(a)
(1) At the beginning of the first school year in which a recipient of a forgivable loan under § 6-85-109 is eligible for employment as a licensed teacher, that recipient shall begin to render service as a licensed teacher in a public school district in the state:
(A) In a subject matter area designated by the Division of Elementary and Secondary Education as having a critical shortage of teachers if the recipient's award was made under § 6-85-109(a)(1); or
(B) In a geographical area of the state designated by the Division of Elementary and Secondary Education as having a critical shortage of teachers if the recipient's award was made under § 6-85-109(a)(2).
(2)
(A) Any recipient receiving a forgivable loan under § 6-85-109 who received four (4) annual awards or the equivalent of four (4) annual awards shall render four (4) years' service as a licensed teacher.
(B) Any person who received a forgivable loan under § 6-85-109 in an amount less than four (4) annual awards or the equivalent of four (4) annual awards shall render one (1) year's service as a licensed teacher for each year that the person received a full-time student forgivable loan or for the number of academic hours equivalent to one (1) school year, as determined by the Division of Higher Education, for which a part-time student received a forgivable loan.
(b) Any person receiving a forgivable loan shall execute a note made payable to the Division of Higher Education for an amount equal to the scholarship award each semester that shall bear interest at a rate to be determined by the Division of Higher Education and set forth in the note after completion of the program or immediately after termination of the forgivable loan, whichever is earlier.
(c) Any person failing to complete a program of study that will enable the person to become a licensed teacher shall begin repaying the note according to the terms of the note for the sum of all forgivable loan awards made to that person less the corresponding amount of any awards for which service has been rendered.
(d)
(1) Except as provided in subdivision (d)(2) of this section, any person failing to complete the teaching obligation as required by this subchapter shall become immediately liable to the Division of Higher Education for the sum of all forgivable loan awards made to that person less the corresponding amount of any awards for which service has been rendered according to the note's terms.
(2) The Division of Higher Education may defer payment on the note if an employment position is not immediately available upon a teacher's completion of licensure requirements or for other just cause as determined by the Division of Elementary and Secondary Education.
(3) After the period of deferral, the person shall begin or resume teaching duties as required under this section or shall become liable to the Division of Higher Education under this section.
(e) If a claim for payment under this section is placed in the hands of an attorney for collection, the obligor shall be liable for an additional amount equal to a reasonable attorney's fee.
(f) The obligations made by the recipient of a forgivable loan under § 6-85-109 and this section shall not be voidable by reason of the age of the student at the time of receiving the forgivable loan award.