Delaware Code
Subchapter III. Career-Based Scholarships and Incentive Loans Administered by the Office
§ 3418. Repayment and forgiveness of incentive loans awarded prior to July 1, 2022.

(a) The Office shall determine payment amounts, length of repayment period, and the rate and type of interest to accrue on awards, within the limitations specified in this chapter.
(b) The Office shall communicate the terms of repayment and interest accrual to the recipient and secure a promissory note from the recipient attesting to the recipient's agreement to such terms at the time the award is made.
(c) Repayment or forgiveness will commence following completion of the program of study and a grace period not to exceed 12 months, or immediately after the student discontinues full-time enrollment or discontinues the specified program of study.
(d) If after 12 months following graduation the recipient is engaged in qualifying employment, no repayment of award principal or interest will be required. The recipient's awards will be forgiven in accordance with the service repayment ratios specified in this chapter and in the order in which they were made.
(e) If during the period of service repayment, the recipient terminates qualifying employment, the recipient will be required to commence repayment of the awards or portions thereof which have not been forgiven at the time qualifying employment was terminated.
(f) If after 12 months following graduation the recipient is not engaged in qualifying employment, the recipient shall be obligated to make monthly payments until the amount of the award and interest on the award from the date of disbursement is paid in full.
(g) If during the period of cash repayment the recipient begins qualifying employment, payments will be deferred and the service repayment ratio specified in this chapter will be applied. Under no circumstances will payments already made by the recipient be reimbursed as a result of obtaining qualifying employment.
(h) The Office may, in its discretion, grant deferments from repayment in cases of economic hardship, inability to secure qualifying employment, severe or prolonged illness, or other circumstances that can be documented to the satisfaction of the Office. Such deferments will be limited to periods not to exceed 1 year and only 1 deferment may be granted. The length and terms of a deferment shall be communicated in writing to the recipient.
(i) The Office may grant a deferment of repayment obligations of up to 1 year to students who have a compelling reason to interrupt coursework temporarily. Students must submit a written request for deferment and provide such documentation as the Office deems necessary. Interest on the loan will continue to accrue during deferment periods.
(j) A recipient's repayment obligation may be forgiven if the Office determines that the recipient is unable to meet repayment obligations because of permanent disability or death. The Office may require such documentation as it deems necessary to verify claims or disability or death, including but not limited to a sworn affidavit from a qualified physician or a death certificate.

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