(1) The primary objectives of the Student Loan Assistance Program are to:

(a) encourage Montana's college-educated youth to pursue a primary career in farming or ranching;

(b) reduce financial stress on Montana's farm and ranch operators; and

(c) promote succession planning to preserve interest in Montana's agricultural future.

(1) Application forms for farmer loan repayment assistance will be published annually on the department's website.

(2) Applicants must provide all requested information and meet eligibility and documentation requirements specified in ARM 4.23.103 to be considered eligible for funding.

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(1) The Agriculture Development Council will direct the department to conduct a review of eligibility prior to making funding decisions.

(2) Applicants must provide sufficient documentation to establish:

(a) proof of residency;

(b) completion of associate or baccalaureate degree from postsecondary institution as defined in 20-26-603, MCA;

(c) primary ownership, including an heir, successor, or assignee of an agricultural operation;

(d) participation in the day-to-day operations of a farm or ranch; and

(e) commitment to operate the farm or ranch for at least five years following application.

(3) Applicants must provide documentation of requested educational loan information including but not limited to total outstanding loan amount, loan servicer information, payment schedule, history, and interest rate.

(1) The department will conduct annual monitoring activities for ongoing eligibility verification and program compliance.

(2) Annual monitoring activities will be documented on reports established by department staff and stored at the department for the duration of the loan assistance plus five years.

(3) Disbursements may be made by the department directly to the educational loan servicer or provided to the recipient on a reimbursement basis provided verified loan statements indicating full and timely payments are made available to the department.

(1) Funding recipients who cease to operate the farm or ranch before the end of the five-year commitment period must repay the total amount of assistance received to date.

(2) Funding recipients who fail to complete required monitoring reports or abide by written agreement must repay the total amount of assistance received since the date of the last verified report or date of breach.