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HOUSE BILL NO. 190
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TEACHERS - STUDENT LOAN REPAYMENT - Adds to existing law to provide a program
for repayment by the State Board of Education of certain student loans
incurred by certified teachers; to provide eligibility requirements; to
provide amounts of loans and limitations; to provide access to loan
information; to provide for payments and cessation of payments; and to
02/06 House intro - 1st rdg - to printing
02/07 Rpt prt - to Educ
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-seventh Legislature First Regular Session - 2003
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 190
BY EDUCATION COMMITTEE
1 AN ACT
2 RELATING TO TEACHERS; AMENDING CHAPTER 37, TITLE 33, IDAHO CODE, BY THE ADDI-
3 TION OF A NEW SECTION 33-3723, IDAHO CODE, TO PROVIDE A PROGRAM FOR REPAY-
4 MENT BY THE BOARD OF EDUCATION OF CERTAIN STUDENT LOANS INCURRED BY CERTI-
5 FIED TEACHERS, TO PROVIDE ELIGIBILITY REQUIREMENTS, TO PROVIDE AMOUNTS, TO
6 PROVIDE LIMITATIONS, TO PROVIDE ACCESS TO LOAN INFORMATION, TO PROVIDE FOR
7 PAYMENTS, TO PROVIDE FOR CESSATION OF PAYMENTS AND TO AUTHORIZE RULEMAK-
9 Be It Enacted by the Legislature of the State of Idaho:
10 SECTION 1. That Chapter 37, Title 33, Idaho Code, be, and the same is
11 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
12 ignated as Section 33-3723, Idaho Code, and to read as follows:
13 33-3723. STUDENT LOANS OF CERTIFIED TEACHERS -- REPAYMENT BY BOARD OF
14 EDUCATION. (1) The purpose of this section is to provide a program for repay-
15 ment of student loans to certified teachers in Idaho public schools and is a
16 supplement to the student loan forgiveness program provided in section
17 33-3722, Idaho Code.
18 (2) Certified teachers who are not otherwise eligible to participate in
19 the student loan forgiveness program provided in section 33-3722, Idaho Code,
20 may apply to the board of education to have student loans repaid according to
21 this section.
22 (3) In order to participate, the teacher must:
23 (a) Have graduated from an elementary or secondary teacher training pro-
24 gram provided by an institution of higher learning in Idaho;
25 (b) Have received and currently maintain in good standing a certificate
26 to teach in Idaho pursuant to chapter 12, title 33, Idaho Code;
27 (c) Have actively taught as a full-time employee in a public primary or
28 public secondary school in Idaho for at least two (2) years immediately
29 preceding application;
30 (d) Have received his teaching certificate after January 1, 2002;
31 (e) Not be, or have been, participating in the student loan forgiveness
32 program provided in section 33-3722, Idaho Code;
33 (f) Have not defaulted on any student loan obligation submitted for
35 (g) Agree to serve at least an additional two (2) years in a public pri-
36 mary or public secondary school in Idaho;
37 (h) Apply for loan repayment pursuant to this section within the first
38 seven (7) years following original receipt of his teacher's certificate.
39 (4) A person meeting the requirements of this section may apply to the
40 state board of education to have the board repay that person's student loans
41 up to a maximum of two thousand dollars ($2,000) per year per teacher, not to
42 exceed ten thousand dollars ($10,000) total for each qualified teacher. The
43 student loans must have been incurred in the pursuit of education necessary to
1 obtain an Idaho teaching certificate. A teacher may be reimbursed, pursuant to
2 the maximum limits set forth herein, for qualifying student loan payments made
3 during the immediate preceding two (2) year period of time in which they were
4 fulfilling their two (2) year prerequisite teaching requirement. In order to
5 be reimbursed for loan payments made during that period of time, a teacher
6 must submit documentation as required by the board including, but not limited
7 to, proof of payment of qualifying student loans. Any funds reimbursed
8 directly to a teacher pursuant to the provisions of this subsection, shall be
9 included with any funds repaid to government and private lending institutions
10 in determining the maximum limitation on payment as set forth herein.
11 (5) Repayment shall be limited to reasonable educational expenses as
12 determined by the department and shall include principal and interest.
13 (6) Loans from both government and private lending institutions may be
14 repaid by the program. Participants shall agree to give the board access to
15 loan records and to acquire information from lenders necessary to verify eli-
16 gibility and to make the required loan payments on a timely basis.
17 (7) Repayment of loans established pursuant to this program shall begin
18 no later than ninety (90) days after the teacher has become a participant.
19 Payments shall be made quarterly, or more frequently if deemed appropriate by
20 the board, to the lending institution until the loan is repaid to the extent
21 allowed in this section or the participant becomes ineligible.
22 (8) Should the participant discontinue employment in a public primary or
23 public secondary school in Idaho, payments against the loans of the teacher
24 shall cease, and the teacher shall no longer be eligible for repayment of his
25 qualified student loans by the board, on the date that the participant discon-
26 tinues service.
27 (9) The board is not responsible for any outstanding payments on princi-
28 pal and interest to any lenders once a teacher's eligibility expires.
29 (10) The board shall adopt rules necessary to administer the program and
30 shall publicize the program.
STATEMENT OF PURPOSE
This legislation provides an enticement to Idaho teachers to
remain and teach in Idaho. The bill proposes re-payment of
student loans by the Board of Education for certified teachers
who have graduated from an institution of higher learning in
Idaho. They must have taught in a public school in Idaho for at
least two (2) years and must agree to teach in Idaho at least an
additional two (2) years. Re-payments will be made at $2,000 per
year to a maximum of $10,000 and will apply only if the loan was
incurred in pursuit of education necessary for an Idaho teaching
Estimated cost of the program would be approximately $1,500,000
Name: Rep Tom Trail
STATEMENT OF PURPOSE/FISCAL NOTE H 190