HF 2576

as introduced - 89th Legislature (2015 - 2016) Posted on 04/14/2016 04:47pm

A bill for an act
relating to higher education; promoting awareness of loan forgiveness programs;
proposing coding for new law in Minnesota Statutes, chapters 136A; 181.

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

Section 1.

new text begin [136A.1792] PROMOTION OF FEDERAL LOAN FORGIVENESS
PROGRAMS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Federal loan forgiveness program" means a loan forgiveness program offered
under Code of Federal Regulations, title 34, part 685.
new text end

new text begin (c) "Public service loan forgiveness program" means the loan forgiveness program
under Code of Federal Regulations, title 34, part 685, section 219.
new text end

new text begin (d) "Public service organization" means a public service organization under Code of
Federal Regulations, title 34, part 685, section 219.
new text end

new text begin Subd. 2. new text end

new text begin Promotion of federal loan forgiveness programs. new text end

new text begin (a) The commissioner
must develop and distribute informational materials designed to increase awareness of
federal loan forgiveness programs among Minnesota residents who are eligible for such
programs. At a minimum, the commissioner must develop and distribute informational
materials that public service organizations may use to promote awareness of the federal
public service loan forgiveness program, including:
new text end

new text begin (1) a one-page letter addressed to individuals who may be eligible for the public
service loan forgiveness program that briefly summarizes the program, provides
information on what an eligible individual must do in order to participate, and recommends
that they contact their student loan servicer or servicers for additional information;
new text end

new text begin (2) a detailed fact sheet describing the public service loan forgiveness program; and
new text end

new text begin (3) a document containing answers to frequently asked questions about the public
service loan forgiveness program.
new text end

new text begin (b) In place of developing and publishing an informational document required under
paragraph (a), the commissioner may distribute a document published by a federal agency
that meets the requirements of paragraph (a).
new text end

new text begin Subd. 3. new text end

new text begin Publication of informational materials. new text end

new text begin The commissioner must make
the informational materials required under subdivision 2 available on the commissioner's
Web site and must verify each biennium that the informational materials contain current
information. The commissioner must update and correct any informational materials that
the commissioner finds to be inaccurate or outdated.
new text end

Sec. 2.

new text begin [181.987] DISCLOSURE OF ELIGIBILITY FOR STUDENT LOAN
FORGIVENESS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Employer" means an organization, agency, or entity that is a public service
organization under Code of Federal Regulations, title 34, part 685, section 219, provided
that the following are not employers:
new text end

new text begin (1) a federal or tribal government organization, agency, or entity;
new text end

new text begin (2) a tribal government organization, agency, or entity; and
new text end

new text begin (3) a tribal college or university.
new text end

new text begin (c) "Employment certification form" means the form used by the United States
Department of Education to certify an individual's employment at a public service
organization for the purposes of the federal public service loan forgiveness program.
new text end

new text begin (d) "Federal public service loan forgiveness program" means the program offered
under Code of Federal Regulations, title 34, part 685, section 219.
new text end

new text begin Subd. 2. new text end

new text begin Disclosure of eligibility for student loan forgiveness. new text end

new text begin (a) An employer
must provide an employee with information about the employee's potential eligibility
for the federal public service loan forgiveness program, as provided in this section. By
January 1, 2017, and annually thereafter, an employer must provide to each employee in
written or electronic form the one-page letter, fact sheet, and frequently asked questions
required under section 136A.1792, subdivision 2.
new text end

new text begin (b) An employer must provide an employee hired on or after January 1, 2017, with
the informational materials described in paragraph (a) within two weeks of the employee's
first day of employment.
new text end

new text begin (c) At an employee's request, an employer must provide the employee with a copy of
the employment certification form.
new text end