AN ACT

 

1Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
2act relating to the public school system, including certain
3provisions applicable as well to private and parochial
4schools; amending, revising, consolidating and changing the
5laws relating thereto," in medical education loan assistance,
6further providing for loan guarantor program.

7The General Assembly of the Commonwealth of Pennsylvania
8hereby enacts as follows:

9Section 1. Section 2212-A(b) of the act of March 10, 1949
10(P.L.30, No.14), known as the Public School Code of 1949, added
11October 30, 2001 (P.L.828, No.83), is amended and the section is
12amended by adding a subsection to read:

13Section 2212-A. Loan guarantor program.

14(a) Establishment of program.--The agency shall administer a
15loan guarantor program on a Statewide basis. The agency shall
16utilize funds in the Medical School Loan Account to encourage
17eligible applicants to attend an accredited medical college or
18an approved institution of higher learning.

19(b) Loan Guarantor Program.--The Loan Guarantor Program

1shall provide for the following:

2(1) Life of loan servicing.

3(2) Contracting for insurance with a guarantor, approved
4by the agency, which offers a low-cost loan with competitive
5interest rates and loan fees to eligible applicants.

6(3) Predetermining the eligibility of applicants who
7receive a loan from an offeror to attend an accredited
8medical school or an approved institution of higher learning
9that is insured by a guarantor.

10(4) Evaluating the benefit package of a guarantor for
11adequacy, accessibility and availability of funds necessary
12to provide adequate loss prevention.

13(5) Loan forgiveness.

14* * *

15(j) Loan forgiveness.--A person who receives a loan under
16this section shall receive loan forgiveness to attend medical
17school, if all of the following requirements are met:

18(1) The person is a graduate of a medical school located
19in this Commonwealth.

20(2) The person practices medicine in this Commonwealth
21for a minimum of ten years. If the person practices medicine
22in this Commonwealth for less than ten years the loan
23forgiveness shall terminate the year preceding the person's
24departure from this Commonwealth.

25(3) The person volunteers at least 100 hours of service
26in the health care field each year in which loan forgiveness
27is requested.

28Section 2. This act shall take effect July 1, 2014, or
29immediately, whichever is later.