Bill Text: AZ HB2401 | 2010 | Forty-ninth Legislature 2nd Regular | Chaptered
Bill Title: Teacher loan program; geographic shortages
Spectrum: Moderate Partisan Bill (Republican 4-1)
Status: (Passed) 2010-05-07 - Governor Signed [HB2401 Detail]
Download: Arizona-2010-HB2401-Chaptered.html
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House Engrossed |
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State of Arizona House of Representatives Forty-ninth Legislature Second Regular Session 2010
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HOUSE BILL 2401 |
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AN ACT
amending sections 15-1782 and 15-1783, Arizona Revised Statutes; relating to the mathematics, science, special education and elementary education teacher student loan program.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 15-1782, Arizona Revised Statutes, is amended to read:
15-1782. Mathematics, science, special education and elementary education teacher student loans; requirements; report
A. Beginning with the spring semester of school year 2007‑2008, The board may grant loans from the mathematics, science and special education teacher student loan fund established by section 15‑1784 to defray in-state tuition, instructional materials and mandatory fees of the education of students who are pursuing a teaching degree at a university under the jurisdiction of the board and who are deemed qualified by the board to receive these loans. Loans shall be granted on such terms and conditions as may be imposed by the board and shall be distributed on a first come, first served basis.
B. The board shall grant loans to qualified applicants who are classified as in-state students for tuition purposes pursuant to section 15‑1802 and who agree to provide instruction in the areas area of mathematics, science or special education in a public school in this state or in elementary education in a public school that is located in a geographic area in this state that is experiencing a shortage of teachers, as determined by the state board of education. The board shall allocate no more than twenty‑five per cent of the annual amount appropriated for loans to applicants who agree to provide instruction in elementary education.
C. The loans granted by the board shall be sufficient to fully cover the costs of resident tuition and mandatory fees for each loan recipient and may also defray the cost of instructional materials. If an applicant qualifies for federal financial aid and receives federal grant aid, the loan amount shall be limited to the amount of tuition and mandatory fees not covered by the federal grant aid and may include a stipend for instructional materials.
D. The board shall adopt policies for screening qualified applicants based on ability, character and financial need.
E. The board shall grant loans on the terms and conditions the board imposes. The board shall establish procedures for the timely repayment of loans plus interest at a rate determined by the board. The board is responsible for the collection of loans that are in default.
F. The board may delegate authority to administer the loans pursuant to this article to an institution under the jurisdiction of the board. If the board delegates authority, students pursuing a teaching degree at each institution under the jurisdiction of the board shall be equally eligible to participate. The board shall retain responsibility of making initial public notice of the availability of the loans and collect the application forms directly from each qualified applicant. The board shall forward the applications to the institution selected to administer the loans.
G. On or before December 1 of each year, the Arizona board of regents shall submit an approved report to the governor, the speaker of the house of representatives, the president of the senate and the joint legislative budget committee. The board shall provide a copy of this report to the secretary of state and the director of the Arizona state library, archives and public records. The report shall include the number of applicants, the number of loan recipients, the university each loan recipient attends, the name of the school at which each loan recipient is employed, the number of good cause repayment exceptions granted by the board, the reason for each good cause exception granted and teacher retention data. The board shall collect and maintain data on the retention of mathematics, science and special education teachers who received loans pursuant to this article. The board shall collect this data for at least five years after each loan recipient completes the recipient's service commitment.
Sec. 2. Section 15-1783, Arizona Revised Statutes, is amended to read:
15-1783. Mathematics, science, special education and elementary education teacher student loans; interest; obligations; repayment; authority of attorney general
A. Each applicant who is approved for a loan by the board may be granted a loan for a period of up to five years.
B. The board, on behalf of this state, shall enter into a written contract with the student. The contract shall set forth the methods and terms of repayment by the loan recipient to this state and shall be on terms and conditions and in a form provided by the board. The contract shall provide for the following:
1. The loan recipient shall begin the service commitment providing instruction in the areas area of mathematics, science or special education in a public school in this state or in elementary education in a public school that is located in a geographic area in this state that is experiencing a shortage of teachers, as determined by the state board of education, within one calendar year after attaining a bachelor's degree at an accredited university in this state. The service commitment shall be full‑time as determined by the Arizona board of regents and requires one year of service for each year of loan support plus one additional year of service.
2. If the loan recipient engages in postgraduate studies without a lapse of more than one calendar year following the completion of the loan recipient's bachelor's degree at an accredited university in this state, the loan recipient shall begin the service commitment required under paragraph 1 within one calendar year after completing postgraduate studies.
3. If the loan recipient is inducted into military service, or for any other cause beyond the loan recipient's control deemed sufficient by the board is unable to begin the service commitment required under paragraph 1 within one calendar year after completing a bachelor's degree and any graduate studies, the loan recipient shall begin the service commitment required under paragraph 1 within one calendar year after completing the required military service or the termination of any other cause.
4. If the loan recipient fulfills the service commitment required under paragraph 1 in a public school in this state or while completing military service resulting from induction, the loan recipient's indebtedness to this state may be discharged in one of the following ways:
(a) One year of full‑time service required under paragraph 1 for each year of loan support plus one additional year of service.
(b) Repayment to this state of the total loan amount for each year of support with interest at the rate prescribed in subsection C.
5. If the loan recipient fails to complete the required course of study, if the course of study is interrupted by one academic year or more for a cause or causes not resulting from induction into military service or any other cause beyond the loan recipient's control deemed sufficient by the board or if the loan recipient fails to fully discharge the service commitment required under paragraph 1, except for delays resulting from an excusable cause as prescribed in this section, the amount of the loan not repaid or fully discharged shall be due and payable with interest at the rate prescribed in subsection C. The board may extend the time of payment over a period not exceeding fifteen years and shall not require payment of interest during the existence of any excusable cause as prescribed in this section.
6. If the loan recipient does not begin the service commitment required under paragraph 1 within the time prescribed in this section but paid an agreed part of the loan, the board may allow the loan recipient to discharge the balance of the obligation by subsequent teaching in this state.
7. If the loan recipient dies during the period of the loan recipient's education or practice as a teacher, the loan recipient's obligation to this state under this article ceases.
8. The loan recipient may choose at any time to provide a different category of service commitment prescribed in paragraph 1 without violating the contract, unless the contract requires the loan recipient to provide instruction in the area of mathematics or science.
9. If the loan recipient begins the service commitment required under paragraph 1 in a geographic area in this state that is experiencing a shortage of teachers, as determined by the state board of education, but the state board of education subsequently determines that geographic area is no longer experiencing a shortage of teachers, the loan recipient may discharge the balance of the obligation by completing the service commitment in the geographic area where the loan recipient began the service commitment.
C. The loan recipient shall repay the full amount borrowed at an interest rate of at least seven per cent.
D. On receipt of supporting documentation, the board for good cause shown may defer the loan recipient's service commitment or repayment obligation or may enter into repayment arrangements with the loan recipient or allow service that is equivalent to full-time service if the board determines that this action is justified after a review of the individual's circumstances. At the discretion of the board, the board may allow service by teaching in another area of recognized need in this state that is not specified in the student's contract, but only following prior written approval by the board.
E. The attorney general may commence whatever actions are necessary to enforce the contract and achieve repayment of loans provided by the board pursuant to this article.
