SB3025 93RD GENERAL ASSEMBLY

LRB093 21122 NHT 47176 b

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.

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 Loan Assumption for Teachers Act.

Section 5. Legislative findings, declarations, and intent.

(a) The General Assembly finds and declares all of the following:

(1) There is a growing shortage of high-quality classroom teachers, and there is a need for qualified teachers throughout this State.

(2) One of the most important elements in a pupil's success at learning is the quality of the teacher.

(3) The teacher shortage is most serious in particular subject areas, partly due to the shortage of students in these fields who enter the teaching profession.

(4) Many school districts have difficulty recruiting and retaining high-quality teachers for low-performing schools, for pupils with special needs, and for schools serving rural areas or large populations of pupils from low-income and linguistic minority families.

(5) The rising costs of higher education, coupled with a shift in available financial aid from scholarships and grants to loans, make loan repayment options an important consideration in a student's decision to pursue a postsecondary education.

(6) The availability of financial aid and loan repayment assistance are important considerations for many students, especially economically disadvantaged students, in making their educational decisions.

(b) It is, therefore, the intent of the General Assembly that all of the following occur:

(1) That the loan assumption for teachers program authorized under this Act be designed to encourage persons to enter into the teaching profession in designated subject matter shortage areas and in schools serving large populations of pupils from low-income families and schools serving rural areas.

(2) That this Act accomplish all of the following:

(A) Provide outstanding postsecondary education students, particularly economically disadvantaged students, with the assurance of financial assistance to encourage them to complete postsecondary education programs leading to teacher certification and to seek employment as teachers.

(B) Provide persons who agree to become teachers in a subject matter shortage area with the assurance of financial assistance to encourage them to complete the coursework necessary to obtain a teaching certificate.

(C) Identify subject matter areas or schools in which there are shortages of teachers and provide incentives for persons to obtain teacher certification and seek teaching positions in those areas.

(D) Identify schools serving rural areas and schools serving large populations of students from low-income families and provide incentives for persons to obtain teacher certification and seek teaching positions in those schools.

(E) Identify low-performing schools and provide incentives for persons to obtain teacher certification and seek teaching positions in those schools.

(3) That commencing with the 2005-2006 school year, all persons eligible to enter into agreements for loan assumption pursuant to this Act shall be persons who need to complete training or coursework in order to be certified as a teacher and who agree to obtain a teaching certificate and teach in a designated subject matter shortage area or in a school that, at the time that the teacher is hired, meets any of the following criteria:

(A) Serves a large population of pupils from low-income families.

(B) Is a low-performing school.

(4) That funding necessary for the administration of this Act shall be included within the annual budget of the Commission in an amount necessary to meet the student loan obligations incurred by the Commission.

Section 10. Definitions. In this Act:

"Commission" means the Illinois Student Assistance Commission.

"Eligible institution" means a postsecondary education institution in this State that is determined by the Commission to meet all of the following requirements:

(1) The institution is eligible to participate in State and federal financial aid programs.

(2) The institution is a recognized teacher training institution, as defined in Section 21-21 of the School Code, operating a program of preparation for teacher certification.

"Low-performing school" means a school on the State Board of Education's academic watch list under Section 2-3.25d of the School Code at the time that the teacher is hired.

Section 15. Eligibility for loan assumption.

(a) Any person enrolled in an eligible institution is eligible to enter into an agreement for loan assumption, to be redeemed pursuant to Section 25 of this Act upon becoming employed as a teacher, if he or she meets the requirements set forth in this Section. In order to be eligible to enter into an agreement for loan assumption, an applicant must satisfy all of the following conditions:

(1) The applicant (i) has completed at least 60 semester units or the equivalent at a postsecondary education institution and (ii) is enrolled in an academic program leading to a baccalaureate degree at an eligible institution or has been admitted to a program of preparation for teacher certification at an eligible institution.

(2) The applicant is enrolled or has been admitted to a program in which he or she will be enrolled on at least a half-time basis, as determined by the participating eligible institution. The applicant shall agree to maintain satisfactory academic progress and a minimum of half-time enrollment, as defined by the participating eligible institution.

(3) The applicant has been judged by his or her eligible institution to have outstanding ability on the basis of criteria that may include without limitation any of the following:

(A) Grade point average.

(B) Test scores.

(C) Faculty evaluations.

(D) Interviews.

(E) Other recommendations.

(4) The applicant has received or is approved to receive a loan under one or more of the following designated loan programs:

(A) The Federal Family Education Loan Program (20 U.S.C. 1071 and following).

(B) Any loan program approved by the Commission.

(5) The applicant has agreed to teach full time in a public elementary or secondary 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, meets any of the following criteria:

(A) It serves a large population of pupils from low-income families, as designated by the State Superintendent of Education.

(B) It is a low-performing school.

(b) An applicant who has completed fewer than 60 semester units or the equivalent at a postsecondary education institution is not eligible under this Section to participate in the loan assumption program set forth in this Act.

(c) The agreements entered into each year pursuant to subsection (a) of this Section at each eligible institution or participating school district or regional office of education must be with applicants who meet the criteria specified in paragraph (3) of subsection (b) of Section 5 of this Act or agree to teach in any of the subject areas listed pursuant to Section 5 of this Act. An agreement shall remain valid even if the subject area under which an applicant becomes eligible to enter into an agreement ceases to be a designated shortage field by the time the applicant becomes a teacher.

(d) A person participating in the loan assumption program pursuant to this Section shall not enter into more than one agreement.

Section 20. Lists furnished by State Superintendent. The State Superintendent of Education shall furnish the Commission with all of the following:

(1) Commencing January 1, 2006 and every January 1 thereafter, a list of teaching fields that have the most critical shortage of teachers. The State Superintendent of Education shall review this list annually and revise the list as he or she deems necessary.

(2) A list of schools that serve a large population of pupils from low-income families, as designated for purposes of the Perkins Loan Program or according to standards the State Superintendent of Education deems appropriate.

(3) Commencing January 1, 2006 and every January 1 thereafter, a list of schools serving rural areas. The list shall be established according to standards deemed appropriate by the State Superintendent of Education.

(4) Commencing January 1, 2006 and every January 1 thereafter, a list of low-performing schools.

Section 25. When payments commence. The Commission shall commence loan assumption payments, as specified in Section 30 of this Act, upon verification that the applicant has fulfilled all of the following:

(1) The applicant has received a teaching certificate.

(2) The applicant has provided full-time classroom instruction in a public elementary or secondary school in this State for the equivalent of one school year.

(3) The applicant has met the requirements of the loan assumption agreement and all other pertinent conditions of this Act.

Section 30. Terms of loan assumption. The terms of a loan assumption granted under this Act shall be as follows, subject to the specific terms of each loan assumption agreement:

(1) After a program participant has completed one school year of full-time classroom instruction in a public elementary or secondary school in this State, the Commission shall assume up to $2,000 of the participant's outstanding liability under one or more of the designated loan programs.

(2) After a program participant has completed 2 consecutive school years of full-time classroom instruction in a public elementary or secondary school in this State, the Commission shall assume up to an additional $3,000 of the participant's outstanding liability under one or more of the designated loan programs, for a total loan assumption of up to $5,000.

(3) After a program participant has completed 3 consecutive school years of full-time classroom instruction in a public elementary or secondary school in this State, the Commission shall assume up to a maximum of an additional $3,000 of the participant's outstanding liability under one or more of the designated loan programs, for a total loan assumption of up to $8,000.

(4) After a program participant has completed 4 consecutive school years of full-time classroom instruction in a public elementary or secondary school in this State, the Commission shall assume up to a maximum of an additional $3,000 of the participant's outstanding liability under one or more of the designated loan programs, for a total loan assumption of up to $11,000.

Section 35. Out-of-state teachers. Notwithstanding paragraph (3) of subsection (b) of Section 5 of this Act and notwithstanding Section 45 of this Act, for the purpose of the recruitment of teachers from outside this State, the Commission may make loan assumption agreements with out-of-state teachers who fulfill the terms of Section 30 of this Act and are otherwise eligible to enter into agreements. A teacher who enters into an agreement pursuant to this Section shall hold a valid teaching certificate, in the subject area of the Illinois teaching position, from the state in which he or she resides.

Section 40. Other loan assumption benefits. In addition to the amounts set forth in Section 30 of this Act, for each of the 4 school years of classroom instruction referenced in Section 30 of this Act, the following loan assumption benefits shall be granted:

(1) $1,000 of additional liability per year shall be assumed for a person who holds a certificate appropriate for teaching and who teaches mathematics, science, or special education.

(2) $1,000 of additional liability per year shall be assumed for a person who teaches in a school in the lowest 20th percentile of low-performing schools. Eligibility for the benefit set forth in this paragraph (2) shall be limited to a person who holds a certificate appropriate for teaching and who teaches mathematics, science, or special education.

(3) Not more than a total of $5,000,000 shall be expended in any school year for the purposes of this Section.

Section 45. Distribution of program information. The Commission shall distribute loan assumption program information and student applications to participate in the loan assumption program authorized under this Act to each eligible institution and to each school district and regional office of education. Each eligible institution shall receive at least one application, and the remainder shall be distributed to eligible institutions proportionate to the number of teaching candidates from each institution who completed the coursework required for a teaching certificate during the previous year. In addition, the Commission shall examine its outreach and marketing strategies to inform both potential undergraduates and persons employed outside of academia about the availability and benefits of the loan assumption program. To this end, the Commission shall enlist the advice and support of the public universities in this State.

Section 50. Institutional agreement. Each eligible institution, school district, and regional office of education shall sign an institutional agreement with the Commission, certifying its intent to administer the loan assumption program authorized under this Act according to all applicable published rules and guidelines and to make special efforts to notify persons regarding the availability of the program, particularly economically disadvantaged students at eligible institutions.

Section 55. Coordination with other programs. To the extent feasible, each eligible institution shall coordinate the loan assumption program authorized under this Act with other programs designed to recruit students to enter the teaching profession.

Section 60. Administration; rules.

(a) The Commission shall administer this Act and shall adopt rules for that purpose. The rules shall include without limitation provisions regarding the period of time during which an agreement shall remain valid, the reallocation of resources in light of agreements that are not utilized by program participants, the failure, for any reason, of a program participant to complete a minimum of 4 consecutive school years of classroom instruction, and the development of projections for funding purposes.

(b) The Commission shall solicit the advice of representatives from postsecondary education institutions, the State Board of Education, the State Teacher Certification Board, school districts, and regional offices of education regarding proposed rules.

Section 65. Annual report. The Commission shall report annually to the General Assembly regarding all of the following, on the basis of sex, age, and ethnicity:

(1) The total number of loan assumption program participants.

(2) The number of loan assumption agreements entered into with juniors and seniors at eligible institutions.

(3) The number of participants who agree to teach in a subject matter shortage area.

(4) The number of participants who agree to teach in schools with a high ratio of pupils from low-income families and in low-performing schools.

(5) The number of participants who agree to teach in schools serving rural areas.

(6) The number of participants who receive a loan assumption benefit, classified by payment year.

(7) The number of out-of-state teachers who enter into the agreements.

Section 70. Limits on loan assumption; priorities.

(a) For the 2005-2006 school year, the Commission shall issue warrants for the assumption of up to 5,500 student loans for program participants eligible under this Act.

(b) Commencing with the 2006-2007 school year and each school year thereafter, all of the following apply:

(1) The Commission shall enter into agreements for the assumption of up to 6,500 student loans for program participants eligible under this Act.

(2) Notwithstanding the limitation of 6,500 warrants set forth in paragraph (1) of this subsection (b), the Commission shall issue warrants in a quantity determined by the Governor and the General Assembly through appropriations for the assumption of student loans under this Act.

(3) Priority for these loan assumption agreements shall be given to applicants who are recipients of federally subsidized loans or other need-based loans, as determined by the Commission.

(4) Priority for these loan assumption agreements shall be given to applicants who agree to obtain a teaching certificate to teach in mathematics or science.

(c) The issuance of warrants under this Act in any fiscal year shall be subject to appropriation.

Section 999. Effective date. This Act takes effect upon becoming law.