17.5.1  Repayment Agreement

During the application process, the loan recipient and the FEPFinancial and Employment Planner will develop a repayment agreement.  Although JALJob Access Loan applicants must be financially able to repay the full loan in cash, JAL recipients may choose to repay up to 75% of the loan through in-kind community service. (See 17.5.3)  A minimum of 25% of the loan must be repaid in cash.

The loan must be repaid according to the terms of the repayment agreement in order to avoid an intercept of a state tax refund. If the repayment agreement includes a combination of cash and in-kind services, both obligations are required to be met on a monthly basis until the loan has been repaid.

The initial repayment period may be up to 12 months and can be extended an additional 12 months if necessary, for a total of 24 months.

Regardless of when the loan is issued, the first payment is due on the 25th of the following month. All payments must be recorded in CARESClient Assistance for Reemployment and Economic Support by the end of the month. Each month CARES will issue a statement summarizing payments made to the account and the balance due. CARES will also issue a past due notice each month a payment has not been received or does not meet the expected repayment agreement.

History: There are no previous versions of this policy.