Establishes the rural teacher education loan repayment program in the education department which provides payment for the undergraduate and graduate education loans of teachers in rural school districts who agree to teach in rural areas for at least 5 years.
STATE OF NEW YORK
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4838
2019-2020 Regular Sessions
IN SENATE
March 27, 2019
___________
Introduced by Sens. SEWARD, LITTLE -- read twice and ordered printed,
and when printed to be committed to the Committee on Higher Education
AN ACT to amend the education law, in relation to establishing the rural
teacher education loan repayment program
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The education law is amended by adding a new section 676-a
2 to read as follows:
3 § 676-a. Rural teacher education loan repayment program. 1. Defi-
4 nitions. For the purposes of this section:
5 a. "Rural school district" shall mean a school district providing
6 services within a rural area.
7 b. "Rural area" shall mean a county with a population of two-hundred
8 thousand or less; or a town with a population density of one hundred
9 fifty or less per square mile.
10 c. "Student loan expenses" shall mean the aggregate total of annual
11 student loans for the cost of attendance at an undergraduate and/or
12 graduate institution leading to teaching certification. Interest paid or
13 due on such loans shall be deemed to be eligible for reimbursement
14 pursuant to this section.
15 2. Establishment. a. There shall be established within the department
16 the rural teacher education loan repayment program. The department
17 shall, in cooperation and coordination with the New York state center
18 for rural schools, annually identify rural school districts which are
19 having difficulty attracting and retaining teachers, and develop crite-
20 ria upon which awards shall be made to teachers who become employed by
21 such identified rural school districts who agree to provide teaching
22 services within such rural area for not less than five years.
23 b. The commissioner is authorized, within amounts made available for
24 the purposes of this section, to make awards beginning January first,
25 two thousand twenty, to a teacher who as determined by the commissioner
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04027-01-9
S. 4838 2
1 to be taking employment in a rural area identified as being underserved,
2 who is licensed to teach in this state and who agrees to for at least
3 five years teach in such rural area. Such a teacher shall be eligible
4 for a loan repayment award of up to twenty thousand dollars per year.
5 3. Awards. Rural teacher education loan repayment awards shall be
6 awarded annually. Such awards shall be allocated by the president in
7 accordance with the criteria established pursuant to subdivision two of
8 this section.
9 4. Limit on awards. Loan repayment awards made to a teacher pursuant
10 to subdivision two of this section shall not exceed the total qualifying
11 outstanding debt of the teacher from student loans to cover tuition and
12 other related educational expenses, made by or guaranteed by the federal
13 or state government, or made by a lending or educational institution
14 approved under title IV of the federal higher education act. Loan repay-
15 ment awards shall be used solely to repay such outstanding debt.
16 5. Default. Within such time as the commissioner shall by regulation
17 provide, a recipient of an award shall have practiced as a teacher in an
18 rural area in the state. If a recipient fails to comply fully with such
19 conditions, the president shall be entitled to receive from such recipi-
20 ent an amount to be determined by the formula:
21 A = 2B(t-s)
22 ______
23 t
24 in which "A" is the amount the president is entitled to recover, "B" is
25 the sum of all payments made to the recipient and the interest on such
26 amount which would be payable if at the times such awards were paid they
27 were loans bearing interest at the maximum prevailing rate; "t" is the
28 total number of months in the recipient's period of obligated services;
29 and "s" is the number of months of services actually rendered by the
30 recipient. Any amount which the president is entitled to recover under
31 this subdivision shall be paid within the five-year period beginning on
32 the date that the recipient failed to comply with this condition. Any
33 obligation to comply with such provisions shall be canceled upon the
34 death of the recipient. The commissioner shall promulgate regulations to
35 provide for the waiver or suspension of any financial obligation when
36 compliance would involve extreme hardship.
37 6. Rules. The commissioner shall consult with the New York state
38 center for rural schools, and the commissioner, in coordination with the
39 corporation, shall promulgate regulations to effectuate the provisions
40 and purposes of this section.
41 § 2. This act shall take effect on the one hundred twentieth day after
42 it shall have become a law; provided, however, that effective immediate-
43 ly, the addition, amendment and/or repeal of any criteria, rule or regu-
44 lation necessary for the implementation of this act on its effective
45 date are authorized and directed to be made and completed on or before
46 such effective date.