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PRINTER'S NO. 148
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
180
Session of
2021
INTRODUCED BY KOSIEROWSKI, SANCHEZ, HILL-EVANS, GALLOWAY,
CONKLIN, FREEMAN, N. NELSON, HOWARD, PASHINSKI, BRADFORD,
ISAACSON AND SCHWEYER, JANUARY 15, 2021
REFERRED TO COMMITTEE ON EDUCATION, JANUARY 15, 2021
AN ACT
Establishing the School Counselor Loan Forgiveness Program and
providing for the powers and duties of 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 School
Counselor Loan Forgiveness Program 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.
"Counselor." Any of the following:
(1) School counselor.
(2) School psychologist.
(3) School social worker.
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"Program." The School Counselor Loan Forgiveness Program
established under section 3.
"Qualified applicant." An individual who meets all of the
following criteria:
(1) Is a resident of this Commonwealth.
(2) Has successfully completed a two-year or four-year
academic degree or diploma or graduate degree or diploma at
an accredited college or university.
(3) Has been hired as a full-time counselor by a school
entity in this Commonwealth.
(4) Has successfully completed the first six months of
full-time employment as a counselor at a school entity in
this Commonwealth and remains in good standing with the
school entity.
(5) Has borrowed through and has a current outstanding
balance with guaranteed Stafford or consolidation loan
programs administered by the agency.
"Recipient." A qualified applicant who is selected for the
program and who enters into a contract with the Commonwealth
under the program.
"School entity." The term as defined in section 111.1(n) of
the act of March 10, 1949 (P.L.30, No.14), known as the Public
School Code of 1949.
Section 3. School Counselor Loan Forgiveness Program.
(a) Establishment.--The School Counselor Loan Forgiveness
Program is established in the agency.
(b) Components.--The following apply:
(1) A qualified applicant who is selected for the
program in accordance with this act shall be eligible for
payment by the agency of a portion of the debt incurred by
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the qualified applicant through the agency-administered
guaranteed Stafford or consolidation loan programs for the
education necessary to be a school counselor in this
Commonwealth if the recipient enters into a contract with the
agency that requires the recipient to remain employed as a
school counselor in this Commonwealth.
(2) The agency may forgive a proportional part of the
recipient's loan so that the loan may be entirely forgiven
over four years of full-time staff work. No more than $10,000
shall be forgiven in a year and no more than $40,000 total
shall be forgiven for a recipient.
(3) Payments shall be made in accordance with the
procedures established by the agency.
(4) The contract entered into with the agency under
paragraph (1) shall be considered a contract with the
Commonwealth and shall include the following terms:
(i) The recipient shall agree to be employed as a
school counselor by a school entity located within this
Commonwealth for a period of no less than four
consecutive years in the field.
(ii) The recipient shall permit the agency to
determine compliance with the work requirement and all
other terms of the contract.
(iii) Upon the recipient's death or total and
permanent disability, the agency shall nullify the
service obligation of the recipient.
(iv) If the recipient is convicted of or pleads
guilty or no contest to a felony, the agency shall have
the authority to terminate the recipient's service in the
program and demand repayment of the amount of the loan as
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of the date of the conviction.
(v) Recipients who fail to begin or complete the
obligations contracted for shall pay to the agency the
amount of the loan received under the terms of the
contract. Providing false information or
misrepresentation on an application or verification of
service shall be deemed a default. Determination as to
the time of the default shall be made by the agency.
(c) Limitation.--A loan forgiveness award under this act
shall not be made for a loan that is in default at the time of
application. Loan forgiveness provided under the provisions of
this act shall not be concurrently awarded to a recipient of
another Commonwealth-provided loan forgiveness program.
Section 4. Tax applicability.
Loan forgiveness repayments by a student shall not be
considered taxable income for purposes of Article II of the act
of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of
1971.
Section 5. Annual report.
(a) Development of report.--The agency shall publish a
report by October 1, 2023, and each year thereafter, for the
immediately preceding fiscal year. The report shall include
information regarding the operation of the program, including:
(1) The number and amount of contracts executed and
renewed for qualified applicants.
(2) The number of defaulted contracts, reported by
cause.
(3) The number of full-time staff employees of school
entities participating in the program, reported by type of
institution attended, including four-year educational
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institutions, community colleges and independent two-year
colleges.
(4) The number and type of enforcement actions taken by
the agency.
(b) Submission.--The annual report shall be submitted to the
Governor, the chair and minority chair of the Appropriations
Committee of the Senate, the chair and minority chair of the
Appropriations Committee of the House of Representatives, the
chair and minority chair of the Education Committee of the
Senate, the chair and minority chair of the Education Committee
of the House of Representatives, the chair and minority chair of
the Health and Human Services Committee of the Senate, the chair
and minority chair of the Health Committee of the House of
Representatives and the chair and minority chair of the Human
Services Committee of the House of Representatives.
Section 6. Appeals.
The provisions of this act shall be subject to 22 Pa. Code
Ch. 121 (relating to student financial aid).
Section 7. Loan forgiveness awards.
Loan forgiveness under this act shall be awarded to
recipients who are working in and have received a satisfactory
rating from a school entity. Recipients shall submit
documentation of eligibility as the agency may require,
including documentation to indicate full-time employment, as
full-time employment is defined by a school entity. The
documentation shall be presented to the agency in the form of a
letter from the recipient's employer stating that the recipient
is employed by a school entity and that the recipient performs
duties in a satisfactory manner.
Section 8. Funding.
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Loan forgiveness awards under this act shall be made to the
extent that money is appropriated by the General Assembly and is
sufficient to cover the administration of the program. In the
event that funding is insufficient to fully fund administration
and all qualified applicants, priority shall be given to renewal
applicants. Thereafter, the agency shall utilize a random
lottery system for determining which qualified applicants
receive loan forgiveness awards.
Section 9. Responsibility of agency.
The agency shall administer the program and shall adopt
regulations, policies, procedures and forms as are necessary and
not inconsistent with the provisions of this act.
Section 10. Effective date.
This act shall take effect in 60 days.
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