Sec. 9. 20-A MRSA §12506, 2nd ¶, as enacted by PL 1989, c. 7, Pt. O, §5, is amended to read:

These loans shall must only be used to substitute or replace the family contribution or interest-accruing loans. A loan recipient may not receive student financial assistance in excess of the cost of attendance.

Sec. 10. 20-A MRSA §12507, as amended by PL 1999, c. 783, §5, is further amended to read:

§12507. Repayment and return service provisions

Each graduating high school senior or college student who receives a loan may cancel the total amount of the loan by completing one year of return services service in the public schools or private schools approved for tuition purposes in the State for each year the individual receives a loan. An individual who received that individual's first program loan after January 1, 2000 may also cancel the total amount of the loan by completing one year of return service by working in a child care facility. The return service requirement is one year for every 2 years or less that the individual receives a loan if return service is performed in an underserved subject areas or in educator shortage areas area. Return service for this purpose must be performed within 5 years of graduation from the institution of higher education. If the chief executive officer grants a deferment, the time period for performance of return service may be extended for the same period as the deferment. Return service may not be credited for the same semester for which an individual receives a loan pursuant to this chapter. Pro rata loan forgiveness may be granted for part-time return service as determined by rule of the authority. Failure to fulfill the return service option necessitates repayment to the authority as follows.

1. Debt calculation. The debt must include the total amount of the loan and interest at the rate established by rule of the authority, less the amount, if any, that has been cancelled by return service.

2. Time for repayment. The total debt must be repaid to the authority within 10 11 years of graduation from the institution of higher education according to a schedule