PRIOR PRINTER'S NO. 3383                      PRINTER'S NO. 3565

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2513 Session of 1988


        INTRODUCED BY RUDY, COWELL, EVANS, BATTISTO, COY, COLAFELLA,
           LESCOVITZ, TIGUE, LIVENGOOD, BURNS, LINTON, KOSINSKI, RYBAK,
           STAIRS, DAVIES, WASS AND DALEY, MAY 25, 1988

        AS REPORTED FROM COMMITTEE ON EDUCATION, HOUSE OF
           REPRESENTATIVES, AS AMENDED, JUNE 27, 1988

                                     AN ACT

     1  Providing for Commonwealth support for an Urban and Rural
     2     Teacher Loan Forgiveness Program for Pennsylvania residents
     3     who graduate from institutions of higher education and who
     4     apply their degrees to teaching in urban and rural public
     5     schools in this Commonwealth; AND MAKING AN APPROPRIATION.     <--

     6     The General Assembly of the Commonwealth of Pennsylvania
     7  hereby enacts as follows:
     8  Section 1.  Short title.
     9     This act shall be known and may be cited as the Urban and
    10  Rural Teacher Loan Forgiveness Act.
    11  Section 2.  Findings and declaration of intent.
    12     The General Assembly finds and declares that:
    13         (1)  The number of college students planning to enter the
    14     teaching profession has declined at a time when the need for   <--
    15     additional teachers has increased. APPEARS TO BE INADEQUATE    <--
    16     TO MEET THE NEED FOR TEACHERS IN OUR PUBLIC SCHOOLS.
    17         (2)  Demand from industry and other opportunities attract
    18     existing and potential teachers away from the profession.


     1         (3)  The pool of qualified teachers, especially those in
     2     math and science, has diminished.
     3         (4)  Economically hard-pressed rural and urban school
     4     districts find it difficult to attract highly qualified        <--
     5     teachers from the diminished pool.
     6         (5)  Payment of a portion of student loans for certified
     7     teachers serves the important public purpose of encouraging
     8     new teachers to teach in economically hard-pressed areas of
     9     this Commonwealth.
    10  Section 3.  Definitions.
    11     The following words and phrases when used in this act shall
    12  have the meanings given to them in this section unless the
    13  context clearly indicates otherwise:
    14     "Agency."  The Pennsylvania Higher Education Assistance
    15  Agency.
    16     "Approved DESIGNATED Commonwealth urban or rural public        <--
    17  school district."  An eligible urban or rural public school
    18  district which the secretary has certified as having a need for
    19  teacher loan forgiveness assistance because of difficulty in
    20  attracting highly qualified teachers.                             <--
    21     "Eligible rural public school district."  A public school
    22  district that has a population of less than 300 per square mile
    23  and either:
    24         (1)  more than 8% of the pupils in average daily
    25     membership are low-income pupils as defined in section
    26     2502.11 of the act of March 10, 1949 (P.L.30, No.14), known
    27     as the Public School Code of 1949; or
    28         (2)  the market value/income aid ratio, as defined in
    29     section 2501 of the Public School Code of 1949, is greater
    30     than seven-tenths.
    19880H2513B3565                  - 2 -

     1  This definition shall also apply to an intermediate unit or area
     2  vocational-technical school if the composite data for all
     3  participating school districts meet the criteria specified
     4  herein.
     5     "Eligible urban public school district."  A public school
     6  district that has a population greater than 850 per square mile
     7  and either:
     8         (1)  more than 8% of the pupils in average daily
     9     membership are low-income pupils as defined in section
    10     2502.11 of the act of March 10, 1949 (P.L.30, No.14), known
    11     as the Public School Code of 1949; or
    12         (2)  the market value/income aid ratio, as defined in
    13     section 2501 of the Public SChool Code of 1949, is greater
    14     than seven-tenths.
    15  The term shall also apply to an intermediate unit or area
    16  vocational-technical school if the composite data for all
    17  participating school districts meet the criteria specified
    18  herein.
    19     "Qualified applicant."  A person who meets all of the
    20  following criteria:
    21         (1)  Is certified by the Department of Education to
    22     teach.
    23         (2)  Is in the first year of full-time teaching.
    24         (3)  Is teaching at a Commonwealth-approved COMMONWEALTH-  <--
    25     DESIGNATED urban or rural public school district OR AT A       <--
    26     NONPROFIT NONPUBLIC SCHOOL IN SUCH DISTRICT AT WHICH STUDENTS
    27     MAY FULFILL COMPULSORY ATTENDANCE REQUIREMENTS.
    28         (4)  Has borrowed through the agency-administered
    29     Guaranteed Student Loan Program PROGRAMS.                      <--
    30     "Secretary."  The Secretary of Education of the Commonwealth.
    19880H2513B3565                  - 3 -

     1  Section 4.  Urban and Rural Teacher Loan Forgiveness Program.
     2     Qualified applicants who are selected for the Urban and Rural
     3  Teacher Loan Forgiveness Program in accordance with this act
     4  shall be eligible for payment by the agency of a portion of the
     5  debt incurred by the applicant through the agency-administered
     6  Guaranteed Student Loan Program PROGRAMS for the education        <--
     7  necessary to be certified to teach in Pennsylvania. For each
     8  academic year that the applicant is a full-time teacher in an
     9  approved Commonwealth urban or rural public school district, the
    10  agency may forgive a proportional part of the applicant's loan
    11  so that the loan may be entirely forgiven over four years of
    12  full-time teaching. No more than $2,500 shall be forgiven in any
    13  year, and no more than $10,000 shall be forgiven for any
    14  applicant. Payments shall be made in accordance with the
    15  procedures established by the agency.
    16  Section 5.  Loan forgiveness awards.
    17     Recipients of the loan forgiveness awards shall be those
    18  teachers who are certified by the Department of Education and
    19  who have received a satisfactory rating by the district OR        <--
    20  NONPUBLIC SCHOOL for the academic year. Each teacher shall be
    21  required to submit such documentation of continued eligibility
    22  as the agency may require.
    23  Section 6.  Funding.
    24     Loan forgiveness awards may be made to the extent that funds
    25  are appropriated by the General Assembly.
    26  Section 7.  Responsibility of agency.
    27     It shall be the responsibility of the agency to administer
    28  the Urban and Rural Loan Forgiveness Program established by this
    29  act and to adopt such regulations, policies, procedures and
    30  forms as are necessary and not inconsistent with the provisions
    19880H2513B3565                  - 4 -

     1  of this act.
     2  SECTION 8.  APPROPRIATION.                                        <--
     3     THE SUM OF $50,000, OR AS MUCH THEREOF AS MAY BE NECESSARY,
     4  IS HEREBY APPROPRIATED TO THE PENNSYLVANIA HIGHER EDUCATION
     5  ASSISTANCE AGENCY FOR THE PURPOSES OF COMPLYING WITH SECTION 7.
     6  Section 8 9.  Effective date.                                     <--
     7     This act shall take effect July 1, 1988.
















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