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        PRIOR PRINTER'S NO. 372                       PRINTER'S NO. 2291

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 355 Session of 2001


        INTRODUCED BY BISHOP, C. WILLIAMS, WASHINGTON, TRICH, THOMAS,
           STEELMAN, SHANER, MANDERINO, ROONEY, ROBERTS, FRANKEL,
           M. COHEN, CAPPABIANCA, BELFANTI, HORSEY, LAUGHLIN, STERN,
           WATERS, DeWEESE, COSTA, J. WILLIAMS, JAMES, ORIE, TIGUE,
           BUNT, WOJNAROSKI, BARD, BROWNE, STABACK AND CURRY,
           JANUARY 31, 2001

        AS RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF
           REPRESENTATIVES, AS AMENDED, JUNE 19, 2001

                                     AN ACT

     1  Providing limited student loan forgiveness for qualifying
     2     education professionals and for functions of the Pennsylvania
     3     Higher Education Assistance Agency.

     4     The General Assembly of the Commonwealth of Pennsylvania
     5  hereby enacts as follows:
     6  Section 1.  Short title.
     7     This act shall be known and may be cited as the Education
     8  Professional Loan Forgiveness Act.
     9  Section 2.  Definitions.
    10     The following words and phrases when used in this act shall
    11  have the meanings given to them in this section unless the
    12  context clearly indicates otherwise:
    13     "Agency."  The Pennsylvania Higher Education Assistance
    14  Agency.
    15     "Department."  The Department of Education of the
    16  Commonwealth.

     1     "Qualified applicant."  An individual who meets the following
     2  criteria:
     3         (1)  Is certified by the department to teach and is
     4     employed in a full-time permanent teaching position.
     5         (2)  Is a resident of this Commonwealth.
     6         (3)  Executes a sworn affidavit, under penalty of
     7     perjury, that the individual does not have a delinquent
     8     payment owing to a Commonwealth agency.
     9         (4)  Was hired by the school district for employment for
    10     the school years subsequent to the effective date of this
    11     act.
    12     "School district."  Any of the following:
    13         (1)  A school district of the first class.
    14         (2)  A school district certified by the department as an
    15     education empowerment district under Article XVII-B of the
    16     act of March 10, 1949 (P.L.30, No.14), known as the Public
    17     School Code of 1949.
    18  Section 3.  Education professional loan forgiveness.
    19     (a)  Eligibility.--A qualified applicant is eligible for
    20  payment by the agency of a portion of the debt incurred by the
    21  qualified applicant through the agency-administered guaranteed    <--
    22  student loan FEDERALLY INSURED STUDENT LOAN programs for the      <--
    23  education necessary to successfully complete a specified
    24  bachelor's degree.
    25     (b)  Amount.--For each school year that the applicant is a
    26  full-time permanent professional teacher in the A school          <--
    27  district, the agency may forgive UP TO $2,500 PER YEAR of the     <--
    28  applicant's loan up to a lifetime maximum of $10,000 per
    29  teacher.
    30     (c)  Payment.--Payments shall be made in accordance with the
    20010H0355B2291                  - 2 -

     1  procedures established by the agency. A loan forgiveness award
     2  shall not be made for a loan that is in default at the time of    <--
     3  the application. UPON WHICH THE QUALIFIED APPLICANT IS            <--
     4  DELINQUENT IN PAYMENT AT THE TIME OF APPLICATION.
     5     (d)  Funding.--Loan forgiveness awards may be made to the
     6  extent that funds are appropriated by the General Assembly.
     7  Section 4.  Educational empowerment loan forgiveness.             <--
     8     (a)  Eligibility.--A qualified applicant in an educational
     9  empowerment district is eligible for payment by the agency of a
    10  portion of the debt incurred by the applicant through the
    11  agency-administered guaranteed student loan programs for the
    12  education necessary to successfully complete a specific
    13  bachelor's degree.
    14     (b)  Time period.--Eligibility under this section shall begin
    15  with the establishment of the board of control under section
    16  1705-B(a) of the act of March 10, 1949 (P.L.30, No.14), known as
    17  the Public School Code of 1949, and shall continue until the
    18  department removes the certification of the school district as
    19  an educational empowerment district in accordance with section
    20  1710-B of the Public School Code of 1949.
    21     (c)  Amount.--For each school year that the applicant is a
    22  full-time permanent teacher in the school district and during
    23  which the district is operated by the board of control as an
    24  educational empowerment district, the agency shall forgive
    25  $2,500 of the applicant's loan up to a lifetime maximum of
    26  $10,000 per teacher.
    27     (d)  Payment.--Payments shall be made in accordance with the
    28  procedures established by the agency. A loan forgiveness award
    29  shall not be made for a loan that is in default at the time of
    30  application.
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     1  Section 5 4.  Responsibility of agency.                           <--
     2     The agency shall administer this act and promulgate necessary
     3  regulations to carry out this act.
     4  Section 6 5.  Effective date.                                     <--
     5     This act shall take effect July 1, 2001, OR IMMEDIATELY,       <--
     6  WHICHEVER IS LATER.
















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