Bill Text: MI HB6435 | 2021-2022 | 101st Legislature | Introduced
Bill Title: Higher education: financial aid; student loan forgiveness for certain individuals who relocate to certain areas; provide for. Creates new act.
Spectrum: Partisan Bill (Democrat 8-0)
Status: (Introduced - Dead) 2022-10-11 - Bill Electronically Reproduced 10/11/2022 [HB6435 Detail]
Download: Michigan-2021-HB6435-Introduced.html
HOUSE BILL NO. 6435
A bill to create a student loan forgiveness program for certain residents of this state who have graduated from college with unpaid student loans and are working in certain high-need fields; to provide for the powers and duties of certain state governmental officers and entities; and to require the promulgation of rules.
the people of the state of michigan enact:
Sec. 1. This act may be cited as the "targeted student loan forgiveness act".
Sec. 2. This act is intended to alleviate the burden of student loan debt and attract to this state qualified workers able to provide essential services in certain high-need fields.
(a) "Department" means the department of labor and economic opportunity.
(b) "Federal income-driven repayment plan" means a federal student loan repayment option that assigns an individual's monthly payment amount in a manner that is intended to be affordable based on the individual's income and family size.
(c) "Fund" means the targeted student loan forgiveness fund created in section 6.
(d) "High school equivalency certificate" means that term as defined in section 4 of the school aid act of 1979, 1979 PA 94, MCL 388.1604.
(e) "Qualified high-need field" means K-12 teaching, dentistry, nursing or other primary medical care, or any other essential service that is experiencing a shortage of qualified individuals who provide the essential service as determined by the department. The department shall make its determinations under this subdivision based on criteria promulgated by rule under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
(f) "Targeted student loan forgiveness program" or "program" means the targeted student loan forgiveness program created in section 4.
Sec. 4. The targeted student loan forgiveness program is created in the department. The department shall do all of the following:
(a) Develop and implement an application process for program participants, who must meet all of the following eligibility requirements:
(i) Have graduated from high school with a diploma or certificate of completion or achieved a high school equivalency certificate.
(ii) Have graduated and obtained an undergraduate degree from a college or university and applied for this program within 5 years of obtaining that degree.
(iii) Be a participant in a federal income-driven repayment plan.
(iv) Reside in this state.
(v) Work in a qualified high-need field.
(vi) Have a total annual household income of less than $50,000.00.
(vii) Not be delinquent or in default on a student loan made under any state or federal education loan program.
(viii) Not be in default on a refund payment due under section 5(2).
(b) By January 1 each year, publish on its website in a manner readily accessible to the public all of the following:
(i) A list of all qualified high-need fields.
(ii) A description of the criteria promulgated under section 3(e) used to determine qualified high-need fields.
(c) Publicize the targeted student loan forgiveness program to potential program participants.
(d) Subject to section 5, disburse awards to program participants.
Sec. 5. (1) The department shall award a program participant who meets the eligibility requirements in section 4(a) a monthly payment equal to 100% of the program participant's monthly repayment under a federal income-driven repayment plan for not longer than 24 months of repayment under the federal program. However, an award granted under this section must be deferred for a program participant who has received a deferment or forbearance under the federal income-driven repayment plan. Upon completion of a deferment or forbearance period, the program participant is eligible to receive monthly payments under this subsection for the remainder of the 24-month period described in this subsection.
(2) If an individual receives a payment under subsection (1) at a time when the individual does not meet the eligibility requirements in section 4(a), the individual shall refund the payment to the department in accordance with rules promulgated by the department under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328. The department shall transmit refunds received under this subsection to the state treasurer for deposit in the targeted student loan forgiveness fund created in section 6.
Sec. 6. (1) The targeted student loan forgiveness fund is created in the state treasury.
(2) The state treasurer shall deposit money and other assets received under section 5(2) or from any other source in the fund. The state treasurer shall direct the investment of money in the fund and credit interest and earnings from the investments to the fund.
(3) The department is the administrator of the fund for audits of the fund.
(4) The department shall expend money from the fund on appropriation, only for the purpose of paying awards to program participants as described in section 5(1).
Sec. 7. The department shall promulgate rules to implement this act under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
