S T A T E O F N E W Y O R K
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8302
I N S E N A T E
April 27, 2018
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Introduced by Sen. YOUNG -- read twice and ordered printed, and when
printed to be committed to the Committee on Higher Education
AN ACT to amend the education law, in relation to establishing the rural
teacher education loan repayment program
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The education law is amended by adding a new section 676-a
to read as follows:
§ 676-A. RURAL TEACHER EDUCATION LOAN REPAYMENT PROGRAM. 1. DEFI-
NITIONS. FOR THE PURPOSES OF THIS SECTION:
A. "RURAL SCHOOL DISTRICT" SHALL MEAN A SCHOOL DISTRICT PROVIDING
SERVICES WITHIN A RURAL AREA.
B. "RURAL AREA" SHALL MEAN A COUNTY WITH A POPULATION OF TWO-HUNDRED
THOUSAND OR LESS; OR A TOWN WITH A POPULATION DENSITY OF ONE HUNDRED
FIFTY OR LESS PER SQUARE MILE.
C. "STUDENT LOAN EXPENSES" SHALL MEAN THE AGGREGATE TOTAL OF ANNUAL
STUDENT LOANS FOR THE COST OF ATTENDANCE AT AN UNDERGRADUATE AND/OR
GRADUATE INSTITUTION LEADING TO TEACHING CERTIFICATION. INTEREST PAID OR
DUE ON SUCH LOANS SHALL BE DEEMED TO BE ELIGIBLE FOR REIMBURSEMENT
PURSUANT TO THIS SECTION.
2. ESTABLISHMENT. A. THERE SHALL BE ESTABLISHED WITHIN THE DEPARTMENT
THE RURAL TEACHER EDUCATION LOAN REPAYMENT PROGRAM. THE DEPARTMENT
SHALL, IN COOPERATION AND COORDINATION WITH THE NEW YORK STATE CENTER
FOR RURAL SCHOOLS, ANNUALLY IDENTIFY RURAL SCHOOL DISTRICTS WHICH ARE
HAVING DIFFICULTY ATTRACTING AND RETAINING TEACHERS, AND DEVELOP CRITE-
RIA UPON WHICH AWARDS SHALL BE MADE TO TEACHERS WHO BECOME EMPLOYED BY
SUCH IDENTIFIED RURAL SCHOOL DISTRICTS WHO AGREE TO PROVIDE TEACHING
SERVICES WITHIN SUCH RURAL AREA FOR NOT LESS THAN FIVE YEARS.
B. THE COMMISSIONER IS AUTHORIZED, WITHIN AMOUNTS MADE AVAILABLE FOR
THE PURPOSES OF THIS SECTION, TO MAKE AWARDS BEGINNING JANUARY FIRST,
TWO THOUSAND NINETEEN, TO A TEACHER WHO AS DETERMINED BY THE COMMISSION-
ER TO BE TAKING EMPLOYMENT IN A RURAL AREA IDENTIFIED AS BEING UNDER-
SERVED, WHO IS LICENSED TO TEACH IN THIS STATE AND WHO AGREES TO FOR AT
LEAST FIVE YEARS TEACH IN SUCH RURAL AREA. SUCH A TEACHER SHALL BE
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13448-04-8
S. 8302 2
ELIGIBLE FOR A LOAN REPAYMENT AWARD OF UP TO TWENTY THOUSAND DOLLARS PER
YEAR.
3. AWARDS. RURAL TEACHER EDUCATION LOAN REPAYMENT AWARDS SHALL BE
AWARDED ANNUALLY. SUCH AWARDS SHALL BE ALLOCATED BY THE PRESIDENT IN
ACCORDANCE WITH THE CRITERIA ESTABLISHED PURSUANT TO SUBDIVISION TWO OF
THIS SECTION.
4. LIMIT ON AWARDS. LOAN REPAYMENT AWARDS MADE TO A TEACHER PURSUANT
TO SUBDIVISION TWO OF THIS SECTION SHALL NOT EXCEED THE TOTAL QUALIFYING
OUTSTANDING DEBT OF THE TEACHER FROM STUDENT LOANS TO COVER TUITION AND
OTHER RELATED EDUCATIONAL EXPENSES, MADE BY OR GUARANTEED BY THE FEDERAL
OR STATE GOVERNMENT, OR MADE BY A LENDING OR EDUCATIONAL INSTITUTION
APPROVED UNDER TITLE IV OF THE FEDERAL HIGHER EDUCATION ACT. LOAN REPAY-
MENT AWARDS SHALL BE USED SOLELY TO REPAY SUCH OUTSTANDING DEBT.
5. DEFAULT. WITHIN SUCH TIME AS THE COMMISSIONER SHALL BY REGULATION
PROVIDE, A RECIPIENT OF AN AWARD SHALL HAVE PRACTICED AS A TEACHER IN AN
RURAL AREA IN THE STATE. IF A RECIPIENT FAILS TO COMPLY FULLY WITH SUCH
CONDITIONS, THE PRESIDENT SHALL BE ENTITLED TO RECEIVE FROM SUCH RECIPI-
ENT AN AMOUNT TO BE DETERMINED BY THE FORMULA:
A = 2B(T-S)
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T
IN WHICH "A" IS THE AMOUNT THE PRESIDENT IS ENTITLED TO RECOVER, "B" IS
THE SUM OF ALL PAYMENTS MADE TO THE RECIPIENT AND THE INTEREST ON SUCH
AMOUNT WHICH WOULD BE PAYABLE IF AT THE TIMES SUCH AWARDS WERE PAID THEY
WERE LOANS BEARING INTEREST AT THE MAXIMUM PREVAILING RATE; "T" IS THE
TOTAL NUMBER OF MONTHS IN THE RECIPIENT'S PERIOD OF OBLIGATED SERVICES;
AND "S" IS THE NUMBER OF MONTHS OF SERVICES ACTUALLY RENDERED BY THE
RECIPIENT. ANY AMOUNT WHICH THE PRESIDENT IS ENTITLED TO RECOVER UNDER
THIS SUBDIVISION SHALL BE PAID WITHIN THE FIVE-YEAR PERIOD BEGINNING ON
THE DATE THAT THE RECIPIENT FAILED TO COMPLY WITH THIS CONDITION. ANY
OBLIGATION TO COMPLY WITH SUCH PROVISIONS SHALL BE CANCELED UPON THE
DEATH OF THE RECIPIENT. THE COMMISSIONER SHALL PROMULGATE REGULATIONS TO
PROVIDE FOR THE WAIVER OR SUSPENSION OF ANY FINANCIAL OBLIGATION WHEN
COMPLIANCE WOULD INVOLVE EXTREME HARDSHIP.
6. RULES. THE COMMISSIONER SHALL CONSULT WITH THE NEW YORK STATE
CENTER FOR RURAL SCHOOLS, AND THE COMMISSIONER, IN COORDINATION WITH THE
CORPORATION, SHALL PROMULGATE REGULATIONS TO EFFECTUATE THE PROVISIONS
AND PURPOSES OF THIS SECTION.
§ 2. This act shall take effect on the one hundred twentieth day after
it shall have become a law; provided, however, that effective immediate-
ly, the addition, amendment and/or repeal of any criteria, rule or regu-
lation necessary for the implementation of this act on its effective
date are authorized and directed to be made and completed on or before
such effective date.