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H0704..........................................................by EDUCATION
POSTSECONDARY EDUCATION LOANS - Adds to existing law relating to
postsecondary education loans to state legislative intent; to create an
Idaho Needs-based Math and Science Loan Program; to provide for procedures;
to provide for loan forgiveness; to create an Idaho Needs-based Math and
Science Loan Fund in the state treasury with a one time appropriation of
five million dollars; and to define terms.
02/20 House intro - 1st rdg - to printing
02/21 Rpt prt - to Educ
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 704
BY EDUCATION COMMITTEE
1 AN ACT
2 RELATING TO POSTSECONDARY EDUCATION LOANS; AMENDING CHAPTER 43, TITLE 33,
3 IDAHO CODE, BY THE ADDITION OF A NEW SECTION 33-4317, IDAHO CODE, TO STATE
4 LEGISLATIVE INTENT, TO CREATE AN IDAHO NEEDS-BASED MATH AND SCIENCE LOAN
5 PROGRAM, TO PROVIDE FOR PROCEDURES, TO PROVIDE FOR LOAN FORGIVENESS, TO
6 CREATE AN IDAHO NEEDS-BASED MATH AND SCIENCE LOAN FUND IN THE STATE TREA-
7 SURY WITH A ONE TIME APPROPRIATION OF FIVE MILLION DOLLARS AND TO DEFINE
8 TERMS.
9 Be It Enacted by the Legislature of the State of Idaho:
10 SECTION 1. That Chapter 43, 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 33-4317, Idaho Code, and to read as follows:
13 33-4317. IDAHO NEEDS-BASED MATH AND SCIENCE LOAN PROGRAM. (1) Many of
14 Idaho's outstanding students from low-income families are unable to attend
15 Idaho postsecondary institutions. Existing loan programs cannot provide the
16 funding necessary to assist all such low-income students who qualify. As a
17 result, Idaho is not providing postsecondary educational opportunities to many
18 outstanding students who simply lose the chance to improve themselves and pro-
19 vide a greater contribution to Idaho by attending an Idaho postsecondary
20 institution. At the same time, Idaho is in need of trained individuals in the
21 areas of mathematics, the sciences and nursing. It is legislative intent that
22 the creation of a permanent fund to provide loans to low-income Idaho students
23 who, after graduation will become teachers of mathematics, science or nursing
24 in the Idaho public schools, will help remediate these problems.
25 (2) There is hereby created the Idaho needs-based math and science loan
26 program. An eligible student may apply to the board for an Idaho needs-based
27 math and science loan to meet the costs necessary for attendance at an eligi-
28 ble postsecondary institution.
29 (3) The board shall implement and administer this loan program and shall
30 promulgate rules necessary to do so, including rules for:
31 (a) Processing and approving loan applications from eligible students;
32 (b) Determining, based on available funding, the number of Idaho needs-
33 based loans to be granted each academic year, the terms of each such loan
34 and the amount of each such loan; and
35 (c) Monitoring the progress of the eligible student in that student's
36 academic performance to ensure that the student:
37 (i) Maintains enrollment at an eligible postsecondary institution on
38 a full-time basis; and
39 (ii) Makes adequate progress towards a degree in mathematics, a field
40 of science, or nursing, provided however, that for good cause shown,
41 the board may permit the student to suspend the student's study for
42 up to two (2) years.
43 (4) For each full academic year that a student teaches in an Idaho school
2
1 within seven (7) years following graduation from an eligible postsecondary
2 institution, one-fifth (1/5) of the loan principal and accrued interest owed
3 by the student shall be forgiven.
4 (5) The Idaho needs-based mathematics and science loan fund is hereby
5 created in the state treasury. Income from the fund, including the repayment
6 of needs-based math and science loans, shall be used to fund the Idaho needs-
7 based math and science loan program. The fund principal shall consist of
8 appropriations, repayment of principal and interest, gifts, grants, donations
9 and income from fund investments and interest. The legislature shall appropri-
10 ate five million dollars ($5,000,000) for fiscal year 2007 to the fund. Moneys
11 in the fund shall not revert to any other fund at the end of the fiscal year.
12 (6) The following definitions shall apply to this section:
13 (a) "Board" means the state board of education.
14 (b) "Eligible postsecondary institution" means an Idaho public post-
15 secondary organization governed or supervised by the state board of educa-
16 tion, the board of regents of the university of Idaho, a board of trustees
17 of a community college established pursuant to the provisions of section
18 33-2106, Idaho Code, or the state board for professional-technical educa-
19 tion or any educational organization located in Idaho which is operated
20 privately and not for profit under the control of an independent board and
21 not directly controlled or administered by a public or political subdivi-
22 sion.
23 (c) "Eligible student" means a student who has graduated from an Idaho
24 secondary school and whose family income meets the percentage of the fed-
25 eral poverty level that the board has determined by rule to qualify for an
26 Idaho needs-based math and science loan and who will pursue a major at an
27 eligible postsecondary institution in mathematics, science or nursing.
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STATEMENT OF PURPOSE
RS 15923
This legislation relates to post-secondary education loans;
amending Chapter 43, Title 33, Idaho Code, by the addition of a new
Section 33-4317, Idaho Code, to state legislative intent, to create
an Idaho Needs-Based Math and Science Loan Program, to provide for
procedures, to provide for loan forgiveness, to create an Idaho
Needs-Based Math and Science Loan Fund in the state treasury with
a one time appropriation of five million dollars and to define
terms.
FISCAL NOTE
There will be a one time impact of five million dollars on the
state treasury.
Contacts
Name: Representative Tom Trail, Representative Barraclough
Phone: (208) 332-1000
Representatives Jana Kemp, Mack Shirley, Pete Nielsen
Senator Tom Gannon
STATEMENT OF PURPOSE/FISCAL NOTE H 704