Bill Text: IN HB1443 | 2013 | Regular Session | Amended
Bill Title: Teacher loan repayment; teacher academy.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2013-02-07 - Referred to Committee on Ways and Means pursuant to House Rule 127 [HB1443 Detail]
Download: Indiana-2013-HB1443-Amended.html
Citations Affected: IC 21-13; IC 21-18.5.
Synopsis: Teacher loan repayment; teacher academy. Provides an
educational loan repayment for a public elementary or high school
teacher who: (1) have been in the highest 20% of their high school
graduating classes or in the top twentieth percentile on the SAT or
ACT examination; (2) graduate from college with at least a 3.5 grade
point average; and (3) teach science, technology, engineering,
mathematics, or special education, or in a critical shortage geographic
area; in a public school in Indiana. Provides that at the end of the third
consecutive year the teacher teaches, the commission for higher
education makes a payment of $9,000 or the balance of the teacher's
student loans (whichever is lesser) directly to the financial institution
that holds the teacher's student loans.
Effective: July 1, 2013.
January 23, 2013, read first time and referred to Committee on Education.
February 7, 2013, amended, reported _ Do Pass. Referred to Committee on Ways and
Means pursuant to Rule 127.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or
A BILL FOR AN ACT to amend the Indiana Code concerning
education.
Chapter 7. Teacher Loan Repayment Program and Fund
Sec. 1. As used in this chapter, "critical shortage area" means a geographic area determined annually by the department of education established by IC 20-19-3-1 to have, or projected within the next twelve (12) months to have, a shortage of licensed, full-time elementary or high school teachers.
Sec. 2. As used in this chapter, "fund" refers to the teacher loan repayment fund established by section 4 of this chapter.
Sec. 3. (a) The teacher loan repayment fund is established.
(b) The purpose of the fund is to attract qualified teachers who:
(1) graduated from an accredited Indiana high school after June 30, 2013, and either:
(A) were in the highest twenty percent (20%) of students in their high school graduating classes; or
(B) received scores in the top twentieth percentile on the SAT or ACT examination;
(2) graduated from a four-year post-secondary educational institution with at least a 3.5 grade point average on a 4.0 scale or its equivalent; and
(3) teach:
(A) for at three (3) consecutive years in public schools in Indiana; and
(B) science, technology, engineering, mathematics, or special education classes, or in a critical shortage area;
by granting loan repayment assistance authorized under this chapter to eligible applicants.
(c) The fund consists of appropriations to the fund and gifts, grants, devises, or bequests made to the state to achieve the purposes of the fund.
(d) The fund shall be administered by the commission. The expenses of administering the fund shall be paid from money in the fund.
(e) Loan repayment assistance payments shall be made from the fund by the treasurer of state upon a warrant issued by the auditor of state in accordance with rules adopted by the commission.
Sec. 4. The commission shall receive and consider all applications for loan repayment assistance received from qualified teachers with outstanding guaranteed student loans made, issued, or guaranteed under a program authorized by Title IV of the federal Higher Education Act of 1965 (20 U.S.C. 1070 et seq.).
Sec. 5. (a) To qualify for loan repayment assistance for student loans under this chapter, an applicant must:
(1) hold a license to teach under IC 20-28-5;
(2) agree in writing to the employment requirements set forth in section 7 of this chapter; and
(3) meet any additional criteria established by the commission.
(b) At the end of the third consecutive school year in which a teacher who qualifies under subsection (a) has taught, the commission shall pay directly to the financial institution that holds the qualified teacher's student loans an amount not to exceed the lesser of:
(1) the total principal and interest of the guaranteed student loans owed by the teacher at the end of the third year; or
(2) nine thousand dollars ($9,000);
which must be used to reduce the principal and interest on a
guaranteed student loan owed by that qualified teacher.
Sec. 6. A qualified teacher must apply for a loan repayment on
a form supplied by the commission. The commission shall consider
each application and determine the eligibility of the applicant for
the loan repayment assistance.
Sec. 7. (a) Before being granted loan repayment assistance
under this chapter, a teacher must:
(1) apply for the loan repayment assistance not later than
twenty-four (24) months after graduating from a
post-secondary educational institution; and
(2) enter into a contract with the commission agreeing to the
terms and conditions upon which the loan repayment
assistance will be granted to the teacher.
(b) As a condition of being granted loan repayment assistance
under this chapter, a teacher must agree to employment for a
period of at least three (3) consecutive years as a licensed teacher
in a public school in Indiana in science, technology, engineering,
mathematics, or special education, or in a critical shortage area.
The teacher is not required to teach at the same public school for
three (3) consecutive years.
(c) Service rendered by a teacher in a public school before that
teacher becomes a participant in the program may not be
considered to have fulfilled the employment commitment required
by subsection (b).
Sec. 8. The commission shall maintain complete and accurate
records in implementing the fund, including records of the
following:
(1) The receipt, disbursement, and uses of money from the
fund.
(2) The number of applications for loan repayment assistance.
(3) The number and amount of loans for which loan
repayment assistance has been provided by the department.
(4) Other pertinent information requested by the commission.
Sec. 9. The commission may adopt rules under IC 4-22-2
necessary to carry out this chapter, including rules governing the
enforcement of any employment requirements.
(1) Prepare and supervise the issuance of public information concerning this chapter, IC 21-12-2, IC 21-12-3, IC 21-12-4, and
IC 21-12-5.
(2) Prescribe the form and regulate the submission of applications
for higher education awards and the commission's programs.
(3) Conduct conferences and interviews with applicants as
appropriate.
(4) Determine the eligibility of applicants.
(5) Select qualified applicants.
(6) Determine annually the maximum higher education award
(IC 21-12-3) and freedom of choice award (IC 21-12-4), subject
to approval by the budget agency with review by the budget
committee.
(7) Determine the respective amounts of, and award, the
appropriate higher education awards, grants, and scholarships.
(8) Determine eligibility for, and award, annual renewals of
higher education awards, grants, and scholarships.
(9) Act as the designated state agency for participation in any
federal program for reinsurance of student loans.
(10) Receive federal funds made available to the commission for
awards, grants, and scholarships, and disburse these funds in the
manner prescribed by federal law.
(11) One (1) time every year, submit a report to the legislative
council that provides data and statistical information regarding
the number of individuals who received assistance under
IC 21-12-6 and IC 21-12-6.5. The report made to the legislative
council must be in an electronic format under IC 5-14-6.
(12) One (1) time every year, submit a report to the budget
committee that provides data and statistical information regarding
the number of individuals who received assistance under
IC 21-12, IC 21-13, and IC 21-14.
(13) Administer and determine the eligibility of applicants for
and award amounts under the teacher loan repayment
program established by IC 21-13-7.
