H-279

H0279..........................................................by EDUCATION
TEACHERS - STUDENT LOANS - Adds to existing law to provide a program for
repayment by the 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 authorize rulemaking.

02/16    House intro - 1st rdg - to printing
02/19    Rpt prt - to Educ
03/05    Rpt out - rec d/p - to 2nd rdg
03/06    2nd rdg - to 3rd rdg
03/07    3rd rdg - FAILED - 28-38-4
      AYES -- Barraclough(Barraclough), Bieter, Black, Boe, Chase, Cuddy,
      Denney, Eskridge, Hadley, Henbest, Higgins, Jaquet, Jones, Langford,
      Marley, Meyer, Montgomery, Pomeroy, Ridinger, Robison, Sali,
      Schaefer, Shepherd, Smylie, Stone, Tilman, Trail, Wood
      NAYS -- Barrett, Bedke, Bell, Bolz, Bruneel, Callister, Campbell,
      Clark, Collins, Crow, Deal, Ellis, Ellsworth, Field(13), Gagner,
      Gould, Hammond, Harwood, Hornbeck, Kellogg, Kendell, Kunz, Lake,
      Loertscher, Mader, McKague, Mortensen, Moyle, Pearce, Pischner,
      Raybould, Roberts, Sellman, Smith, Stevenson, Swan(Hansen), Wheeler,
      Young
      Absent and excused -- Bradford, Field(20), Moss, Mr. Speaker
    Floor Sponsors -- Chase, Higgins, Trail
    Filed w/ Office of the Chief Clerk

Bill Text

||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-sixth Legislature                  First Regular Session - 2001

                              IN THE HOUSE OF REPRESENTATIVES

                                     HOUSE BILL NO. 279

                                   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-
8        ING.

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        secondary public school in Idaho for at least two (2) years immediately
29        preceding application;
30        (d) Have received his teaching certificate after January 1, 2000;
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
34        repayment;
35        (g) Agree to serve at least an additional two (2) years in a primary or
36        secondary public school in Idaho;
37        (h) Apply for loan repayment pursuant to this section within the first
38        seven (7) years following original receipt of their 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

                                           2

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 primary or second-
23    ary public school in Idaho, payments against the loans of the teacher shall
24    cease, and the teacher shall no longer be eligible for repayment of his quali-
25    fied student loans by the board, on the date that the participant discontinues
26    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 / Fiscal Impact

STATEMENT OF PURPOSE

RS 10919

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. Repayments 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 certificate.

FISCAL IMPACT

Estimated cost of the program would be approximately $2,000,000 per
year.

Contact
Name: Rep. Roger Chase
Phone: 208 332 1130
Rep. Tom Trail
Rep. Kent Higgins
Rep. Donna Boe
Rep. Bert Marley

STATEMENT OF PURPOSE/FISCAL NOTE H 279