Report Title:
Student Loan for Teachers
Description:
Creates a loan forgiveness program for a person who completes a state-approved teacher education program in Hawaii and who teaches in the Hawaii public school system for a minimum of 6 consecutive years Appropriates an unspecified sum for fiscal year 2002-2003. (SD2)
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THE SENATE |
S.B. NO. |
2816 |
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TWENTY-FIRST LEGISLATURE, 2002 |
S.D. 2 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO STUDENT LOANS FOR TEACHERS
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The National Commission on Teaching and America's Future, a national organization with nineteen partner states, including Hawaii, is focused on improving student learning by ensuring that there is a caring, competent, and qualified teacher in every classroom.
The legislature enacted Act 307, Session Laws of Hawaii 2001, which was originally proposed by the National Commission on Teaching and America's Future, that established the Hawaii educator loan program and special fund with the purpose of providing financial support to students enrolled in a state-approved teacher education program at the University of Hawaii. If upon graduation the student is employed as a full-time teacher in Hawaii's public school system for a minimum of ten consecutive years, the student's loan would be forgiven.
The legislature finds that the shortage of teachers in Hawaii has reached a critical level and that the State must do all it can to resolve this situation. In addition to the teacher education program at the University of Hawaii, there are numerous private universities and colleges in Hawaii that have state-approved teacher education programs that produce excellent teachers. The legislature finds that these graduates should be given the same incentives to teach in Hawaii's public school system that are currently available to University of Hawaii graduates.
The purpose of this Act is to create a program similar to the Hawaii educator loan program for students enrolled in state-approved teacher education programs at private universities and colleges.
SECTION 2. Chapter 304, Hawaii Revised Statutes, is amended by creating a new section to be appropriately designated and to read as follows:
"§304- Hawaii educator incentive program; special fund. (a) There is created the Hawaii educator incentive program to be administered by a federal credit union under contract with the University of Hawaii with existing services for teachers, for the purpose of providing financial assistance to students who complete a state-approved teacher education program in Hawaii and who teach in the Hawaii public school system for a minimum of six consecutive years. Eligibility requirements and the amount to be forgiven to a student shall administered by the contracted federal credit union based on proof of graduation from a state-approved teacher education program in Hawaii and employment as a full-time teacher in the department of education. The maximum amount that a student may receive under this program shall be an aggregate amount equivalent to tuition payments and costs of textbooks and other instructional materials necessary to complete a state-approved teacher education program in Hawaii and shall not exceed the amount such payments and costs would amount to at the University of Hawaii.
(b) There is created in the treasury of the State, the Hawaii educator incentive program special fund, for the purpose of providing loan forgiveness payments pursuant to subsection (a). All loan forgiveness payments under this section shall commence one year after being employed as a full-time teacher in the department of education and shall be paid in periodic installments within a six-year period. Late fees and other costs for the collection of delinquent loans at the contracted federal credit union shall be paid by the loan recipient.
(c) Upon a showing of proof that the individual has completed a state-approved teacher education program in Hawaii and is employed as a full-time teacher in the Hawaii public school system, one-tenth of the total loan forgiveness award and interest shall be paid to the loan recipient for every year of the first five years and five-tenths of the total award after the sixth year, that a loan recipient teaches in a Hawaii public school in a hard-to-fill position as determined by the superintendent of education, including special education, regular education shortage categories, or Title 1 schools, and in one of the following capacities:
(1) As an elementary school teacher teaching in the field of elementary education who has met standards as set forth by the Hawaii teacher standards board; or
(2) As a secondary school teacher teaching in the subject area that is relevant to the loan recipient's academic major as certified by the department of education who has met standards as set forth by the Hawaii teacher standards board.
(d) If a loan recipient subject to this section discontinues teaching in the Hawaii public school system at any time during the six year loan forgiveness period, excluding sabbatical and other forms of temporary leaves of absence, payments to the loan recipient shall cease at the end of the most recently completed school year."
SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $ , or so much thereof as may be necessary for fiscal year 2002-2003, for loan forgiveness payments under the Hawaii educator incentive program to be deposited to the credit of the Hawaii educator incentive program special fund, and the same sum, or so much thereof as may be necessary for fiscal year 2002-2003, is appropriated out of the Hawaii educator incentive program to be expended for the purposes of the fund.
The sum appropriated shall be expended by the University of Hawaii for the purposes of this Act.
SECTION 4. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 2002.