HF 2069

as introduced - 90th Legislature (2017 - 2018) Posted on 03/06/2017 01:14pm

A bill for an act
relating to higher education; providing student loan forgiveness to certain pilots
and aircraft technicians; authorizing rulemaking; appropriating money; proposing
coding for new law in Minnesota Statutes, chapter 136A.

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

Section 1.

new text begin [136A.1794] AVIATION DEGREE LOAN FORGIVENESS PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the terms in this subdivision
have the meanings given them.
new text end

new text begin (b) "Qualified aircraft technician" means an individual who (1) has earned an associate's
or bachelor's degree from a postsecondary institution located in Minnesota, and (2) has
obtained an aviation mechanic's certificate from the Federal Aviation Administration.
new text end

new text begin (c) "Qualified education loan" means a government, commercial, or foundation loan
used by an individual for actual costs paid for tuition to a postsecondary institution located
in Minnesota for a professional flight training degree.
new text end

new text begin (d) "Qualified pilot" means an individual who (1) has earned an associate's or bachelor's
degree in professional flight training from a postsecondary institution located in Minnesota,
and (2) is in the process of obtaining or has obtained an airline transport pilot certificate.
new text end

new text begin Subd. 2. new text end

new text begin Creation of account. new text end

new text begin (a) An aviation degree loan forgiveness program account
is established to provide qualified pilots and qualified aircraft technicians with financial
assistance in repaying qualified education loans. The commissioner shall use money from
the account to establish and administer the aviation degree loan forgiveness program.
new text end

new text begin (b) Appropriations made to the aviation degree loan forgiveness program account do
not cancel and are available until expended.
new text end

new text begin Subd. 3. new text end

new text begin Eligibility. new text end

new text begin To be eligible to participate in the loan forgiveness program under
this section, an individual must:
new text end

new text begin (1) be a qualified pilot or qualified aircraft technician;
new text end

new text begin (2) have qualified education loans; and
new text end

new text begin (3) submit an application to the commissioner in the form and manner prescribed by the
commissioner.
new text end

new text begin Subd. 4. new text end

new text begin Loan forgiveness. new text end

new text begin (a) The commissioner may select eligible applicants each
year for participation in the aviation degree loan forgiveness program, within the limits of
available funding. Applicants are responsible for securing their own qualified education
loans.
new text end

new text begin (b) For each year that the participant meets the eligibility requirements under subdivision
3, the commissioner must make annual disbursements directly to:
new text end

new text begin (1) a selected qualified pilot residing in Minnesota of $5,000 or the balance of the
participant's qualified education loans, whichever is less;
new text end

new text begin (2) a selected qualified pilot who is not residing in Minnesota of $2,500 or the balance
of the participant's qualified education loans, whichever is less;
new text end

new text begin (3) a selected qualified aircraft technician residing in Minnesota of $3,000 or the balance
of the participant's qualified education loans, whichever is less; and
new text end

new text begin (4) a selected qualified aircraft technician who is not residing in Minnesota of $1,500
or the balance of the participant's qualified education loans, whichever is less.
new text end

new text begin (c) An individual may receive disbursements under this section for a maximum of five
years.
new text end

new text begin (d) The participant must provide the commissioner with verification that the full amount
of the loan repayment disbursement received by the participant has been applied toward the
designated qualified education loan. After each disbursement, verification must be received
by the commissioner and approved before the next repayment disbursement is made.
new text end

new text begin (e) If the participant receives a disbursement in the participant's fifth year of eligibility,
the participant must provide the commissioner with verification that the full amount of the
participant's final loan repayment disbursement was applied toward the designated qualified
education loan. If a participant does not provide the verification as required under this
paragraph within six months of receipt of the final disbursement, the commissioner must
collect from the participant the amount of the final disbursement. The commissioner must
deposit the money collected in the aviation degree loan forgiveness program account.
new text end

new text begin Subd. 5. new text end

new text begin Rules. new text end

new text begin The commissioner may adopt rules to implement this section.
new text end

Sec. 2. new text begin LOAN FORGIVENESS; APPROPRIATION.
new text end

new text begin $....... in fiscal year 2018 and $....... in fiscal year 2019 are appropriated from the general
fund to the commissioner of the Office of Higher Education for the loan forgiveness program
under Minnesota Statutes, section 136A.1794, to be deposited in the aviation degree loan
forgiveness program account.
new text end