SB3697 96TH GENERAL ASSEMBLY

LRB096 20388 MJR 36031 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB3697

Introduced 2/11/2010, by Sen. M. Maggie Crotty

SYNOPSIS AS INTRODUCED:

New Act

Creates the Nurse Educator Student Loan Forgiveness Act. Creates the Nurse Educator Student Loan Forgiveness Program to be administered by the Illinois Student Assistance Commission. Provides that the program shall provide loan assistance, subject to appropriation, to eligible students for graduate study. Specifies the maximum loan time period and maximum loan amount. Specifies the requirements for eligibility under the Program. Contains provisions concerning repayment schedules, credits, and penalties for non-compliance with the Program's requirements. Effective July 1, 2010.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning education.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Nurse Educator Student Loan Forgiveness Act.

Section 5. Purpose. The purpose of this Act is to attract capable and promising students to the nurse educator profession, increase employment and retention of individuals who are working towards or who have received a master's degree in nursing or any subject area that qualifies the individual for employment as a nurse educator, and provide opportunities for persons making mid-career decisions to enter the nurse educator profession.

Section 10. Definitions. In this Act:

"Commission" means the Illinois Student Assistance Commission.

"Forgivable loan" means a higher education student loan that a person has incurred in attending a an accredited nursing program.

Section 15. Establishment of program. There is created the Nurse Educator Student Loan Forgiveness Program to be administered by the Illinois Student Assistance Commission. The program shall provide loan assistance, subject to appropriation, to eligible students for graduate study. The Commission shall adopt rules necessary to administer the program.

Section 20. Maximum loan time period; maximum loan amount. Subject to appropriation, a graduate forgivable loan may be awarded for a maximum of 2 academic years. The amount of this loan shall not exceed $8,000 per year.

Section 25. Eligibility. To be eligible for assistance under the Nurse Educator Student Loan Forgiveness Program, an applicant for a graduate forgivable loan must meet all of the following qualifications:

(1) Be a full-time student at the graduate level in an accredited nursing degree program.

(2) Have declared an intent to work in nurse education for at least the number of years for which a forgivable loan is received.

(3) Hold a bachelor's degree from a school or department of nursing from an accredited college or university.

(4) Have maintained an undergraduate cumulative grade point average of at least a 3.0 on a 4.0 scale or have attained a Graduate Record Examination (GRE) score of at least 1,000. If applying for renewal of a graduate forgivable loan, an applicant must have maintained a minimum cumulative grade point average of at least a 3.0 on a 4.0 scale for all graduate work and have earned at least 9 semester credits per term, or the equivalent.

Section 30. Repayment schedule; credit; penalty for non-compliance.

(a) A forgivable loan must be repaid within 10 years after completion of the approved or accredited nursing program. The Commission shall adopt, by rule, repayment schedules, and applicable interest rates.

(b) Credit for repayment of a forgivable loan shall be in an amount not to exceed $4,000 in loan principal plus applicable accrued interest for each full year of eligible service in the nurse education profession. Forgivable loan recipients may receive loan repayment credit for nurse education rendered at any time during the scheduled repayment period. However, such repayment credit shall be applicable only to the current principal and accrued interest balance that remains at the time the repayment credit is earned. No loan recipient shall be reimbursed for previous cash payments of principal and interest.

(c) Any forgivable loan recipient who fails to work, as required under the terms of the loan, is responsible for repaying the loan plus accrued interest at 8% annually.

Section 99. Effective date. This Act takes effect July 1, 2010.