HF 2374

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:03am

A bill for an act
relating to higher education; establishing a student loan forgiveness program
for dentists to increase enrollment in the University of Minnesota School of
Dentistry; 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.1792] DENTAL SCHOOL LOAN FORGIVENESS PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin A loan forgiveness program is established to
increase the number of dentists practicing in rural and underserved areas in Minnesota.
The program is available for eligible graduates of the University of Minnesota School of
Dentistry.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin A graduate of the University of Minnesota School of Dentistry
is an eligible recipient for the loan forgiveness program if:
new text end

new text begin (1) the recipient committed to practice in rural and underserved areas when accepted
into the school of dentistry as a member of a class that was larger than the 2008-2009
class, including at least 50 incoming students who increase the enrollment of students
specifically committed to meeting the need for dental care in rural and underserved areas;
new text end

new text begin (2) the recipient agrees to practice for a minimum of five years in a rural or
underserved area; and
new text end

new text begin (3) the recipient applied to the director prior to graduation, making the necessary
commitments and according to the timelines and the procedures on the forms established
by the director.
new text end

new text begin Subd. 3. new text end

new text begin Loan forgiveness. new text end

new text begin (a) A recipient is eligible for a loan forgiveness
payment equal to ten percent of the recipient's outstanding student debt for qualified
educational expenses attributable to enrollment in the University of Minnesota School
of Dentistry for each year that the recipient practices in a rural or underserved area.
The director, within the limits of appropriations, shall make an annual loan forgiveness
payment directly to an eligible recipient.
new text end

new text begin (b) Before receiving a loan forgiveness payment, an eligible recipient must annually
certify to the director that the recipient is practicing in an eligible area and the amount of
qualifying debt is still outstanding.
new text end

new text begin (c) Within the limits of appropriations, a recipient who continues to practice in a
qualifying rural or underserved area is eligible for payments under this section for no more
than ten years or until the qualifying student debt is retired, whichever is sooner.
new text end

new text begin Subd. 4. new text end

new text begin Penalty for nonfulfillment. new text end

new text begin A recipient who fails to fulfill the minimum
commitment of practicing five years in a rural or underserved area must repay the total
amount of loan forgiveness payments received under this section. The director must
deposit all repayments in the state general fund. The director must establish a process to
appeal and grant a waiver of the repayment requirement for hardship circumstances.
new text end

new text begin Subd. 5. new text end

new text begin Appropriation. new text end

new text begin The amount necessary to make loan forgiveness payments
under this section is appropriated from the general fund to the director of the Office of
Higher Education for payments to eligible recipients.
new text end

Sec. 2. new text begin APPROPRIATION; BOARD OF REGENTS.
new text end

new text begin $....... is appropriated each year in fiscal years 2010 and 2011 to the Board of
Regents of the University of Minnesota from the general fund to increase the size of the
entering class in the University of Minnesota School of Dentistry by 50 students who each
make a commitment to practice dentistry in Minnesota in rural or underserved areas in the
state. This amount is added to the base appropriation of the University of Minnesota to
maintain a larger class size in the University of Minnesota School of Dentistry of students
committed to practice in rural and underserved areas.
new text end