AN ACT RELATING TO EDUCATION -- STUDENT LOAN REPAYMENT PROGRAM (Creates the Rhode Island Student Loan repayment program which would allow eligible individuals who have unpaid student loans, provided said individuals meet specified criteria.)

H7457

2026 -- H 7457
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO EDUCATION -- STUDENT LOAN REPAYMENT PROGRAM

Introduced By:
Representatives Shallcross Smith, Furtado, Diaz, Serpa, Fellela, Tanzi,
and Kislak

Date Introduced:
January 30, 2026

Referred To:
House Finance
It is enacted by the General Assembly as follows:
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SECTION 1. Title 16 of the General Laws entitled "EDUCATION" is hereby amended by
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adding thereto the following chapter:
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CHAPTER 117
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STUDENT LOAN REPAYMENT PROGRAM
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16-117-1. Short title.

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This chapter shall be known and may be cited as the "Rhode Island Student Loan
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Repayment Program."
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16-117-2. Creation.

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(a) There is hereby established at the Rhode Island student loan authority (RISLA), a
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restricted receipt account entitled the Rhode Island student loan repayment fund (“the fund”). The
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fund shall be used to provide eligible individuals, defined in § 16-117-4, with payment from the
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state to the individual’s employer, to pay a portion of their student loan debt.
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(b) RISLA shall administer the fund.
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(c) RISLA shall promulgate rules and regulations necessary to implement this chapter,
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which shall include, but are not limited to, providing an easy-to-follow guide, in a variety of
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languages, regarding how to complete the request for student loan debt relief.
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(d) The general assembly shall appropriate ten million dollars ($10,000,000) to the fund,
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two million dollars ($2,000,000) to be disbursed this year, the remaining eight million dollars
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($8,000,000) to be held in a restrictive account, and shall disburse two million dollars ($2,000,000)

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for each subsequent year. After that time, the Rhode Island student loan repayment program shall
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cease to operate, unless extended or made permanent by further action of the general assembly.
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16-117-3. Definitions.

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For the purposes of this chapter:
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(1) “Debt relief recipients” means individuals receiving student debt relief under this
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chapter;
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(2) “Eligible individuals” means persons described in §§ 16-117-4 and 16-117-6;
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(3) “Request for student debt relief” means the process by which individuals submit the
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materials and documentation required by RISLA under this chapter;
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(4) “RISLA” means the Rhode Island student loan authority;
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(5) “Service requirements” means specific employment and work obligations set forth in
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this chapter that individuals shall meet to obtain student debt relief under this chapter; and
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(6) “Underserved community” means a federally designated health professional shortage
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area, as identified by the federal Health Resources and Services Administration, an agency of the
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United States Department of Health and Human Services.
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16-117-4. Eligibility of individuals.

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(a) Individuals employed by a Rhode Island-based employer may be eligible for the Rhode
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Island student loan repayment program if they:
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(1) Have eligible, unpaid student loans;
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(2) Are employed as a licensed clinical social worker or social caseworker or child
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protective investigator in any public elementary or secondary school in the state;
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(3) Have committed to work as a licensed clinical social worker, social caseworker, or child
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protective investigator, in any public elementary or secondary school in the state, full-time for two
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(2) consecutive years in this state; and
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(4) Have applied and are enrolled in the federal student aid, Saving On A Valuable
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Education (SAVE) program.
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(b) Preference for student loan debt relief under this chapter may be given to individuals
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who work in an underserved community.
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16-117-5. Service requirements to receive student debt relief.

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(a) Eligible individuals who are approved for student debt relief under this chapter shall
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have their required monthly student loan payment paid directly to the debt relief recipient’s
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employer for up to two (2) consecutive years or twenty-four (24) consecutive months.
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(b) To receive student debt relief under this chapter, the eligible individual shall:
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(1) Meet the eligibility requirements set forth in §§ 16-117-4 and 16-117-6;

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(2) Complete and submit a request for student debt relief in a manner and form prescribed
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by RISLA;
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(3) Receive financial counseling from RISLA related to managing and repaying their
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student debt; and
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(4) Have their request for student debt relief approved by RISLA;
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(c) Except as provided below in subsection (d) of this section, a debt relief recipient is no
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longer eligible to receive debt relief under this chapter, when any of the following occurs:
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(1) The debt relief recipient no longer meets the eligibility requirements set forth in §§ 16-
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117-4 and 16-117-6;
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(2) The debt relief recipient has received twenty-four (24) consecutive months of debt relief
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under this chapter; or
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(3) The debt relief recipient no longer has an outstanding balance on their eligible student
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loans.
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(d) Notwithstanding the provisions of this chapter, debt relief recipients may request a
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leave of absence from their employer, when the debt relief recipient or a member of their household
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experiences a serious illness or other natural cause, becomes pregnant, or is called to military
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service, which temporarily prevents the debt relief recipient from continuing to meet the
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requirements set forth in §§ 16-117-4 and 16-117-6.
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(1) If approved by the employer, leaves of absence will pause the monthly payments made
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on behalf of the debt relief recipient pursuant to this chapter. Payments will resume once the leave
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of absence ends and the debt relief recipient returns to work as a licensed clinical social worker in
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any public elementary or secondary school in the state, as required by this chapter.
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(2) Except where otherwise provided, leaves of absence shall not exceed more than one
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calendar year, or the individual shall be withdrawn from consideration for student debt relief.
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(3) Leaves of absence, due to military service of the debt relief recipient or their spouse,
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shall not exceed three (3) calendar years.
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(4) The debt relief recipient shall present documentation to RISLA showing that a leave of
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absence was granted.
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(5) The debt relief recipient shall present documentation to RISLA showing that they have
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resumed working as a qualified individual in any public elementary or secondary school in the
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state, after the leave of absence has concluded.
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(e) A reduction in force shall not preclude a debt relief recipient from fulfilling the
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consecutive years of service obligation, if the following provisions are met:
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(1) Debt relief recipients shall provide to RISLA documentation of the reduction in force;

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(2) Debt relief recipients shall resume working as a qualified individual in any public
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elementary or secondary school in the state, no later than eighteen (18) months after the reduction
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in force; and
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(3) If an eligible recipient fails to fulfill their two (2) year commitment as defined in § 16-
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117-4(c), all debt repayment will be paused unless a recipient requalifies no later than eighteen (18)
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months after the initial separation.
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(f) Upon the effective date of this chapter:
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(1) Any individual who has been employed for fewer than three (3) years as a qualified
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individual in any public elementary or secondary school in the state, may submit a request for
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student debt relief under this chapter; provided that, they meet the eligibility requirements set forth
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in §§ 16-117-4 and 16-117-6.
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(2) Individuals who have been employed for three (3) or more years as a qualified
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individual in any public elementary or secondary school in the state, shall not be permitted to submit
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a request for student debt relief under this chapter.
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16-117-6. Eligibility of loans and lenders.

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(a) RISLA shall retain the right to determine the eligibility of employers and education
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loans, to which student debt relief payments may be made under this chapter.
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(b) An eligible lender shall make or hold education loans to individuals for purposes of
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undergraduate or graduate education and shall not be any private individual.
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(c) An eligible lender may be, but is not limited to, a bank, savings and loan association,
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credit union, institution of higher education, secondary market, governmental agency, or private
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foundation.
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(d) Credit card, equity loans, and other similar personal loan products, are not considered
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educational loans eligible for repayment under this chapter.
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(e) An education loan shall:
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(1) Be evidenced by a promissory note for loans to pay for the cost of attendance for the
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undergraduate or graduate education of the individual applying for repayment assistance;
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(2) Not have an existing obligation to provide service for loan relief through another
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program; and
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(3) If the loan was consolidated with other loans, the individual shall provide
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documentation of the portion of the consolidated debt, that was originated to pay for the cost of
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attendance for the individual's undergraduate or graduate education.
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16-117-7. Student loan repayment program limits.

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(a) The total amount of student loan repayment shall not exceed a monthly payment of five

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hundred dollars ($500).
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(b) The total amount of student loan repayments shall not exceed the outstanding balance.
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16-117-8. Administration of Rhode Island student loan repayment fund.

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(a) RISLA shall administer the fund to the debt relief recipient’s employer.
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(b) Part of administering the fund shall include making provisions to minimize the impact
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that any student debt relief provided, pursuant to this chapter has on a debt relief recipient’s taxable
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income.
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(c) As part of the rules and regulations promulgated, RISLA may design a process for
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obtaining informed consent from individuals to work directly with their student loan servicers to
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collect certain documentation required by this chapter, such as a loan’s promissory note and current
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balance.
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(d) The form of the request for student debt relief and the information required therein shall
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be established by RISLA.
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(e) RISLA shall make forms required by this chapter, available to the public on its website
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in a variety of languages and, if requested, via hardcopy.
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16-117-9. Disbursement.

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(a) All funds distributed in accordance with this chapter shall be:
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(1) Paid directly to the employer on a monthly basis; and
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(2) Allocated only toward the eligible loans issued to pay for the fees, tuition, room, and
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board of the debt relief recipient, in connection with their attendance at an institution of higher
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education.
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(b) Through the financial counseling required under this chapter, RISLA shall discuss
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different student loan repayment strategies with debt relief recipients, which shall include, but are
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not limited to:
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(1) How the debt relief payments made under this chapter may be allocated to various
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student loan servicers, if applicable;
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(2) The implications of different allocation options; and
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(3) The various loan repayment programs that may be available to the debt relief recipient.
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(c) If, in a given fiscal year, there are insufficient funds available for RISLA to make the
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student debt relief payments required under this chapter to the debt relief recipient’s employer,
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RISLA shall develop and implement an equitable and alternative priority process, which, at
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minimum, shall take the following into consideration:
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(1) The number of debt relief installments received to date by the individual’s employer
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pursuant to this chapter; and

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(2) An individual’s income-to-student debt ratio.
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16-117-10. Reporting.

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(a) In its annual report required by § 16-62-18, RISLA shall include an evaluation of the
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Rhode Island student loan repayment program. The evaluation shall include, but is not limited to,
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the following:
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(1) The number of individuals whose request for student debt relief under this chapter was
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approved;
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(2) The actual dollar amount paid for student debt relief under this chapter in the previous
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year;
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(3) The employers of the individuals who received student debt relief under this chapter;
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and
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(4) Whether the debt relief recipient attended an institution of higher education in Rhode
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Island or out-of-state.
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(b) Reporting required under this section shall take extreme care to maintain the privacy of
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the individuals requesting and/or receiving student debt relief under this chapter.
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(c) Annual reporting on the fund shall only continue as long as the fund exists.
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SECTION 2. This act shall take effect upon passage.
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO EDUCATION -- STUDENT LOAN REPAYMENT PROGRAM
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This act would create the Rhode Island Student Loan repayment program which would
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allow eligible individuals who have unpaid student loans to receive relief if the individual is
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employed as a licensed clinical social worker or social caseworker or child protective investigator
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in any public elementary or secondary school in this state, has been full-time in this state in such
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employment for two (2) years and is enrolled in the Federal Student Aid, Saving on a Valuable
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Education program. The act would also require the general assembly to appropriate the sum of ten
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million dollars ($10,000,000) to fund this program.
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This act would take effect upon passage.
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