Teacher shortage loan repayment program.

WORKING DRAFT

ORIGINAL HOUSE

BILL

NO.
0085

ENROLLED ACT NO. 132, HOUSE OF REPRESENTATIVES

FIFTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
2005 GENERAL SESSION

AN ACT relating to teachers; establishing the Wyoming teacher shortage loan repayment program; specifying eligibility criteria; prescribing procedures and repayment of loans; providing for program administration by the Wyoming higher education assistance authority; sunsetting the program; providing an appropriation; providing for transfer of appropriations and administration under specified conditions; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1.

W.S. 21
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7
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601 is created to read:

ARTICLE 6
WYOMING TEACHER SHORTAGE LOAN REPAYMENT PROGRAM

21
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601.

Wyoming teacher shortage loan repayment program; eligibility criteria; procedures; program reporting.

(a)

The Wyoming teacher shortage loan repayment program is created to be administered by the Wyoming higher education assistance authority established under W.S. 21
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703. Applicants shall have a Wyoming residence, as defined in W.S. 22
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102(a)(xxx), or shall be graduates of a Wyoming high school and may apply for loans from the program in accordance with this section.

(b)

To qualify for a loan under this section, the applicant shall first:

(i)

Be enrolled in good standing in a teacher education program at the University of Wyoming leading to certification as a special education, math or science teacher;

(ii)

Have class standing of at least a junior for the first semester for which application for a loan under this program is made;

(iii)

Apply for federal financial assistance.

(c)

Subject to the availability of funds appropriated for this program, loans under this section may be granted to qualified applicants to pay the unmet financial need, as determined by the Wyoming higher education assistance authority, of attendance at the teacher education program specified under paragraph (b)(i) of this section.

(d)

A loan provided under this section shall not exceed the cost of attendance for the approved program, reduced by the amount of any Pell or other federal grant and any employer based financial assistance received by the applicant.

(e)

A recipient of a loan under this section may repay the loan without cash payment by teaching at least fifty percent (50%) of his working hours as a teacher in special education, math or science as a certified teacher in a Wyoming public school as provided in subsection (f) of this section. To qualify as repayment under this subsection, work shall be performed within the minimum amount of time necessary to repay the loan, plus two (2) years, which shall begin with the calendar month following the month in which the student completed the academic program.

(f)

Qualified work under subsection (e) of this section shall be credited such that the student's loan balance is reduced on the basis of one (1) year of full-time employment repaying the loan balance for one (1) academic year of full-time enrollment. Qualified work shall be credited on a proportional basis to the loan balance.

(g)

Any recipient of a loan under this section who fails:

(i)

To complete the academic program for which the loan was provided shall commence cash repayment of the loan no later than forty-five (45) days after the recipient leaves the academic program;

(ii)

To obtain employment in the targeted occupation for which the person received the education within two hundred forty (240) days after successfully obtaining the appropriate certification, shall commence cash repayment of the loan within two hundred eighty-five (285) days after successfully obtaining the appropriate certification;

(iii)

To obtain the appropriate certification within one hundred eighty (180) days after completion of the program shall commence cash repayment of the loan
.

(h)

Loan repayment options under this section may be deferred for a period not to exceed five (5) years while a loan recipient is serving on full-time active duty with any branch of the military services of the United States.

(j)

The Wyoming higher education assistance authority shall have the powers and duties specified under W.S. 21
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705 to implement this section and shall establish terms and conditions of loans issued under this section, including:

(i)

Interest rates and loan terms;

(ii)

The form and process for loan application, review and award;

(iii)

Criteria under which students may be relieved from having to repay loans and interest thereon, in whole or in part, where the requirement to repay would cause undue hardship.

(k)

Funding of the loan program established under this section shall be by appropriation of the legislature. The authority shall transfer approved loan amounts to the University of Wyoming.

(m)

Cash repayment of loans and interest thereon shall be credited to the school foundation program account.

(n)

The authority shall annually review the loan program established under this section and report to the governor and the legislature in accordance with W.S. 9
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1014, regarding program results, funds received and loans issued during the preceding academic year, together with the status of all outstanding loan commitments and repayments under the program. The report required under this subsection shall include information submitted by the professional teaching standards board regarding the impact of the program on identified teacher shortage areas and recommendations for modifications to the program, including funding levels, to address other identified teacher shortage areas.

(o)

This program created by this section shall expire effective June 30, 2011.

(p)

Notwithstanding subsection (o) of this section:

(i)

Any person who receives a loan under this section shall continue to receive funding for the program as the person remains eligible as required by this section;

(ii)

Repayment of loans provided under this section shall continue as specified by this section until all loan obligations have been satisfied.

Section 2.

(a)

Four hundred thousand dollars ($400,000.00) is appropriated from the school foundation program account to the Wyoming higher education assistance authority to implement this act. Not more than five percent (5%) of the amount appropriated under this section may be used by the Wyoming higher education assistance authority for administration of the program, including expenses of the authority and loan administration fees.

(b)

If responsibility for administration of the Wyoming investment in nursing program under W.S. 9
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123 is transferred to another state agency by enactment of legislation adopted during the 2005 general session, the appropriation under this section is transferred to that successor agency and the administration of the Wyoming teacher shortage loan repayment program established under this act shall be accordingly transferred to that successor agency.

Section 3.

This act is effective immediately upon co
m
pletion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constit
u
tion.

(END)

Speaker of the House

President of the Senate

Governor

TIME APPROVED: _________

DATE APPROVED: _________

I hereby certify that this act originated in the House.

Chief Clerk

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