HF 1875

as introduced - 89th Legislature (2015 - 2016) Posted on 03/19/2015 04:53pm

A bill for an act
relating to higher education; providing student loan forgiveness to certain pilots;
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.1791] 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 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 (c) "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 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;
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) The commissioner must make annual disbursements directly to the eligible
participant of $5,000 or the balance of the participant's qualified education loans,
whichever is less, for each year that the participant meets the eligibility requirements
under subdivision 3, up to a maximum of five years.
new text end

new text begin (c) 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 (d) 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 2016 and $....... in fiscal year 2017 are appropriated from
the general fund to the commissioner of the Office of Higher Education for the loan
forgiveness program under section 1, to be deposited in the aviation degree loan
forgiveness program account.
new text end