Bill Text: MI HB6209 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Higher education: financial aid; student loan forgiveness program for teachers; create. Creates new act.
Spectrum: Partisan Bill (Democrat 9-0)
Status: (Introduced - Dead) 2020-09-16 - Bill Electronically Reproduced 09/15/2020 [HB6209 Detail]
Download: Michigan-2019-HB6209-Introduced.html
HOUSE BILL NO. 6209
September 15, 2020, Introduced by Reps.
Camilleri, Hammoud, Pagan, Guerra, Bolden, Sowerby, Greig, Pohutsky and
Shannon and referred to the Committee on Appropriations.
the people of the state of michigan enact:
Sec. 1. This act shall be known and may be cited as the "teachers student loan forgiveness act".
(a) "Department" means the department of education.
(b) "Eligible debt" means the total remaining principal balance of all state and federal loans obtained by an individual during his or her first 4 years of enrollment in a teacher education program at a public or private college or university or community college at the time the individual applies for a grant under this act.
(c) "Fund" means the teachers student loan forgiveness fund created in section 6.
(d) "Grant" means money awarded to an individual under this act in an amount determined under section 5.
(e) "Public school" means that term as defined in section 5 of the revised school code, 1976 PA 451, MCL 380.5.
Sec. 3. The teachers student loan forgiveness program is created, to be administered by the department. Subject to appropriation, the department shall do all of the following:
(a) Award grants to eligible teachers under this act.
(b) Develop an application form and application process for teachers applying for grants under this act.
(c) Promulgate any rules necessary to implement this act pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
Sec. 4. The department may award a grant under section 5 to an individual determined by the department to meet all of the following eligibility criteria:
(a) Has eligible debt at the time of application.
(b) Is a legal resident of this state.
(c) Has a teaching certification issued under section 1531 of the revised school code, 1976 PA 451, MCL 380.1531.
(d) Has accepted an offer of employment or will continue to teach at a public school in the school's academic year that begins on or after the first July 1 following the date of the application.
(e) Has submitted a grant application to the department by July 1. The grant application must include a certification that the applicant meets the eligibility criteria described in this section and has applied for all state or federal loan repayment programs applicable to his or her eligible debt.
(f) Has met any other requirements established by the department.
Sec. 5. (1) Subject to subsections (2) to (5), the department shall award an individual eligible under section 4 a grant in an amount sufficient to make the individual's minimum monthly required payment for his or her eligible debt, not to exceed $300.00 in any month.
(2) The department shall reduce a grant awarded under subsection (1) by an amount equal to the amount the individual is entitled to receive from any state or federal loan repayment program applicable to his or her eligible debt.
(3) In any state fiscal year, the department may adjust the amount of each grant under subsection (1) on a pro rata basis, based upon its determination of money available from the fund and from appropriations in that fiscal year. If it makes an adjustment under this subsection, the department shall notify each grant recipient of his or her obligation to continue to make payments of principal and interest on his or her eligible debt in the manner described in his or her student loan documents.
(4) The department of treasury shall make the monthly payments subscribed in subsection (1) directly to the grant recipient's lender for credit to the recipient's account.
(5) Payments under subsection (4) may continue only for so long as the grant recipient has eligible debt and maintains continuous employment in a classroom-teaching position that requires the teaching certificate described in section 4(c).
Sec. 6. (1) There is created the teachers student loan forgiveness fund as a separate fund in the state treasury, to be administered by the department of treasury. The department of treasury may accept money for the fund from any source. The state treasurer shall deposit that money and credit the amount to the fund. The department of treasury shall use the fund only for payment of grants awarded under this act.
(2) The state treasurer shall direct the investment of the fund money and shall credit earnings to the fund.
(3) Money in the fund at the end of a fiscal year does not revert to the general fund but is to be carried over in the fund to the next fiscal year.
