Regular Session 2021-2022 House Bill 2247 P.N. 2604

PRINTER'S NO. 2604

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

2247

Session of

2022

INTRODUCED BY YOUNG, MERSKI, SANCHEZ, D. WILLIAMS, SCHLOSSBERG,

GUZMAN, GUENST, CIRESI, MALAGARI, HILL-EVANS, DEASY, SIMS,

PARKER AND N. NELSON, JANUARY 14, 2022

REFERRED TO COMMITTEE ON EDUCATION, JANUARY 14, 2022

AN ACT

Establishing the Pennsylvania Teacher Loan Forgiveness Program.

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 Pennsylvania

Teacher Loan Forgiveness 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.

"Award." A financial award by the agency to a qualified

applicant under the program.

"Program." The Pennsylvania Teacher Loan Forgiveness Program

established under section 3.

"Qualified applicant." An individual who:

(1) Is a current resident of this Commonwealth.

(2) Currently holds a valid teaching certification

issued by the Pennsylvania Department of Education.

(3) Has successfully completed a four-year academic

degree or diploma or graduate level academic degree or

diploma at an accredited college or university.

(4) Holds a current part-time or full-time teaching

position in a public school in this Commonwealth, during the

year for which the applicant is applying, and remains in good

standing with the school entity.

(5) Is a recipient of a federally insured student loan.

"Recipient." A qualified applicant who is selected for the

program and who enters into a contract with the Commonwealth

under the program.

"School entity." Any public school, including a charter

school or cyber charter school, intermediate unit or area career

and technical school, operating in this Commonwealth.

"Teacher." A professional employee who provides direct

instruction to students related to a specific subject or grade

level and is certificated in accordance with the qualifications

established by the State Board of Education.

Section 3. Pennsylvania Teacher Loan Forgiveness Program.

(a) Establishment.--The Pennsylvania Teacher Loan

Forgiveness Program is established in the agency.

(b) Components.--The following shall 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

the qualified applicant through the agency-administered

guaranteed Stafford or consolidation loan programs for the

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education necessary to be a school teacher in this

Commonwealth if the recipient enters into a contract with the

agency that requires the recipient to remain employed as a

school teacher in this Commonwealth.

(2) The agency may forgive 25% of the loan each year up

to a maximum of $10,000 per year for up to a maximum of four

years. No more than $40,000 total shall be forgiven for a

recipient.

(3) The agency shall determine a proportional

forgiveness amount for part-time teachers based on the

proportion of a full year that those recipients worked.

(4) Payments shall be made in accordance with the

regulations established by the agency.

(5) 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 teacher as specified under this section by a

school entity located within this Commonwealth for a

period of no less than four consecutive years.

(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) A recipient who fails 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.

(vi) If a person is laid off from the school entity

but is rehired by a school entity within the same school

year or upcoming school year, they will not lose

eligibility.

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.

No award received by a recipient under the program may 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) Publication.--The agency shall publish a report by

October 1, 2021, 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

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cause.

(3) The number of part-time or full-time teachers of

school entities participating in the program, reported by

type of institution attended, including four-year educational

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 chairperson and minority chairperson of the

Appropriations Committee of the Senate, the chairperson and

minority chairperson of the Appropriations Committee of the

House of Representatives, the chairperson and minority

chairperson of the Education Committee of the Senate and the

chairperson and minority chairperson of the Education 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.

A recipient shall submit documentation of eligibility as the

agency may require, including documentation to indicate full-

time or part-time employment, as defined by the 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, whether the recipient

is employed full-time or part-time, and that the recipient

performs duties in a satisfactory manner.

Section 8. Funding.

Program administration under this act shall be made to the

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extent that money is appropriated by the General Assembly and is

sufficient to cover the administration of the program. In the

event funding is insufficient to fully fund administration of

the program and all qualified applicants, funds shall be

disbursed pro rata among recipients. In the event the program is

fully funded and all qualified applicants have received the full

amount for which they had been contracted to receive, the

remaining funds shall remain in the fund to be utilized in the

following year.

Section 9. Responsibility of agency.

The agency shall adopt regulations, policies, procedures and

forms as are necessary for the implementation of this act.

Section 10. Effective date.

This act shall take effect in 60 days.

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