HF 877

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

A bill for an act
relating to higher education; establishing a loan forgiveness program account and
program for speech-language pathologists; 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.1704] LOAN FORGIVENESS PROGRAM FOR
SPEECH-LANGUAGE PATHOLOGISTS.
new text end

new text begin Subdivision 1. new text end

new text begin Creation of account. new text end

new text begin A loan forgiveness program account is
established in the special revenue fund in the state treasury to promote the recruitment and
retention of licensed speech-language pathologists to work with students with speech or
hearing disorders. Money appropriated to this account does not cancel but is available
until expended. Money in the account is appropriated to the director of the Minnesota
Office of Higher Education for the purpose of this section.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility for loan forgiveness. new text end

new text begin A student loan administered by the
Minnesota Office of Higher Education under section 136A.16, subdivision 1, may be
forgiven if the recipient graduates from a postsecondary institution with a degree in
speech-language pathology, becomes licensed to work with students with speech and
hearing disorders as defined in Minnesota Rules, part 3525.1343, and is employed as a
speech-language pathologist with primary responsibilities to work with students who are
diagnosed with speech or hearing disorders.
new text end

new text begin Subd. 3. new text end

new text begin Loan forgiveness. new text end

new text begin (a) To the extent of available appropriations, one-fourth
of the principal of the outstanding loan amount shall be forgiven for each year of eligible
employment or a pro rata amount for eligible employment during part of a school year,
part-time employment, or other eligible part-time work. Loans for $2,500 or less may be
forgiven at the rate of up to $1,250 per year. Employment with the following Minnesota
schools and programs is eligible for determining loan forgiveness:
new text end

new text begin (1) a school or program operated by a school district or a group of school districts;
new text end

new text begin (2) a tribal contract school eligible to receive aid according to section 124D.83;
new text end

new text begin (3) a charter school;
new text end

new text begin (4) a private school;
new text end

new text begin (5) a Head Start program;
new text end

new text begin (6) an early childhood family education program; or
new text end

new text begin (7) a program providing early intervention services to children with disabilities
who have not entered kindergarten.
new text end

new text begin (b) If an eligible recipient has an outstanding loan administered by the Minnesota
Office of Higher Education, the duty to make payments of principal and interest may
be deferred during any time period the person is enrolled at least one-half time in an
advanced degree program in a field related to working with students with speech or
hearing disabilities. To defer loan obligations, the person shall provide written notification
to the Minnesota Office of Higher Education.
new text end

new text begin (c) The Minnesota Office of Higher Education shall approve the loan forgiveness
and deferral, and develop procedures to administer the program.
new text end

Sec. 2. new text begin APPROPRIATION.
new text end

new text begin $....... is appropriated from the general fund to the Minnesota Office of Higher
Education for the biennium ending June 30, 2009, for the loan forgiveness program
under section 1 for deposit in the loan forgiveness program account created in section 1,
subdivision 1.
new text end