Ch. 712

LAWS OF MARYLAND

(c) "Higher education loan" means any loan for
undergraduate or graduate study that is obtained [from a college
or university or from an eligible lender under the guaranteed
loan program.] FOR TUITION, EDUCATIONAL EXPENSES OR LIVING
EXPENSES FROM:

(1) A COLLEGE OR UNIVERSITY, GOVERNMENT, OR
COMMERCIAL SOURCE; OR

(2) AN ORGANIZATION, INSTITUTION, ASSOCIATION,

SOCIETY, OR CORPORATION THAT IS EXEMPT FROM TAXATION UNDER §
501(C)(3) OR (4) OF THE INTERNAL REVENUE CODE OF 1986.

18-1602.

(a)  There is a program of a loan assistance repayment in
the State.

(b)  The State Scholarship Administration shall assist in
the repayment of the amount of any higher education loan owed by
an individual who:

(1)  Receives a graduate, professional, or
undergraduate degree from a:

(I)  A college or university in the State of
Maryland; OR

(II)  A SCHOOL OF MEDICINE;

(2)  Obtains eligible employment;

(3)  Receives an income that is less than the maximum
eligible total income levels established by the Administration,
including any additional sources of income; [and]

(4) IS NOT DECLARED TO BE IN DEFAULT OF THE LOAN; AND

[(4)](5) Satisfies any other criteria established
by the Administration.

(C) AN APPLICANT FOR ASSISTANCE IN THE REPAYMENT OF A
COMMERCIAL LOAN SHALL DEMONSTRATE TO THE ADMINISTRATION THAT THE
COMMERCIAL LOAN WAS USED FOR TUITION, EDUCATIONAL EXPENSES, OR
LIVING EXPENSES FOR GRADUATE OR UNDERGRADUATE STUDY.

(D) ASSISTANCE IN THE REPAYMENT OF A LOAN FROM AN ENTITY
SET FORTH IN § 18-1601(C)(2) OF THIS SUBTITLE SHALL REQUIRE THE
APPROVAL OF THE ADMINISTRATION.

18-1603.

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