HF 1698

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to education; establishing a scholar loan program to encourage teacher
diversity in schools; establishing a revolving account in the state treasury;
appropriating money; proposing coding for new law in Minnesota Statutes,
chapter 122A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [122A.633] SCHOLAR LOANS TO PREPARE TEACHERS OF
COLOR.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment; definitions. new text end

new text begin (a) A scholar loan program is
established to encourage academically talented postsecondary students of color to become
teachers of early childhood, elementary, or secondary education.
new text end

new text begin (b) For the purposes of this section the following terms have the meanings given
them:
new text end

new text begin (1) "student of color" means a student who is African American, American Indian,
Alaskan native, Asian American or Pacific Islander, or Hispanic; and
new text end

new text begin (2) "director" means the director of the Minnesota Office of Higher Education.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin To be eligible for a scholar loan, a student of color must:
new text end

new text begin (1) be a permanent resident of Minnesota;
new text end

new text begin (2) be registered as a junior or senior in a Minnesota public or private postsecondary
institution and enrolled in a teacher preparation program approved by the Board of
Teaching at that postsecondary institution;
new text end

new text begin (3) be making satisfactory progress towards a baccalaureate degree with a major
in education;
new text end

new text begin (4) agree to teach in a Minnesota school district with a student of color population of
at least 15 percent or a desegregation/integration plan approved by the commissioner of
education; and
new text end

new text begin (5) meet academic criteria specified by the director in consultation with the
commissioner.
new text end

new text begin Subd. 3. new text end

new text begin Application process; awarding scholar loans. new text end

new text begin (a) The director, in
consultation with the commissioner of education, shall award scholar loans to eligible
students of color. A student of color must submit an application for a scholar loan to
the director in the form and manner determined by the director in consultation with the
commissioner. The application must include the criteria in subdivision 2 and any other
information required by the director.
new text end

new text begin (b) A student of color may receive scholar loans for two consecutive academic
years if the student of color remains enrolled full time in a teacher preparation program
and continues to make satisfactory progress toward the baccalaureate degree. For each
academic year, a loan may not exceed the lesser of the cost of tuition, fees, books, and
on-campus housing, if applicable, or a maximum amount of $....... The director must
award ten percent of the scholar loans to students of color who transfer from a Minnesota
public community or technical college to a Minnesota public or private college or
university with an approved teacher preparation program.
new text end

new text begin new text end

new text begin (c) The director must spend up to five percent of any appropriation for promotion of
the scholar loan program, recruitment of students of color to the program, and retention
and mentoring of students of color while attending a teacher preparation program and
teaching in an eligible Minnesota public school under subdivision 2, clause (4). The
director must consult with the commissioner to consider the use of existing state programs,
as appropriate, to provide the services under this paragraph.
new text end

new text begin Subd. 4. new text end

new text begin Loan forgiveness; deferral; repayment. new text end

new text begin (a) A scholar loan may be
forgiven if a recipient is employed as a teacher, under section 122A.40 or 122A.41, in an
eligible school under subdivision 2, clause (4). The director shall forgive up to $2,500 of
the principal of the outstanding loan amount for successful completion of each school year
of full-time teaching up to four school years of teaching in an eligible school or a pro rata
amount of the principal for eligible employment during part of a school year, part-time
employment as a substitute, or other part-time teaching.
new text end

new text begin (b) If there is no eligible employment available, the director may grant an exemption
from the 15 percent district student of color teaching requirement or a deferral from
payment of principal and interest on the loan. The director may also grant a deferral
of payment of principal and interest on the loan during any time period the recipient is
enrolled at least one-half time in an advanced degree program in a field that leads to
employment by a school district. The recipient shall apply for a loan deferral by submitting
written notification to the director in a form and manner established by the director.
new text end

new text begin (c) A recipient with an outstanding scholar loan amount who is not having the loan
forgiven under paragraph (a) or deferred under paragraph (b) must repay the principal of
the loan plus interest at the rate of six percent. The interest rate must begin accruing the
first day of the first month following the last month of the period of forgiveness or deferral.
Interest does not accrue during the period of forgiveness or deferral.
new text end

new text begin (d) The director shall establish repayment procedures for scholar loans including,
at least, variable repayment schedules consistent with the need and anticipated income
streams of loan recipients. The repayment period begins the first day of the first month
after the recipient:
new text end

new text begin (1) terminates full-time enrollment in an approved teacher preparation program;
new text end

new text begin (2) completes an approved teacher preparation program and does not teach in an
eligible school under subdivision 2, clause (4), or have an exemption under paragraph (b);
new text end

new text begin (3) the period of forgiveness under paragraph (a) ends; or
new text end

new text begin (4) the period of deferral under paragraph (b) ends.
new text end

new text begin Subd. 5. new text end

new text begin Revolving fund. new text end

new text begin The scholar loan repayment revolving account is
established in the state treasury. Any amounts repaid by a loan recipient shall be deposited
in the account. All money in the account is annually appropriated to the director for the
purposes of the scholar loan program under this section.
new text end

Sec. 2. new text begin APPROPRIATIONS; SCHOLAR LOANS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
new text end

new text begin Subd. 2. new text end

new text begin Scholar loans. new text end

new text begin For the scholar loan program to encourage students of
color to become teachers:
new text end

	new text begin $ new text end	new text begin ....... new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin ....... new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
new text end