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92_SB0903 LRB9203659NTsb 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 5 Loan Assumption for Teachers Act. 6 Section 5. Legislative findings, declarations, and 7 intent. 8 (a) The General Assembly finds and declares all of the 9 following: 10 (1) There is a growing shortage of high-quality 11 classroom teachers, and there is a need for qualified 12 teachers throughout this State. 13 (2) One of the most important elements in a pupil's 14 success at learning is the quality of the teacher. 15 (3) The teacher shortage is most serious in 16 particular subject areas, partly due to the shortage of 17 students in these fields who enter the teaching 18 profession. 19 (4) Many school districts have difficulty 20 recruiting and retaining high-quality teachers for 21 low-performing schools, for pupils with special needs, 22 and for schools serving rural areas or large populations 23 of pupils from low-income and linguistic minority 24 families. 25 (5) The rising costs of higher education, coupled 26 with a shift in available financial aid from scholarships 27 and grants to loans, make loan repayment options an 28 important consideration in a student's decision to pursue 29 a postsecondary education. 30 (6) The availability of financial aid and loan 31 repayment assistance are important considerations for -2- LRB9203659NTsb 1 many students, especially economically disadvantaged 2 students, in making their educational decisions. 3 (b) It is, therefore, the intent of the General 4 Assembly that all of the following occur: 5 (1) That the loan assumption for teachers program 6 authorized under this Act be designed to encourage 7 persons to enter into the teaching profession in 8 designated subject matter shortage areas and in schools 9 serving large populations of pupils from low-income 10 families and schools serving rural areas. 11 (2) That this Act accomplish all of the following: 12 (A) Provide outstanding postsecondary 13 education students, particularly economically 14 disadvantaged students, with the assurance of 15 financial assistance to encourage them to complete 16 postsecondary education programs leading to teacher 17 certification and to seek employment as teachers. 18 (B) Provide persons who agree to become 19 teachers in a subject matter shortage area with the 20 assurance of financial assistance to encourage them 21 to complete the coursework necessary to obtain a 22 teaching certificate. 23 (C) Identify subject matter areas or schools 24 in which there are shortages of teachers and provide 25 incentives for persons to obtain teacher 26 certification and seek teaching positions in those 27 areas. 28 (D) Identify schools serving rural areas and 29 schools serving large populations of students from 30 low-income families and provide incentives for 31 persons to obtain teacher certification and seek 32 teaching positions in those schools. 33 (E) Identify low-performing schools and 34 provide incentives for persons to obtain teacher -3- LRB9203659NTsb 1 certification and seek teaching positions in those 2 schools. 3 (3) That commencing with the 2001-2002 school year, 4 all persons eligible to enter into agreements for loan 5 assumption pursuant to this Act shall be persons who need 6 to complete training or coursework in order to be 7 certified as a teacher and who agree to obtain a teaching 8 certificate and teach in a designated subject matter 9 shortage area or in a school that, at the time that the 10 teacher is hired, meets any of the following criteria: 11 (A) Serves a large population of pupils from 12 low-income families. 13 (B) Is a low-performing school. 14 (4) That funding necessary for the administration 15 of this Act shall be included within the annual budget of 16 the Commission in an amount necessary to meet the student 17 loan obligations incurred by the Commission. 18 Section 10. Definitions. In this Act: 19 "Commission" means the Illinois Student Assistance 20 Commission. 21 "Eligible institution" means a postsecondary education 22 institution in this State that is determined by the 23 Commission to meet all of the following requirements: 24 (1) The institution is eligible to participate in 25 State and federal financial aid programs. 26 (2) The institution is a recognized teacher 27 training institution, as defined in Section 21-21 of the 28 School Code, operating a program of preparation for 29 teacher certification. 30 "Low-performing school" means a school on the State Board 31 of Education's academic watch list under Section 2-3.25d of 32 the School Code at the time that the teacher is hired. -4- LRB9203659NTsb 1 Section 15. Eligibility for loan assumption. 2 (a) Any person enrolled in an eligible institution is 3 eligible to enter into an agreement for loan assumption, to 4 be redeemed pursuant to Section 25 of this Act upon becoming 5 employed as a teacher, if he or she meets the requirements 6 set forth in this Section. In order to be eligible to enter 7 into an agreement for loan assumption, an applicant must 8 satisfy all of the following conditions: 9 (1) The applicant (i) has completed at least 60 10 semester units or the equivalent at a postsecondary 11 education institution and (ii) is enrolled in an academic 12 program leading to a baccalaureate degree at an eligible 13 institution or has been admitted to a program of 14 preparation for teacher certification at an eligible 15 institution. 16 (2) The applicant is enrolled or has been admitted 17 to a program in which he or she will be enrolled on at 18 least a half-time basis, as determined by the 19 participating eligible institution. The applicant shall 20 agree to maintain satisfactory academic progress and a 21 minimum of half-time enrollment, as defined by the 22 participating eligible institution. 23 (3) The applicant has been judged by his or her 24 eligible institution to have outstanding ability on the 25 basis of criteria that may include without limitation any 26 of the following: 27 (A) Grade point average. 28 (B) Test scores. 29 (C) Faculty evaluations. 30 (D) Interviews. 31 (E) Other recommendations. 32 (4) The applicant has received or is approved to 33 receive a loan under one or more of the following 34 designated loan programs: -5- LRB9203659NTsb 1 (A) The Federal Family Education Loan Program 2 (20 U.S.C. 1071 and following). 3 (B) Any loan program approved by the 4 Commission. 5 (5) The applicant has agreed to teach full time in 6 a public elementary or secondary school in this State for 7 at least 4 consecutive school years after obtaining a 8 teaching certificate (i) in a subject area that is 9 designated as a current or projected shortage area by the 10 State Superintendent of Education or (ii) at a school 11 that, at the time that the teacher is hired, meets any of 12 the following criteria: 13 (A) It serves a large population of pupils 14 from low-income families, as designated by the State 15 Superintendent of Education. 16 (B) It is a low-performing school. 17 (b) An applicant who has completed fewer than 60 18 semester units or the equivalent at a postsecondary education 19 institution is not eligible under this Section to participate 20 in the loan assumption program set forth in this Act. 21 (c) The agreements entered into each year pursuant to 22 subsection (a) of this Section at each eligible institution 23 or participating school district or regional office of 24 education must be with applicants who meet the criteria 25 specified in paragraph (3) of subsection (b) of Section 5 of 26 this Act or agree to teach in any of the subject areas listed 27 pursuant to Section 5 of this Act. An agreement shall remain 28 valid even if the subject area under which an applicant 29 becomes eligible to enter into an agreement ceases to be a 30 designated shortage field by the time the applicant becomes a 31 teacher. 32 (d) A person participating in the loan assumption 33 program pursuant to this Section shall not enter into more 34 than one agreement. -6- LRB9203659NTsb 1 Section 20. Lists furnished by State Superintendent. 2 The State Superintendent of Education shall furnish the 3 Commission with all of the following: 4 (1) Commencing January 1, 2002 and every January 1 5 thereafter, a list of teaching fields that have the most 6 critical shortage of teachers. The State Superintendent 7 of Education shall review this list annually and revise 8 the list as he or she deems necessary. 9 (2) A list of schools that serve a large population 10 of pupils from low-income families, as designated for 11 purposes of the Perkins Loan Program or according to 12 standards the State Superintendent of Education deems 13 appropriate. 14 (3) Commencing January 1, 2002 and every January 1 15 thereafter, a list of schools serving rural areas. The 16 list shall be established according to standards deemed 17 appropriate by the State Superintendent of Education. 18 (4) Commencing January 1, 2002 and every January 1 19 thereafter, a list of low-performing schools. 20 Section 25. When payments commence. The Commission 21 shall commence loan assumption payments, as specified in 22 Section 30 of this Act, upon verification that the applicant 23 has fulfilled all of the following: 24 (1) The applicant has received a teaching 25 certificate. 26 (2) The applicant has provided full-time classroom 27 instruction in a public elementary or secondary school in 28 this State for the equivalent of one school year. 29 (3) The applicant has met the requirements of the 30 loan assumption agreement and all other pertinent 31 conditions of this Act. 32 Section 30. Terms of loan assumption. The terms of a -7- LRB9203659NTsb 1 loan assumption granted under this Act shall be as follows, 2 subject to the specific terms of each loan assumption 3 agreement: 4 (1) After a program participant has completed one 5 school year of full-time classroom instruction in a 6 public elementary or secondary school in this State, the 7 Commission shall assume up to $2,000 of the participant's 8 outstanding liability under one or more of the designated 9 loan programs. 10 (2) After a program participant has completed 2 11 consecutive school years of full-time classroom 12 instruction in a public elementary or secondary school in 13 this State, the Commission shall assume up to an 14 additional $3,000 of the participant's outstanding 15 liability under one or more of the designated loan 16 programs, for a total loan assumption of up to $5,000. 17 (3) After a program participant has completed 3 18 consecutive school years of full-time classroom 19 instruction in a public elementary or secondary school in 20 this State, the Commission shall assume up to a maximum 21 of an additional $3,000 of the participant's outstanding 22 liability under one or more of the designated loan 23 programs, for a total loan assumption of up to $8,000. 24 (4) After a program participant has completed 4 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 a maximum 28 of an additional $3,000 of the participant's outstanding 29 liability under one or more of the designated loan 30 programs, for a total loan assumption of up to $11,000. 31 Section 35. Out-of-state teachers. Notwithstanding 32 paragraph (3) of subsection (b) of Section 5 of this Act and 33 notwithstanding Section 45 of this Act, for the purpose of -8- LRB9203659NTsb 1 the recruitment of teachers from outside this State, the 2 Commission may make loan assumption agreements with 3 out-of-state teachers who fulfill the terms of Section 30 of 4 this Act and are otherwise eligible to enter into agreements. 5 A teacher who enters into an agreement pursuant to this 6 Section shall hold a valid teaching certificate, in the 7 subject area of the Illinois teaching position, from the 8 state in which he or she resides. 9 Section 40. Other loan assumption benefits. In addition 10 to the amounts set forth in Section 30 of this Act, for each 11 of the 4 school years of classroom instruction referenced in 12 Section 30 of this Act, the following loan assumption 13 benefits shall be granted: 14 (1) $1,000 of additional liability per year shall 15 be assumed for a person who holds a certificate 16 appropriate for teaching and who teaches mathematics, 17 science, or special education. 18 (2) $1,000 of additional liability per year shall 19 be assumed for a person who teaches in a school in the 20 lowest 20th percentile of low-performing schools. 21 Eligibility for the benefit set forth in this paragraph 22 (2) shall be limited to a person who holds a certificate 23 appropriate for teaching and who teaches mathematics, 24 science, or special education. 25 (3) Not more than a total of $5,000,000 shall be 26 expended in any school year for the purposes of this 27 Section. 28 Section 45. Distribution of program information. The 29 Commission shall distribute loan assumption program 30 information and student applications to participate in the 31 loan assumption program authorized under this Act to each 32 eligible institution and to each school district and regional -9- LRB9203659NTsb 1 office of education. Each eligible institution shall receive 2 at least one application, and the remainder shall be 3 distributed to eligible institutions proportionate to the 4 number of teaching candidates from each institution who 5 completed the coursework required for a teaching certificate 6 during the previous year. In addition, the Commission shall 7 examine its outreach and marketing strategies to inform both 8 potential undergraduates and persons employed outside of 9 academia about the availability and benefits of the loan 10 assumption program. To this end, the Commission shall enlist 11 the advice and support of the public universities in this 12 State. 13 Section 50. Institutional agreement. Each eligible 14 institution, school district, and regional office of 15 education shall sign an institutional agreement with the 16 Commission, certifying its intent to administer the loan 17 assumption program authorized under this Act according to all 18 applicable published rules and guidelines and to make special 19 efforts to notify persons regarding the availability of the 20 program, particularly economically disadvantaged students at 21 eligible institutions. 22 Section 55. Coordination with other programs. To the 23 extent feasible, each eligible institution shall coordinate 24 the loan assumption program authorized under this Act with 25 other programs designed to recruit students to enter the 26 teaching profession. 27 Section 60. Administration; rules. 28 (a) The Commission shall administer this Act and shall 29 adopt rules for that purpose. The rules shall include 30 without limitation provisions regarding the period of time 31 during which an agreement shall remain valid, the -10- LRB9203659NTsb 1 reallocation of resources in light of agreements that are not 2 utilized by program participants, the failure, for any 3 reason, of a program participant to complete a minimum of 4 4 consecutive school years of classroom instruction, and the 5 development of projections for funding purposes. 6 (b) The Commission shall solicit the advice of 7 representatives from postsecondary education institutions, 8 the State Board of Education, the State Teacher Certification 9 Board, school districts, and regional offices of education 10 regarding proposed rules. 11 Section 65. Annual report. The Commission shall report 12 annually to the General Assembly regarding all of the 13 following, on the basis of sex, age, and ethnicity: 14 (1) The total number of loan assumption program 15 participants. 16 (2) The number of loan assumption agreements 17 entered into with juniors and seniors at eligible 18 institutions. 19 (3) The number of participants who agree to teach 20 in a subject matter shortage area. 21 (4) The number of participants who agree to teach 22 in schools with a high ratio of pupils from low-income 23 families and in low-performing schools. 24 (5) The number of participants who agree to teach 25 in schools serving rural areas. 26 (6) The number of participants who receive a loan 27 assumption benefit, classified by payment year. 28 (7) The number of out-of-state teachers who enter 29 into the agreements. 30 Section 70. Limits on loan assumption; priorities. 31 (a) For the 2001-2002 school year, the Commission shall 32 issue warrants for the assumption of up to 5,500 student -11- LRB9203659NTsb 1 loans for program participants eligible under this Act. 2 (b) Commencing with the 2002-2003 school year and each 3 school year thereafter, all of the following apply: 4 (1) The Commission shall enter into agreements for 5 the assumption of up to 6,500 student loans for program 6 participants eligible under this Act. 7 (2) Notwithstanding the limitation of 6,500 8 warrants set forth in paragraph (1) of this subsection 9 (b), the Commission shall issue warrants in a quantity 10 determined by the Governor and the General Assembly 11 through appropriations for the assumption of student 12 loans under this Act. 13 (3) Priority for these loan assumption agreements 14 shall be given to applicants who are recipients of 15 federally subsidized loans or other need-based loans, as 16 determined by the Commission. 17 (4) Priority for these loan assumption agreements 18 shall be given to applicants who agree to obtain a 19 teaching certificate to teach in mathematics or science. 20 (c) The issuance of warrants under this Act in any 21 fiscal year shall be subject to appropriation. 22 Section 999. Effective date. This Act takes effect upon 23 becoming law.