Bill Text: OR HB3272 | 2013 | Regular Session | Introduced
Bill Title: Relating to STEM loans; appropriating money.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2013-07-08 - In committee upon adjournment. [HB3272 Detail]
Download: Oregon-2013-HB3272-Introduced.html
77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 3451
House Bill 3272
Sponsored by Representative DAVIS
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Establishes Oregon's Best and Brightest STEM Loan Forgiveness
Program for certain students in science, technology, engineering
or mathematics programs that are willing to commit to working in
Oregon after graduation.
Establishes Oregon's Best and Brightest STEM Loan Forgiveness
Program Fund. Continuously appropriates moneys in fund for STEM
loans.
A BILL FOR AN ACT
Relating to STEM loans; and appropriating money.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + (1) As used in this section:
(a) 'Participant' means a person who has been selected by the
Oregon Student Access Commission to receive a loan under
subsection (4) of this section.
(b) 'Prospective student' means an individual who intends to
attend a public university listed in ORS 352.002 and to obtain a
degree in a science, technology, engineering or mathematics
discipline as determined by the Oregon University System.
(c) 'Service agreement' means the agreement executed by a
prospective student under subsection (3) of this section.
(2) There is established the Oregon's Best and Brightest STEM
Loan Forgiveness Program, to be administered by the commission
pursuant to rules adopted by the commission.
(3) A prospective student who wishes to participate in the
program shall submit an application to the commission in
accordance with rules adopted by the commission. To be eligible
to be a participant in the program, a prospective student must
have:
(a) Graduated from an Oregon public high school with a
cumulative grade point average of 3.80 or higher, as certified by
the prospective student's school district;
(b) Spent at least four out of the past six years in a school
based in Oregon;
(c) Scored in the top 10 percent of the student's Oregon high
school class in the 11th grade assessment administered under ORS
329.485;
(d) Completed and submitted a Free Application for Federal
Student Aid for the upcoming academic year;
(e) Executed a service agreement stating that the prospective
student will:
(A) Obtain a degree in a science, technology, engineering or
mathematics discipline, as defined by the Oregon University
System, from a public university listed in ORS 352.002 within
five years;
(B) Work within the State of Oregon for at least 36 out of the
first 48 months following the prospective student's graduation
from a public university;
(C) Spend an average of at least 10 hours per week actively
engaged in a community service, mentoring or advising program
that is related to the advancement of science, technology,
engineering or mathematics while enrolled in a public university;
and
(D) Spend an average of at least 10 hours per week actively
engaged in a community service, mentoring or advising program
that is related to the advancement of science, technology,
engineering or mathematics for at least 36 out of the first 48
months following the prospective student's graduation from a
public university; and
(f) Met other requirements established by the office by rule.
(4) The commission may select up to 500 participants from among
the prospective students who submit applications as provided in
subsection (3) of this section. If more than 500 eligible
prospective students submit applications, the commission shall
select participants from among this group by a random lottery.
(5) The commission shall provide each participant with an
annual loan in the amount of the participant's total tuition and
fees at a public university, minus any grant or scholarship aid
the participant receives as a result of the participant's Free
Application for Federal Student Aid submission. The loan must be
evidenced by a written obligation, but no additional security may
be required. This annual loan will renew automatically, provided
that the total amount of loans awarded do not exceed the cost of
four full term academic years of education as defined by the
Oregon University System, until the participant has graduated
from the public university, if the participant:
(a) Completes and submits a Free Application for Federal
Student Aid for each academic year;
(b) Maintains a cumulative grade point average of 3.0 or higher
while studying at a public university; and
(c) Completes, or is on track to complete, an undergraduate
degree in a science, technology, engineering or mathematics
program within a five-year period.
(6) Repayment of loans provided under subsection (5) of this
section is deferred while a participant is in compliance with the
service agreement.
(7) At the end of each full year that a participant complies
with the service agreement following the participant's graduation
from a public university, the commission shall forgive one annual
loan provided to the participant under subsection (5) of this
section.
(8) A person receiving a loan under subsection (5) of this
section who fails to fulfill the obligations required by the
service agreement shall repay the amount received to the Oregon's
Best and Brightest STEM Loan Forgiveness Program over a period of
15 years, with interest accruing at the prime rate. The
commission shall establish rules to allow for hardship exceptions
to this repayment obligation.
(9) Payments on loans provided under subsection (5) of this
section shall be deposited in the Oregon's Best and Brightest
STEM Loan Forgiveness Program Fund established in section 2 of
this 2013 Act.
(10) If a participant defaults on a loan provided under
subsection (5) of this section:
(a) Any amounts due may be collected by the Collections Unit in
the Department of Revenue under ORS 293.250; or
(b) The Oregon Student Access Commission may contract with a
collection agency to collect any amounts due.
(11) Any amounts collected under subsection (10) of this
section shall be deposited in the Oregon's Best and Brightest
STEM Loan Forgiveness Program Fund established in section 2 of
this 2013 Act.
(12) The commission may accept funds from any public or private
source for the purposes of carrying out the provisions of this
section. + }
SECTION 2. { + The Oregon's Best and Brightest STEM Loan
Forgiveness Program Fund is established in the State Treasury,
separate and distinct from the General Fund. Interest earned by
the Oregon's Best and Brightest STEM Loan Forgiveness Program
Fund shall be credited to the fund. Moneys in the fund are
continuously appropriated to the Oregon Student Access Commission
for the purposes of carrying out the provisions of section 1 of
this 2013 Act. + }
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