Bill #3

AN ACT RELATING TO FINANCIAL SUPPORT FOR PRINCIPALS

Article: EDUCATION

CHAPTER 1.PRINCIPAL LOAN PROGRAM

The purpose of this program shall be to support current school principals and assistant principals to stay in high-need schools and districts across the state through the provision of meaningful financial aid.

SECTION 1. Establishment of Loan-Assistance Program

a)The governor shall establisha loan-assistance program for the purpose of student loan repayment assistance to [insert state] principalswho are working in a high-needschool or district, as determined by the state education agency.

  1. The state shall pay loan funds directly to an accredited college/university or loan servicer for credit to an eligible candidate’s account.

SECTION 2. Eligibility Criteria for Loan Assistance Program

a)To be eligible to receive loan assistance for the purposes of this part, an applicant must:

  1. Be a certified principal or assistant principalwhose first school leadership position in the state began after July 1, 2008.
  2. Be working in a high-needschool or district, as designated by the state education agency.
  3. Have completed an eligible graduate degree program and be employed as a principal or assistant principal in a high-need school or district, as designated by the state.
  4. Owe a balance on an eligible federal student loan as determined by the state education agency. If the outstanding loan balance is less than the maximum forgiveness award, the amount awarded will not exceed the applicant's outstanding principal and interest.
  5. Be in good standing with all federal student loan accounts.
  6. Be a resident of the state.

b)The maximum annual award is 20 percent of the recipient's total eligible federal student loan balance, including principal and interest.

c)The maximum annual award cannot exceed the average resident tuition rate established for students attending a graduate program in the state for the first year following the recipient's graduation.

CHAPTER 2: This legislation shall go into effect no later than July 1, 2017.

SYNOPSIS

Chapter 1: This legislation requires the governor to establish a loan assistance program for the purpose of recruiting and retaining effective educators as principals in high-need areas. The legislation details what criteria an applicant must meet to be eligible for loan assistance. The legislation caps the maximum annual award for loan assistance at 20 percent of the recipient’s total federal student loan balance, as applicable.

Chapter 2: This legislation shall go into effect no later than July 1, 2017.