.1. Graduate with a qualifying degree within six years of initially receiving the incentive loan,

9.2.2. Work in a qualifying job in Utah within one year of completing a qualifying degree, or

9.2.3. Works in a qualifying job for fewer years than the number of years required to waive repayment of the full incentive loan.

9.3. Institutions may cancel an incentive loan if the recipient changes the degree he or she selected in the declaration at any time prior to graduation.

9.4. Institutions may waive repayment if a recipient has graduated with a qualifying degree within six years of receiving the loan, works in a non-qualifying job that the institution determines is reasonably related to the degree, and resides in Utah.

9.5. Institutions may delay repayment for reasonable, unforeseen circumstances that inhibits the recipient’s ability to meet the requirements for loan payment waivers as described above.

9.6. Institutions may waive repayment for circumstances of prolonged financial hardship.

R615-10. General Administration.

10.1. Institutions may establish policies for administering this program that align with their existing practices and financial aid programs.

 

 

 

 

 

[1] Adopted November 16, 2018.