93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
SB3025

 

Introduced 2/6/2004, by Kimberly A. Lightford

 

SYNOPSIS AS INTRODUCED:
 
New Act

    Creates the Loan Assumption for Teachers Act. Provides that a person who is enrolled in a postsecondary education institution is eligible to enter into an agreement for loan assumption upon becoming employed as a teacher if he or she is judged to have outstanding ability and agrees to teach full time in a public school in this State for at least 4 consecutive school years after obtaining a teaching certificate (i) in a subject area that is designated as a current or projected shortage area by the State Superintendent of Education or (ii) at a school that at the time that the teacher is hired serves a large population of pupils from low-income families or is a low-performing school. Effective immediately.


LRB093 21122 NHT 47176 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3025 LRB093 21122 NHT 47176 b

1     AN ACT concerning education.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 1. Short title. This Act may be cited as the Loan
5 Assumption for Teachers Act.
 
6     Section 5. Legislative findings, declarations, and intent.
7     (a) The General Assembly finds and declares all of the
8 following:
9         (1) There is a growing shortage of high-quality
10     classroom teachers, and there is a need for qualified
11     teachers throughout this State.
12         (2) One of the most important elements in a pupil's
13     success at learning is the quality of the teacher.
14         (3) The teacher shortage is most serious in particular
15     subject areas, partly due to the shortage of students in
16     these fields who enter the teaching profession.
17         (4) Many school districts have difficulty recruiting
18     and retaining high-quality teachers for low-performing
19     schools, for pupils with special needs, and for schools
20     serving rural areas or large populations of pupils from
21     low-income and linguistic minority families.
22         (5) The rising costs of higher education, coupled with
23     a shift in available financial aid from scholarships and
24     grants to loans, make loan repayment options an important
25     consideration in a student's decision to pursue a
26     postsecondary education.
27         (6) The availability of financial aid and loan
28     repayment assistance are important considerations for many
29     students, especially economically disadvantaged students,
30     in making their educational decisions.
31     (b) It is, therefore, the intent of the General Assembly
32 that all of the following occur:

 

 

SB3025 - 2 - LRB093 21122 NHT 47176 b

1         (1) That the loan assumption for teachers program
2     authorized under this Act be designed to encourage persons
3     to enter into the teaching profession in designated subject
4     matter shortage areas and in schools serving large
5     populations of pupils from low-income families and schools
6     serving rural areas.
7         (2) That this Act accomplish all of the following:
8             (A) Provide outstanding postsecondary education
9         students, particularly economically disadvantaged
10         students, with the assurance of financial assistance
11         to encourage them to complete postsecondary education
12         programs leading to teacher certification and to seek
13         employment as teachers.
14             (B) Provide persons who agree to become teachers in
15         a subject matter shortage area with the assurance of
16         financial assistance to encourage them to complete the
17         coursework necessary to obtain a teaching certificate.
18             (C) Identify subject matter areas or schools in
19         which there are shortages of teachers and provide
20         incentives for persons to obtain teacher certification
21         and seek teaching positions in those areas.
22             (D) Identify schools serving rural areas and
23         schools serving large populations of students from
24         low-income families and provide incentives for persons
25         to obtain teacher certification and seek teaching
26         positions in those schools.
27             (E) Identify low-performing schools and provide
28         incentives for persons to obtain teacher certification
29         and seek teaching positions in those schools.
30         (3) That commencing with the 2005-2006 school year, all
31     persons eligible to enter into agreements for loan
32     assumption pursuant to this Act shall be persons who need
33     to complete training or coursework in order to be certified
34     as a teacher and who agree to obtain a teaching certificate
35     and teach in a designated subject matter shortage area or
36     in a school that, at the time that the teacher is hired,

 

 

SB3025 - 3 - LRB093 21122 NHT 47176 b

1     meets any of the following criteria:
2             (A) Serves a large population of pupils from
3         low-income families.
4             (B) Is a low-performing school.
5         (4) That funding necessary for the administration of
6     this Act shall be included within the annual budget of the
7     Commission in an amount necessary to meet the student loan
8     obligations incurred by the Commission.
 
9     Section 10. Definitions. In this Act:
10     "Commission" means the Illinois Student Assistance
11 Commission.
12     "Eligible institution" means a postsecondary education
13 institution in this State that is determined by the Commission
14 to meet all of the following requirements:
15         (1) The institution is eligible to participate in State
16     and federal financial aid programs.
17         (2) The institution is a recognized teacher training
18     institution, as defined in Section 21-21 of the School
19     Code, operating a program of preparation for teacher
20     certification.
21     "Low-performing school" means a school on the State Board
22 of Education's academic watch list under Section 2-3.25d of the
23 School Code at the time that the teacher is hired.
 
24     Section 15. Eligibility for loan assumption.
25     (a) Any person enrolled in an eligible institution is
26 eligible to enter into an agreement for loan assumption, to be
27 redeemed pursuant to Section 25 of this Act upon becoming
28 employed as a teacher, if he or she meets the requirements set
29 forth in this Section. In order to be eligible to enter into an
30 agreement for loan assumption, an applicant must satisfy all of
31 the following conditions:
32         (1) The applicant (i) has completed at least 60
33     semester units or the equivalent at a postsecondary
34     education institution and (ii) is enrolled in an academic

 

 

SB3025 - 4 - LRB093 21122 NHT 47176 b

1     program leading to a baccalaureate degree at an eligible
2     institution or has been admitted to a program of
3     preparation for teacher certification at an eligible
4     institution.
5         (2) The applicant is enrolled or has been admitted to a
6     program in which he or she will be enrolled on at least a
7     half-time basis, as determined by the participating
8     eligible institution. The applicant shall agree to
9     maintain satisfactory academic progress and a minimum of
10     half-time enrollment, as defined by the participating
11     eligible institution.
12         (3) The applicant has been judged by his or her
13     eligible institution to have outstanding ability on the
14     basis of criteria that may include without limitation any
15     of the following:
16             (A) Grade point average.
17             (B) Test scores.
18             (C) Faculty evaluations.
19             (D) Interviews.
20             (E) Other recommendations.
21         (4) The applicant has received or is approved to
22     receive a loan under one or more of the following
23     designated loan programs:
24             (A) The Federal Family Education Loan Program (20
25         U.S.C. 1071 and following).
26             (B) Any loan program approved by the Commission.
27         (5) The applicant has agreed to teach full time in a
28     public elementary or secondary school in this State for at
29     least 4 consecutive school years after obtaining a teaching
30     certificate (i) in a subject area that is designated as a
31     current or projected shortage area by the State
32     Superintendent of Education or (ii) at a school that, at
33     the time that the teacher is hired, meets any of the
34     following criteria:
35             (A) It serves a large population of pupils from
36         low-income families, as designated by the State

 

 

SB3025 - 5 - LRB093 21122 NHT 47176 b

1         Superintendent of Education.
2             (B) It is a low-performing school.
3     (b) An applicant who has completed fewer than 60 semester
4 units or the equivalent at a postsecondary education
5 institution is not eligible under this Section to participate
6 in the loan assumption program set forth in this Act.
7     (c) The agreements entered into each year pursuant to
8 subsection (a) of this Section at each eligible institution or
9 participating school district or regional office of education
10 must be with applicants who meet the criteria specified in
11 paragraph (3) of subsection (b) of Section 5 of this Act or
12 agree to teach in any of the subject areas listed pursuant to
13 Section 5 of this Act. An agreement shall remain valid even if
14 the subject area under which an applicant becomes eligible to
15 enter into an agreement ceases to be a designated shortage
16 field by the time the applicant becomes a teacher.
17     (d) A person participating in the loan assumption program
18 pursuant to this Section shall not enter into more than one
19 agreement.
 
20     Section 20. Lists furnished by State Superintendent. The
21 State Superintendent of Education shall furnish the Commission
22 with all of the following:
23         (1) Commencing January 1, 2006 and every January 1
24     thereafter, a list of teaching fields that have the most
25     critical shortage of teachers. The State Superintendent of
26     Education shall review this list annually and revise the
27     list as he or she deems necessary.
28         (2) A list of schools that serve a large population of
29     pupils from low-income families, as designated for
30     purposes of the Perkins Loan Program or according to
31     standards the State Superintendent of Education deems
32     appropriate.
33         (3) Commencing January 1, 2006 and every January 1
34     thereafter, a list of schools serving rural areas. The list
35     shall be established according to standards deemed

 

 

SB3025 - 6 - LRB093 21122 NHT 47176 b

1     appropriate by the State Superintendent of Education.
2         (4) Commencing January 1, 2006 and every January 1
3     thereafter, a list of low-performing schools.
 
4     Section 25. When payments commence. The Commission shall
5 commence loan assumption payments, as specified in Section 30
6 of this Act, upon verification that the applicant has fulfilled
7 all of the following:
8         (1) The applicant has received a teaching certificate.
9         (2) The applicant has provided full-time classroom
10     instruction in a public elementary or secondary school in
11     this State for the equivalent of one school year.
12         (3) The applicant has met the requirements of the loan
13     assumption agreement and all other pertinent conditions of
14     this Act.
 
15     Section 30. Terms of loan assumption. The terms of a loan
16 assumption granted under this Act shall be as follows, subject
17 to the specific terms of each loan assumption agreement:
18         (1) After a program participant has completed one
19     school year of full-time classroom instruction in a public
20     elementary or secondary school in this State, the
21     Commission shall assume up to $2,000 of the participant's
22     outstanding liability under one or more of the designated
23     loan programs.
24         (2) After a program participant has completed 2
25     consecutive school years of full-time classroom
26     instruction in a public elementary or secondary school in
27     this State, the Commission shall assume up to an additional
28     $3,000 of the participant's outstanding liability under
29     one or more of the designated loan programs, for a total
30     loan assumption of up to $5,000.
31         (3) After a program participant has completed 3
32     consecutive school years of full-time classroom
33     instruction in a public elementary or secondary school in
34     this State, the Commission shall assume up to a maximum of

 

 

SB3025 - 7 - LRB093 21122 NHT 47176 b

1     an additional $3,000 of the participant's outstanding
2     liability under one or more of the designated loan
3     programs, for a total loan assumption of up to $8,000.
4         (4) After a program participant has completed 4
5     consecutive school years of full-time classroom
6     instruction in a public elementary or secondary school in
7     this State, the Commission shall assume up to a maximum of
8     an additional $3,000 of the participant's outstanding
9     liability under one or more of the designated loan
10     programs, for a total loan assumption of up to $11,000.
 
11     Section 35. Out-of-state teachers. Notwithstanding
12 paragraph (3) of subsection (b) of Section 5 of this Act and
13 notwithstanding Section 45 of this Act, for the purpose of the
14 recruitment of teachers from outside this State, the Commission
15 may make loan assumption agreements with out-of-state teachers
16 who fulfill the terms of Section 30 of this Act and are
17 otherwise eligible to enter into agreements. A teacher who
18 enters into an agreement pursuant to this Section shall hold a
19 valid teaching certificate, in the subject area of the Illinois
20 teaching position, from the state in which he or she resides.
 
21     Section 40. Other loan assumption benefits. In addition to
22 the amounts set forth in Section 30 of this Act, for each of
23 the 4 school years of classroom instruction referenced in
24 Section 30 of this Act, the following loan assumption benefits
25 shall be granted:
26         (1) $1,000 of additional liability per year shall be
27     assumed for a person who holds a certificate appropriate
28     for teaching and who teaches mathematics, science, or
29     special education.
30         (2) $1,000 of additional liability per year shall be
31     assumed for a person who teaches in a school in the lowest
32     20th percentile of low-performing schools. Eligibility for
33     the benefit set forth in this paragraph (2) shall be
34     limited to a person who holds a certificate appropriate for

 

 

SB3025 - 8 - LRB093 21122 NHT 47176 b

1     teaching and who teaches mathematics, science, or special
2     education.
3         (3) Not more than a total of $5,000,000 shall be
4     expended in any school year for the purposes of this
5     Section.
 
6     Section 45. Distribution of program information. The
7 Commission shall distribute loan assumption program
8 information and student applications to participate in the loan
9 assumption program authorized under this Act to each eligible
10 institution and to each school district and regional office of
11 education. Each eligible institution shall receive at least one
12 application, and the remainder shall be distributed to eligible
13 institutions proportionate to the number of teaching
14 candidates from each institution who completed the coursework
15 required for a teaching certificate during the previous year.
16 In addition, the Commission shall examine its outreach and
17 marketing strategies to inform both potential undergraduates
18 and persons employed outside of academia about the availability
19 and benefits of the loan assumption program. To this end, the
20 Commission shall enlist the advice and support of the public
21 universities in this State.
 
22     Section 50. Institutional agreement. Each eligible
23 institution, school district, and regional office of education
24 shall sign an institutional agreement with the Commission,
25 certifying its intent to administer the loan assumption program
26 authorized under this Act according to all applicable published
27 rules and guidelines and to make special efforts to notify
28 persons regarding the availability of the program,
29 particularly economically disadvantaged students at eligible
30 institutions.
 
31     Section 55. Coordination with other programs. To the extent
32 feasible, each eligible institution shall coordinate the loan
33 assumption program authorized under this Act with other

 

 

SB3025 - 9 - LRB093 21122 NHT 47176 b

1 programs designed to recruit students to enter the teaching
2 profession.
 
3     Section 60. Administration; rules.
4     (a) The Commission shall administer this Act and shall
5 adopt rules for that purpose. The rules shall include without
6 limitation provisions regarding the period of time during which
7 an agreement shall remain valid, the reallocation of resources
8 in light of agreements that are not utilized by program
9 participants, the failure, for any reason, of a program
10 participant to complete a minimum of 4 consecutive school years
11 of classroom instruction, and the development of projections
12 for funding purposes.
13     (b) The Commission shall solicit the advice of
14 representatives from postsecondary education institutions, the
15 State Board of Education, the State Teacher Certification
16 Board, school districts, and regional offices of education
17 regarding proposed rules.
 
18     Section 65. Annual report. The Commission shall report
19 annually to the General Assembly regarding all of the
20 following, on the basis of sex, age, and ethnicity:
21         (1) The total number of loan assumption program
22     participants.
23         (2) The number of loan assumption agreements entered
24     into with juniors and seniors at eligible institutions.
25         (3) The number of participants who agree to teach in a
26     subject matter shortage area.
27         (4) The number of participants who agree to teach in
28     schools with a high ratio of pupils from low-income
29     families and in low-performing schools.
30         (5) The number of participants who agree to teach in
31     schools serving rural areas.
32         (6) The number of participants who receive a loan
33     assumption benefit, classified by payment year.
34         (7) The number of out-of-state teachers who enter into

 

 

SB3025 - 10 - LRB093 21122 NHT 47176 b

1     the agreements.
 
2     Section 70. Limits on loan assumption; priorities.
3     (a) For the 2005-2006 school year, the Commission shall
4 issue warrants for the assumption of up to 5,500 student loans
5 for program participants eligible under this Act.
6     (b) Commencing with the 2006-2007 school year and each
7 school year thereafter, all of the following apply:
8         (1) The Commission shall enter into agreements for the
9     assumption of up to 6,500 student loans for program
10     participants eligible under this Act.
11         (2) Notwithstanding the limitation of 6,500 warrants
12     set forth in paragraph (1) of this subsection (b), the
13     Commission shall issue warrants in a quantity determined by
14     the Governor and the General Assembly through
15     appropriations for the assumption of student loans under
16     this Act.
17         (3) Priority for these loan assumption agreements
18     shall be given to applicants who are recipients of
19     federally subsidized loans or other need-based loans, as
20     determined by the Commission.
21         (4) Priority for these loan assumption agreements
22     shall be given to applicants who agree to obtain a teaching
23     certificate to teach in mathematics or science.
24     (c) The issuance of warrants under this Act in any fiscal
25 year shall be subject to appropriation.
 
26     Section 999. Effective date. This Act takes effect upon
27 becoming law.