March 30, 2006, Introduced by Senators JACOBS, BASHAM, SCOTT, PRUSI, GARCIA, LELAND and CASSIS and referred to the Committee on Appropriations.
A bill to establish a grant program for the repayment of state
and federal loans of eligible teachers holding endorsements as
science or mathematics teachers; to establish a fund for payment of
grants awarded under this act; to provide for administration of the
fund; and to prescribe certain powers and duties of certain state
officers, agencies, and departments.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"capital target education act".
Sec. 2. As used in this act:
(a) "Authority" means the Michigan higher education assistance
authority created by 1960 PA 77, MCL 390.951 to 390.961.
(b) "Eligible debt" means the total unpaid principal balance
of an individual's state and federal student loans obtained during
his or her first 5 years of enrollment in a teacher education
program at a public or private college or university or community
college, calculated at the time the individual first applies for a
grant under this act, or $25,000.00, whichever is less.
(c) "Fund" means the science and mathematics teachers grant
fund created in section 6.
(d) "Grant" means money awarded to an individual under this
act in an amount determined under section 5.
Sec. 3. (1) The science and mathematics teachers grant program
is created, to be administered by the authority. Subject to
appropriation, the authority shall do all of the following:
(a) Award grants to eligible teachers under this act for the
repayment of eligible debt.
(b) Develop an application form and application process for
teachers applying for grants under this act.
(c) Publicize the grant program established in this act.
(d) Promulgate any rules necessary to implement this act
pursuant to the administrative procedures act of 1969, 1969 PA 306,
MCL 24.201 to 24.328.
(2) The department of education shall notify each college or
university in this state that offers a teacher education program of
the availability of the grant program established in this act.
Sec. 4. The authority may award a grant under section 5 to an
individual determined by the authority to meet all of the following
eligibility criteria at the time of application:
(a) Has eligible debt.
(b) Graduated between 2008 and 2018, in the top 25% of his or
her class, from a teacher education program at a public or private
college or university or community college.
(c) Is a legal resident of this state.
(d) Has not previously defaulted and is not currently in
default on a state or federal student loan.
(e) Is employed and continues employment as a full-time
teacher in this state.
(f) Holds a teaching certificate issued under section 1531 of
the revised school code, 1976 PA 451, MCL 380.1531, and has passed
the subject area examination in science or mathematics described in
that section.
(g) Has submitted a grant application to the authority. The
grant application shall include at least all of the following:
(i) A certification from the applicant that he or she meets the
eligibility criteria described in this section.
(ii) A description of the applicant's outstanding state and
federal student loans that includes for each loan the name,
address, and telephone number of the lender and loan originator,
the name of the loan program, and the outstanding principal balance
of the loan.
(iii) A certification from the applicant that he or she has
applied for all state or federal loan repayment programs applicable
to his or her outstanding state and federal student loans.
(iv) The applicant's agreement to apply any grant money
received under this act to his or her eligible debt within 30 days
of receipt and the applicant's agreement that, if the authority
determines that he or she has not applied the grant money to his or
her eligible debt within 30 days, he or she is not eligible to
participate in this grant program and shall repay any grant money
received under this act plus 6% annual interest. The authority
shall deposit any money it receives from any repayment described in
this subparagraph into the fund.
(h) Has met any other requirements established by the
authority.
Sec. 5. (1) The authority shall award an individual eligible
under section 4 a grant under this subsection. Subject to
subsection (2) and to adjustment under subsection (3), the maximum
aggregate amount of the grant is an amount equal to the
individual's eligible debt. Before each consecutive year of
continuous teaching in a school in this state, for up to 10
consecutive years, the authority shall award a partial grant in an
amount equal to 10% of the amount of the individual's eligible
debt.
(2) A grant under subsection (1) shall be reduced by an amount
equal to the amount the individual is entitled to receive from any
state or federal loan repayment program applicable to the
applicant's outstanding student loans.
(3) In any state fiscal year, the authority may adjust the
amount of each partial grant under subsection (1) on a pro rata
basis, based upon its determination of money available from the
fund and from appropriations in that fiscal year. If it makes an
adjustment under this subsection, the authority shall notify each
grant recipient of his or her obligation to continue to make
payments of principal and interest on his or her eligible debt in
the manner described in his or her student loan documents.
Sec. 6. (1) The science and mathematics teachers grant fund is
created as a separate fund in the state treasury, to be
administered by the department of treasury. The department of
treasury may accept money for the fund from any source. The state
treasurer shall deposit that money and credit the amount to the
fund. The department of treasury shall use the fund only to provide
money to the authority for grants awarded under this act.
(2) The state treasurer shall direct the investment of the
fund money and shall credit earnings to the fund.
(3) Money in the fund at the end of a fiscal year shall not
revert to the general fund but shall be carried over in the fund to
the next fiscal year.