New Mexico Statutes Chapter 21. State and Private Education Institutions § 21-21I-5. Minority doctoral loan repayment contracts and terms

A. A minority doctoral loan repayment assistance grant shall be evidenced by a contract between the recipient and the department and shall be signed by the recipient and an authorized representative of the department.

B. The contract shall provide that, in consideration for the department's payment of up to twenty-five thousand dollars ($25,000) per year for up to four years to a lender on behalf of the recipient, the recipient shall teach in a full-time faculty position at a public post-secondary educational institution in New Mexico for a minimum of one year for each year a minority doctoral loan repayment assistance grant is awarded.

C. Grant funds received by a recipient who fails to complete the contract terms shall be converted to a loan with an applied annual interest rate equal to the treasury note rate in existence at the time the contract is entered into plus two percent. The loan shall become due to the department on behalf of the state immediately upon the recipient's termination or breach of the contract.

D. The department is vested with full and complete authority and power to sue in its own name for any balance due it and the state from a recipient violating the terms of a contract under the Minority Doctoral Loan Repayment Assistance Act.

E. The following debts incurred by a recipient are not eligible for payment by the department under the Minority Doctoral Loan Repayment Assistance Act: