Bill Text: MI SB1098 | 2021-2022 | 101st Legislature | Introduced
Bill Title: Higher education: financial aid; student loan repayment program for teachers; provide for. Creates new act.
Spectrum: Strong Partisan Bill (Democrat 12-1)
Status: (Introduced - Dead) 2022-06-23 - Referred To Committee On Education And Career Readiness [SB1098 Detail]
Download: Michigan-2021-SB1098-Introduced.html
SENATE BILL NO. 1098
the people of the state of michigan enact:
Sec. 1. This act may be cited as the "excellence in education act".
(a) "Department" means the department of education.
(b) "Eligible debt" means 1 of the following:
(i) The total remaining principal balance of all state and federal student 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 first applies for a grant under this act.
(ii) $20,000.00 of an individual's student loan balance, as described in subparagraph (i), if that balance exceeds $20,000.00.
(c) "Fund" means the teachers 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.
Sec. 3. The teachers 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 individuals under this act.
(b) Develop an application form and application process for individuals 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) Was issued his or her initial teaching certificate under section 1531 of the revised school code, 1976 PA 451, MCL 380.1531, not more than 3 years before first applying for a grant under this act.
(d) Is not eligible for any other loan forgiveness program applicable to his or her eligible debt.
(e) Has accepted an offer of employment or will continue to teach in a public or nonpublic elementary or secondary school in this state in the school's academic year that begins on or after the first July 1 following the date of the application.
(f) 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.
(g) Has met any other requirements established by the department.
Sec. 5. (1) The department shall award an individual a grant under this subsection for each consecutive year that the individual is eligible under section 4, for up to 10 consecutive years. Subject to subsections (2) and (3), the department shall apply an annual grant awarded under this subsection to the individual's eligible debt as a partial prepayment in an amount equal to 10% of the individual's eligible debt balance as of the date the individual first applied for a grant under this act if the individual has accepted an offer of employment or will continue to teach in a public or nonpublic elementary or secondary school in this state.
(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 partial 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.
Sec. 6. (1) There is created the teachers 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 to provide money to the department for 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 must be carried over in the fund to the next fiscal year and not revert to the general fund.
