CORRECTIVE REPRINT
PRIOR PRINTER'S NO. 371
PRINTER'S NO. 441
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
107
Session of
2015
INTRODUCED BY TEPLITZ, BROWNE, TARTAGLIONE, FONTANA, AUMENT,
HUGHES, SMITH, COSTA, SCHWANK AND WILLIAMS, FEBRUARY 12, 2015
REFERRED TO EDUCATION, FEBRUARY 12, 2015
AN ACT
Authorizing the incurrence of indebtedness by the Commonwealth,
upon electorate approval, for the establishment of a fund to
benefit eligible students pursuing postsecondary education;
creating a special fund in the State Treasury to be known as
the Science, Technology, Engineering and Math Higher
Education Loan Program Trust Fund; establishing the Science,
Technology, Engineering and Math Higher Education Loan
Program; and conferring powers and imposing duties on the
Pennsylvania Higher Education Assistance Agency.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Science,
Technology, Engineering and Math Higher Education Loan Program
(STEM HELP) Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Agency." The Pennsylvania Higher Education Assistance
Agency.
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"Approved course of study." A course of study in the field
of science, technology, engineering or mathematics.
"Fund." The STEM HELP Trust Fund established under section
4.
"Grade point average." The numbered grade average calculated
using a 4.0 scale.
"Institution of higher education." Any of the following:
(1) A State-owned institution.
(2) An approved institution in the agency's State Higher
Education Grant Program.
"Loan." A STEM HELP loan given under section 5.
"State-owned institution." An institution that is part of
the State System of Higher Education under Article XX-A of the
act of March 10, 1949 (P.L.30, No.14), known as the Public
School Code of 1949.
"STEM HELP." The Science, Technology, Engineering and Math
Higher Education Loan Program.
"Student." A school-age resident of this Commonwealth who
attends or is about to attend an institution of higher
education.
Section 3. Question.
(a) Submission of question to electors.--The question of
incurring indebtedness of $50,000,000 for the establishment of a
fund for the support of a program designed to meet the financial
needs of full-time students shall be submitted to the electors
at the next primary, municipal or general election following the
effective date of this act.
(b) Certification.--The Secretary of the Commonwealth shall
certify the question to the county board of elections.
(c) Form of question.--The question shall be in
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substantially the following form:
Do you favor the incurring of indebtedness of
$50,000,000 to build the corpus of a trust fund for
the support of a revolving loan program designed to
meet the financial needs of Pennsylvania students who
attend institutions of higher education; major in
science, technology, engineering or mathematics; have
high grade point averages and commit to remain in
Pennsylvania for a set period of time following
graduation?
(d) Election.--The election shall be conducted in accordance
with the act of June 3, 1937 (P.L.1333, No.320), known as the
Pennsylvania Election Code.
(e) Approval.--If the question under this section is
approved by the electors, the Commonwealth shall incur the
indebtedness which is authorized under this section.
Section 4. The STEM HELP Trust Fund.
(a) Establishment.--The STEM HELP Trust Fund is established
as a special fund in the State Treasury.
(b) Purpose.--The fund shall be the source from which all
payments are to be made to carry out the purposes of the
Science, Technology, Engineering and Math Higher Education Loan
Program under section 5.
(c) Administration and audit.--The fund shall be
administered by the Department of Revenue and subject to audit
by the Department of the Auditor General.
(d) Funding sources.--The fund shall consist of the
following funding sources:
(1) Proceeds of the indebtedness authorized under
section 3.
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(2) Donations and contributions from all public and
private sources, including the Federal Government and any
appropriation or transfer authorized by the General Assembly.
(3) All interest earned by the fund.
(4) Proceeds of all refunds and repayments of loans.
(e) Use.--The money in the fund shall be appropriated on a
continuing basis to the Science, Technology, Engineering and
Math Higher Education Loan Program established under section 5.
Section 5. The Science, Technology, Engineering and Math Higher
Education Loan Program.
(a) Establishment.--The Science, Technology, Engineering and
Math Higher Education Loan Program is established within the
agency to assist students who meet all of the requirements under
this act.
(b) Contents of application.--An application for a STEM HELP
loan shall include all of the following:
(1) All information and documentation required by the
agency, including a promissory note.
(2) A verified statement of grade point average as of
the date of application from the appropriate educational
institution.
(3) If the student is 18 years of age or under, the
signature of a parent or guardian.
(c) Time of application.--A student shall submit an
application under subsection (b) during the student's senior
year of high school or as otherwise approved by the agency.
(d) Issuance of loan.--The following shall apply to the
issuance of a loan:
(1) The agency shall issue a loan to students who meet
the requirements, criteria and conditions under subsections
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(e) and (f) on a first-come, first-served basis. The agency
shall issue not more than 100 loans for the first fiscal year
and not more than 50 loans for each subsequent fiscal year.
(2) A loan may be issued to a student only upon
confirmation of enrollment from an approved institution of
higher education in which the student has enrolled full time
in an approved course of study. The maximum amount for a loan
per student is $20,000 per year.
(3) A loan shall be available for a maximum period of
four years and only for completion of a baccalaureate degree.
A student shall be required to verify information each year
of the period of the loan on a form prescribed by the agency.
(4) A loan shall only be used for tuition and
institutionally approved educational expenses.
(e) Eligibility.--To be eligible to receive a loan, a
student must:
(1) Be eligible for in-State tuition at an institution
of higher education.
(2) Possess a cumulative high school grade point average
of 3.5 or higher for the student's sophomore, junior and
senior years of high school. If a student has attended an
alternative education program, the agency shall determine
whether the student has met this requirement.
(3) Have an annual family income of not more than
$100,000 at the time of application.
(4) Be enrolled full time in an approved course of study
at an institution of higher education.
(f) Conditions.--If a student meets the requirements under
subsection (e), a student shall be awarded a loan, provided that
the student complies with all of the following:
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(1) The student enters into a written agreement with the
agency to pay 5% of the student's annual salary for 20 years
after graduation to the STEM HELP Trust Fund established
under section 4.
(2) The student enters into a written agreement with the
agency to maintain Pennsylvania residency for five years
after completion of an undergraduate degree. If the student
fails to comply with the terms of the written agreement under
this paragraph, the student shall pay an additional 2% of the
student's annual salary for the remainder of the agreement
under paragraph (1).
(3) The student applies for the Free Application for
Federal Student Aid each year during the term of the loan,
and the student uses all other available Federal and State
loans or grants before using the loan under this act.
(g) Maintenance.--The following shall apply:
(1) A student must remain enrolled full time in an
approved course of study and maintain a grade point average
of 3.5 or higher during each semester at an approved
institution of higher education through the term of the loan,
unless the agency determines that there are extenuating
circumstances, including, but not limited to, approved
medical or personal leave of absence.
(2) In the event that a student receives a grade point
average below 3.5 during the four years at an approved
institution of higher education, the agency shall:
(i) If the student receives a grade point average of
3.0 or higher, permit the student to receive a loan for
one additional semester.
(ii) If the student receives a grade point average
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below 3.0, terminate the loan.
(3) In the event a student fails to remain enrolled full
time in an approved course of study, the agency shall
terminate the loan.
(h) Term of loan.--The loan shall be for a maximum of four
academic years.
(i) Termination or transfer of enrollment.--The following
shall apply:
(1) Unless otherwise provided under paragraph (3), if a
student who has received a loan terminates enrollment at the
institution of higher education, the institution of higher
education shall notify the agency in writing and shall return
all unused portions of the loan.
(2) Returned amounts shall be deposited in the STEM HELP
Trust Fund established under section 4.
(3) A student may transfer a loan from one institution
of higher education to another institution of higher
education as long as the student continues to be enrolled in
an approved course of study. The transfer of a loan shall not
extend the four-year maximum period of the loan.
(j) Loan termination.--If a loan is terminated under
subsection (g) or (i), the student shall be required to repay
any portion of the loan that was used and not returned to the
agency. The agency may permit a student to arrange to repay the
loan by a payment plan.
Section 6. Administration.
(a) Verification.--The agency shall monitor and verify a
student's compliance with all the requirements of the program.
(b) Enforcement.--The agency shall enforce repayment of all
loans for all students who participate in the program under
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section 5. Enforcement includes use of all lawful collection
procedures and the use of private collection agencies.
(c) Exclusion from taxation.--No loan received by a student
shall be considered taxable income for purposes of Article III
of the act of March 4, 1971 (P.L.6, No.2), known as the Tax
Reform Code of 1971.
(d) Repayment.--The student's payment obligation begins in
the first calendar year in which the student obtains employment
after the student graduated from or stopped attending the
approved institution of higher education in which the student
was enrolled and the student's adjusted gross income from that
employment in that year exceeds the Federal poverty level.
(e) Regulations.--The agency shall adopt regulations and
procedures necessary to carry out the purposes of this act.
Section 7. Report to the General Assembly.
Ten years after the effective date of this section, the
agency shall provide a report to the General Assembly relating
to the implementation and administration of the program, the
program's effectiveness and sustainability and any
recommendations for changes to the program.
Section 8. Publication in Pennsylvania Bulletin.
If the question under section 3 is approved by the electors,
the Secretary of the Commonwealth shall, within 180 days from
the date of approval, forward notice of the approval to the
Legislative Reference Bureau for publication in the Pennsylvania
Bulletin. The notice shall include the date on which the
question was approved.
Section 9. Effective date.
This act shall take effect as follows:
(1) Section 3 and this section shall take effect
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immediately.
(2) The remainder of this act shall take effect upon
publication of the notice in the Pennsylvania Bulletin under
section 8.
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