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69th Legislature 2025 HB 509
- 1 - Authorized Print Version – HB 509
ENROLLED BILL
AN ACT GENERALLY REVISING THE QUALITY EDUCATOR LOAN ASSISTANCE PROGRAM; EXPANDING
ELIGIBILITY FOR THE PROGRAM TO INCLUDE ALL NEWLY HIRED QUALITY EDUCATORS IN MONTANA
PUBLIC SCHOOLS; PROVIDING THAT NEWLY HIRED QUALITY EDUCATORS IN IMPACTED SCHOOLS
HAVE PRIORITY FOR RECEIVING LOAN ASSISTANCE PAYMENTS; PROVIDING A PROCESS TO
PRORATE LOAN ASSISTANCE PAYMENTS IF THE APPROPRIATION IS INSUFFICIENT TO FULLY FUND
THE LOAN ASSISTANCE PAYMENT FOR ALL ELIGIBLE QUALITY EDUCATORS; AMENDING SECTIONS
20-4-503, 20-4-504, AND 20-4-505, MCA; AND PROVIDING AN EFFECTIVE DATE AND AN APPLICABILITY
DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 20-4-503, MCA, is amended to read:
"20-4-503. Critical quality educator shortages -- impacted schools. (1) The board of public
education, in consultation with the office of public instruction, shall maintain and make publicly available a
current list of impacted schools.
(2) A quality educator working at an impacted school is eligible for repayment of all or part of the
quality educator's outstanding educational loans existing at the time of application in accordance with the
eligibility and award criteria established under this part. If a quality educator is eligible for loan assistance and
remains employed in the same impacted school or another impacted school within the same school district, the
quality educator remains eligible for a lifetime total of up to 3 years of state-funded loan repayment assistance
and an additional 1 year of loan repayment assistance funded by the impacted school or the district under
which the impacted school is operated pursuant to 20-4-504(2)."
Section 2. Section 20-4-504, MCA, is amended to read:
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69th Legislature 2025 HB 509
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ENROLLED BILL
"20-4-504. Loan repayment assistance. (1) Loan repayment assistance may be provided on behalf
of a quality educator who:
(a) is newly hired, with priority given to a quality educator newly hired in an impacted school
pursuant to 20-4-503; and
(b) has an educational loan that is not in default and that has a minimum unpaid current balance of
at least $1,000 at the time of application.
(2) A quality educator is eligible for state-funded loan repayment assistance for a lifetime total of
no more than 3 years and an additional 1 year of loan repayment assistance voluntarily funded by the impacted
school or the district under which the impacted school is operated, with the maximum annual loan repayment
assistance not to exceed:
(a) $3,000 of state-funded loan repayment assistance after the first complete year of teaching in
an impacted school;
(b) $4,000 of state-funded loan repayment assistance after the second complete year of teaching
in the same impacted school or another impacted school within the same school district;
(c) $5,000 of state-funded loan repayment assistance after the third complete year of teaching in
the same impacted school or another impacted school within the same school district; and
(d) up to $5,000 of loan repayment assistance funded by the impacted school or the district under
which the impacted school is operated after the fourth complete year of teaching in the same impacted school
or another impacted school within the same school district.
(3) If the funding for state-funded loan repayment assistance in any year is less than the total
amount for which Montana quality educators qualify, the superintendent of public instruction shall prorate
repayment assistance amounts accordingly as follows:
(a) The superintendent of public instruction shall prioritize repayment for quality educators working
at impacted schools first. If there are funds remaining after allocating amounts to fully fund quality educators
working in impacted schools pursuant to subsection (2), the superintendent of public instruction may award the
remaining funds to quality educators who are working in schools that are not impacted schools and prorate the
remaining funds if necessary. If the appropriated funds are insufficient to fully fund the amounts required for
quality educators working in impacted schools, the superintendent of public instruction shall prorate the
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69th Legislature 2025 HB 509
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ENROLLED BILL
amounts as provided in subsection (3)(b).
(b) If the repayment assistance amount is insufficient to provide a full award to quality educators
working in impacted schools, the superintendent of public instruction shall prorate the repayment assistance
amount among only the quality educators working in impacted schools."
Section 3. Section 20-4-505, MCA, is amended to read:
"20-4-505. Loan repayment assistance documentation. (1) A quality educator shall submit an
application for loan repayment assistance to the superintendent of public instruction in accordance with policies
and procedures adopted by the superintendent of public instruction. The application must include official
verification or proof of the applicant's total unpaid accumulated educational loan debt and other documentation
required by the superintendent of public instruction that is necessary for verification of the applicant's eligibility.
(2) The superintendent of public instruction may require a quality educator who is eligible for loan
repayment assistance to provide documentation that the quality educator has exhausted repayment assistance
from other federal, state, or local loan forgiveness, discharge, or repayment incentive programs.
(3) The superintendent of public instruction may remit payment of the loan on behalf of the quality
educator in accordance with the requirements of this part and policies and procedures adopted by the
superintendent of public instruction.
(4) An impacted A school or a school district under which an impacted school is operated may
remit payment of the loan on behalf of a quality educator eligible for loan repayment assistance under this
section in accordance with 20-4-504."
Section 4. Effective date. [This act] is effective July 1, 2025.
Section 5. Applicability. [This act] applies to applications for loan repayment assistance submitted
on or after July 1, 2025.
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I hereby certify that the within bill,
HB 509, originated in the House.
___________________________________________
Chief Clerk of the House
___________________________________________
Speaker of the House
Signed this _______________________________day
of____________________________________, 2025.
___________________________________________
President of the Senate
Signed this _______________________________day
of____________________________________, 2025.
HOUSE BILL NO. 509
INTRODUCED BY D. POWERS, D. BEDEY, M. BERTOGLIO, E. MATTHEWS, C. KEOGH, M. ROMANO, M.
THANE
AN ACT GENERALLY REVISING THE QUALITY EDUCATOR LOAN ASSISTANCE PROGRAM; EXPANDING
ELIGIBILITY FOR THE PROGRAM TO INCLUDE ALL NEWLY HIRED QUALITY EDUCATORS IN MONTANA
PUBLIC SCHOOLS; PROVIDING THAT NEWLY HIRED QUALITY EDUCATORS IN IMPACTED SCHOOLS
HAVE PRIORITY FOR RECEIVING LOAN ASSISTANCE PAYMENTS; PROVIDING A PROCESS TO
PRORATE LOAN ASSISTANCE PAYMENTS IF THE APPROPRIATION IS INSUFFICIENT TO FULLY FUND
THE LOAN ASSISTANCE PAYMENT FOR ALL ELIGIBLE QUALITY EDUCATORS; AMENDING SECTIONS
20-4-503, 20-4-504, AND 20-4-505, MCA; AND PROVIDING AN EFFECTIVE DATE AND AN APPLICABILITY
DATE.